What are the principles which the Fair Work Commission applies when assessing compensation for unfair dismissal.
“In undertaking this task, I shall use the established methodology for assessing compensation in unfair dismissal cases which was set out in Sprigg v Paul Licensed Festival Supermarket 83 and applied and elaborated upon in the context of the current Act by Full Benches of the Commission in a number of cases.84 The approach to calculating compensation in accordance with these authorities is as follows:
Step 1: Estimate the remuneration the employee would have received, or have been likely to have received, if the employer had not terminated the employment (remuneration lost).
Step 2: Deduct monies earned since termination.
Step 3: Discount the remaining amount for contingencies.
Step 4: Calculate the impact of taxation to ensure that the employee receives the actual amount he or she would have received if they had continued in their employment.
Step 5: Apply the legislative cap on compensation.”
Hill v Fortis Products Pty Ltd T/A Colorguard Steel (2019) FWC 5567 delivered 9 August 2019 per Saunders DP
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