Key Points:
Awarding costs in adverse action claims could deter
employees from making them – and make successful claims
more expensive for employers.
A recent decision which challenges the commonly held view that
adverse action claims are effectively "no costs" matters
under the Fair Work Act could have significant effects on future
claims.
In Cugura v Frankston City Council (No.2) FMCA 530, Federal
Magistrate O'Sullivan ordered an employee who unsuccessfully
pursued an adverse action claim to pay his employer's costs.
The costs ruling signifies a departure from the general judicial
reluctance to award costs in such matters.
Facts
The costs application followed the dismissal of Mr Cugura's
claim that his employment had been wrongfully terminated in
September 2010 because of his disability.
