- In short: Clive Palmer’s resort suddenly fired 125 workers last year claiming an “emergency” due to widespread fraud.
- The Fair Work Commission criticised the process and awarded tens of thousands of dollars in compensation to three employees.
- What’s next? Work continues on the delayed resort, which was due to open in 2022.
Three sacked employees from billionaire Clive Palmer’s Queensland resort will be compensated tens of thousands of dollars after Australia’s workplace tribunal ruled they were unfairly dismissed.
Dozens of tradesmen working on a delayed $100 million redevelopment of the Palmer Coolum Resort on the Sunshine Coast in August last year were among 125 employees suddenly sacked amid accusations of fraud and theft.
The tradesmen were locked out of the construction site, although in a twist some of the workers were offered re-employment within minutes of being terminated.
The workers were employed by Drewmaster Pty Ltd, a subsidiary of Mr Palmer’s Mineralogy company, to refurbish the resort after it closed in 2015.
The revamped facility is expected to have 300 apartments, a village square, and seven restaurants.
Three former employees who challenged their dismissals at three separate hearings in November and December last year in the Fair Work Commission have now had their claims vindicated.
‘Sham process’
The trouble began when the resort changed the roster system on August 7, which construction workers said happened without consultation.
Electrician Troy Peters, one of the sacked tradies, said when he questioned the decision at a team meeting before work on August 8 a senior manager told everyone to go home.
He complied, but that night received a termination email stating the reason for his dismissal was “refusing to carry out duties as directed”.
Nineteen minutes later, he received another email inviting him to apply for work again.
The employer claimed the mass sackings were due to an “emergency situation with widespread theft, fraud and destruction by the workforce”.
Representatives for the company at the hearing argued Mr Peters was not unfairly dismissed and should not be awarded any compensation.
Commissioner Bernie Riordan slammed the termination as “a sham process” in findings released last week.
He found Mr Peters did not refuse the employer’s direction to carry out work and rejected the employer’s description of an “emergency” at the site.
He ruled the dismissal was unfair, harsh and unjust.
Mr Peters was awarded $39,917.68.
Second sparky ‘denied procedural fairness’
In a separate claim, chief electrician Sean Fitzpatrick said he arrived at work on August 9 and was asked how he entered the site.
When he said he signed in the usual way, he was marched out by security and told he “should not be there”, documents state.
Later that morning he received a termination letter by email, accusing him of refusing to work the new rostered hours.
He said he got another email five minutes later offering him to re-apply for his job.
Two weeks later the reasons for his termination were changed to “serious misconduct”, with the employer accusing him of being paid for 103 days when he did not work.
Mr Fitzpatrick disputed this, providing phone and email records showing he was at work.
He told the commission the dismissal caused stress and anxiety and he has struggled to pay rent and support his family.
The employer also accused Mr Fitzpatrick of running his own business during company time.
Representatives for the company argued the dismissal was not unreasonable.
Commissioner Riordan said while the evidence only showed Mr Fitzpatrick sent a small number of quotes and invoices for his side business during work time, he could not condone this practice and found that the employer had a valid reason to terminate Mr Fitzpatrick.
However, Commissioner Riordan said Mr Fitzpatrick was “denied any semblance of procedural fairness”, and said the termination was disproportionate to the minor misconduct.
Mr Fitzpatrick’s dismissal was found to be harsh and unfair and he was awarded $12,516 in compensation.
Accountant ‘not given a fair go’
The third employee to challenge their dismissal was resort accountant Jennifer Roberts.
Ms Roberts said she learned of allegations between July 14 and August 2 that Mr Palmer was accusing her of theft and embezzlement.
She said on August 3 she arrived at work and heard a rumour she had been sacked.
Distressed, Ms Roberts took personal leave until August 7 and provided a medical certificate.
When she arrived at work on August 8, she was unable log in to record her attendance.
Two weeks later she was told she had been dismissed due to “serious misconduct” but said she never received a termination letter.
The employer alleged Ms Roberts showed “serious dereliction of her duties” in relation to the petty cash system.
Representatives for the company argued during the hearing the dismissal was reasonable.
Commissioner Riordan said he did not agree that Ms Roberts was engaged in petty cash fraud.
He ruled her termination was “harsh, unjust, and unreasonable”.
“[Ms Roberts] thought that she had a job for the remainder of her career until she was ‘locked out’ of her workplace for no apparent reason,” Commissioner Riordan wrote.
“The applicant was not given a ‘fair go’.”
Ms Roberts was awarded 16 weeks’ pay plus superannuation.
A spokesman for Mr Palmer was contacted for comment.
Work continues at the resort, which is scheduled to open later this year.
Mr Palmer wants to build a 22-metre-high car museum at the resort to house hundreds of vintage and luxury cars he has collected over the years.
It is mooted to be the world’s largest display of private cars and motorbikes, with 750 vehicles on display.
Mr Palmer’s spokesman has previously defended the project, which is pending council approval, telling the ABC they had followed all necessary requirements and the region “desperately needs new tourist attractions”.
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