the Applicant v Broadway Homes Pty Ltd (No 2)
At a glance
- 1
What happened
the Applicant brought a general protections claim against Broadway Homes Pty Ltd after her employment was terminated. She alleged she was dismissed because she exercised, or proposed to exercise, workplace rights, including rights relating to her pay. She also alleged she was underpaid for duties she performed and was not given reasonable notice of termination. The matter was initially commenced in the Fair Work Commission in the same month as her termination before proceeding to the Federal Court. Broadway Homes conceded that a contract of employment existed between the parties.
What was decided
The Federal Court found that Broadway Homes breached section 323 of the Fair Work Act 2009, which requires employers to pay employees in full at least monthly, and section 340, which prohibits adverse action against an employee for exercising a workplace right. The Court accepted that the Applicant was entitled to reasonable remuneration for the duties she performed and to reasonable notice of termination. The decision confirms that taking adverse action against an employee connected to their pay entitlements or the exercise of workplace rights constitutes a breach of the Act.
What it means for employers
Employers must pay employees correctly and on time as required by the Fair Work Act, and must not take adverse action, such as dismissal, against an employee because they raise concerns about their pay or seek to exercise other workplace rights. Even where employment arrangements are informal, a conceded or established contract of employment carries full statutory obligations. Breaching these obligations can result in court findings of unlawful adverse action and liability for unpaid entitlements.
What it means for employees
Employees who believe they have been underpaid or dismissed because they raised concerns about their pay or sought to exercise a workplace right may have grounds for a general protections claim under the Fair Work Act. This case shows that employees can be entitled to reasonable remuneration for work performed and reasonable notice on termination. Proceedings can be started in the Fair Work Commission shortly after dismissal occurs.
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