Federal Court rules in favour of employee temporarily absent from work

Default judgment awards compensation of $133,800 and interest of $12,466

Federal Court rules in favour of employee temporarily absent from work

The Federal Court granted a default judgment in favour of an employee who alleged her employer unlawfully terminated her employment due to her week-long absence from work because of an ongoing medical condition.

In Wear v Montere E-College Pty Ltd, [2025] FCA 434, the respondent employed the applicant full-time as a general manager from 28 August 2023 to 8 February 2024. The dispute arose from the employee’s statement of claim, which requested compensation, including wage loss.

The employee alleged that she took a leave of absence from 2 February to 9 February 2024 because a medical condition made her feel unwell. She said she received no reply when she emailed the employer medical certificates on 2 February, 7 February, and 9 February 2024.

The employee said the employer dismissed her on 8 February 2024 through a letter signed by the global chief operating officer. She also claimed the employer made threats of dismissal and coercion in breach of the Fair Work Act 2009 (Cth) (FWA). She added that she could not get a new job.

The present proceeding addressed the employee’s allegation that the termination violated s. 352 of the FWA, which prevents an employer from firing an employee based on a temporary absence from work due to illness or injury of a kind prescribed by the Fair Work Regulations 2009 (Cth).

Default judgment awarded

The Federal Court  granted a default judgment as requested by the employee. The court ordered the employer to pay her $133,800 for compensation, including wages and superannuation, and $12,466 for interest. The amount of the award included:

  • annual wages of $120,000
  • superannuation at the minimum rate of 11.5% of the base salary
  • interest from 9 February 2024 to 8 May 2025 at the rate of 8.35% of the base salary

The court ruled that the employee deserved the relief she requested because she sufficiently pleaded that the employer contravened s. 352 of the FWA.

The court deemed the employer in default under r. 5.23(2) of the Federal Court Rules 2011. The court explained that this case met the preconditions for a default judgment application under r. 5.23(2) of the court’s rules.

The court held that the employer had been served with the originating application, statement of claim, and supporting affidavits and had an opportunity to defend itself against the claim. According to the court, despite this opportunity, the employer failed to:

  • file a notice of address for service
  • file a notice of intention to defend as required by r. 11.02 of the court’s rules
  • participate by attending case management hearings
  • defend the proceeding with due diligence

Lastly, the court saw no discretionary reasons preventing it from awarding a default judgment.