Mr Justin Stanley Mullins v KAB SEATING PTY. LTD. - [2025] FWC 371
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Close...nd KAB was represented
by Mr James Ford of counsel.
[6] Both parties filed written submissions and witness statements. Mr Mullins gave
evidence in support of his application.
[2025] FWC 371
DECISION
AUSTRALIA FairWork Commission
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[7] Mr Bill Fraser (Managing Director of KAB), Rachel Sutton (Partner of Mills Oakley),
Mr Ben Gao (Accounts Manager of KAB), Ms Olivia Gregory (HR Manager of KAB), and Mr
Ashley Sant (National Operations Manager of KAB) were called to provide evidence on behalf
of KAB.
BACKGROUND AND TIMELINE LEADING TO THE DISMISSAL
Mr Mullins
[8] At the time of h...
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your conduct and performance at work”.4 Under the heading “Specific Allegations” the letter
outlined 16 allegations, grouped under the headings:5
• Attendance at work.
• Inappropriate Comments during Re-Induction.
• Concerns in respect your role. and
• Management of employees.
[14] Under the heading “Consideration of Termination of Employment” KAB noted...
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[18] Mr Mullins provided a response to each of the allegations, or otherwise requested further
information to enable him to provide a proper response. In summary, Mr Mullins argued that
many of the allegations did not meet the threshold of unsatisfactory performance or were
denied. In response to many of the allegations, Mr Mullins provided that where appropriate, h...
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that he does not believe the allegations, even if proven, constitute serious misconduct and/or
gross negligence and foreshadowed his intention to lodge an unfair dismissal application.
WAS MR MULLINS UNFAIRLY DISMISSED?
[26] There is no dispute, and I am satisfied that Mr Mullins was protected from unfair
dismissal at the time he was dismissed.9
[27] ...
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Submissions of KAB
[33] KAB submits that there is a valid reason for Mr Mullins’ dismissal because he had
engaged in serious misconduct in his role as Company Accountant,16 and that Mr Mullins’
“dishonest behavior” was inconsistent with its business.17
[34] KAB assert that Mr Mullins’ actions, in the context of his employment contract,
constitute as “misc...
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[41] Serious misconduct involves an employee deliberately behaving in a way that is
inconsistent with continuing their employment, to the extent that it would be seen to repudiate
their employment contract.18 Essentially serious misconduct confers the notion of wilful or
deliberate behaviour which strikes at the heart of the employment relationship.19
[42]...
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KAB had been aware that he had been arriving at work early and taking a longer lunch break
since he had begun his employment, yet at no time was this raised as being an issue.
[49] In his first response, Mr Mullins sought clarification of KAB’s expectations regarding
lunch breaks so that he could ensure he complied with any requirements he had not been aware
o...
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much attention in KAB’s witness statements or submissions, and that Ms Luke was not called
to give evidence. This allegation does not meet the test of misconduct. At best it was a
performance issue that had been discussed and resolved in January 2024.
Inappropriate Comments (Allegation 3)
[56] It was alleged that during a re-induction in November 2023, Mr Mu...
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unjust or unreasonable to dismiss him for this allegation without giving him a proper
opportunity to respond.
[62] KAB’s 5 April 2024 letter did not provide the additional information requested by Mr
Mullins. Again, this allegation did not receive a great deal of attention in KAB’s submissions
or witness statements, nor did they seek to cross examine Mr Mullin...
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[70] This allegation cannot be characterised as serious misconduct, rather, this allegation
relates to Mr Mullins’s performance. Having consider the above, I have not been convinced
that it has merit, however for completeness, had I been convinced otherwise, I would have
found that KAB had failed to raise their concerns in this regard with Mr Mullins either
in...
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anyone raised any concerns with Mr Mullins’ approach until the second show cause letter was
issued. I understand Mr Mullins to have been openly taking a cautious approach to ensure the
accounts were correct before they were finalised.
Were there mapping issues?
[77] The second show cause letter sent on 5 April 2024 asserts that Mr Mullins was incorrect
i...
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Once this mapping is done it would be good for this person to then do our 2022 Financial Statements to
ensure that all of our transactions are going into the correct accounts. We can then give this as back up to
KPMG to get them to finish our accounts.
My estimation is that the above may take an experienced System Accountant one week. If
necessary they can co...
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time no one could say with 100% confidence that there were no mapping issues. Mr Fraser
disagreed with this proposition, highlighting an inconsistency in his evidence.
[89] Mr Fraser in his statement notes that he spoke with Ms O’Leary and recommended that
she speak with Mr Qiao and Mr Bauer to ascertain if there a was a problem with AX4 and D365
as described...
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• On 23 January 2024, Mr Fraser and Mr Gao were copied into Mr Mullins’ email to Ms
O’Leary, in which he raised his concerns and sought her assistance in providing a
resource to check the mapping. Mr Fraser did not raise any concerns with this approach.
• On 25 January 2024, Ms O’Leary confirmed that she would provide a resource to
investigate Mr Mullins’ concern...
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[99] I note that this allegation was not directly addressed in KAB’s submissions. In any event,
it was confirmed during the cross examination of Ms Gregory that this issue had been resolved,
at the time. Consequently, I find this allegation to be without merit.
E & O Write Off
[100] The letter of termination states that Mr Mullins had failed to follow the st...
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responsibility for signing the document without advising Mr Sant and noted it would not happen
again.
[109] It would stand to reason that had Mr Mullins’ actions been of any more significance
than a failure to advise Mr Sant, of his intention to sign a form actioning a pre-approved process,
such that would warrant the allegation of serious misconduct, or dis...
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accountancy issue that is commonplace. Mr Mullins further argued that it was his role, as
Accountant to identify and rectify accounting issues that arise, which he did.
[117] Whilst not explicitly mentioned in the letter of termination, these issues are taken to
have formed part of the overall reasons for termination. Having considered the evidence and
circum...
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[124] Mr Mullins filed an additional statement responding to KAB’s material in which he
states that the April 2023 performance review was not a true copy of the document he was
shown at the time.33 Mr Mullins notes that the managers comments, “What about 365 and
KPMG stat accounts ??”34 could not have been included in April 2023 as they did not become
overdue ...
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evaluation, not 2024, and many of the comments are identical to those in the version of the 2023
performance review considered above. It is also noted that this document is not signed or dated.
[131] Mr Mullins maintains that he was never shown this document and notes that there is no
result for the “Overall Performance Rating” as it appears blank.40 Mr Fraser ...
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performance management policy, KAB did not bring many of the issues raised in the show
cause letters to his attention prior to initiating the disciplinary process. Of greater concern, is
Mr Fraser’s admission that he knowingly let Mr Mullins continue to pursue his mapping
concerns for the sole purpose of catching him in a lie.
[138] Rather than taking this ap...
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[144] Mr Mullins therefore argued that he should have been provided with a real opportunity
to receive support and demonstrate improvement as would normally be expected in situations
where there are performance concerns.47 Prior to issuing the show cause letter, KAB had not
provided a written warning or notice to Mr Mullins about his unsatisfactory performance, ...
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dedicated human resource management specialists or expertise in the Respondent’s
enterprise be likely to impact on the procedures followed in effecting the dismissal?
[150] Both parties agreed that KAB is not a small business. Further it is not contested that
KAB has a dedicated human resources team. As such I do not find these considerations to be
relevant. ...
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[157] With respect to remedy, section 390 of the Act provides that the Commission must only
make an order for the payment of compensation if satisfied that reinstatement is not appropriate,
and where it is considered that compensation is appropriate in all the circumstances of the case.
Reinstatement
[158] Mr Mullins does not seek reinstatement and has fou...
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[166] KAB submits that Mr Mullins employment from on or about 29 August 2022 until 12
April 2024 is a very short period of employment during which it has been identified there were
significant issues with performance of his work and conduct at least in the last six to ten months.
[167] Noting Mr Mullins submits he commenced employment on 29 August 2022, I am...
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[173] It was Mr Mullins’ evidence that he had been on job seeking websites daily to locate
alternative employment.58 Further that he had utilised his network to see if any jobs suitable to
his qualifications and experience are available.59
[174] At the time of the hearing, Mr Mullins had been unable to obtain alternative employment
and remained unemployed. ...
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being critical of evidence tendered by KAB of advertised roles that may be available to him to
apply for as an accountant advertised online. It is also noted, that the position Mr Mullins has
obtained is a full-time role as a Cost Accountant with KB Seafood Co Pty Ltd based at
Morningside (10 min drive or 5km in distance from his home at Camp Hill).
[181] KAB...
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[187] Mr Mullins states that his legal costs at the time of his statement are about $8,950 and
that by the end of the hearing they will total about $13,000 to $15,000.61
[188] KAB submit, and I accept, that costs are subject to s.402 of the Act and that the time for
consideration of an application for costs should be considered at the conclusion of the entire
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Step 2 – Discounts
s 392(2) (Mitigation of Loss) 30%
s 392(3) Deduction for Misconduct 0
Step 3 – Discount other contingencies 0
Total after deductions $45,089.34
Step 4 – Taxation - To be taxed according to law To be taxed according to
law
Step 5 – s 392(5) Apply compensation cap $45,089.34
Conclusion on Remedy
[196] Having weighed each of t...
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7 DHB at pg.13 – Show Cause Letter dated 19 March 2024.
8 DHB at pg.35 – Termination Letter.
9 Fair Work Act 2009 (Cth) s.382.
10 Raj Bista v Group Pty Ltd t/a Glad Commercial Cleaning [2016] FWC 3009
11 Selvachandran v Peteron Plastics Pty Ltd (1995) 62 IR 371, 373.
12 Ibid.
13 [2021] FWC 4 at 118.
14 Commonwealth of Australia (Australian Taxation Offi...
... pg.35 – Termination Letter.
9 Fair Work Act 2009 (Cth) s.382.
10 Raj Bista v Group Pty Ltd t/a Glad Commercial Cleaning [2016] FWC 3009
11 Selvachandran v Peteron Plastics Pty Ltd (1995) 62 IR 371, 373.
12 Ibid.
13 [2021] FWC 4 at 118.
14 Commonwealth of Australia (Australian Taxation Office) t/a Australian Taxation Office v Shamir [2016] FWCFB 4185,
[46] citing Allied Express Transpor...
...ocuments/decisionssigned/html/2019fwc3249.htm
https://www.fwc.gov.au/documents/decisionssigned/html/2011fwa4092.htm
https://www.fwc.gov.au/documents/decisionssigned/html/2013fwcfb762.htm
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48 DHB at pg. 58 – Applicant Submissions at 125.
