Good news for salespeople
By Alan J. McDonald
In a decision that shines a light on road service provider NRMA’s business model, the Fair Work Commission has found a contractor mechanic’s failure to meet KPIs – when he spent too much time with customers and failed to sell enough batteries – did not provide a fair basis for sacking him.
The decision by Deputy President Boyce to reinstate this roadside service mechanic who missed sales targets sets a new precedent.
It is usually considered that if a salesperson does not sell there is little prospect of success in an Unfair Dismissal claim. DP Boyce appears to take a more sensible commercial view of what is reasonable for an employee to be required to achieve. In doing so, DP Boyce puts a spanner in the works of employers who set unrealistic sales targets followed by a Performance Improvement Plan (PIP).
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McDonald Murholme guide to the Fair Work Act – The Australian