Did you know that demoting an employee and reducing his pay could amount to a dismissal?
An Engineering company downgraded their service supervisor to a service technician “on the tools” role with a 9% cut in pay.
The Fair Work Commission found that the employer was not authorised under the contract to make unilateral changes to the contract and that such a significant reduction in duties and pay constitutes a dismissal under section 386 of the Fair Work Act.
[Scott Harrison v FL Smidth Pty Ltd (2018) FWC 6695]
Disclaimer: This summary is not legal advice and for more information on changes to employment contracts call NECA Legal (WA) Pty Ltd on 6241 6129 or email email@example.com.