Fair Work Commission

See Fair Work Act 2009 s.387(a)

Valid reason

The reason must be 'sound, defensible or well founded.'^[1] A reason which is 'capricious, fanciful, spiteful or prejudiced' cannot be a valid reason.^[2]

'[T]he reason for termination must be defensible or justifiable on an objective analysis of the relevant facts.'^[3] It will not be enough for an employer to say that they acted in the belief that the termination was for a valid reason.^[4]

The valid reason for termination is not to be judged by a legal entitlement to terminate an employee, 'but [by] the existence of a reason for the exercise of that right' related to the facts of the matter.^[5]

The Fair Work Commission does not 'stand in the shoes' of the employer but will need to be satisfied that the termination of the employee was for a valid reason.^[6]

References

^[1] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333 (7 July 1995), [(1995) 62 IR 371 at p. 373].

^[2] ibid.

^[3] Rode v Burwood Mitsubishi, Print R4471 (AIRCFB, Ross VP, Polites SDP, Foggo C, 11 May 1999) at para. 19.

^[4] ibid.

^[5] Miller v University of New South Wales [2003] FCAFC 180 (14 August 2003) at para.13, [(2003) 132 FCR 147].

^[6] ibid., at para. 64. See also Walton v Mermaid Dry Cleaners Pty Limited [1996] IRCA 267 (12 June 1996), [(1996) 142 ALR 681 at p. 685].