Head chef awarded compensation after being made redundant
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Late last year, Fair Work Commission deputy president Benjamin Redford ruled the redundancy of a head chef unfair, awarding the dismissed worker compensation for lost wages.
Deependra Raj Hamal was employed as head chef at Melbourne jazz venue, Birds Basement, for a period of about two years and nine months, before being made redundant on 24 July 2025 by the business owner, Mr Dadon. Upon his dismissal, Hamal made an unfair dismissal application against his employer.
Complaint and business pressures
On 13 May 2025, Dadon’s wife, who also worked at the venue, made a complaint about Hamal’s behaviour to her husband. The commission heard that shortly afterwards, Dadon pulled Hamal aside to discuss his behaviour.
In this discussion, Dadon told Hamal of the pressures the business was facing and his decision to reduce the kitchen staff hours when fewer than 100 patrons are present in the venue.
“Birds Basement submitted that this amounted to ‘consultation’ about the eventual redundancy of Mr Hamal’s position,” the deputy president said in his decision.
Despite this, the commission found that no explicit mention of a potential redundancy was made to Hamal during this conversation.
Sustained downturn in trade
Mr Barr (who appeared for the respondent) submitted that on 23 July 2025, in a conversation with his employer, Dadon told him: “Birds Basement was no longer in a position to support and continue [Hamal’s] role as head chef because of the continuing and sustained downturn in trade.”
Around this time, Hamal was travelling overseas due to his father’s ill health. When he returned from his trip the next day, Barr texted Hamal: “let’s talk further when you reach home”. During their phone call that afternoon, Barr informed Hamal that his employment had been terminated abruptly by Dadon.
In evidence submitted to the commission, during the phone call, Barr said something to the effect that the role of head chef would immediately cease and that the role had been terminated effective immediately.
Dadon gave evidence that he decided to remove the head chef position due to “business and financial challenges”. The commission accepted that the unique position of “head chef” was no longer used by the business.
The commission heard that following the phone call, Hamal sent a request for a written copy of the reasons for his termination, which were eventually sent to him. Despite receipt of these reasons, Redford found that Hamal was not notified of his redundancy before the decision to terminate him was made.
Compensation over reinstatement
The deputy president found that as Hamal’s position was made redundant by the company and he was not interested in being reinstated, reinstatement was not an appropriate remedy. Upon consideration of the evidence, Redford found that, instead, compensation was to be the best foot forward.
For its decision, the commission ordered that the company pay Hamal $4,230.78 (two weeks of remuneration), plus superannuation of $507.69, within 14 days of the 16 December 2025 decision.
The case citation: Mr Deependra Raj Hamal v Birds Basement Pty Ltd ATF The Trustee For Dadon No. 37 Family Trust (U2025/12176).
RELATED TERMS
Compensation is a term used to describe a monetary payment made to a person in return for their services. Employees get pay in their places of employment. It includes income or earnings, commision, as well as any bonuses or benefits that are connected to the particular employee's employment.
When a company terminates an employee's job for improper or illegitimate reasons, it is known as an unfair dismissal.
Carlos Tse
Carlos Tse is a graduate journalist writing for Accountants Daily, HR Leader, Lawyers Weekly.