49 Ibid.
50 Ibid at 126.
51 Fastidia Pty Ltd v Goodwin Print S9280 (AIRCFB, Ross VP, Williams SDP, Blair C, 21 August 2000), [43]-[4...
1 Fair Work Act 2009 s.394 - Application for unfair dismissal remedy Mr Justin Stanley Mullins v KAB SEATING PTY. LTD. (U2024/5037) COMMISSIONER DURHAM BRISBANE, 11 FEBRUARY 2025 Application for an unfair dismissal remedy – no valid reason – dismissal unfair – application granted – reinstatement not appropriate – compensation awarded. [1] On 19 March 2024, Mr Justin Mullins, a Company Accountant for KAB SEATING PTY. LTD (KAB) received a letter seeking his response to a range of performance and conduct allegations. He was immediately suspended on full pay. [2] On 12 April 2024, KAB dismissed Mr Mullins without notice, stating that his responses to the allegations were unsatisfactory and unreasonable, and that his unsatisfactory conduct and performance amounted to serious misconduct and/or gross negligence. [3] Mr Mullins believes that his dismissal was unfair and contends that none of the allegations amounted to serious misconduct, nor gross negligence and that his conduct and performance had always been to a reasonable standard. Mr Mullins believes that he had done all things reasonably possible to address KAB’s concerns, including providing responses to all allegations and offering to work with KAB to address any perceived performance issues. [4] For the reasons outlined below, I have not been convinced that KAB had a valid reason to dismiss Mr Mullins. I find that Mr Mullins’ dismissal was harsh, unjust and unreasonable. It was therefore unfair. Procedural Background [5] Following an unsuccessful conciliation conference on 5 June 2024 and a directions hearing on 12 June 2024, the matter proceeded to hearing on 15 and 16 August 2024. At the hearing, Mr Mullins was represented by Mr Philip Diaz of counsel and KAB was represented by Mr James Ford of counsel. [6] Both parties filed written submissions and witness statements. Mr Mullins gave evidence in support of his application. [2025] FWC 371 DECISION AUSTRALIA FairWork Commission[2025] FWC 371 2 [7] Mr Bill Fraser (Managing Director of KAB), Rachel Sutton (Partner of Mills Oakley), Mr Ben Gao (Accounts Manager of KAB), Ms Olivia Gregory (HR Manager of KAB), and Mr Ashley Sant (National Operations Manager of KAB) were called to provide evidence on behalf of KAB. BACKGROUND AND TIMELINE LEADING TO THE DISMISSAL Mr Mullins [8] At the time of his dismissal, Mr Mullins was 61 years of age. He is a qualified accountant who has specialised in manufacturing accounting for several decades. KAB [9] KAB Seating Pty Ltd is an Australian trading company owned by Commercial Vehicle Group Inc. (CVG), a NASDAQ listed company based in Ohio, USA. KAB specialise in ergonomic seating and the distribution of suspension seating for commercial vehicles. Mr Mullins’ role and his employment with KAB [10] Mr Mullins commenced employment with KAB on 29 August 2022 in the position of Company Accountant, he describes his role as being the lead accountant in a small in-house manufacturing accounting team and for the Australian subsidiary of CVG. Mr Mullins was employed pursuant to a contract of employment which confirmed his total base salary as $115,500 per annum. [11] KAB noted that his role was a “senior position” within the company.1 Mr Mullins reported directly to Mr Fraser. Mr Gao, who was at the time the Assistant Accountant, reported to Mr Mullins. The material of both parties refers to Mr Mullins’ “team” however it is not clear how many employees, other than Mr Gao, reported to Mr Mullins.2 Implementation of D365 [12] Prior to August 2022, KAB had used the AX4 accounting system. In August 2022, around the same time as Mr Mullins joined KAB, a new finance and operating system, D365 was implemented by CVG and subsequently by KAB. Mr Fraser submitted that Mr Avery Qiao, Enterprise Resource Planner for CVG oversaw the implementation of the new system.3 As will be considered further in this decision, I understand this work to have involve transitioning KAB’s accounts from the old system to the new system, work which could reasonably create the potential for accounts to be wrongly allocated in the transition. Mr Mullins refers to such potential errors as “mapping issues”. KAB, and Mr Fraser, whom Mr Mullins notes is not an accountant, referred to this possibility as “allocation issues”. Show cause letter dated 19 March 2024 [13] On 19 March 2024, Mr Mullins was handed a show cause letter signed by Ms Gregory. The letter noted Mr Mullins’ suspension and outlined “various concerns we have in respect to[2025] FWC 371 3 your conduct and performance at work”.4 Under the heading “Specific Allegations” the letter outlined 16 allegations, grouped under the headings:5 • Attendance at work. • Inappropriate Comments during Re-Induction. • Concerns in respect your role. and • Management of employees. [14] Under the heading “Consideration of Termination of Employment” KAB noted, “the above examples of conduct and performance is indicative of the significant lack of care and attention you are paying to your role and is inconsistent with the continuation of the contract of employment and your senior role as Company Accountant”.6 KAB further advised that they considered Mr Mullins conduct was in breach of the written and implied terms of his contract of employment. [15] Mr Mullins was asked to provide his response to the allegations and to show cause as to why a disciplinary penalty should not be imposed by 22 March 2024, three days later. [16] The letter further stated, “Given the nature of these allegations, we feel it is fair to indicate to you at this stage that a likely disciplinary penalty is termination of your employment”.7 Mr Mullins’ first response [17] On 22 March 2024, Mr Mullins responded to the allegations through his legal representative. Mr Mullins’ response provided clarity by categorising the 16 allegations under the following headings: • Allegation 1 – Duration of lunchbreak • Allegation 2 – Distraction • Allegation 3 – Inappropriate Comments • Allegation 4 – Workplace Performance o January 2024 Profits o Account Department Procedures o KPMG Audit o Purchasing Officer – Activities for AR Employee o E&O write off o Delayed Responses o Concerns raised by Mr Mullins o Freight Surcharge o D365 Mapping o Finalising 2022 Accounts o Clerical Error – AX4 and D365 o Costing Issue o Management of Employees[2025] FWC 371 4 [18] Mr Mullins provided a response to each of the allegations, or otherwise requested further information to enable him to provide a proper response. In summary, Mr Mullins argued that many of the allegations did not meet the threshold of unsatisfactory performance or were denied. In response to many of the allegations, Mr Mullins provided that where appropriate, he was agreeable to working with KAB to reduce occurrences of situations which have given rise to concerns. Further allegations letter dated 5 April 2024 [19] On 5 April 2024 Mr Mullins received a further letter from KAB. Whilst noting that Mr Mullins had sought further information with respect to Allegation 4, the requested information was not provided. Rather, the letter provided further “areas of enquiry”. Essentially, the letter contained further allegations relating to the KPMG Audit, E&O write off, and delayed responses. [20] The letter did not indicate whether KAB were satisfied with any of the responses provided so far, nor did it provide any response to the suggested way forward proposed by Mr Mullins. Mr Mullins was reminded that he remained stood down with pay and was required to reply to these additional matters by 8 April 2024, three days later. KAB noted that Mr Mullins’ performance may constitute gross negligence and/or serious misconduct. Mr Mullins’ further response dated 10 April 2024 [21] On 10 April 2024, Mr Mullins provided a further response to KAB. The response addressed the additional allegations and noted that KAB had failed to provide the further information and particulars that had been requested for several allegations and that where further particulars had been provided, they were by way of references to email correspondence that Mr Mullins did not have access to. [22] Mr Mullins asserted that in the absence of this information, he had not been given a proper opportunity to respond to the allegations made against him. Mr Mullins advised that as such, any decision to terminate his employment based on these allegations would be unjust and/or unreasonable, as well as harsh and in contravention of s 387(c) of the Act. Termination letter dated 12 April 2024 [23] On 12 April 2024, KAB summarily dismissed Mr Mullins for serious misconduct and/or gross negligence, following an investigation regarding his conduct, performance and failure to follow policies and procedures as the Accountant for KAB.8 [24] KAB concluded they had found Mr Mullins’ explanations unsatisfactory and unreasonable given the nature of his role and noted the financial consequences resulting from Mr Mullins providing incorrect material to KPMG and Findex. Mr Mullins’ post-termination response [25] On 26 April 2024 Mr Mullins provided a response to the termination letter which reiterated his disagreements with the allegations put forward in the show cause letter, arguing[2025] FWC 371 5 that he does not believe the allegations, even if proven, constitute serious misconduct and/or gross negligence and foreshadowed his intention to lodge an unfair dismissal application. WAS MR MULLINS UNFAIRLY DISMISSED? [26] There is no dispute, and I am satisfied that Mr Mullins was protected from unfair dismissal at the time he was dismissed.9 [27] The criteria that I must consider when deciding whether Mr Mullins’ dismissal was harsh, unjust, or unreasonable are set out at s.387 of the Fair Work Act 2009 (the Act). My consideration of relevant criteria follows below. Did KAB have a valid reason to dismiss Mr Mullins? [28] It is well established that the factual basis for the reason for dismissal will not of itself demonstrate the existence of a valid reason.10 It must, as s.387(a) makes clear, be a valid reason for dismissal. To be a valid reason, the reason for the dismissal should be “sound, defensible or well founded”11 and should not be “capricious, fanciful, spiteful or prejudiced.”12 As summarised by then Deputy President Asbury in Smith v Bank of Queensland Ltd, a “dismissal must be a justifiable response to the relevant conduct or issue of capacity”.13 The Commission must consider the entire factual matrix in determining whether an employee’s termination was for a valid reason.14 Submissions of Mr Mullins [29] Mr Mullins submits that there was no valid reason for his dismissal related to either his capacity or conduct. He submits that the allegations levelled against him were denied or did not meet the threshold of unsatisfactory performance, professional misconduct or gross/serious negligence, rather Mr Mullins believes that many of the issues raised by KAB are reflective of poor communication practices within KAB and/or conflicting instructions. [30] Mr Mullins submits that, based on the nature of the allegations provided by KAB as the reason for his dismissal, he was dismissed as a result of performance issues regarding the timeliness, accuracy and quality of his work as well as his communication with others in the workplace, rather than serious misconduct or gross negligence.15 [31] Additionally, in closing submissions, Mr Mullins argued that KAB, and in particular Mr Fraser, held strong views against him and were resolved to dismiss him. It was submitted that KAB set out to find anything they could to justify their actions, and in the process, dredged up old matters that had been put to bed months earlier, and pulled together a range of other minor issues that could and should have been addressed at the time “in the hopes that something would stick”. [32] Otherwise, it was submitted that the allegations made against him were either trivial or misconceived. Mr Mullins denies many of these allegations and additionally argues that these allegations have not been supported by evidence to such an extent that they would form a valid reason for dismissal.