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ARTICLE · 09 SEPTEMBER 2012

Australian High Court overturns key adverse action ruling

In a decision that will be welcomed by employers, the High Court has upheld the appeal in this adverse action matter.

AustraliaEmployment and HR

In a decision that will be welcomed by many employers, the High Court has today upheld the appeal in the adverse action matter of Board of Bendigo Regional Institute of Technical and Further Education v Barclay and Anor. It held that there was no scope for the Full Court to make findings regarding the 'unconscious' state of mind of the employer once it had been established by the primary judge that adverse action was not taken by the employer because the employee was a union delegate.

The reason for an employer's decision is not determined by an objective or subjective test. Rather, it is necessary to look at the 'real reason' for the taking of the adverse action.

The Fair Work Act 2009 (Cth) provides that a person must not take adverse action against another person because of a workplace right held by that person. A Full Bench of the Federal Court had taken the view in Barclay that in determining whether a connection between adverse action and a workplace right

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