Hurried restructure leads to $56,000 unfair dismissal award

The Fair Work Commission has awarded more than $56,000 in compensation after finding that an employee’s dismissal during a workplace restructure was harsh, unjust or unreasonable.

In Patel v Prospa Advance Pty Ltd [2026] FWC 2813, the employer combined two existing positions into a new role and made Mr Patel’s position redundant. The Commission accepted that the business was entitled to restructure, but found significant problems with the process followed.

The scope of the new position had not been finalised when the dismissal decision was made. Mr Patel was given little meaningful information about the proposed changes and no genuine opportunity to respond before his employment ended. The short implementation period also supported the conclusion that the outcome had effectively been predetermined.

The Commission was particularly critical of the employer’s treatment of payments owed to Mr Patel. A bonus and other amounts intended to reduce the financial impact of the dismissal were offered only if he signed a deed releasing the employer from potential claims. This contributed to the finding that the dismissal was harsh.

Reinstatement was not appropriate because Mr Patel’s former role no longer existed and the employment relationship had deteriorated. After considering his likely earnings, workers’ compensation payments and other relevant contingencies, the Commission ordered compensation of $56,306.28.