Dismissal for economic reasons

The fair work system distinguishes the legal implications of a termination of employment due to valid economic circumstances and a genuine redundancy. Both may be good defences to an unfair dismissal case, but for significantly different reasons.

“Whilst the dismissal was a redundancy for sound business reasons, it was not a genuine redundancy within the meaning of the FW Act because whilst Auction Blue consulted with Mr Stokes, it did not do so in writing as required by the applicable modern award.”

Stokes v Auction Blue Pty Ltd [2021] FWC 105 delivered 12 January 2021 per Anderson DP