Employer’s Inaction Escalated Misconduct, but Resignation Ruled Voluntary

FWC Nicole-Marree Smith v Bright Life Homes Pty Ltd [2024] FWC 1494 (14 June 2024) has found that an employer’s failure to address inappropriate conduct by a teenage apprentice led to escalating behaviour that threatened an older employee's safety. FWC criticised the employer for inadequate training and poor leadership, which allowed the apprentice’s misconduct to continue unchecked.

Nevertheless, FWC dismissed the older employee’s unfair dismissal claim, holding that the employee’s resignation was voluntary because she had alternative options, including reporting the bullying to management or filing a workers' compensation claim.

Our Take

Employees will make their own choices if they feel bullied or harassed, their decision to resign does not automatically mean the employer has forced their resignation. However, having robust procedures in place to manage bullying conduct will help you demonstrate that you have acted appropriately and not forced a resignation. Poor organisational justice is a recognised psychosocial hazard.

Erasmus once said that ‘prevention is better than cure’ - failing this can cost you time and money. If you do not address workplace misconduct, your inaction can fuel bad behaviour. Workplace misconduct left unmanaged has a damaging effect on the culture of your business. Your inaction will tell your employees that that kind of behaviour is acceptable, which can see your valuable employees deciding to work elsewhere.

Action Items

• good leaders make you feel safe - provide adequate training to all staff, including management, on workplace conduct, specifically bullying and harassment.

• employees must have real and effective options as alternative to resignation - provide accessible and flexible complaints processes to ensure inappropriate conduct, bullying, or harassment is reported and managed.

• ensure adequate processes and procedures are set up to manage resignations.

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