[2025] FWC 371 6 Submissions of KAB [33] KAB submits that there is a valid reason for Mr Mullins’ dismissal because he had engaged in serious misconduct in his role as Company Accountant,16 and that Mr Mullins’ “dishonest behavior” was inconsistent with its business.17 [34] KAB assert that Mr Mullins’ actions, in the context of his employment contract, constitute as “misconduct” and/or gross negligence such as to warrant summary dismissal. [35] KAB note that Mr Mullins’ 11-month delay in preparing financial statements for the KPMG 2022 calendar year audit and his actions on this issue were key to Mr Fraser’s loss of trust in him. KAB emphasized in its oral submissions that trust was an important part of the working relationship between Mr Fraser and Mr Mullins and contended that Mr Mullins’ dishonesty was the main reason why he was dismissed. [36] In summary, KAB contend that Mr Mullins was not doing the work required by his role as Company Accountant, failed to comply with lawful and reasonable directions, and incorrectly blamed issues and others for his non-performance. [37] With respect to other potential reasons for Mr Mullins’ dismissal and the allegations made against him, KAB submitted that while not as significant, these other reasons are still important. Consideration Observations about the form of the Allegations [38] Mr Diaz described many of the allegations levelled at Mr Mullins as trivial or completely misconceived. He also noted that many were expressed in ways which were misleading as to what the issue really was. [39] I agree with Mr Diaz with respect to the way the allegations were expressed. The first show clause letter, received by Mr Mullins on 19 March 2024 contained what could best be described as a stream of consciousness from the writer. Whilst grouped under the heading “Specific Allegations”, the allegations were anything but specific. The show cause letter included 16 dot points, which variously included statements about interactions with, or observations, of Mr Mullins and his performance, rather than what would reasonably be considered “specific allegations”. [40] It was Mr Mullins’ 22 March 2024 response that distilled these statements into a format that was capable of being responded to in a meaningful way. KAB’s 5 April 2024 letter then outlined further allegations. Again, these new allegations were not well particularized and varied between being responses to Mr Mullins’ 22 March 2024 letter and additional allegations. As noted by Mr Mullin’s in his 10 April 2024 response, this letter also included transcribed extracts of email exchanges between Mr Mullins and other employees and referenced the existence of other emails that Mr Mullins did not have access to. Serious Misconduct[2025] FWC 371 7 [41] Serious misconduct involves an employee deliberately behaving in a way that is inconsistent with continuing their employment, to the extent that it would be seen to repudiate their employment contract.18 Essentially serious misconduct confers the notion of wilful or deliberate behaviour which strikes at the heart of the employment relationship.19 [42] The Fair Work Regulation 2009 at clause 1.07 defines serious misconduct as conduct that causes serious and imminent risk to the health and safety of a person or to the reputation, viability or profitability of the employer's business. Serious misconduct is defined as including conduct such as theft, fraud, assault, sexual harassment, intoxication at work and the refusal to carry out lawful and reasonable instructions consistent with the employment contract. [43] The standard of gross and serious misconduct is based on the balance of probabilities, noting the principles in Briginshaw v Briginshaw:20 “The standard of proof remains the balance of probabilities but ‘the nature of the issue necessarily affects the process by which reasonable satisfaction is attained’21 and such satisfaction ‘should not be produced by inexact proofs, indefinite testimony, or indirect inferences’ or ‘by slender and exiguous proofs or circumstances pointing with a wavering finger to an affirmative conclusion.”22 [44] I have had regard to these principles when considering the facts and circumstances of this matter. What reason did KAB give for the dismissal? [45] As noted, the termination letter provided that Mr Mullins’ dismissal was due to serious misconduct and/or gross negligence, however the letter goes on to reference some, but not all, of the conduct and performance matters raised throughout the disciplinary process. [46] As Mr Mullins did not receive any response to his show cause responses, or acknowledgment if his suggestions for resolving KAB’s concerns about his performance or conduct, it is difficult to know precisely which allegations were substantiated and which were not, and consequently, which were relied on by KAB, and which were not. [47] Adding to the confusion, during oral evidence and closing submissions KAB confirmed that none of the allegations had been abandoned. Consequently, to ensure the full factual matrix is considered, I have explored, to varying degrees, most of the allegations that were put to Mr Mullins’ throughout the disciplinary process, noting that whilst KAB seeks to rely on all of the allegations, many received little or no attention in their submissions and evidence and that some of the allegations appear to have been subsumed into broader categories of conduct by KAB. As such, to the extent some allegations may not be specifically addressed below, all submissions have been considered. Duration of Lunchbreaks (Allegation 1) [48] Mr Mullins submitted that his 45 minute – 1 hour lunch breaks were consistent with his employment agreement and had always been recorded on his timesheet. Further, he argued that[2025] FWC 371 8 KAB had been aware that he had been arriving at work early and taking a longer lunch break since he had begun his employment, yet at no time was this raised as being an issue. [49] In his first response, Mr Mullins sought clarification of KAB’s expectations regarding lunch breaks so that he could ensure he complied with any requirements he had not been aware of. Mr Mullins did not receive a response to the request or an acknowledgment of his willingness to ensure he complied with KAB’s requirements moving forward. [50] In any case, had there been any substance to this issue, it should have been addressed with Mr Mullins informally or in accordance with KAB’s Performance Management Policy — it was not. I do not consider this allegation to be serious misconduct, nor was it demonstrative of any failings in Mr Mullins’ capacity or performance. Distraction (Allegation 2) [51] The substance and focus of this allegation shifted during the disciplinary process and submissions. Initially, it was alleged that Mr Mullins was regularly distracted at work, more often than not walking around in the warehouse talking to the staff in non-work-related conversation. [52] In his initial response, Mr Mullins took this to relate to an issue that had been raised with him earlier in the year, when Ms Lauren Luke (KAB’s HR Department) had spoken to him about the time he was spending in the warehouse. Mr Mullins asserts that Ms Luke indicated that he “was not in trouble” and that they just wanted to understand why it was happening. Mr Mullins says that he had explained to Ms Luke that he had been leaving his desk at certain points because he was suffering bronchitis and was regularly having coughing fits.23 Mr Mullins states the only reason he attended the warehouse was because it was often largely unoccupied, and thus suitable for his recovery. It is reasonable to presume that had Mr Mullins’ explanation not been satisfactory, KAB would have dealt with this at the time — they did not. [53] I also note that in addition to providing the above explanation to KAB, Mr Mullins, in his first response noted his willingness to stay at his desk should he need to cough, should that be KAB’s preference, and also invited KAB to provide any further suggestions or requests regarding this allegation in writing. KAB did not acknowledge his suggestion or provide him with the information he had requested. [54] During cross examination, KAB questioned Mr Mullins about the amount of time he spent in the warehouse more generally. Much was made of Mr Mullins holding daily meetings with warehouse employees, yet no evidence was led to back up the original allegation that Mr Mullins was “more often than not walking around the warehouse talking to staff and/or the CRS’s with non-work related conversations”. It is clear that Mr Mullins felt this was a significant part of his role, such that he had included it in his April 2023 review, noting “daily informal discussions with warehouse staff” as one of his actions relating to Priority 5 – “Active participation in work place safety and morale”. [55] In closing submissions Mr Diaz referred to this allegation, particularly the coughing incident, as “trivial” noting if there was any substance to it, it would have been addressed in January, when it occurred. Mr Diaz also noted, and I accept, that this allegation did not receive[2025] FWC 371 9 much attention in KAB’s witness statements or submissions, and that Ms Luke was not called to give evidence. This allegation does not meet the test of misconduct. At best it was a performance issue that had been discussed and resolved in January 2024. Inappropriate Comments (Allegation 3) [56] It was alleged that during a re-induction in November 2023, Mr Mullins made an inappropriate comment. In responding to this allegation, Mr Mullins stated that he had simply been seeking clarification as to what was expected of employees if they were subject to allegations of inappropriate workplace behaviour. Mr Mullins’ further noted that this matter had been raised with him at the time and resolved. [57] During cross examination, Ms Gregory confirmed that the matter had been dealt with at the time and that it had been determined that no further action was required. Ms Gregory was then taken to the show cause letter. Ms Gregory confirmed that she had written the letter with Mr Fraser. She was then asked why, if this matter had been resolved, and it had not been deemed necessary to take further action at the time, some five months later, when Mr Mullins was facing possible termination of his employment, was it raised again. Ms Gregory’s response indicated her understanding that it would “make up one of many altercations”. Ms Gregory agreed with Mr Diaz, that if this allegation had been of concern at the time, further action should have been taken some time in the preceding five (5) months. [58] I note that as a part of his response, Mr Mullins provided that in future, rather than making such inquiries during meetings, he would instead request a one-on-one meeting with KAB’s HR to avoid further concerns, or act in another way as KAB suggests. Again, KAB did not acknowledge or otherwise comment on Mr Mullins’ response or suggested way forward. [59] This allegation was contained in the letter of termination and as such it was relied upon by KAB as a reason for Mr Mullins’ dismissal, however it did not receive a great deal of attention in KAB’s written, or oral submissions and Mr Mullins was not cross examined on his response to this allegation. [60] I accept Mr Mullins’ submission and consider it reasonable for him to have presumed that the explanation he provided at the time had been accepted and that the issue had been resolved. I therefore find this allegation to be without merit. Workplace Performance (Allegation 4) January 2024 Profits [61] It was alleged that Mr Mullins reported the accounts of January 2024 to Mr Fraser wrongly, stating there had been no profit made when there was $80,000 in profits. Mr Mullins provided a response to this allegation in his 22 March 2024 letter, wherein he advised that whilst he wished to respond to this allegation; to do so he would require additional information. Noting he no longer had access to workplace systems, Mr Mullins sought that he be provided with copies of the alleged report showing no profit in January 2024, and financial records showing the alleged $80,000 in profit for January 2024. Mr Mullins submitted it would be[2025] FWC 371 10 unjust or unreasonable to dismiss him for this allegation without giving him a proper opportunity to respond. [62] KAB’s 5 April 2024 letter did not provide the additional information requested by Mr Mullins. Again, this allegation did not receive a great deal of attention in KAB’s submissions or witness statements, nor did they seek to cross examine Mr Mullins in this regard. [63] It was put to Mr Fraser during cross examination that as there had not been any evidence led before the Commission regarding this allegation, it had been