Employment Law – Background
In Mr James Kaufman v Jones Lang LaSalle (Vic) Pty Ltd, the Fair Work Commission ruled that a regional director of a multibillion dollar real estate business could purse his unfair dismissal claim despite earning over the high income threshold as his duties indicated he was actually a sales representative under an Award.
Employment Law – Facts
In essence:
- the former capital markets regional director claimed that he was unfairly dismissed when he was made redundant by Jones Lang LaSalle (Vic) Pty Ltd (JLL)
- JLL made a jurisdictional objection to the application claiming that the employee was not a person protected from unfair dismissal within the meaning of s382 of the Fair Work Act
- JLL argued the employee was a senior manager with significant leadership, mentoring and business generation responsibilities which went beyond the classifications in the Real Estate Industry Award 2010 (Award)
- JLL also claimed the employee wasn’t protected from unfair dismissal due to his earnings surpassing the high income threshold
Employment Law – Fair Work Commission Decision
The Fair Work Commission:
- held that the employee could pursue his unfair dismissal claim despite earning well-over the high income cap as the duties he undertook fell “squarely within the role definition of a property sales representative’ set out in the Award
- formed this view because the question of Award coverage is determined not by a person’s title, rather “it is the duties performed that will be of significance”
- noted the employee’s title of “regional director” was merely a “rank or accolade”
- held the employee’s position in the hierarchy said little about his role “other than that he was a high performing successful employee”
- disagreed that the employee was a senior manager as there was nothing in his regular duties which could be described as a managerial function and he had no direct reports – whilst he had general leadership expectations, it was found that these would be common amongst “most employers in the real estate industry
- ultimately, it was held that the “fundamental or principal purpose” for which the employee’s position existed was to sell real estate, which fell under the Award
- the employee was therefore protected from unfair dismissal
Employment Law – Tips for Employers [...]
