Adverse Action Claim Costs Ruling

A recent decision chal­lenging the commonly held view that adverse action claims are effectively ‘no costs’ matters under the Fair Work Act 2009 may have significant effect on future claims.

In Cugura v Frankston City Council (No.2) FMCA 530, Federal Magis­trate O’Sullivan awarded costs to an employer (the Frankston City Council) from an employee who unsuccessfully pursued an adverse action claim.  This costs ruling signifies a departure from the general judicial reluctance to award costs in such matters.