Employer’s Pressure to Sign New Contract Amounts to Unfair Dismissal
An employee with over 9 years of service and a clean record was presented with a new job description and contract which included higher sales targets and post-termination restraints. The employee was concerned and sought amendments. During ongoing discussions, the employee reiterated his concerns, confirming he wished to remain employed. The employer told the employee to ‘finish up’ immediately.
The Fair Work Commission ruled that it was unjust, unreasonable and harsh to dismiss the employee for declining to sign the proposed new contract. The dismissal was therefore unfair, and the employee was awarded compensation of 19 weeks’ pay plus superannuation.
Take Out Point: Employers cannot require employees to accept new contract terms without mutual consent. Changes must be agreed unilaterally. Subsequent punitive measures for refusal are grounds for unfair dismissal.
See: Clint Dupre v Excell Protective Group Pty Ltd [2024] FWC 2313 (2 September 2024)