Best to get advice!

In Cerin v ACI Operations Pty Ltd & Ors [2015] FCCA 2762 a HR Manager was held personally liable when an incorrect notice payment was made to a staff member.

This case involved the termination of employment of an individual following a period of modified duties due to a workplace injury in 2009.

In 2011 he was given a new written employment contract changing his original role taking into account his reduced capacity, of which he verbally accepted.

In 2012 the employer received advice from WorkCover that the employer no longer needed to provide the employee with work under the Workers Rehabilitation and Compensation Act 1986 (SA).  Therefore, the employer advised the employee of termination with an effective date, which in effect was 4 weeks and 3 days’ notice.

The individual brought a claim for the 2 days short (amounting to $180) under the Fair Work Act 2009 and asked that penalties be imposed against the employer and the HR Manager.

The court did not agree that the termination was under the doctrine of frustration.  It found that the employer entered into a new employment contract in 2011 that recognised the limitations of the worker’s capacity to work and had done so for 16 months prior to the termination.

ACI was ordered to pay $20,400 in penalties to the employee (for $180)!!!  The HR Manager was also ordered to pay $1,020 to the employee.

So best for you and your HR Manager to get advice before taking any action, even well before termination.