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ARTICLE · 29 MARCH 2016

Demotion not necessarily a dismissal

The demotion of an employee may not always meet the meaning of dismissed in section 385 of the Fair Work Act 2009 (Cth).

AustraliaEmployment and HR

The demotion of an employee may not in all circumstances meet the meaning of dismissed in section 385 of the Fair Work Act 2009 (Cth) (the Act). Consideration must be given to the continuation of employment, the whether the demotion imposed a significant reduction in status and payment.

The recent case of Phillip Moyle v MSS Security Pty Ltd [2015] FWC 8330 sheds light on the indicative criterion when determining if a demotion results in a dismissal.

Background

Mr. Phillip Moyle (the Applicant) was employed with MSS Pty Ltd (MSS) in 2013, and was classified as a Level 5 Security Officer under the Security Industry Award 2010 (the Award).

Following two and a half years of service the Applicant was informed by his employer that he would be transferred either Royal Adelaide Hospital or James Nash House to complete his duties. The Applicant was given seven days to decide on his preferred location.

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