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Selected cases

Federal Court of Australia · [2026] FCA 606

Leung v Omnia Inclusive Employment Solutions

A Federal Court employment appeal about probation dismissal, adverse action allegations, notice payment and termination process.

Federal Court of Australia15 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

  • Probation does not make termination administration optional.
  • A Federal Court employment appeal about probation dismissal, adverse action allegations, notice payment and termination process.

Use this to check

  • Probationary employees can still have Fair Work protections and minimum notice rights.
  • The decision date, communication date and termination date should not drift apart without advice.
  • Return of company property should be managed separately from statutory termination payments.

Decision snapshot

  1. 1

    What happened

    • Ms Leung was employed by Omnia Inclusive Employment Solutions as an Area Manager for North Sydney, starting in May 2022.
    • The employment relationship broke down during probation.
    • The Court records that there was a three month performance review in August 2022, followed by meetings involving senior staff and a decision to terminate while Ms Leung was still on probation.
    • The decision was not communicated immediately because she did not return to work after the meetings, initially went on leave and then made a workers compensation claim.
  2. 2

    What the court had to decide

    • The Federal Court had to decide whether the primary judge denied procedural fairness or misapplied the Fair Work Act when rejecting claims under sections 340 and 352.
    • The appeal also raised issues about judicial intervention, accessorial liability arguments against managers, workers compensation context, notice requirements and whether the trial process was unfair.
  3. 3

    What the court decided

    • The Federal Court dismissed the appeal and made no order as to costs.
    • The result left standing the primary judge's rejection of the adverse action and illness-related dismissal claims, while also leaving undisturbed the earlier finding that Omnia breached section 44 by failing to comply with section 117 notice requirements and the related $10,000 compensation order.

Practical impact

Practical read

  • Probation does not make termination administration optional.
  • A business can defeat serious adverse action allegations and still be exposed if the dismissal date, notice payment, communication record and return-of-property process are handled poorly.

Useful next steps

  • Probationary employees can still have Fair Work protections and minimum notice rights.
  • The decision date, communication date and termination date should not drift apart without advice.
  • Return of company property should be managed separately from statutory termination payments.
  • Manager involvement should be recorded because accessorial liability arguments can arise even if they fail.
  • Record the real decision-maker and reason before issuing a termination letter.

Practical read

This is a practical dismissal case because it has the kind of messy timeline employers actually create: probation concerns, meetings, leave, a workers compensation claim, a delayed letter, confusion over dates, late notice payment and company property sitting in the background.

The employer successfully defended the main appeal points. The Federal Court dismissed Ms Leung's appeal from findings that Omnia had not breached the Fair Work Act provisions dealing with adverse action and temporary absence because of illness or injury. But the story still contains a sharp warning for businesses. The earlier finding that Omnia breached minimum notice requirements remained, together with a compensation order.

For small employers, the lesson is not that probation is dangerous. The lesson is that probation needs admin discipline. If a dismissal decision is made, record who made it, why it was made, when it was communicated, what date takes effect and how notice or payment in lieu is handled. Do not let a dispute about keys, laptops or company property muddy statutory entitlements.

Checks to run

Key points

  • Record the real decision-maker and reason before issuing a termination letter.
  • Check whether the worker has recently taken leave, complained, or made a workers compensation claim.
  • Make the communicated termination date and payroll treatment line up.
  • Pay notice or payment in lieu on time unless there is a clear lawful basis not to.
  • Keep return-of-property steps separate from minimum employment entitlements.

Key takeaways

  • Probationary employees can still have Fair Work protections and minimum notice rights.
  • The decision date, communication date and termination date should not drift apart without advice.
  • Return of company property should be managed separately from statutory termination payments.
  • Manager involvement should be recorded because accessorial liability arguments can arise even if they fail.

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