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Selected cases

Federal Court of Australia · [2026] FCA 560

Peymani v Posh N Polished

A Federal Court employment case about a salon commission dispute, defective filing, extension of time and which general protections claims...

Federal Court of Australia6 May 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Small employers should treat commission disputes, proposed role changes and termination communications as legally sensitive from the first email.
  • A Federal Court employment case about a salon commission dispute, defective filing, extension of time and which general protections claims could proceed.

Use this to check

  • Commission changes should be documented as agreed variations, not argued through informal pressure.
  • General protections claims can proceed even where the first court filing was defective.
  • Parallel small debt claims do not automatically stop a Fair Work dismissal claim.

Decision snapshot

  1. 1

    What happened

    • Ms Peymani worked for Posh N Polished Pty Ltd as a salon manager and cosmetic tattooist under an employment agreement with an $81,000 salary plus superannuation and commission for specified treatments.
    • In May 2025 she sent a proposal raising concerns about the salon's structure, business planning and operational efficiency, and put forward options for a changed role or separation.
    • The relationship then escalated.
    • She alleged verbal abuse, pressure to accept reduced commission or resign, changes to her role and system access, and constructive dismissal.
  2. 2

    What the court had to decide

    • The Court considered whether to extend time under s 370 of the Fair Work Act for a general protections court application, whether the proposed ss 340 and 344 claims were sufficiently arguable, whether other claims under ss 343 and 351 should proceed, and whether overlap with a VCAT commission claim affected the Fair Work proceeding.
  3. 3

    What the court decided

    • The Court extended time for the employee to bring claims under ss 340 and 344 of the Fair Work Act.
    • Claims under ss 343 and 351 were not permitted to proceed because they had not been properly identified or ventilated through the necessary pathway.
    • Costs of the extension application were reserved, and the proceeding was referred to mediation before a Registrar before further steps, including any amended claim.

Practical impact

Practical read

  • Small employers should treat commission disputes, proposed role changes and termination communications as legally sensitive from the first email.
  • A messy breakup can still be allowed to proceed in court if the employee can show an arguable Fair Work claim and a reasonable explanation for delay.

Useful next steps

  • Commission changes should be documented as agreed variations, not argued through informal pressure.
  • General protections claims can proceed even where the first court filing was defective.
  • Parallel small debt claims do not automatically stop a Fair Work dismissal claim.
  • Not every allegation will proceed if it was not properly raised through the Fair Work pathway.
  • Put commission rates and any changes to them in a signed written variation.

Practical read

This is a very small-business employment story. A salon role included salary and commission. The employee proposed changes and raised business-operations concerns. The employer and employee then fell into a dispute about commission, role status, system access and whether the employment had ended.

The Court did not decide the final merits. It decided whether the employee should be allowed extra time to bring part of her Fair Work general protections case. Some claims were not allowed to proceed because they were not properly articulated or had not gone through the right Fair Work Commission pathway. But the claims under ss 340 and 344 were allowed to continue, and the case was sent to mediation.

For operators, the practical lesson is to keep the process calm and documented when an employee raises pay, commission or role concerns. Avoid pressure language, avoid informal threats, record what is being proposed, and confirm whether any change is agreed. If the business wants to reduce commission or alter duties, do it through a clear contract variation process.

Checks to run

Key points

  • Put commission rates and any changes to them in a signed written variation.
  • Respond to employee proposals without threats or unclear resignation language.
  • Keep termination letters, system-access changes and role changes consistent with the business reason.
  • Track Fair Work certificate and court filing deadlines if a dispute escalates.
  • Use mediation early where the dispute is about relatively small amounts but high relationship damage.

Key takeaways

  • Commission changes should be documented as agreed variations, not argued through informal pressure.
  • General protections claims can proceed even where the first court filing was defective.
  • Parallel small debt claims do not automatically stop a Fair Work dismissal claim.
  • Not every allegation will proceed if it was not properly raised through the Fair Work pathway.

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