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ARTICLE · 05 APRIL 2024

Be direct: Resolution to remove a director from all offices did not terminate employment

Holding Redlich
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Employee dismissals must be authorised and clearly communicated, or employers risk potential unfair dismissal claims.

AustraliaEmployment and HR

In the recent decision of Niccolo Pty Ltd v Sandro Drummond [2024] FWCFB 101, the Full Bench of the Fair Work Commission (FWC) held that a resolution of the shareholders of a company to terminate a director from their offices was ineffective to also terminate their employment as managing director of the company.

What happened?

Sandro Drummond was a company director of Niccolo Pty Ltd (Niccolo), a coffee business based in Melbourne. Mr Drummond was also employed as the managing director of Niccolo.

Nicholas Bolton, the founder of Niccolo, assisted the general manager of Niccolo on matters relating to the management of Niccolo but did not hold any position within Niccolo, nor was he an employee of Niccolo.

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