The case of Hughes v Alcoa Portland Aluminium Pty Ltd [2024] FWC 37 clarified that the end of a fixed term contract is a termination, and not a dismissal under the Fair Work Act 2009 (Cth). Accordingly, the termination in this case excluded eligibility for an unfair dismissal claim.
In this case, Alcoa had informed Ms Hughes that it would not be renewing her contract at its expiration. Ms Hughes argued that this constituted a dismissal at the initiative of Alcoa as opposed to her employment terminating due to the expiry of the fixed term contract. Ms Hughes further argued that Alcoa intended to dismiss her due to Ms Hughes defending herself against allegations of serious misconduct, which is a workplace right.
Alcoa argued that this was not the case, and that Ms Hughes’ employment had ended simply on a date previously agreed by the parties.
The Commission ultimately found in favour of Alcoa, meaning that Ms Hughes had not been ‘dismissed’. The reasons for the decision included the short employment relationship (approximately 13 months) and the presence of a genuine agreement between the parties for an end date, noting the contract had clearly and expressly stated that it was entered into with a fixed time limit. Additionally, no other warranties of an alternative arrangement applying was provided by Alcoa to Ms Hughes.
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