By Nicholas Morrison, Lawyer, and Alison Humphry, Legal Consultant
Since the 1909 English Court of Appeal decision of Addis v Gramophone Company Ltd [1909] AC 488, it has been a widely held principle that an employee cannot recover damages for the manner in which they were dismissed. The recent High Court decision of Elisha v Vision Australia [2024] HCA 50 has overturned this principle in Australian law.
While damages for the manner of dismissal cannot be recovered in the Fair Work Commission, there will be some circumstances in which employees can claim such damages through the common law courts. As outlined in our article, employers should consider their HR practices when terminating an employee’s employment. There are also lessons about the need for careful wording in references to policies in employment contracts and settlement deeds.