abandoned. Mr Fraser disagreed, but did not seek to provide any further details of the allegation. In closing, Mr Ford acknowledged that this was one of a range of issues, of varying degrees and magnitude that the Commission need only consider, if not satisfied that the KPMG financial statements issue and the resulting loss of trust in the company accounts, and his ability to do his job are not enough of a valid reason to have terminated his employment. [64] The alleged conduct does not constitute serious misconduct. KAB failed to provide Mr Mullins with the further particulars he requested and he was therefore not able to provide a meaningful response, nor did they lead sufficient evidence to allow me to form a view regarding this matter, in the context of a performance issue. Consequently, I find this allegation to be without merit. Accounts Department Procedures [65] This allegation was particularly vague and poorly framed. As I understand it, KAB allege that Mr Mullins had not appropriately followed instructions given by Ms Gregory to review the work instructions and procedures in the Accounts department. [66] During cross examination, Mr Mullins explained that when he had received the email from Ms Gregory, he forwarded it on to his staff asking that they attended to the request “when they had time to do so” and that Ms Gregory had been copied into this email. [67] Much was made during cross examination of the fact that Ms Gregory had followed up with Mr Mullins on 22 February 2024, and he had not responded. Mr Mullins disputed this. In closing, Mr Diaz noted that KAB have access to all company emails that would have been exchanged between Mr Mullins and Ms Gregory, yet failed to provide any to substantiate their version of events. [68] Further, it would not be unreasonable to presume that had Mr Mullins’ failure to respond to one email been so significant, Ms Gregory could simply have advised him of a deadline or spoken to him directly to seek a response — she did not, nor was this matter raised with Mr Mullins again until the disciplinary process was commenced. [69] Taking the above into consideration, this issue was at best demonstrative of poor communication on the part of KAB regarding their expectations and deadlines, rather than any conduct or capacity issues on Mr Mullins’ part. Whilst I accept that communication is a two- way street, and that Mr Mullins had a part to play in this communication, I again note that this matter was not raised with Mr Mullins at the time, nor was it raised as a performance issue pursuant to KAB’s performance management process.[2025] FWC 371 11 [70] This allegation cannot be characterised as serious misconduct, rather, this allegation relates to Mr Mullins’s performance. Having consider the above, I have not been convinced that it has merit, however for completeness, had I been convinced otherwise, I would have found that KAB had failed to raise their concerns in this regard with Mr Mullins either informally or in accordance with their performance management process. KPMG Audit and Associated Allegations [71] The letter of termination relied on Mr Mullins’ “conduct and performance in delaying finalisation of the company's accounts and audit activities as required”.24 This allegation took many forms throughout the disciplinary process but can be summarised as primarily relating to Mr Fraser’s concerns that Mr Mullins had not satisfactorily responded to the requests for information and action regarding the audit and, what he described as Mr Mullins’ dishonesty, in continuing to delay the finalisation of the audit by claiming there were mapping issues. [72] Mr Mullins asserts that he had complied with Mr Fraser’s instructions and otherwise appropriately conducted KAB’s assistance with the KPMG audit. Mr Mullins provides that he gave responses and updates to Mr Fraser’s email requests verbally, as per Mr Fraser’s requests. [73] Mr Diaz submitted that the cross examination of the witnesses clearly shows that in May 2023, Mr Mullins had provided financial statements, with the assistance of Mr Gao, which he had manually prepared for KPMG to attempt to progress the financial year 2022 audit that KPMG was conducting. However, KPMG was not satisfied with material provided and, in Mr Diaz’s words, they wanted to satisfy themselves that the accounts, and D365 checked out, particularly with respect to the financial statements. KPMG also had a question regarding “one tax,” which Mr Mullins submits, he dealt with. Mr Mullins does not dispute that there were various delays, both on KPMG’s and KAB’s part. [74] Mr Mullins argues that his capacity to respond in a timelier way was limited by factors including Mr. Gao’s leave and stocktake, and similarly, KPMG had various capacity and availability limitations. [75] Mr Mullins states, and I accept, that by the end of November 2023, he was responsive to KPMG's correspondence and by late February 2024, Mr. Mullins had been able to arrange for CVG personnel, particularly Mr Qiao and Mr Andrew Bauer (Finance Temporary for CVG), under the guidance of Ms Angie O'Leary (Vice President Corporate Controller for CVG) to assist in reviewing the mapping between AX4 and D365 accounting programs that had been originally undertaken in late 2022 by Mr Mullins, Mr Gao and Mr Qiao. [76] Mr Mullins asserts that the decision to review the mapping between the old and new accounting systems was being conducted to ensure that there were no further issues, following an issue being raised by Findex in relation to KAB’s taxes, where an account had been incorrectly allocated during the transition from the old system to the new system. As I understand it, having found this error, Mr Mullins formed the view that he needed to be sure that there were no further issues resulting from the transition from the old accounting system to the new one before he finalised the account. In any event, CVG personnel, in agreeing to assist in the review, understood Mr Mullins’ concerns. And I have seen no evidence to suggest that[2025] FWC 371 12 anyone raised any concerns with Mr Mullins’ approach until the second show cause letter was issued. I understand Mr Mullins to have been openly taking a cautious approach to ensure the accounts were correct before they were finalised. Were there mapping issues? [77] The second show cause letter sent on 5 April 2024 asserts that Mr Mullins was incorrect in delaying finalisation of the accounts as there were “no mapping issues” with the software or tax issues as suggested. I understand this view to be central to KAB’s claims of dishonesty and loss of trust. [78] Mr Diaz noted that during Mr Gao’s oral evidence, he had initially denied there were any mapping issues, however when questioned about an email he had sent about suspected mapping issues in a document from May 2023, he confirmed that his description of the mapping issue, and how it came about, appeared to be consistent with Mr Mullins’ evidence. Mr Diaz submitted that there is no dispute that Findex had found an error and that it then follows that this led Mr Mullins to seek to initiate a review of the AX4 and D365 mapping so that they could all be sure that there were no more issues before the accounts were finalised. [79] Mr Diaz submits, and I accept, that had there not been a mapping issue discovered, it would not make sense that Ms O'Leary would agree to have Mr Qiao and Mr Bauer invest considerable time ruling out the possibility of further mapping issues, nor would Ms O’Leary have allowed the KPMG audit to be delayed any further. [80] Mr Ford in his closing submissions referred to the mapping issues as excuses from Mr Mullins, based on Mr Fraser’s conversations with Mr O’Leary and Mr Gao. Further that the problems regarding mapping with AX4 and D365 were non-existent. I again note Mr Diaz’s point that if these issues were truly non-existent as framed by KAB, then it would not be rational for Ms O’Leary, Mr Qiao and Mr Bauer to expend further time ruling out the possibility of mapping issues. [81] To this point, much was made by KAB of their assertion that Mr Mullins had acted dishonestly, by alleging that there were mapping issues, with KAB holding great stock in the fact that when the review that Mr Mullins had arranged was completed, no issues were found. [82] Having considered all of the facts and circumstances of this matter, I accept Mr Mullins’ explanation that, having been made aware of the potential for mapping issues through the Findex error, he wanted to be sure that there were no further issues before finalising the accounts, a view he had shared with Ms O’Leary, whom had agreed to provide additional resources to ensure Mr Mullins could be satisfied as such. [83] Indeed, Mr Fraser and Mr Gao were also aware of this approach, having been copied into Mr Mullins’ 23 January 2024 email to Ms O’Leary which stated:25 “We floated an idea about someone with good systems skills from CVG assisting KABAU with this. The idea is that this person goes back to when we implemented D365 and maps all of the AX accounts into the D365 accounts. This will enable us to check that we did get the mapping correct. If it isn’t, we then need to determine a course of action to correct it.[2025] FWC 371 13 Once this mapping is done it would be good for this person to then do our 2022 Financial Statements to ensure that all of our transactions are going into the correct accounts. We can then give this as back up to KPMG to get them to finish our accounts. My estimation is that the above may take an experienced System Accountant one week. If necessary they can come here which would save a lot of effort due to the difference in our time zones and the communications difficulties this creates. The lessons learnt in the above exercise can then be used in future D365 rollouts with other CVG plants.” (emphasis added) [84] On 25 January 2024, Ms O’Leary copied Mr Fraser and Mr Gao into her reply, which provided:26 “We do have a resource in New Albany that will be able to sit with Avery and document process/ transaction flow for you (targeting mid-February) so that you have proper operating procedures to reference. In the meantime, Emma is going to look into some of your specific pain points below in case there is anything that can be resolved quickly during January close. Then collectively (target end of February), the consultant, Avery and Emma will schedule training time with you to ensure you understand how the system is designed to work and answer any remaining questions. Clarification to your point below regarding D365 rollouts – your D365 implementation was an upgrade from the prior AX system. It was set up to work just like your old version because it was done before the new functionality was designed. Other rollouts are full implementations of the new D365 global template with added functionality.” (emphasis added) [85] Interestingly, it was Mr Gao’s evidence that he was aware by January 2024 that there were no mapping issues. That both Mr Gao and Mr Fraser were copied into the email exchanged between Mr Mullins and Ms O'Leary, does then raise the question of why, if Mr Gao believed with certainty that there were no mapping issues, this was not communicated to Mr Mullins, particularly noting that Mr Gao was also aware that this was the reason Mr Mullins was delaying the finalisation of the KPMG audit. [86] Mr Ford attempted to address the above issue in his closing submissions, putting forward the view that, as the Company Accountant in charge of the department, Mr Mullins had repeatedly asserted a problem which no one else could identify yet told others to look for. This complaining from Mr Mullins, he says, subsequently had the effect on those around him to try assist him. [87] I acknowledge that this may be the case from those that worked under Mr Mullins, but this line of thinking would not likely extend to those that Mr Mullins reports to or are in higher/senior positions such as Mr Fraser or Ms O’Leary. These individuals appeared to have formed a view at some time between January and March 2024 that there were no mapping issues. Both individuals spoke with Mr Gao who was quite confident in his assessment that no such mapping issue existed. It would then reason that Mr Fraser or Ms O’Leary would have communicated this to Mr Mullins to redirect his efforts elsewhere to avoid delays. [88] During cross examination Mr Fraser was asked why he did not put his foot down and tell Mr Mullins there were no mapping issues. Mr Fraser stated that his