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ARTICLE · 12 NOVEMBER 2020

The $5.2 million adverse action mistake

Having a thorough investigation process should protect an employer from any adverse action claim, if one is made.

AustraliaEmployment and HR

Assisted by Laure-Elise Kenworthy

It should go without saying that an employer must have a legitimate and valid reason to terminate an employee and must follow a procedurally fair process before such a decision is made.

An employer cannot merely exit an employee who has made a complaint or enquiry about their employment because an investigation process would be too difficult to conduct (from a time and cost perspective) or they don't believe what the employee is alleging is true. If an employer throws a legitimate employee grievance or a complaint into the "too hard basket" and sacks the employee anyway, the legal exposure can be huge!

In Roohizadegan v TechnologyOne Limited [2020] the Court has awarded a former Senior Manager of company, TechnologyOne, over $5.2 million in compensation after he was unlawfully dismissed.

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