Sawyer v Cutler-Hammer Pty Ltd [2001] NSWIRComm 144

Sawyer v Cutler-Hammer Pty Ltd [2001] NSWIRComm 144

The contract was unfair as the termination process failed to provide the applicant, a long-serving senior employee, with reasonable notice (fifteen months found reasonable) or opportunity to remedy performance issues, and the manner of termination was summary and lacking fairness. Applicant was not made redundant, but unfair conduct at termination justified varying the contract ab initio and awarding just compensation.

Jurisdiction
Australia
Judgment Date
09 November 2001
Procedural Posture
Application Under S 106 of Industrial Relations Act 1996 / Judgment
Outcome
Application upheld in part: contract varied and compensation awarded for unfair contract and termination.
Legal Topics
['unfair Contract' 'termination of Employment' 'reasonable Notice' 'remedies for Unfair Conduct']
['employment Law' 'industrial Relations'] ['unfair Contract' 'termination of Employment' 'reasonable Notice' 'remedies for Unfair Conduct']

Case Brief

Summary, issues, holding and outcome

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Procedural Posture

Application Under S 106 of Industrial Relations Act 1996 / Judgment

Legal Issues

  1. 1 ['Whether the applicant was made redundant' 'Whether there was unfairness or unfair conduct associated with termination' 'What is reasonable notice of termination in the circumstances' 'Just compensation payable for unfair termination']

Ratio Decidendi

The contract was unfair as the termination process failed to provide the applicant, a long-serving senior employee, with reasonable notice (fifteen months found reasonable) or opportunity to remedy performance issues, and the manner of termination was summary and lacking fairness. Applicant was not made redundant, but unfair conduct at termination justified varying the contract ab initio and awarding just compensation.

Court Disposition

Application upheld in part: contract varied and compensation awarded for unfair contract and termination.

Orders

  • ['The contract of employment is varied to require fairness upon termination for all but summary dismissal.' 'The respondent to pay the applicant $132,950 plus interest calculated from 24 January 2000 to judgment.' 'Costs are reserved.' 'Liberty to apply regarding costs.']