response had been to “investigate the matter as he should.” It was subsequently put to Mr Fraser that therefore at the[2025] FWC 371 14 time no one could say with 100% confidence that there were no mapping issues. Mr Fraser disagreed with this proposition, highlighting an inconsistency in his evidence. [89] Mr Fraser in his statement notes that he spoke with Ms O’Leary and recommended that she speak with Mr Qiao and Mr Bauer to ascertain if there a was a problem with AX4 and D365 as described by Mr Mullins.27 It appears clear from this that he was not 100% confident that there was no mapping issue as proposed by Mr Mullins. However, I do note when asked about his motivation regarding this, Mr Fraser said during his oral evidence that he asked Ms O’Leary to investigate not because he thought there was a mapping issue but because he wanted to confirm that Mr Mullins was lying. [90] Taking the above into account, and viewed objectively, whilst I accept that Mr Mullins, as Company Accountant was responsible for delivering the accounts required by KPMG to finalise the 2022 audit, I also accept that Mr Mullins took his responsibility to ensure their accuracy seriously. It is also curious that KAB have continued to press their argument that Mr Mullins was needlessly delaying the KPMG audit whilst also being able to have resolved the delay by simply directing Mr Mullins to cease troubling himself with the mapping issue. [91] Much was made by KAB of the email that Mr Fraser sent to several employees, including Mr Mullins, on 29 December 2023 which stated:28 “Hello All, Please see below list to work on in my absence. Ash is in charge during my absence. • FINISH KPMG - JUSTIN • Get NEW PRICING DONE - JUSTIN • Purchasing transfer - Justin • List of actions for Rikita - Justin • New monthly ppt file - Justin / Ash / Liv/ Jason …” (note that the first two dot points in the original email were in red). [92] Whilst the capitalisation of the first two dot points above indicates that Mr Fraser viewed them as a priority, I have accepted Mr Mullins’ evidence that he was unwilling to complete the KPMG Audit until he was certain it was correct. Viewed objectively, I consider that Mr Mullins was complying with Mr Fraser’s direction, and had enlisted others to assist him rule out any issues so that he could finalise the accounts. [93] I have not been convinced that Mr Mullins’ attempts to confirm there were no mapping issues amounts to dishonesty. I find that: • Mr Mullins took his responsibilities as head accountant seriously. • Mr Mullins held an honest concern that there may be mapping issues that could impact the accuracy of the accounts and sought to confirm their accuracy before providing them to KPMG.[2025] FWC 371 15 • On 23 January 2024, Mr Fraser and Mr Gao were copied into Mr Mullins’ email to Ms O’Leary, in which he raised his concerns and sought her assistance in providing a resource to check the mapping. Mr Fraser did not raise any concerns with this approach. • On 25 January 2024, Ms O’Leary confirmed that she would provide a resource to investigate Mr Mullins’ concerns. • Whilst Mr Gao and Mr Fraser were of the view that there were no mapping issues, I have not been convinced that they pressed this view with Mr Mullins. • At no stage did Mr Fraser direct Mr Mullins to finalise the accounts without completing the mapping. Rather than providing this instruction, Mr Fraser purposefully let Mr Mullins continue to wait for the mapping to be completed, with the intention of catching him in a lie. [94] With respect to the allegation that Mr Mullins had been unresponsive to Mr. Fraser's follow-ups regarding the KPMG audit, Mr Diaz drew my attention to various emails from November 2023 through to March 2024 in which Mr Mullins deals directly with the KPMG audit and refers to resolving his concerns about the mapping issue. Mr Fraser also accepted during cross examination that he and Mr Mullins had held verbal discussions regarding the KPMG audit during this time. Mr Diaz submits, and I accept, that the emails do not capture the full extent of the interactions between Mr Mullins and Mr Fraser. [95] I have not been convinced that Mr Mullins’ attempts to confirm there were no mapping issues amount to dishonesty, nor do I find that he deliberately delayed finalisation of the accounts. In fact, considering the above, it seems that it was Mr Frasers’ actions that needlessly delayed the finalisation of the accounts by knowingly allowing Mr Mullins to pursue his concerns, considering his view that this was not required. [96] I accept that Mr Mullins’ actions did not align with Mr Fraser’s expectations however, viewed objectively, these concerns at best amount to performance issues which, if held by Mr Fraser, should have been addressed through clear communication and direction, or if necessary, through the performance management process — they were not. Considering the circumstances of this matter, I have not been convinced that Mr Mullin’s actions relating to the finalisation of accounts for the 2022 KPMG audit were serious misconduct. Purchasing Officer – Activities for AR Employee [97] KAB allege that in early December 2023, Mr Mullins had not satisfactorily prepared for the commencement of a newly appointed Purchasing Officer, by not providing a sufficiently comprehensive list of activities to be performed by the role. It was also alleged that Mr Mullins had not informed the Accounts department that the new employee was commencing before he commenced his annual leave. [98] Mr Mullins asserted that he had produced a task list and recalled a conversation with Ms Luke who verbally approved the list to be sent. Mr Mullins further submitted that he was not aware that the incoming Purchasing Officer would commence at KAB during his annual leave, therefore he could not have provided information about their start date to his team. He also submitted that irrespective of his awareness, he should not have been responsible for relaying this information.[2025] FWC 371 16 [99] I note that this allegation was not directly addressed in KAB’s submissions. In any event, it was confirmed during the cross examination of Ms Gregory that this issue had been resolved, at the time. Consequently, I find this allegation to be without merit. E & O Write Off [100] The letter of termination states that Mr Mullins had failed to follow the stock adjustment procedure in authorising a write-off of “AUD$103k E&O” on 4 January 2024.29 [101] Specifically, KAB allege that Mr Fraser had not been informed about it, and that Mr Mullins had approved and authorised it without seeking appropriate approval, as Mr Sant, who was standing in for Mr Fraser at the time, was absent on sick leave. [102] Mr Mullins states that a meeting was held in December 2023 with Mr Fraser, Mr Sant, Mr Amit Sharma, (KAB Manager, NSW) and himself, at which the disposal of excess and obsolete items was discussed. The list put to the meeting had been prepared by Mr Mullins. Mr Mullins recalls that Mr Sharma stated that he would get the items together and dispose of them as soon as possible and that all agreed to this course of action. Mr Mullins’ recalls that Mr Fraser said words to the effect that “it looked fine and was approved”.30 [103] In early January 2024, the stock procedure authorisation for the write off needed to be signed off. Mr Mullins notes that the form had already been signed as required by Mr Navdeep Singh and Mr Dipen Acharya on 3 January. The next step in the process appears to have been for the Managing Director to sign the form. As Mr Fraser was on annual leave at this time, such delegation had been provided to Mr Sant, as the acting Managing Director. [104] When it came time to complete the paperwork for the write-off, Mr Sant was absent on sick leave. Mr Mullins states that in the absence of both the Managing Director and Acting Managing Director, he signed the write off authorisation in accordance with the pre-approval and the Stock Adjustment Procedure. [105] Mr Mullins submitted that he had acted in accordance with KAB’s Stock Adjustment Procedure. He notes that the write-off had been approved by Mr Fraser during a meeting, and further that he believed he was authorised to sign it in Mr Fraser and Mr Sant’s absence. [106] In closing submissions, Mr Diaz noted that there was no suggestion that the write-off was substantively incorrect as the stock to be written off was excess or obsolete and that this had been acknowledged by both Mr Fraser and Mr Sant during their respective oral evidence. It is also of note that the day before, Mr Sant had authorised Mr Mullins to sign a different document, relating to a forklift, in his absence. [107] I have not been convinced that Mr Mullins acted dishonestly. He did not seek to sign the form on behalf of anyone else. He signed the document as the Company Accountant, based on his understanding that this was an acceptable course of action given both Mr Fraser and Mr Sant were absent. [108] Additionally, I note that when Mr Fraser became aware that Mr Mullins had signed the write-off without advising Mr Sant, he did raise this with Mr Mullins who accepted[2025] FWC 371 17 responsibility for signing the document without advising Mr Sant and noted it would not happen again. [109] It would stand to reason that had Mr Mullins’ actions been of any more significance than a failure to advise Mr Sant, of his intention to sign a form actioning a pre-approved process, such that would warrant the allegation of serious misconduct, or dishonesty, KAB would have sought to reverse the approval — they did not. [110] Having considered all the circumstances of this allegation, particularly noting that this matter was appropriately dealt with and responded to at the time, I am not convinced that Mr Mullins’ actions were in any way dishonest, nor did they constitute serious misconduct. Freight Surcharge [111] This allegation was again quite vague and poorly articulated. As I understand it, the allegation is that on 6 March 2024, Mr Sant advised Mr Fraser that Mr Gao had reported to him that KAB was losing money due to Mr Mullins allegedly removing a 5.7% freight surcharge. [112] In Mr Mullins’ 22 March 2024 response, he explained that the reduction of the freight surcharge was agreed to and instructed to be implemented by Mr Fraser and Mr Sant in or around September 2023 and that he did not understand how, by simply implementing their instructions, he was being accused of unsatisfactory workplace conduct. [113] As with other allegations, despite his requests, Mr Mullins did not receive any further information regarding this allegation, nor any response to his explanation. This allegation did not receive a great deal of attention from KAB during the hearing, nor did it make its way into the final letter of termination. [114] In the absence of any information to the contrary, I accept Mr Mullins’ explanation and do not consider this allegation demonstrates any issues with Mr Mullins’ conduct or performance. Clerical Error – AX4 and D365 and Costing Issue [115] Again, these allegations were not well particularised and could reasonably be described as statements rather than allegations. Regarding the clerical error, presuming that the allegation was that Mr Mullins had sent a 2016 WI file rather than an AX file, Mr Mullins asserts that this was no more than a simple mistake. In acknowledging his error, Mr Mullins noted that had it been brought to his attention at the time, he would have fixed it immediately by sending the correct file. Unfortunately, this error only seems to have been highlighted after Mr Fraser contacted Ms O’Leary in the days before commencing the disciplinary process making inquiries regarding Mr Mullins performance. [116] The costing issue also seems to have made its way into the disciplinary process as a result of Mr Frasers inquiries. Ms O’Leary had responded to Mr Frasers inquiries regarding Mr Mullins and advised that it had taken over 20 emails to resolve what she characterised as a simple XLS costing issue. Whilst no particulars of this issue were included, Mr Mullins seems to have been aware that a XLS issue had been identified but maintained that it was a simple[2025] FWC 371 18 accountancy issue that is commonplace. Mr Mullins further argued that it was his role, as Accountant to identify and rectify accounting issues that arise, which he did. [117] Whilst not explicitly mentioned in the letter of termination, these issues are taken to have formed part of the overall reasons