Law Grad in Pink is a blog written by a law graduate in Adelaide for law graduates everywhere.

Monday 29 February 2016

Budden v Finke Enterprises Pty Ltd [2016] FWC 562 – employer can direct you to change your hair colour and a retaliatory response could constitute reason for dismissal

Thinking of dying your hair a crazy colour for charitable purposes? You might want to think again, as an employer may be able to lawfully direct you to change your hair colour and a failure to comply with a lawful direction may constitute reason for dismissal. You should also think twice about the way you react to a warning about your hair colour or appearance, as your reaction alone may be a sufficient reason for dismissal. In the recent case of Budden v Finke Enterprises Pty Ltd [2016] FWC 562, the employee’s reaction to a direction to change hair colour was a valid reason for dismissal under s.387(a) of the Fair Work Act 2009.

Unfair dismissal – the basics
To come within the unfair dismissals jurisdiction of the Fair Work Commission, an applicant must first meet a number of qualifying criteria, including the minimum employment period of 6 months or 12 months for small business employers (s.383), and come within the limitation period of 21 days (s.394). An unfair dismissal will only have occurred where the criteria in s.385 are satisfied:
(a)    The person has been dismissed; and
(b)   The dismissal was harsh, unjust or unreasonable; and
(c)    The dismissal was not consistent with the Small Business Fair Dismissal Code (where applicable); and
(d)   The dismissal was not a case of genuine redundancy.

In Ms Budden’s case, the focus was on s.385(b), whether the dismissal was “harsh, unjust or reasonable”. In considering whether a dismissal is “harsh, unjust or unreasonable”, the criteria in s.387 must be taken into account:

(a)  whether there was a valid reason for the dismissal related to the person's capacity or conduct (including its effect on the safety and welfare of other employees); and
(b)  whether the person was notified of that reason; and
(c)  whether the person was given an opportunity to respond to any reason related to the capacity or conduct of the person; and
(d)  any unreasonable refusal by the employer to allow the person to have a support person present to assist at any discussions relating to dismissal; and
(e)  if the dismissal related to unsatisfactory performance by the person--whether the person had been warned about that unsatisfactory performance before the dismissal; and
(f)  the degree to which the size of the employer's enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(g)  the degree to which the absence of dedicated human resource management specialists or expertise in the enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(h)  any other matters that the FWC considers relevant.

While all the criteria in s.387 must be taken into account, the focus in Ms Budden’s case was on s.387(a), whether there was a valid reason for the dismissal related to the person’s capacity or conduct.

Facts
Ms Budden was employed part time by Finke Enterprises to work five hours a day Monday to Friday at Fused Café. Ms Budden was the most senior cook employed. She was passionate about raising awareness about breast cancer and persuaded the Directors of Finke Enterprises to raise funds for breast cancer research in October 2015. The Directors agreed to donate 10c from every hot beverage sold as well as part proceeds from the sale of pink slices cooked by Ms Budden. There were two separate issues that led to Ms Budden being issued with a formal warning on 17 September 2015 and later put forward as a valid reason for dismissal under s.387(a) of the Fair Work Act 2009:
1.       Making derogatory comments about her employer to colleagues after she dyed her hair fluorescent pink and was directed to dye it a more work appropriate colour; and
2.       Complaints from staff about intimidation and bullying.

Dyeing hair fluorescent pink
Without consulting with her employer, Ms Budden dyed her hair fluorescent pink on 10 September 2015 in preparation for the October breast cancer fundraising campaign. On 17 September 2015 Ms Budden was given a formal verbal warning giving her until the 21 September to change her hair colour. This was followed up by a phone call during which Ms Budden yelled and swore at a Director. A formal written warning was also issued reiterating the options for changing her hair colour, indicating her behaviour on the telephone was inappropriate and that any further issues would result in a review of her employment status.

Commissioner Saunders held that the direction to change hair colour was a lawful direction because:
1.       Customers of the café could see Ms Budden in the kitchen and Ms Budden sometimes interacted with customers;
2.       The owner of a café is entitled to require staff working in a café to have a neat and professional appearance;
3.       The owner offered a number of reasonable options including for Ms Budden to dye her hair a lighter “ash pink” colour for the duration of the breast cancer fundraising month;  and
4.       The fact the employer had previously accepted Ms Budden’s different hair colours did not matter, as those hair colours were not fluorescent.

While Ms Budden reluctantly followed the direction and dyed her hair a more subtle cranberry colour, she was not happy and vented to her colleagues. In particular, at an employee’s 21st birthday in which many of her colleagues were present, Ms Budden approached a number of colleagues and indicated she was angry she had to change her hair colour and made statements such as “would you like me to show you what it looked like before they fucking made me change it?”.

A final meeting was held on 21 September 2015 with management to give Ms Budden an opportunity to apologise or provide a comment on her behaviour. Ms Budden stormed out a number of times, returning only to make angry comments and storm off again. The decision was then made to dismiss Ms Budden. 

While Commissioner Saunders relied more on the intimidation grounds for dismissal discussed below, he also found Ms Budden’s behaviour in bad-mouthing her employer to be a valid reason for dismissal as her behaviour viewed objectively was likely to cause serious damage to the relationship of trust and confidence with her employer. As Ms Budden had complied with the direction to change her hair colour, Commissioner Saunders did not have to consider whether a failure to comply with the direction would have been a valid reason for dismissal. It is likely it would have been a valid reason for dismissal given if the direction was lawful, as the refusal would likely effect the trust and confidence between parties in the employment relationship.

Staff complaints of intimidation and bullying
Prior to the verbal and written warnings issued on 17 September 2015 Ms Budden had received a number of warnings about her intimidating behaviour including yelling aggressively at staff, putting staff down, calling staff names such as “idiot”, slapping a staff member’s hand, criticising staff members behind their back, and criticising the café’s owners. There was also a particular incident where Ms Budden cornered a junior employee and asking if she was scared of her. The warnings on 17 September 2015 also included a further warning about her intimidating behaviour.

Commissioner Saunders found Ms Budden’s behaviour was a valid reason for dismissal, as an employer has obligations of health and safety to employees in the workplace and Ms Budden negatively impacted on the health and wellbeing of other employees. The fact Ms Budden’s “style” was direct and blunt and she did not personally see anything wrong with her behaviour did not prevent her intimidating behaviour being a valid reason for dismissal.

Conclusion
The case of Budden v Finke Enterprises is a good example of how things can rapidly spiral out of control for an employee who takes a direction from an employer too personally and does not think before they act to bad-mouth their employer. If you do plan to dye your hair a crazy colour, even for charity, ensure your employer is supportive of the change, as you will be required to comply with a lawful direction where an employer is entitled to require staff to have a neat and professional appearance. If you are directed to change your hair colour or appearance, the best course of action will usually be to make the change as directed and refrain from bad-mouthing your employer, especially to colleagues. This includes bad-mouthing your employer on social media, as tempting and satisfying as it may seem at the time. An apology or considered explanation for certain behaviour can go a long way to preventing dismissal if you do act in a way that diminishes your employer’s confidence in you.    


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