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A Fair Work Commissioner was wrong to dismiss an adverse action claim on the basis of a settlement being reached, in circumstances where the parties maintained their agreement wasn't binding, a full bench has ruled.

The employee had lodged a general protections dispute involving dismissal, arguing her sacking by the Centre for Digestive Diseases was for unlawful reasons. But the employer objected on two grounds, namely that her application was out of time, and she had resigned voluntarily.

During hearings, and with the assistance of Commissioner Bernie Riordan, the parties reached an in-principle agreement to settle the matter. Proceedings were adjourned and they continued to negotiate the settlement terms between themselves...