for termination. Having considered the evidence and circumstances of this allegation, I find that at most, this allegation relates to a mistake that Mr Mullins was not advised of and an unsubstantiated allegation that it took him 20 emails to resolve a simple issue, that was not put to him until the disciplinary process had commenced. Errors in the company accounts [118] The letter of termination relies on errors in the company accounts. KAB state that these errors were discovered by KAB after Mr Mullins’ suspension, when examining his “interaction with the software program”.31 [119] Mr Mullins’ second response addressed these new issues by simply noting that they were confusing and that he would require additional information to allow him to respond. Noting Mr Mullins had been given three days to respond to all the matters raised in the second allegation letter, I consider this to have been a reasonable request. [120] Notwithstanding the above, the matters identified are clearly performance issues, however I have not been provided with sufficient evidence to determine their validity and as such, they have been afforded the appropriate weight in my considerations. Other allegations [121] A range of other allegations were put to Mr Mullins during this process. Most of these matters concerned timeliness in responding to emails or errors in processing of accounts and other documents. Most of these issues, would more appropriately have been characterised as performance issues, which should have been dealt with in accordance with KAB’s performance management policy. Again, they were not. [122] I also note that in each of his responses, Mr Mullins has offered to take any steps necessary to address KAB’s concerns, however KAB did not afford him this opportunity. Management of Mr Mullins Work Performance – 2023 review [123] According to Mr Fraser’s statement, he conducted a review of Mr Mullins’ performance during the first six (6) months of his employment on 14 April 2023. The evaluation identified that Mr Mullins needed to work on “purchasing and closing out D365 and one stream misalignment” matters which Mr Mullins had raised.32 Mr Fraser attached a copy of this Performance Evaluation which he states is dated 14 April 2023 and marked as BF-6. Mr Fraser also included an additional Performance Evaluation which he states is dated 1 March 2024 and marked as BF-7. I note that, both Performance Evaluations are not dated apart from indicating “2023 Performance Review”, which confusingly is also indicated on the 1 March 2024 review. Furthermore, both reviews appear exactly the same apart from a change in colours regarding the results column and that the 1 March 2024 review’s “2023 Overall Performance Rating” field is left blank.[2025] FWC 371 19 [124] Mr Mullins filed an additional statement responding to KAB’s material in which he states that the April 2023 performance review was not a true copy of the document he was shown at the time.33 Mr Mullins notes that the managers comments, “What about 365 and KPMG stat accounts ??”34 could not have been included in April 2023 as they did not become overdue until about May 2023.3536 [125] Mr Mullins additionally noted a reference to the Employee Self-Assessment at Priority 5, which is a reference to a First Aid Course.37 Mr Mullins states that this course was undertaken in or around September 2023 and as such, could not have been included in a document prepared in April 2023.38 Mr Mullins submits that the 2023 performance review document would likely have been produced no earlier than February 2024.39During the hearing, Mr Fraser confirmed that Mr Mullins was not shown this completed version of the April 2023 performance review document which contained the manager comments. [126] Mr Diaz further referred to the performance evaluation scale and the rating further below Mr Mullin’s rating, being “1 Unsatisfactory”, which states: “This rating signifies performance falling significantly below acceptable standards. Immediate and comprehensive action is required to address performance issues. The leader and employee must work closely to develop and implement a robust improvement plan. Continued employment in the current position is contingent upon substantial and sustained Improvement in performance.” (emphasis added) [127] Mr Fraser also confirmed during cross examination that no discussions were held with Mr Mullins about the comments made, nor what supports Mr Mullins might need to improve his unsatisfactory performance. Mr Fraser said he did not have the time. Mr Fraser further agreed that the performance evaluation scale does not mention anything about suspending, disciplining, or terminating an employee but that the leader and employee must collaborate on a plan of action to enhance performance. Mr Fraser conceded that he did not collaborate with Mr Mullins to improve his performance and that he never told Mr Mullins his performance had to improve if he was to retain his job. [128] Further noting an absence of any reference to suspending, disciplining, or terminating an employee, Mr Fraser conceded that the performance review process that the April 2023 Performance Review document formed a part of was never concluded. I therefore accept Mr Mullins’ submission that he had not sighted this version of the April 2023 Performance Review Document until it was provided with Mr Fraser’s statement. [129] In any event, it is reasonable to presume that had there been serious concerns with Mr Mullins’ performance in April 2023, a process to address this should have been initiated. Not only was no such process initiated, I note that KAB granted Mr Mullins a 10% pay increase in in 2023. 2024 Performance Review Document [130] Mr Fraser states that on 1 March 2024, Mr Mullins completed a Top 5 performance review. That same day, Mr Fraser completed a 2024 performance review. A copy of this review was attached to his statement as BF-7. As noted above, this document is titled 2023 performance[2025] FWC 371 20 evaluation, not 2024, and many of the comments are identical to those in the version of the 2023 performance review considered above. It is also noted that this document is not signed or dated. [131] Mr Mullins maintains that he was never shown this document and notes that there is no result for the “Overall Performance Rating” as it appears blank.40 Mr Fraser confirmed that this document was not reviewed by Mr Mullins, stating that he was planning to do so upon his return from India41, however it appears that no such discussion took place. Mr Fraser did not discuss this document with Mr Mullins on his return, nor was the performance review process progressed. Consequently, this document has been afforded appropriate weight in my considerations. Was Mr Mullins dismissed due to his performance? [132] During cross examination, Mr Fraser was asked if Mr Mullins was dismissed because of his performance. Mr Fraser insisted that he was not. Mr Fraser was subsequently shown the suspension letter dated 19 March 2024 and referred to the line which stated:42 “We write to you in respect to various concerns we have in respect to your conduct and performance at work in your role.” [133] Mr Fraser was then taken to KAB’s 5 April 2024 letter which stated:43 “Indeed, in the absence of a satisfactory and reasonable explanation, your performance in the role of Accountant may very well amount to gross negligence and/or serious misconduct.” and lastly to the termination letter which states:44 “As you are aware we have advised you in our previous letters that we have serious concerns following an investigation regarding your conduct, performance and failure to follow policies and procedures as the Accountant for KAB…” [134] Mr Fraser’s insistence that performance issues existed as far back as April 2023 does however seem completely at odds with his insistence, during cross examination that Mr Mullins’ performance was not the reason for his dismissal, despite unambiguous evidence that it was a major factor in his dissatisfaction with Mr Mullins. As such, based on the material provided, in particular the show cause letters and termination letter, it is quite clear that KAB’s view on Mr Mullins’ performance formed part of, if not all, the reason for his dismissal. Was there a valid reason for the dismissal related to the Applicants capacity of conduct? [135] As described above, KAB’s allegations against Mr Mullins appear to have been somewhat of a moving feast. The first show cause letter contained 16 allegations. Further allegations were raised in the second letter however the termination letter of 12 April 2024 summarily dismissed Mr Mullins for serious misconduct and/or gross negligence. [136] I have not been convinced that Mr Mullins’ actions constituted serious misconduct, nor that he acted dishonestly. [137] Whilst I accept that there were examples of situations in which Mr Mullins may not have met KAB’s performance expectations, I also find it harsh that, contrary to their[2025] FWC 371 21 performance management policy, KAB did not bring many of the issues raised in the show cause letters to his attention prior to initiating the disciplinary process. Of greater concern, is Mr Fraser’s admission that he knowingly let Mr Mullins continue to pursue his mapping concerns for the sole purpose of catching him in a lie. [138] Rather than taking this approach, it was open to Mr Fraser to have clearly communicated his requirements and expectations to Mr Mullins, and if Mr Mullins had not responded appropriately, to have begun a performance management process. [139] I do not accept that Mr Mullins’ explanations were unsatisfactory or unreasonable. To the contrary, I find that Mr Mullins provided a number of reasonable explanations, where able, and sought further particulars to enable him to provide a more fulsome response. This information was not forthcoming from KAB. Through the process, Mr Mullins expressed a willingness to better understand KAB’s expectations and to conform to any reasonable requests regarding his future conduct and performance. KAB did not respond to Mr Mullins’ suggestions in this regard. [140] I find that Mr Fraser’s views of Mr Mullins’ performance were a significant factor in his decision to dismiss Mr Mullins, however many of these issues had already been addressed and resolved, others were not adequately evidenced or particularised and those that may have warranted further attention, were not of such significance to have warranted his dismissal, summarily or otherwise. Consequently, I find KAB did not have a valid reason to dismiss Mr Mullins. Was the Applicant notified of the valid reason? And, was the Applicant given an opportunity to respond to any valid reason related to their capacity or conduct? [141] Having found that KAB did not have a valid reason to dismiss Mr Mullins, further consideration of this question is not required.45 However, for completeness, I again note the everchanging nature of the allegations put to Mr Mullins and KAB’s failure to provide the information requested by Mr Mullins to enable him to provide a fulsome response. In the alternative, had I found Mr Mullins’ conduct to have been a valid reason for his dismissal, I would not have been satisfied that he had been afforded a proper opportunity to respond. Did the Respondent unreasonably refuse to allow the Applicant to have a support person present to assist at discussions relating to the dismissal? [142] This issue was not in dispute in this instance nor was it applicable to this matter. I find that KAB did not refuse Mr Mullins access to a support person. Was the Applicant warned about unsatisfactory performance before the dismissal? Submissions of Mr Mullins [143] Mr Mullins submits that, based on the nature of the allegations provided by KAB as the reason for his dismissal, he was dismissed as a result of performance issues regarding the timeliness, accuracy and quality of his work as well as his communication with others in the workplace, rather than serious misconduct or gross negligence.46[2025] FWC 371 22 [144] Mr Mullins therefore argued that he should have been provided with a real opportunity to receive support and demonstrate improvement as would normally be expected in situations where there are performance concerns.47 Prior to issuing the show cause letter, KAB had not provided a written warning or notice to Mr Mullins about his unsatisfactory performance, nor had it been conveyed to him that his employment was at risk due to unsatisfactory