Claudia McLeod v Project 88 TPF Pty Ltd T/A Pink Flamingo Spiegelclub
(U2023/1057)
Sierra Louie v Project 88 TPF Pty Ltd T/A Pink Flamingo Spiegelclub
(U2023/1119)
https://www.fwc.gov.au/documents/decisionssigned/pdf/2023fwc2630.pdf
The main points in the ruling are as follows:
- No Valid Reason for Dismissal: The ruling found that there was no valid reason for the dismissals of Ms. McLeod and Ms. Louie. The gravity of the situation was exaggerated by Project 88’s representatives, making it seem more severe than it actually was.
- Ambush and Lack of Notification: Both Ms. McLeod and Ms. Louie were “ambushed” in meetings on February 3, 2023, where they were confronted with disciplinary issues without prior notice. They were handed termination letters during these meetings without an adequate opportunity to respond.
- Procedural Deficiencies: The process followed by Project 88 during the dismissals was found to be severely deficient. The employees were not given a proper chance to respond to the accusations against them, and the manner in which the dismissals were carried out was abrupt and not in accordance with the requirements of the FW Act.
- Consequences of Denial of Response: The ruling highlights the substantial consequences of denying the employees an opportunity to respond. Had they known about the information used against them, they could have sought advice and potentially avoided their dismissals.
- Project 88’s Lack of Human Resource Expertise: The ruling acknowledges that Project 88 lacked dedicated human resource management specialists, which impacted the handling of the dismissals. However, this does not excuse providing false information to the employees during their dismissal meetings.
- Findings on Unfair Dismissal: The ruling concludes that both Ms. McLeod and Ms. Louie were unfairly dismissed within the meaning of s.385 of the FW Act. Their conduct was not serious enough to justify dismissal, and the way the dismissals were carried out was disproportionate to the gravity of any misconduct.
- Remedy: As a remedy for the unfair dismissals, Project 88 was ordered to pay compensation to both employees. Ms. McLeod was awarded $18,525 plus superannuation, while Ms. Louie was awarded $12,855 plus superannuation. Both payments were to be made within 14 days of the decision.
The ruling finds that Project 88’s actions in dismissing Ms. McLeod and Ms. Louie were not justified and failed to comply with the procedural and legal requirements of fair dismissal. The dismissals were found to be harsh, unjust, and unreasonable, and compensation was ordered to remedy the situation.
In closing, the FWC noted that the way Project 88 had presented the severity of what had occurred made it seem like the employees had ‘broken into Project 88’s equivalent of a “Watergate complex”, stolen key intellectual property secrets and posted them on WikiLeaks’. The FWC noted that what they had actually done was privately discuss the salary of a friend, which was quite unremarkable.
See also:-