From Best Mates to the Fair Work Commission: When Friendship Fails at Work

Clint and Nick were more than co-workers. They were best mates and the only two employees in the business. What began as a friendly handshake deal to grow the wholesale side of a business, ended just over a year later with a sudden text message telling Clint his job was over.

The Commission heard their arrangement was informal with no written contract. Clint was promised commission after six months, but no commission was ever paid. Tensions grew after a disagreement about work performance and came to a head when Clint asked about the commission he believed he was owed. Four days later, Nick sent a text ending the employment.

The employer later said it was a redundancy. The Commission found otherwise. A warehouse role opened soon after which Clint could have done, and he had already been performing warehouse duties part-time. That meant the redundancy claim did not stack up.

The way the dismissal happened made things worse. There was no warning, no meeting, and no chance for Clint to respond. The Commission said the decision was influenced by a mix of sales results, financial pressure, and the breakdown of the friendship, but found it was still unfair because there was no procedural fairness at all.

Reinstatement was not considered possible given the collapse of the relationship. Instead, the Commission awarded compensation, to be paid in instalments due to the small size and financial position of the business.

This case shows that even in small businesses, and even between close friends, an employer must follow proper process before ending someone’s job. Personal history does not replace legal obligations. A dismissal that is sudden, without consultation or warning, can still be found unfair by the Fair Work Commission, no matter how good the friendship once was.