performance.48 Mr Mullins submitted that KAB had not properly managed his performance in accordance with its company policy. If he had received adequate notice, his performance issues, “could have been resolved without terminating his employment”.49 [145] Mr Mullins further submitted that while he offered and welcomed suggestions as to how to handle minor issues in the future in his letters responding to the allegations raised by KAB, but KAB did not provide a response to this effect.50 Submissions of KAB [146] KAB acknowledged in its oral submissions that it had not provided Mr Mullins with any formal warning about his unsatisfactory performance prior to issuing the allegation letters. Nonetheless, KAB submits that Mr Mullins should have been aware that his performance was unsatisfactory. This is namely because there was a considerable delay in his preparation of financial statements for the KPMG audit and he had also received repeated follow up emails from KPMG and Mr Fraser about outstanding work and tasks. KAB further submits that since Mr Mullins should have been aware of his unsatisfactory performance, he should have also in turn, known that his employment was at risk if he did not complete his outstanding tasks. [147] Aside, KAB noted that as some of Mr Mullins’ misconduct only became apparent after his suspension, it could not have provided him with an earlier warning in relation to such issues. Consideration [148] A mere urging for an employee to improve their performance would not be a sufficient warning. A warning must:51 • identify the relevant aspect of the employee’s performance which is of concern to the employer; and • make it clear that the employee’s employment is at risk unless the performance issue identified is addressed. [149] I do not accept KAB’s assertion that Mr Mullins “should have known” that his performance was unsatisfactory. Further to my findings as they relate to s.387(a), I find KAB did not follow its own performance management process to address any real or perceived performance issues prior to starting the disciplinary process, nor was Mr Mullins provided with a real opportunity to receive support and demonstrate improvement as would normally be expected in situations where there are performance concerns. I find that Mr Mullins was not warned about unsatisfactory performance before his dismissal. To what degree would the size of the Respondent’s enterprise be likely to impact on the procedures followed in effecting the dismissal and to what degree would the absence of[2025] FWC 371 23 dedicated human resource management specialists or expertise in the Respondent’s enterprise be likely to impact on the procedures followed in effecting the dismissal? [150] Both parties agreed that KAB is not a small business. Further it is not contested that KAB has a dedicated human resources team. As such I do not find these considerations to be relevant. Other relevant matters [151] With respect to other relevant matters, Mr Mullins submits that KAB’s conduct was especially harsh, unjust and unreasonable where: a. Mr Mullins had been employed by KAB for almost 2 years; b. Mr Mullins had never received written notice that his conduct was below standard; c. on 19 March 2024 he received a letter from KAB setting out numerous allegations against him that spanned a period of about 4 months; d. on that same day, he was locked out of KAB’s systems and told not to attend the premises. [152] Further, that KAB’s conduct in this instance was harsh when considered in the context of his age and occupation. Noting Mr Mullins was 61 years old when he was dismissed and has work experience in a specialised field. As such, he contended that KAB should have known that in dismissing him as it did, he would be placed in a disadvantaged position in the labour market. These submissions have been considered [153] KAB submit Mr Mullins engaged in conventional serious misconduct and was therefore not entitled to notice of termination or payment in lieu of notice, and precluded from working out a notice period due to his own deliberate acts or omissions. Additionally, KAB submit that Mr Mullins was provided with training, ongoing support and access to ongoing support to perform his work. [154] KAB submit the potential cost to KAB and its operations in Australia, including impact on other staff, in respect to errors in the budget FY2024 and fines for late lodgement of tax returns and payment of tax due to the delay in finalisation of the company accounts should also be considered. These submissions have formed part of my overall consideration. Conclusion on Merits [155] I have found that Mr Mullins’ action were not serious misconduct and that KAB did not have a valid reason for dismissing Mr Mullins. [156] Having made findings in relation to the matters specified in section 387 as relevant, I am satisfied that Mr Mullins was unfairly dismissed, and that the dismissal was harsh, unjust and unreasonable. I am therefore satisfied that Mr Mullins was unfairly dismissed within the meaning of s. 385 of the Act. Remedy[2025] FWC 371 24 [157] With respect to remedy, section 390 of the Act provides that the Commission must only make an order for the payment of compensation if satisfied that reinstatement is not appropriate, and where it is considered that compensation is appropriate in all the circumstances of the case. Reinstatement [158] Mr Mullins does not seek reinstatement and has found new employment commencing on 6 November 2024. As such I do not consider reinstatement appropriate in this case. Is an order for compensation appropriate in all the circumstances? [159] The Full Bench has noted that the question of whether to order a remedy in a case where a dismissal has been found to be unfair remains a discretionary one, and whether an applicant has suffered financial loss may be a relevant consideration.52 [160] I am of the view that in all the circumstances of this case, it is appropriate to order compensation. My reasons and assessment of the amount are set out below. [161] The long-established approach to assessing compensation in unfair dismissal matters was set out in Sprigg v Paul Licensed Festival Supermarket (Sprigg),53 which the Full Bench of this Commission has since applied under the current Act.54 [162] I summarise the Sprigg formula as follows: 1. Estimate the remuneration that employee would have received if the employer had not terminated the employment; 2. Deduct monies earned since termination; 3. Discount the remaining amount for contingencies; 4. Calculate the impact of taxation. [163] While Sprigg sets out the method, I must nevertheless take account of all the circumstances of the case and of the specific criteria listed in s 392.55 [164] The overall consideration is that the level of compensation must nevertheless be appropriate (that is, neither clearly excessive nor clearly inadequate) having regard to all the circumstances of the case.56 My consideration follows. Section 392(2)(a) – Viability [165] KAB did not make submissions regarding this factor, though I do note that KAB’s profits are below its expectations. However, there is no evidence that KAB are in liquidation. As such, I am not persuaded that my consideration of this factor means that I should not make an order for compensation. Section 392(2)(b) – Length of service[2025] FWC 371 25 [166] KAB submits that Mr Mullins employment from on or about 29 August 2022 until 12 April 2024 is a very short period of employment during which it has been identified there were significant issues with performance of his work and conduct at least in the last six to ten months. [167] Noting Mr Mullins submits he commenced employment on 29 August 2022, I am satisfied that Mr Mullin’s length of service is 1 year, 7 months and 2 days. This is a relatively short period of time and has been taken into consideration. Section 392(2)(c) – Remuneration the person would have received [168] As stated by a majority of the Full Court of the Federal Court in the He v Lewin57 (as quoted in Zeng v Conrock Australia Pty Limited) “[i]n determining the remuneration that the Applicant would have received, or would have been likely to receive... the Commission must address itself to the question whether, if the actual termination had not occurred, the employment would have been likely to continue, or would have been terminated at some time by another means. It is necessary for the Commission to make a finding of fact as to the likelihood of a further termination, in order to be able to assess the amount of remuneration the employee would have received, or would have been likely to receive, if there had not been the actual termination.” [169] It is clear that KAB had concerns regarding Mr Mullins’ performance, and that the relationship between he and Mr Fraser had become strained. In this environment, had Mr Mullins not been summarily dismissed for serious misconduct/gross negligence, it is likely that KAB would have initiated a formal performance management process at some stage. [170] It is of note however, that in response to performance issues raised as a part of the disciplinary process that led to his dismissal, Mr Mullins expressed his willingness to work with KAB and do whatever was in his power to address their concerns. I expect that he would have taken a similar approach to any formal performance process and would have done his best to meet KAB’s expectations. I therefore consider that had KAB initiated an appropriate process in the future and afforded him this opportunity he may well have been able to meet their expectations and remained in employment. [171] However, I have also taken account of the significant breakdown in the relationship between Mr Mullins and Mr Fraser, a consequence of which may well have been that it was impossible for Mr Mullins to have met KAB’s expectations. Consequently, I consider it likely that Mr Mullins would have exited the organisation either voluntarily, or following a properly identified and managed performance process in the future. [172] Taking the above into consideration, I believe that Mr Mullins was likely to have remained in KAB’s employment for another 12 to 18 months. I note however that Mr Mullins did commence a new job on 6 November 2024. On that basis, I consider his loss to be the 29 weeks between his dismissal and the commencement of his new employment. Section 392(2)(d) – Efforts to mitigate loss[2025] FWC 371 26 [173] It was Mr Mullins’ evidence that he had been on job seeking websites daily to locate alternative employment.58 Further that he had utilised his network to see if any jobs suitable to his qualifications and experience are available.59 [174] At the time of the hearing, Mr Mullins had been unable to obtain alternative employment and remained unemployed. Mr Mullins submitted that this was partly because he is an accountant specialised in manufacturing accountancy and as such, there are limited roles available in these fields.60 [175] KAB submitted that Mr Mullins has provided no evidence of his attempts to mitigate his loss, other than mere assertion in his statement that he has been looking at websites such as SEEK and asking people who may be able to assist with employment. KAB states a search on Google for ‘inventory accounting jobs in Brisbane’ returned results on SEEK for some 64 jobs as of 17 July 2024. Furthermore, there are jobs listed with equivalent or similar salaries to that of Mr Mullins at the time of termination. As such, Mr Mullins bears the onus of taking reasonable steps to minimise the impact of the dismissal, KAB submits that “mere looking” does not constitute reasonable steps or any substantial effort to find work. [176] During the hearing Mr Mullins was referred to the list of inventory accountant jobs in Brisbane, as compiled by Ms Sutton, and was asked whether the jobs were suitable. Mr Mullins stated that out of the 22 jobs, only two jobs were suitable for his experience as the other jobs were not in manufacturing. When asked, Mr Mullins confirmed that though he was a manufacturing accountant, he had previously dealt with inventory management accounting, project accounting and cost accounting as other duties in his role. It was then put to Mr Mullins his statement of being unable to find similar employment is not accurate as he has experience in inventory accounting and cost accounting. Mr Mullins conceded that those roles would be in his experience but not what he would want to do. When asked if he would be able to do these