Shilna Malde v Richard Trainer
Commissioner Matthews
Not yet cited by other cases
Applicant: Shilna Malde
Respondent: Richard Trainer
Ratio
The applicant was unfairly dismissed due to lack of procedural fairness—the respondent terminated her employment without prior discussion, warning, or opportunity to improve, despite allegations of performance concerns. Reinstatement and re-employment being impracticable, compensation of six months' salary was ordered as the maximum available under s26 of the Industrial Relations Act 1979 (WA).
Outcome
For applicant
granted
Authority signal
Not yet cited by other cases
Signal-weighted score: 0.0
Derived from how later decisions have treated this case. Dark green = leading authority,
green = positively treated, grey = neutral or sparse data,
amber = caution, red = treated negatively.
Key facts · 8
- Applicant employed by respondent from 31 January 2019 until April 2019
- Respondent sent email on 8 April 2019 terminating applicant's employment
- Respondent alleged applicant had not performed role in accordance with expectations and agreed rate of website builds per week
- Contract of employment contained no reference to three-month trial or probationary period
- Applicant disputed performance allegations and gave evidence she was doing a good job
- Applicant appeared honest, credible, earnest and capable
- Respondent did not appear at hearing despite proper service of notice
- Applicant does not seek reinstatement or re-employment
Factors
For
- Respondent sent summary dismissal via email without prior discussion of alleged performance concerns
- No prior warning given to applicant of performance shortcomings
- No opportunity given to applicant to improve performance
- No probationary period clause in contract of employment despite respondent's assertion
- Applicant's evidence of good performance was credible and unrebutted
- Respondent failed to appear to defend case despite proper service of notice
- No evidence of operational difficulties in respondent's business justifying summary dismissal
Against
- Respondent's assertion that applicant failed to meet performance expectations (disputed and rejected)
- Respondent's claim of existence of three-month trial period (contradicted by contract)
Legislation referenced
- Industrial Relations Act 1979 (WA) s26
Concept tags · 9
[P]Unfair dismissal (WA)
[P]Dismissal for unsatisfactory performance
[P]Procedural fairness at dismissal stage
[P]Compensation for unfair dismissal
[S]Dismissal during probation (WA)
[S]Notice of termination (statutory/contract)
[S]Joinder / amendment of parties
[S]Reinstatement
[M]Joint employer / multi-entity employment
Principles · 4
articulates para 9
A probationary period does not give an employer carte blanche authority to treat employees however they like; dismissal can be unfair even where it occurs during probation.
articulates para 10
An employer cannot unilaterally dismiss an employee for alleged poor performance without prior discussion, warning, and opportunity to improve. An employer must discuss shortcomings identified, warn of implications of non-improvement, and give the employee a chance to improve and complete their obligations under the contract.
articulates para 11
Reinstatement is the primary remedy for unfair dismissal, but where it is impracticable, other remedies such as re-employment or compensation may be ordered.
articulates para 12
Where dismissal is found to be unfair and compensation is ordered, the duration of compensation should reflect the period it would reasonably have taken to effect dismissal fairly, taking into account whether the employee would have continued in employment absent operational difficulties.
Workplace Express coverage · 1
A "very bad" employer who used a website builder's alleged probationary period to sack her without warning must pay $20,000 in compensation, the WA IRC has found.
In an ex tempore decision handed down after the employer failed to appear at the hearing, Commissioner Damian Matthews first noted that the case had been brought against "The Trustee for M4 Unit Trust", and that the employment contract listed the employer as "M4 Unit Trust as Trustee for the M4 Unit trust".
"That description of an entity seemed nonsensical to me," the commissioner said, his view being that the "true employer" was the man that the website builder told him she had dealt with "exclusively", Richard Trainer.
"I consider that it is consistent with equity, good conscience and the substantial merits of the case to amend the respondent to 'Richard Trainer'," Commissioner Matthews said, expressing concern that the case would otherwise be affected by "technicalities and legal forms".
Referring to Trainer's emailed contention to the tribunal that the website builder had not been performing her role "in accordance with expectations and the agreed rate of 'website builds' per week", the commissioner observed that the claim was "dispute[d] entirely" by the "honest and credible" worker.
"The [website builder] gave evidence she was doing a good job and I have no reason to disbelieve her," Commissioner Matthews said.
The website builder's dismissal in April after three months was "certainly unfair", he concluded, as she was not made aware of any shortcomings in her work, warned about possible implications for any alleged shortcomings or given a chance to improve.
Probation no carte blanche authority
Commissioner Matthews also rejected Trainer's argument that the website builder's dismissal was fair as the contract provided for a three-month trial.
"I have read the contract of employment," Commissioner Matthews said.
"There is no reference in it to a three-month trial or any probationary period.
"In any event, it is still possible for a dismissal to be unfair where it occurs during a probationary period."
The commissioner pointed out that "a probationary period does not give an employer carte blanche authority to treat people however they like".
"You cannot simply overnight, or suddenly, tell someone they are not performing at the expected level and sack them.
"An employer has to discuss any shortcomings identified and give the employee a chance to improve.
