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Demoted employee not entitled to claim unfair dismissal, in case law "departure"
An employer has successfully argued that demoting an employee after a misconduct investigation did not constitute a dismissal, in a case with important implications for all employers.
In April last year, NSW Trains demoted the employee by reducing his rail classification from level E to A, and his gross pay from $141,442 to $127,569.
He continued to work under the new conditions, while also lodging an unfair dismissal claim, which the employer objected to on jurisdictional grounds.
It said the employee's demotion wasn't a dismissal under section 386 of the Fair Work Act because: the disciplinary action was in accordance with his enterprise agreement; there had been no change to his position, duties or location; and the remuneration reduction wasn't "significant"...
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