Termination of employment – demotion – ss.386, 394 Fair Work Act 2009 – application for relief from unfair dismissal – respondent objected to application on the basis that the applicant had resigned – applicant had taken an extended period of leave following a severe injury – upon returning to work the respondent emailed the applicant and stated that the applicant’s salary would be reduced from $75,000 to $60,000 – applicant advised respondent that he did not accept the reduction – following a further meeting where the respondent discussed an incremental increase the applicant resigned his employment – Commission found that the demotion of the applicant involved a 20% reduction in his remuneration – satisfied this was a significant reduction – satisfied the unilateral reduction of salary was a dismissal of the applicant – no valid reason – Commission found the dismissal unfair – ordered remedy of $37,500 compensation – taxed as an eligible termination payment. Fields v Moscou Holdings P/L atf The Penguin Trust t/a Penguin International
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