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Engaging an external contractor didn't undermine an employer's genuine redundancy defence to an unfair dismissal claim, the Fair Work Commission has found, rejecting there were any signs of a "sham".

Commissioner Scott Connolly accepted the employer's decision to make the employee's role redundant "was a sound and reasonable business decision, made after due consideration, in response to a decline in financial position that required urgent redress".

Lumia Care Services employed the senior financial planning and analysis analyst in March 2024. Late that year it experienced a downturn in its financial performance, prompting a restructure program that involved eliminating 54 roles across its operations, including the employee's.

It told the Commission that in January this year it started consulting with staff whose roles were impacted by the restructure. But the employee requested annual leave, which was denied, then took personal leave, supported by a medical certificate declaring him unfit for work for the next two weeks...