Setup
A hospitality management company based in Adelaide provides outsourced services to hotels, pubs and hospitality venues. They have 16 employees and a turnover of AUD $2.5M. The claimant was an employee of the hospitality management company’s head office team and she was in the third trimester of her pregnancy at the time this issue arose. The company suggested that they had concerns around the employee’s fitness for work. Initially no formal claim was made, but it was anticipated that the matter could escalate.
Claim
After the initial notification, it became clear the matter could develop into a claim. The employee received a Safe Job Letter offering two weeks’ paid leave, with any additional leave unpaid. She argued that under Fair Work guidelines, if she was fit to work, she was entitled to a safe job or paid no‑safe‑job leave. Discussions broke down, and she contacted the Fair Work Ombudsman, which encouraged further resolution efforts and offered mediation. When the issue remained unresolved, she lodged a formal complaint with the Fair Work Commission, alleging her employer pressured her to resign and later disputed her parental entitlements.
The matter paused while she gave birth, though she later returned to work and continued her claim. She declined an initial AUD $20,000 (10 weeks’ salary) settlement offer. CFC’s claims team worked closely with the client’s panel firm to progress negotiations. Before mediation, she accepted an increased offer of AUD $30,000 (15 weeks’ salary) and agreed to resign. Defence costs totalled AUD $90,000.
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Legal disclaimer: These examples are intended for illustrative purposes only and not intended to address the circumstances of any particular insured. Each claim submitted to CFC by an insured is based on the terms and conditions of the coverage provided to that particular insured and the facts and circumstances relating to a particular claim.