jobs, Mr Mullins agreed he would. [177] Mr Mullins further stated that he has not been applying for jobs he says he believes he is not suitable for, or a job that is in a head office in the city. Mr Mullins went on to state that he wants to do something he has been doing his whole life — working in a factory, half an hour’s drive from his home. [178] On 3 January 2025 I sought further submissions from the parties regarding Mr Mullins’ efforts to mitigate his losses since the hearing. [179] Mr Mullins states that according to the records accessed on or about 5 January 2025, he had applied for 26 positions through SEEK between 20 August 2024 and 30 October 2024, one of which he was successfully employed for. Mr Mullins states that his SEEK records only go back as far as 90 days, and as such he is unable to retrieve all his applications, but he estimates that he applied for a further 10 positions from the date of the hearing to 1 November 2024. Further, Mr Mullins states he had attended seven (7) interviews between the hearing and the date Mr Mullins was offered the position with KB Seafood Co Pty Ltd. [180] With respect to Mr Mullins’ supplementary statement, KAB notes that since the hearing Mr Mullins has applied for roles not limited to that of a “management accountant,” despite[2025] FWC 371 27 being critical of evidence tendered by KAB of advertised roles that may be available to him to apply for as an accountant advertised online. It is also noted, that the position Mr Mullins has obtained is a full-time role as a Cost Accountant with KB Seafood Co Pty Ltd based at Morningside (10 min drive or 5km in distance from his home at Camp Hill). [181] KAB submit that Mr Mullins has demonstrated that with a broader search for work he was able to secure employment in an accounting role, within approximately 9-10 weeks following the hearing of the matter on 16 August 2024, close by to where he resides. As such, KAB submits that there is a reasonable inference to be drawn that Mr Mullins made no real attempt to mitigate his loss and apply for work prior to the hearing of this matter and did not make reasonable efforts until after the hearing of this matter concluded. [182] Mr Mullins submits that when considering his career specialisation and that he was in the later stage of his career, it is beyond reasonable to expect that he mitigates his loss by looking for work outside of his field of specialisation. Mr Mullins argues that as a late-career specialist, it was reasonable for him to have attempted to find work within his specialised field. Once that opportunity had been afforded to him, it would then become reasonable to expect him to broaden his parameters. Mr Mullins looked for work within his specialised field for four months without success. Following that, it became reasonable to expect he would broaden his search and look for work outside of his specialised field, which he did. [183] Whilst I acknowledge Mr Mullins submissions and preferences, I did not find his explanation as to why he did not apply for other work that he was both capable and experienced to do, as a sufficient barrier to him mitigating his loss. [184] Taking the above into consideration, I find that Mr Mullins did not make all reasonable attempts to find alternative employment, particularly in the period between his dismissal and the hearing. I have balanced this finding with the consideration that Mr Mullins’ capacity to find alternative employment may have been impacted by his age, and by the fact that he was not able to provide prospective employers with a letter of reference or statement of service from KAB. I have also considered the additional loss that Mr Mullins has incurred because of accepting a role at a lessor rate of remuneration than his role with KAB. Taking all of these factors into consideration, I find it appropriate to reduce the amount of compensation awarded to Mr Mullins by 30%. Section 392(2)(e) & (f) – Remuneration and income earned [185] As indicated above and the absence of any submissions from either party, noting KAB submit that any income earned by employment prior to hearing should be considered, Mr Mullins has been employed and has received income in new employment since 6 November 2024. Mr Mullins says that his current salary is $85,000 per annum plus superannuation. [186] I am satisfied that the total earned by Mr Mullins from employment or other work during the period since the dismissal is $21,250, however as this amount was wholly earnt outside of the period I have identified as Mr Mullins’ loss, it will not be deducted from the total. Section 392(2)(g) – Any other matter[2025] FWC 371 28 [187] Mr Mullins states that his legal costs at the time of his statement are about $8,950 and that by the end of the hearing they will total about $13,000 to $15,000.61 [188] KAB submit, and I accept, that costs are subject to s.402 of the Act and that the time for consideration of an application for costs should be considered at the conclusion of the entire proceeding. [189] It is unclear whether Mr Mullins seeks cost, however in any event a person must bear their own costs in relation to a matter before the Commission per s. 611(1) of the Act. Section 392(3) – Contribution to dismissal by misconduct not relevant [190] KAB contends that Mr Mullins’ conduct constitutes serious misconduct and gross negligence for which any amount of compensation should be reduced by 100% considering his conduct.62 As I have not found this to be the case, Mr Mullins’ compensation will not be reduced in this regard. Section 392(4) – Shock, distress etc disregarded [191] I have not ordered an amount of compensation for shock and distress. Taxation [192] Consistent with prior decisions,63 I propose to order payment of a gross (that is, before tax) amount of compensation, to be taxed according to law. Section 392(5) Compensation Cap [193] Based on the material provided, Mr Mullins earned a weekly pay of $2,221.15 per week. I accept this figure. [194] Under s 392(5) the compensation cap is the lesser of 26 weeks of Mr Mullins’ pay or half the amount of the high-income threshold. • $83,750 is half the amount of the high-income threshold that applied immediately before Mr Mullins’ dismissal, which was $167,500. • $57,749.90 is 26 weeks of Mr Mullins’ weekly pay. [195] The compensation cap that applies to Mr Mullins is therefore $57,749.90. Calculations My calculations are set out in the following table: Step 1 – Remuneration if employee had not been dismissed Amount • Weeks wages per week $2,221.15 • Projected further weeks of employment (loss) 29 Total Remuneration $64,413.35[2025] FWC 371 29 Step 2 – Discounts s 392(2) (Mitigation of Loss) 30% s 392(3) Deduction for Misconduct 0 Step 3 – Discount other contingencies 0 Total after deductions $45,089.34 Step 4 – Taxation - To be taxed according to law To be taxed according to law Step 5 – s 392(5) Apply compensation cap $45,089.34 Conclusion on Remedy [196] Having weighed each of the considerations under section 392, I intend to issue an order that the Respondent, KAB, pay to the Applicant, Mr Justin Mullins, the sum of $45,089.34 gross, taxed in accordance with law. An order to that effect will be issued separately and concurrently with this decision. COMMISSIONER Appearances: P. Diaz for the Applicant J. Ford for the Respondent Hearing details: 2024 Brisbane 15 & 16 August Printed by authority of the Commonwealth Government Printer PR784164 1 DHB at pg. 195 & 333 – Witness Statement of Ashley Sant at 7 & Witness Statement of Ben Gao at 5. 2 DHB at pg. 333 – Witness Statement of Ben Gao at 5. 3 DHB at pg. 340 – Witness Statement of Bill Fraser at 16. 4 DHB at pg. 13 – Show Cause Letter dated 19 March 2024. 5 Ibid at pg. 13 to 15. 6 Ibid at pg. 16. EF R WOA THE MMISSION THE SEAL OF[2025] FWC 371 30 7 DHB at pg.13 – Show Cause Letter dated 19 March 2024. 8 DHB at pg.35 – Termination Letter. 9 Fair Work Act 2009 (Cth) s.382. 10 Raj Bista v Group Pty Ltd t/a Glad Commercial Cleaning [2016] FWC 3009 11 Selvachandran v Peteron Plastics Pty Ltd (1995) 62 IR 371, 373. 12 Ibid. 13 [2021] FWC 4 at 118. 14 Commonwealth of Australia (Australian Taxation Office) t/a Australian Taxation Office v Shamir [2016] FWCFB 4185, [46] citing Allied Express Transport Pty Ltd v Anderson (1998) 81 IR 410, 413. 15 DHB at pg. 58 – Applicant Submissions at 124. 16 DHB at pg. 169 to 170 – Respondent Submissions at 20 to 24. 17 Ibid at 24. 18 Emma Horan v Tren Trading Pty Ltd t/a Dubbo Early Learning Centre [2019] FWC 3249. 19 Ibid. 20 Briginshaw v Briginshaw [1938] HCA 34 (30 June 1938), [(1938) 60 CLR 336]; cited in Barber v Commonwealth of Australia as represented by the Department of Parliamentary Services [2011] FWA 4092 (Thatcher C, 6 July 2011) at para. 33, [(2011) 212 IR 1] 21 Briginshaw v Briginshaw [1938] HCA 34 (30 June 1938), [(1938) 60 CLR 336]. 22 Ibid., [(1938) 60 CLR 336] at pp. 362‒3] 23 DHB at pg. 20 – Response to Show Cause Letter dated 22 March 2024. 24 DHB at pg.35 – Termination Letter. 25 DHB at pg. 448 to 449 – Email Chain (Annexure BF-20). 26 Ibid at pg. 448. 27 DHB at pg. 344 – Witness Statement of Bill Fraser at 56. 28 DHB at pg. 419 – Email Chain (Annexure BF-8). 29 DHB at pg.35 – Termination Letter. 30 DHB at pg. 109 – 22 March 2024 Response Letter from the Applicant. 31 DHB at pg. 28 – Further Show Cause/Allegations Letter dated 5 April 2024. 32 DHB at pg. 340 – Witness Statement of Bill Fraser at 21. 33 DHB at pg. 131 – Second Witness Statement of Justin Mullins at 46. 34 Ibid at 47. 35 Ibid. 36 Ibid. 37 DHB at pg. 131 – Second Witness Statement of Justin Mullins at 48. 38 Ibid. 39 Ibid. 40 DHB at pg. 131 – Second Witness Statement of Justin Mullins at 52. 41 DHB at pg. 341 – Witness Statement of Bill Fraser at 22. 42 DHB at pg. 13 – Show Cause Letter dated 19 March 2024. 43 DHB at pg. 28 – Further Show Cause/Allegations Letter dated 5 April 2024. 44 DHB at pg. 35 – Termination Letter. 45 Chubb Security Australia Pty Ltd v Thomas Print S2679 (AIRCFB, McIntyre VP, Marsh SDP, Larkin C, 2 February 2000), [41]; Read v Cordon Square Child Care Centre [2013] FWCFB 762, [46]-[49]. 46 DHB at pg. 58 – Applicant Submissions at 124. 47 Ibid at 124 to 126.https://www.fwc.gov.au/documents/decisionssigned/html/2016fwc3009.htm https://www.fwc.gov.au/documents/decisionssigned/html/2021fwc4.htm https://www.fwc.gov.au/documents/decisionssigned/html/2016fwcfb4185.htm https://www.fwc.gov.au/documents/decisionssigned/html/2019fwc3249.htm https://www.fwc.gov.au/documents/decisionssigned/html/2011fwa4092.htm https://www.fwc.gov.au/documents/decisionssigned/html/2013fwcfb762.htm [2025] FWC 371 31 48 DHB at pg. 58 – Applicant Submissions at 125. 49 Ibid. 50 Ibid at 126. 51 Fastidia Pty Ltd v Goodwin Print S9280 (AIRCFB, Ross VP, Williams SDP, Blair C, 21 August 2000), [43]-[44]. 52 Vennix v Mayfield Childcare Limited [2020] FWCFB 550 at [20]. 53 (1988) 88 IR 21. 54 ERGT Australia Pty Ltd v Govender [2021] FWCFB 4508 at [35]. 55 Elefantis v The Trustee for Timber Ridge Unit Trust [2022] FWCFB 43 at [67]. 56 McCulloch v Clavary Health Care Adelaide [2015] FWCFB 873 at [29]. 57 [2004] FCAFC 161 at [58]. 58 DHB at pg. 73 – Witness Statement of Justin Mullins at 85. 59 Ibid. 60 Ibid at 86. 61 Ibid at 88. 62 DHB at pg. 174 – Respondent Submissions at 49. 63 Bowden v Ottrey Homes Cobram and District Retirement Villages Inc. T/A Ottrey Lodge [2013] FWCFB 431 at [55]; Vennix v Mayfield Childcare Limited [2020] FWCFB 550 at [32].https://www.fwc.gov.au/documents/decisionssigned/html/2020fwcfb550.htm https://www.fwc.gov.au/documents/decisionssigned/html/2021fwcfb4508.htm https://www.fwc.gov.au/documents/decisionssigned/html/2022fwcfb43.htm https://www.fwc.gov.au/documents/decisionssigned/html/2015fwcfb873.htm https://www.fwc.gov.au/documents/decisionssigned/html/2013fwcfb431.htm https://www.fwc.gov.au/documents/decisionssigned/html/2020fwcfb550.htm
Cases cited by this decision:
- Bista, Raj v Glad Group Pty Ltd - [2016] FWC 3009
- McCulloch, John v Calvary Health Care Adelaide - [2015] FWCFB 873
- Smith, Kylie Suzanne v Bank of Queensland Ltd - [2021] FWC 4
- Commonwealth of Australia (Australian Taxation Office) T/A Australian Taxation Office v Shamir, Ron - [2016] FWCFB 4185
- Horan, Emma v Tren Trading Pty Ltd T/A Dubbo Early Learning Centre - [2019] FWC 3249
- Wellparks Holdings Pty Ltd v Mr Kevin Govender - [2021] FWCFB 4508
- Mr Saki Elefantis v The Trustee for Timber Ridge Unit Trust - [2022] FWCFB 43
- Vennix, Lucinda v Mayfield Childcare Limited - [2020] FWCFB 550