A valid reason isn’t enough

Two Fair Work Commission decisions reported this month send the same message to employers: having a good reason to dismiss someone does not protect you if the way you do it is unfair.

A Sydney currency trader at Xe was due back from annual leave in November 2025, but logged in from a hotel in Singapore instead. He had previously asked to work from Singapore for a year and been refused. The company traced his work laptop to the hotel and dismissed him in early December 2025 for breaching policy and a breakdown of trust.

The Commission found his concealment was deliberate and dishonest, and that the employer had a valid reason. But it still found the dismissal unfair, because the company did not follow a fair process before dismissing him.

He received no compensation, because he had already been paid four weeks in lieu of notice. The employer was fortunate. In many cases, a flawed process with a valid reason still results in a compensation order and legal costs.

In a Queensland case decided on 9 October 2026, a truck detailing business told a long-serving employee by text that she was “no longer welcome”, effective immediately, in an exchange the Commission described as abusive and threatening.

There was no conduct or performance reason, no warning and no chance to respond. The business then ignored the Commission for almost a year, so the case was decided on the employee’s evidence alone. The dismissal was found to be harsh, unjust and unreasonable, and being a small business carried little weight.

The Commission looks at both the reason and the process. Even when an employee has clearly done the wrong thing, you must still give them a fair hearing before deciding. And if a claim is made, you must engage with the Commission.

Before dismissing an employee for conduct or performance:

From 20 October 2026, parties in individual matters such as unfair dismissal claims must disclose any use of AI in their documents and confirm their accuracy. Whether you are responding to a claim or preparing one, check AI-assisted material carefully before it is filed.

Explore Potential supports South Australian employers through every step of a disciplinary or dismissal process, from investigations and allegation letters to show cause and outcome letters. A fair process protects your business and treats your people with respect. Get in touch before you act, not after a claim lands.