When employment relationships end badly...

The Kyle and Jackie O Debacle

Currently playing out before the Federal Court of Australia is an example of what happens when employment relationships end badly.

Kyle Sandilands and Jackie O Henderson have both sued Commonwealth Broadcasting Corporation (CBC) following the collapse of The Kyle and Jackie O Show in February this year. CBC, in turn, has now sued both former presenters for lost profits and advertising revenue, arguing the breakdown of the relationship threatened the company’s profitability and financial survival.

The dispute raises interesting questions concerning contracts of employment, workplace bullying, unconscionable and misleading and deceptive conduct, and employer’s obligations under the Fair Work Act 2009 (Cth).

At the heart of Henderson’s claim are allegations that she was subject to workplace bullying by Sandilands and CBC failed to provide a safe workplace. It is alleged that in terminating her contract, CBC took adverse action against Henderson for exercising a workplace right.

On the part of Sandilands and CBC, it is alleged Sandilands conduct amounted to serious misconduct warranting his dismissal. Sandilands argues that CBC had it impossible for him to remedy any breach of his contract by dismissing Henderson.

Whilst the outcome remains unknown (and the matter may drag on for many months), the dispute is a timely reminder for all employers about their obligations and the shifting landscape of employment law, including:

• providing a safe workplace as an employer under the Work Health and Safety Act 2011 (NSW) and having in place policies and procedures to deal with the management of employees and workplace safety.
• ensuring employees are protected from bullying and that steps are taken by an employer to address instances of workplace bullying and harassment; and
• dealing with employee disciplinary matters fairly and appropriately, avoiding the risk of a dismissal being challenged as harsh, unjust, or unreasonable.

Managing employees and navigating the requirements under the Fair Work Act and Work Health and Safety Act can be difficult. If you or your business requires assistance in any employment law matters, reach out to our Dispute Resolution Team who would be happy to assist.

The content of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.