The Fair Work Commission rightly gives considerable latitude to employers to manage their businesses without unwarranted intervention; this is referred to most often as “managerial” or “management prerogative”.
Nevertheless there is a line in the sand and the Commission will interfere in management decisions which have no basis in fact or logic. Here is an example in the context of unfair dismissal and the doctrine of reasonable adjustment for an employee suffering a disability.
“In these circumstances it is difficult to conclude that the reasons for dismissing Ms Maharaj were “sound, defensible or well-founded”. A decision that is sound, defensible or well-founded has some basis in fact, it cannot be based on poor decision making. The evidence before the Commission is that Ms Maharaj could have returned to her pre-injury duties on a graduated return to work building up, over time, to her normal hours of duty. Dr Donahue had grounds to believe that she would receive some proposals for return to work of Ms Maharaj and from that find a basis for a return to work. After all, this is what had occurred when Ms Maharaj had her needle stick injury.
Northern Health appears to have chosen not to explore in any substantive way if Ms Maharaj could return to work, when that might occur and on what conditions.
For these reasons I am satisfied that there was no valid reason for the dismissal of Ms Maharaj.”
Maharaj v Northern Health (2017) FWC 2997 delivered 20 June 2017 per Bissett C