Case study · Contract disputes

Truck sales manager gave notice and was told to drop leaflets

$20,000 (the small claims limit)Federal Circuit Court of Australia · 21 November 2018
A man in a shirt and tie holds a stack of truck brochures on a suburban street, looking along a row of letterboxes.

Peter Willigen sold new Fuso trucks in Geelong from 2012, later as General Manager, Fuso Sales. In 2017 the business ended its Fuso dealership and moved to Hino trucks. Mr Willigen, whose customers were Fuso buyers, decided to leave. After checking with the Fair Work Ombudsman, he gave four weeks' notice on 22 September 2017.

The director wanted him to finish on the Monday. That Friday another employee was told to drive him home, and his mobile phone was disconnected. On Monday morning an email directed that he work out his notice canvassing Geelong and dropping off brochures. He left the showroom within 15 minutes. At 9.37am an email agreeing to finish up 'by mutual agreement' was sent from his computer. The court found he did not send it.

The judge found Mr Willigen an honest and candid witness, while the director 'appeared to regard the witness box as a platform from which to make speeches'. There had been no agreement to end the job, and moving a general manager to leaflet drops was a constructive dismissal. He was owed four weeks' wages and the leave that would have accrued.

On his 26 commission claims, the employer said profits were wiped out because the manufacturer had not paid incentive payments, and that some orders had been passed to another dealer. The court rejected both as grounds for refusing commission. It also accepted that he had been promised a $10,000 bonus for selling two buses, half of it unpaid.

The total came to $24,784, cut to the $20,000 small claims limit. Judgment went against the company found to be his real employer, joined on the third day of the hearing, and the reasons were sent to the Fair Work Ombudsman.

What it means for you

If you resign and give the notice your contract requires, your employer cannot simply declare you gone, or give you demeaning work for the notice period. Commission on sales you secured can still be owed after you leave.

The small claims limit was $20,000 at the time. It has been $100,000 since 1 July 2023.

A published decision of the Federal Circuit Court of Australia, retold in plain English. Lawcaptain did not act in this case. Every outcome depends on its own facts. General information, not legal advice about your situation.

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