5.2 Million Reasons to Act Carefully when Terminating an Employee
Posted on October 28, 2020
In Roohizadegan v TechnologyOne Limited [2020] FCA 1407 the Federal Court awarded a manager, who was dismissed after making numerous complaints that he was bullied, damages and penalties in excess of $5.2 million. This included almost $3 million for future economic loss as a result of the inability to work following the exacerbation of a psychiatric injury as a result of the termination. The CEO of the employer was also personally joined as a respondent to the claim as he was the person who solely made the decision to terminate the employment.
The employee had made numerous complaints about bullying from senior executives which included being verbally abused and having his duties and responsibilities undermined.
The employee was summarily terminated and the reason given by the CEO for the termination was that the business had suffered a loss in revenue which was as a result of the employee’s performance and that the employee was unable to get along with his managers.
The court ultimately found that the real reason for the termination was numerous complaints made by the employee and that this was a breach of the general protections provisions of the Fair Work Act 2009.
The court issued a clear warning to other CEOs that they should resist the temptation “to stand with the bullies rather than the bullied”.
Lessons for employers
Employers must properly address complaints of bullying and harassment in the workplace and must exercise caution and care when terminating employees, particularly where bullying complaints have been raised.
