Failure to comply with a lawful and reasonable direction results in dismissal

The Case

Grant v BHP Coal Pty Ltd (2015)

Mr Grant commenced unfair dismissal proceedings in the Fair Work Commission (FWC) after he was dismissed by BHP Coal Pty Ltd (BHP) for refusing to comply with a direction to undergo a medical examination after returning to work following a lengthy period of sick leave for an injury.

BHP had wanted to determine whether there were any restrictions on Mr Grant’s ability to return to his pre-injury duties as a boilermaker. In making the direction for Mr Grant to undergo a medical examination, BHP relied on section 39(1)(c) of the Coal Mining Safety and Health Act 1999 (Qld) (Coal Act), which imposes a duty to ensure that no one is exposed to unacceptable levels of risk. Failing to discharge this duty can result in a criminal offence.

In the first instance, the FWC found that the dismissal was not unfair. Mr Grant appealed this decision to the Full Bench of the FWC, which upheld the decision. Mr Grant then appealed to the Federal Court of Australia.

The Verdict

The Federal Court upheld the Full Bench’s decision. It held that BHP had acted lawfully and reasonably in directing Mr Grant to attend a medical examination and that the direction was consistent with its obligations under the Coal Act.

The Court stated that while, as a general proposition, an employee is not obliged to submit to a medical examination without giving consent, legislation can require the employee to submit to one where the language of the legislation is clear and unambiguous.

The Court dismissed Mr Grant’s unfair dismissal application.

The Lesson

An employer can dismiss an employee for failing to comply with a lawful and reasonable direction. In this case, a clear legislative requirement to ensure health and safety confirmed the employer’s ability to require the employee to attend a medical examination. Therefore, when the employee refused this, his employment was lawfully terminated.

Please note: Case law is reported as correct and current at time of publishing. Be aware that cases in lower courts may be appealed and decisions subsequently overturned.