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ARTICLE · 02 MAY 2012

Dismissal when on sick leave can be costly

A company was fined and ordered to pay compensation plus interest and costs for dismissing an employee on sick leave.

AustraliaEmployment and HR

The decision

The Federal Magistrates Court of Australia fined a company $20,000 and ordered that they pay in compensation $37,000 plus interest to an ex-employee as well as in excess of $57,000 in costs for dismissing her due to sick leave.

The background

Ms Kavassilas was a General Manager of a company, Migration Training Australia ('MTA'). She fell ill during her employment and took sick leave. Her sister notified MTA that Ms Kavassilas was unwell on both her first and second day of absence by telephone. She also informed the MTA that Ms Kavassilas would provide a medical certificate on her return.

Ms Kavassilas was sacked on her second day of absence. She was notified of her termination by way of letter delivered to her home. The dismissal took place before she had even had time to produce her medical certificate.

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