"That is what fairness requires, you cannot just unilaterally sack someone on the basis of alleged poor performance without more, even if the person is on probation."
It was "fair enough", he said, that the website builder had not sought reinstatement with someone "who is clearly a very bad employer".
Concluding in the absence of any evidence about business difficulties that the website builder would have remained employed into the "indeterminate future", the commissioner ordered she be paid the maximum compensation of six months' salary under the Industrial Relations Act 1979 (WA), "which in [her] case would be an amount of $20,007".
In related proceedings, Commissioner Matthews also ordered Trainer to pay the website builder $3047.83 for underpayments and entitlements, while three other former employees similarly were to be reimbursed a total of $9412 (see here, here and here).
Shilna Malde v Richard Trainer [2019] WAIRC 662 (29 August 2019)
Archived text (877 words)
WESTERN AUSTRALIAN INDUSTRIAL RELATIONS COMMISSION
CITATION : 2019 WAIRC 00662
CORAM :Commissioner D J Matthews
HEARD : Friday, 2 August 2019
DELIVERED : THURSday, 29 August 2019
FILE NO. : U 69 OF 2019
BETWEEN : Shilna Malde
Applicant
AND
Richard Trainer
Respondent
CatchWords : Unfair dismissal claim - Proceeded in the absence of respondent - Applicant unfairly dismissed - Reinstatement and re-employment impracticable - Compensation ordered
Legislation : Industrial Relations Act 1979 s26
Result : Application granted
Representation:
Counsel:
Applicant : In person
Respondent : No appearance
=== REASONS FOR DECISION ===
¶1 (Given extemporaneously at the conclusion of proceedings – as edited by Commissioner Matthews)
¶2 I proceed in the absence of the respondent in this matter, because, despite being properly served by the Western Australian Industrial Relations Commission with notice of the hearing, the respondent did not put in an appearance and was not outside the hearing room when called by my Associate.
¶3 These proceedings were commenced against “The Trustee for M4 Unit Trust”.
¶4 The contract of employment produced by the applicant and dated 31 January 2019 was between “M4 Unit Trust as Trustee for the M4 Unit trust” and the applicant.
¶5 That description of an entity seemed nonsensical to me and I enquired of the applicant as to whom she had dealt with in relation to her employment and the execution of the contract. She gave evidence that in relation to both she dealt exclusively with a person named Richard Trainer.
¶6 On the basis of the applicant’s evidence, I am of the view that the applicant’s true employer was Richard Trainer. I consider that it is consistent with equity, good conscience and the substantial merits of the case to amend the respondent to “Richard Trainer”. I have a concern that the case would be affected by “technicalities and legal forms” if I do not make such an order.
¶7 The applicant was employed by the respondent on 31 January 2019. Her employment lasted until April 2019. On 8 April 2019, the respondent sent an email to the applicant sacking her.
¶8 In that email the respondent essentially contended that the applicant had not been performing her role in accordance with expectations and the agreed rate of “website builds” per week. These are allegations that the applicant disputes entirely. She gave evidence she was doing a good job and I have no reason to disbelieve her. She appeared to me to be entirely honest and credible.
¶9 The respondent also contends in the email that the applicant's contract of employment provided for a three-month trial. I have read the contract of employment. There is no reference in it to a three-month trial or any probationary period. In any event, it is still possible for a dismissal to be unfair where it occurs during a probationary period. A probationary period does not give an employer carte blanche authority to treat people however they like.
¶10 The circumstances of the applicant’s dismissal were certainly unfair. You cannot simply overnight, or suddenly, tell someone they are not performing at the expected level and sack them. An employer has to discuss any shortcomings identified and give the employee a chance to improve. An employee has to be warned of the implications of not improving and given a chance to improve and to complete their obligations under the contract. That is what fairness requires, you cannot just unilaterally sack someone on the basis of alleged poor performance without more, even if the person is on probation.
¶11 Therefore, I have no hesitation in finding that the termination of the applicant was unfair. The applicant does not seek reinstatement with the respondent, that is fair enough. The respondent is clearly a very bad employer. Reinstatement is the primary remedy, but if I consider it to be impracticable, and I do so here, then I may move to other matters such as re-employment or compensation. Re-employment again is not feasible, the respondent is a bad employer.
¶12 So, we move then to the question of compensation. Given that the respondent had resolved in his mind to end the employment of the applicant, the question is how long would that have taken to achieve that in a fair way. The respondent did not come along to explain his concerns with the applicant’s performance. On the basis of the applicant’s evidence and her presentation in court, which was one of an earnest and capable human being, I have no reason to believe that she would not have gone on performing at a good level into the future and that the respondent, short of operational difficulties within the business, would have continued to employ her.
¶13 I have not heard anything from the respondent about any difficulties within his business, so I have no basis whatsoever upon which to come to any conclusion other than the applicant would have continued in the employment of the respondent into the indeterminate future and for that reason I order the maximum compensation under the Industrial Relations Act 1979, which is six months’ of salary, which in the applicant’s case would be an amount of $20,007.
¶14 So, the order will be that Mr Trainer pay to Ms Malde the sum of $20,007 forthwith.