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).

Reinstatement for roadside service mechanic who missed sales targets (workplaceexpress.com.au)

Yen Yap v Club Assist Pty Ltd [2022] FWC 520 (8 July 2022) (austlii.edu.au)