[2025] FWC 1959
What happened
the Applicant was dismissed from Jelmac Australia Pty Ltd Trading As Jelmac Directional Drilling. She applied for an unfair dismissal remedy, but failed to comply with directions from the Fair Work Commission and missed hearings. Jelmac Australia Pty Ltd then applied for a costs order against the Applicant, claiming her unreasonable actions caused them to incur costs. Jelmac sought $43,972.26 in costs, based on indemnity costs. the Applicant claimed she had cause for her actions and that wages and entitlements were still owing.
What was decided
The Fair Work Commission found that the Applicant’s failure to comply with directions and attend hearings was unreasonable. While the Commission didn't find her application vexatious or without reasonable prospects of success under sections 611(2)(a) and (b) of the Fair Work Act, it did find that her actions under section 400A caused Jelmac to incur additional costs. A costs order was made, requiring the Applicant to pay $16,822.40 to Jelmac. Certain costs items were excluded from the order.
What it means for employers
Employers can seek cost orders against employees who unreasonably fail to comply with Commission directions or attend hearings during Fair Work proceedings. Thoroughly documenting reasons for dismissal and maintaining records of employee communications is crucial.
What it means for employees
Employees must comply with directions and attend hearings in Fair Work proceedings. Failure to do so can result in a cost order, requiring them to pay the other party’s legal costs. Providing credible explanations for absences is essential.
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