Background of the Case
Dundas-Taylor had been employed as an executive chef. His time with the business was not without challenges: he had previously taken WorkCover leave, citing stress and bullying at the workplace. On returning to work, he alleged that his role had been diminished, that his authority was undermined, and that he was effectively pushed to a point where resignation was his only option.
His claim before the Fair Work Commission was that this amounted to an unfair dismissal under the Fair Work Act 2009 (Cth). In particular, he argued that his resignation should be treated as a termination initiated by the employer.
What Is Constructive Dismissal?
The concept of constructive dismissal is central to this case. Under the Fair Work Act, a dismissal occurs not only when an employer directly terminates an employee, but also when the employer’s conduct forces the employee to resign.
For this to succeed, the employee must demonstrate that:
- The employer’s actions or conduct made continued employment untenable; and
- The resignation was not truly voluntary, but rather a result of that conduct.
It is a high threshold — the environment must be so hostile or unreasonable that any reasonable person would feel they had no other choice.
The Commission’s Findings
Deputy President Lake accepted that Dundas-Taylor was a credible witness. However, credibility alone was not enough. The critical question was whether the conduct he described actually amounted to constructive dismissal at the time of his resignation.
Key findings included:
- Bullying claims were historical: The incidents raised largely involved individuals who no longer worked for the company. There was no evidence of current, ongoing bullying or unreasonable behaviour.
- Workplace changes don’t equal dismissal: Even if Dundas-Taylor’s role had evolved or certain responsibilities shifted, this did not amount to a deliberate attempt to force him out.
- Resignation was voluntary: The Commission concluded that Dundas-Taylor chose to resign, rather than being compelled by the employer’s conduct.
As a result, the application for unfair dismissal was dismissed.
Why This Case Matters
This decision underscores several important points:
- Timing is critical: Constructive dismissal must be based on the environment at the time of resignation. Historical grievances, even if genuine, will not suffice if they are no longer ongoing.
- Credibility isn’t everything: Even a credible witness must meet the legal test. The Commission looks at evidence of conduct, not just personal belief.
- Employers can move forward from past issues: By addressing workplace culture, removing problematic managers, or making structural changes, employers may be able to reset the employment relationship.
Lessons for Employers
- Address complaints quickly: If bullying or other serious issues are raised, take action. Remove or discipline problem managers and improve culture.
- Document changes: If an employee’s duties shift, ensure these changes are reasonable and clearly documented.
- Clarify resignations: If an employee resigns, confirm the reasons in writing. This can help prevent later claims of constructive dismissal.
Lessons for Employees
- Document your experience: If you believe you are being forced out, keep contemporaneous notes, emails, or records of incidents.
- Seek support early: Use HR processes, union support, or Fair Work channels before resigning.
- Understand the legal threshold: Not all unpleasant or difficult circumstances will meet the bar for constructive dismissal.
How WorkRight Can Help
At WorkRight, we help both employers and employees navigate the complexities of dismissal and workplace disputes.
- For employers, we provide proactive advice on performance management, investigations, and fair processes to reduce the risk of claims.
- For employees, we offer guidance on whether your situation may qualify as unfair dismissal, help you document your case, and support you through the Fair Work Commission process.
- We also assist with policy development, manager training, and workplace culture strategies so issues like those in this case are resolved before they escalate.
Whether you’re facing a potential claim or want to prevent one, WorkRight ensures your workplace decisions are fair, compliant, and defensible.
Final Thoughts
The case of Adam Dundas-Taylor v Miss Moneypenny’s is a timely reminder of how complex the line between resignation and dismissal can be. For employees, it highlights the need to carefully consider options before walking away. For employers, it reinforces the importance of good governance and proactive management.
At its core, the decision shows that the Fair Work Commission expects current, ongoing conduct to justify constructive dismissal claims — past wrongs, if resolved, won’t necessarily tip the balance.
And with the right guidance, both employees and employers can avoid costly disputes and focus on building stronger, healthier workplaces.
Note: As of August 2025, the Fair Work Commission has not published a decision summary or full ruling for this matter on its official website. Coverage is based on reputable media reporting of the Commission’s findings
