[2025] FWC 2219
Citation: [2025] FWC 2219
What happened
the Applicant claims she was unfairly dismissed from Kagura Games LLC, a US-based company that develops computer games. Kagura argues the Applicant was an independent contractor and not a national system employee. the Applicant signed a contract describing her as an independent contractor, performing game testing work. The contract outlined payment rates, responsibilities for expenses, and dispute resolution processes. She also signed a non-disclosure agreement and a US tax form. Kagura has approximately 50 employees working remotely internationally. the Applicant was terminated with 14 days' notice via a Discord message, with no explanation provided. Kagura stated the termination was due to feedback about her work performance, though no specifics were given.
What was decided
The Fair Work Commission found the Applicant was an employee, not an independent contractor, and Kagura was a national system employer. The Commission considered the 'practical reality' of the relationship, noting Kagura's control over work processes and data security. Kagura's termination of the Applicant's contract was deemed unfair, as there was no valid reason for the dismissal and no prior warnings or counselling. The Commission ordered Kagura to reinstate the Applicant. An appeal against this decision was lodged and subsequently determined by the Full Bench.
What it means for employers
Employers should carefully consider the true nature of working relationships, focusing on the practical reality rather than just contractual labels. Contracts should accurately reflect the working arrangement. Providing feedback and warnings before termination is crucial, even for contractors. Failing to do so can lead to findings of unfair dismissal.
What it means for employees
Employees should be aware of their rights, even if engaged under a contract that labels them as independent contractors. The Fair Work Commission will look beyond the contract to determine the true nature of the working relationship. If you believe you are misclassified, seek legal advice.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →