Key leanings:
• Policies and procedures do
not have to be written down
to apply
• Environmental
circumstances allow for
stricter outcomes for noncompliance
• Rumours and environmental
discussions can be
perceived as providing a
deeper understanding of the
situation
Employee reinstated after
employer’s policies and procedures
lacked clarity
Mr Paul Abboud v Lencrow Group
Pty Ltd [2016] FWC 5401 (10 August
2016)
The FWC reinstated a sacked
employee amid allegations of
misuse of the company’s fuel card
and mobile phone allowance. The
employer argued that it was in
breach of company protocols,
however, the Commissioner
determined that the employers
guiding policies were ambiguous and
lacked clarity.
The employee had a vehicle
allowance allocated at $12,000 per
year plus a company fuel card with a
limit of $600 per month.
The Vehicle Policy and Possessions
Agreement, issued by the company
and signed by the employee in 2013,
stated that the fuel issues with the
vehicle could not be used outside the
Sydney metropolitan area or that the
transfer of the vehicle and fuel could
not be made to another individual
without prior approval.
The claim of ‘misuse’ occurred
when the employee used his fuel
allowance to fuel two vehicles at
an average cost of $550 per month
when the policy only provided for
one car to be refuelled.
The Commissioner determined
that reasonable private use was
acceptable and that the usage of the
fuel allowance was within the cap,
there was no basis to find that this
was a valid reason for dismissal.
Reinstatement was ordered along
with compensation for lost wages
after finding that the employee’s
dismissal was particularly harsh.
This meets the FWC requirements
that, for a person to be unfairly
dismissed, the Fair Work Commission
(FWC) must be satisfied that:
a. The person has been dismissed;
and
b. The dismissal was harsh, unjust
or unfair; and
c. The dismissal was not consistent
with the small business Fair
Dismissal Code; and
ambiguity and resulting confusion
of intended meaning resulted in the
employee being reinstated for what
was determined by the FWC as not
breaching company policies.
Key learnings:
• Policies and procedure
cannot be ambiguous or lack
clarity
• Compliance with company
policies is required of all
employees
As a Manager, you have responsibility
to not only create, implement and
manage company policies and
procedures; you also must also
comply with them. As a nominated
leader within the business, you are
required to lead by example and
are often held to higher account.
Consider these three cases recently
before the FWC and review your
company’s documents and ensure
that you are also assisting to protect
your employees and train them as to
what each policy and procedure is
requiring of them and you.
*cases have been summarised from
actual FWC Decisions
d. The dismissal was not a case of
genuine redundancy
This particular case highlighted the
importance of an employer having
clear and precise guiding policies;
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