How employer miscommunication led to a $32,000 unfair dismissal claim case

The Fair Work Commission (FWC) has advised a worker she can pursue court enforcement of a $32,000 unfair dismissal compensation order, now seven months overdue.

The dispute began when Gold Tiger Logistics Qld Pty Ltd (Gold Tiger Logistics) misinterpreted the worker’s comment, “This is shit”, spoken in her thick Scottish accent, as a resignation. Commissioner Sharon Durham found the company had unfairly dismissed the customer service and logistics coordinator.

Here, our experts explain how this misunderstood resignation, combined with poor processes, resulted in a significant compliance failure and compensation for wrongful termination.

The thick Scottish accent misinterpretation at the centre of the dispute

In deliberating, Commissioner Durham and the FWC Full Bench acknowledged that the likelihood of the phrase “This is shit” being misheard due to the employee’s accent was very high. It was then determined that it was unreasonable for Gold Tiger Logistics not to investigate further before proceeding with termination based on the assumption that she had resigned. The Commissioner noted that even if her remark had been interpreted as a resignation, it wouldn’t hold under workplace law as it was made in the heat of the moment.

After considering the facts, including the employee’s immediate denial and Gold Tiger Logistics’ lack of proper investigation, the FWC ruled the dismissal unfair, awarding the logistics coordinator compensation of $32,000 and subsequently dismissing the employer’s appeal. The FWC reiterated that its role involves fact-finding, with after-acquired information about the incident being particularly relevant. The legal precedent set here stresses the importance of employers undertaking diligent and objective investigations in such sensitive unfair dismissal cases.

What can employers learn from this employee termination misunderstanding?

This case highlights the importance of clear communication and thorough investigation when handling workplace disputes. Misunderstandings or workplace communication issues, particularly during high-stress situations, can have serious legal consequences if not managed carefully. The FWC’s decision reinforces that dismissal decisions must be backed by objective reasoning and proper evidence, reminding employers to follow fair processes before taking decisive action.

Employers can learn from this outcome by prioritising transparency, proper documentation, and giving employees a chance to clarify their intentions. Miscommunication left unaddressed can quickly escalate into legal liability, impacting both the individuals involved and the organisation’s reputation. This FWC ruling on unfair dismissal serves as a reminder that fairness, balanced communication, and careful handling of disputes are essential for maintaining a compliant and respectful workplace.

In the heat of the moment, rash, impulsive: the different types of resignations

A fiery ‘I quit’, an angry ‘I resign’, or storming out claiming to never return are all examples of resignations that could occur in the heat of the moment. So, what should you do in this situation? Start with clarifying the employee’s intentions and give them a chance to reconsider.

If an employee does rescind their resignation, they can simply return to work. The business should consider whether any circumstances need to be addressed, such as grievances or other factors that led to the heat-of-the-moment resignation. Handling heat-of-the-moment resignations can be difficult, and unfortunately, they’re quite common. Businesses must understand the best process for dealing with them so they can avoid unfair dismissal risks.

How can Citation HR help?

To avoid unfair dismissal legal proceedings or a workplace dispute over resignation, it’s always best to speak to an expert before terminating an employee – and that’s where Citation HR can help. At Citation HR, we help businesses manage terminations compliantly to avoid costly unfair dismissal claims. Even when the reason for dismissal seems clear, skipping procedural fairness can still lead to legal risks. Our experts provide the guidance and tools you need to handle workplace matters with confidence.

Not a Citation HR client? Contact our friendly team to learn more about how Citation HR can help your business and support your workplace compliance.