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ARTICLE · 11 MARCH 2021

FWC Full Bench explains unfair dismissal compensation and deductions for misconduct

Cooper Grace Ward
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The award of compensation was reduced from 16 weeks to 4 weeks, which included a deduction for the employee's misconduct.

AustraliaEmployment and HR
Megan Pool
Megan Pool
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Section 392(3) of the Fair Work Act 2009 (Cth) provides that, if the Fair Work Commission (FWC) is satisfied that misconduct of a person contributed to the employer's decision to dismiss the person, the FWC must reduce the amount of compensation it would otherwise order by an appropriate amount on account of the misconduct.

In Butterfly Systems Pty Ltd [2021] FWCFB 18, a Full Bench of the FWC made a number of helpful observations about compliance with the Small Business Dismissal Code (Code) and provided a working example of how the FWC will approach deductions to an award of compensation for misconduct.

Facts

Mr Sergeev (the Employee) was employed as a Software Developer by Butterfly Systems Pty Ltd (the Employer).

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