Sexualised poster, years of silence: her resignation was a dismissal

Sydney Water Corporation v Reem Yelda [2022] FWCFB 67

Decided by
Fair Work Commission (Full Bench)
Date
5 May 2022
Outcome
Resignation found to be a dismissal; employer's appeal refused
Result
Employee succeeded
Illustrative image. It does not show the people in this case.

A Sydney Water customer liaison officer agreed to be photographed for a stretching campaign and later found her image on a poster with the caption 'Lubricate'. She never returned to work, and after years with almost no contact from her employer she resigned. The Fair Work Commission found she had been forced to resign, which counts as a dismissal, and a Full Bench refused Sydney Water permission to appeal.

Key points

  • A resignation is a dismissal under s 386(1)(b) of the Fair Work Act 2009 (Cth) if the employer's conduct, including its failures to act, left the worker no real choice but to resign.
  • The conduct can stretch over years: here it began with the poster and continued with an investigation outcome never shared, an apology never given and a long silence.
  • Compensation from another tribunal for the original harassment did not stop the worker relying on the same events to show she was forced out.
  • An employer must keep treating an absent, injured worker as an employee, even while that worker is suing it.

What happened

Ms Yelda was a customer liaison officer with Sydney Water, responding to incidents such as broken water mains and sewer overflows. In late 2015, at a repair site, a representative of a company Sydney Water had hired to run a workplace stretching campaign called 'Safespine' asked for volunteers to be photographed. She agreed. She was not told how the photos would be used.

In April 2016 a colleague told her that her photo was on a poster in at least three Sydney Water depots. It showed her smiling with one arm stretched above her head, with 'Feel great' above the image and, in larger print below it, the word 'Lubricate'.

She complained the next day and both companies apologised. Apart from a few days, she never went back to work. She received workers compensation until April 2017 and then paid personal leave until November 2017. Sydney Water took back her car, laptop and phone, and in August 2017 a human resources officer explained its medical termination process to her, though it did not go ahead. The Deputy President found those steps, and the support Sydney Water gave in 2016 and 2017, were reasonable in themselves; they were not what forced her out.

The years of silence

Ms Yelda brought sex discrimination and sexual harassment claims in New South Wales. The NSW Civil and Administrative Tribunal upheld them, a result confirmed on appeal up to the NSW Court of Appeal, and she was awarded the maximum $100,000, payable by each of Sydney Water and the campaign company.

Meanwhile, the Full Bench recorded, there was almost no direct communication between Sydney Water and Ms Yelda from November 2017 until she resigned in December 2020. Sydney Water had completed its own investigation of the poster in November 2016, but never discussed the result with her. She saw the report only in 2018, through document discovery in the tribunal case. A formal apology promised once the investigation finished never came.

The claim

After resigning, Ms Yelda applied to the Fair Work Commission under s 365 of the Fair Work Act 2009 (Cth), the general protections dismissal claim. Sydney Water objected that she had not been dismissed at all: she had resigned.

Deputy President Beaumont, sitting in Perth, disagreed. She found Ms Yelda had been forced to resign, and described Sydney Water's lack of contact as an 'inept approach to managing an ill and injured employee – who was litigating against it'. Sydney Water asked a Full Bench for permission to appeal.

Under s 386(1)(b), a person is dismissed if they resigned but were forced to do so because of conduct, or a course of conduct, engaged in by the employer. 'Conduct' includes a failure to act. The test, from the Full Bench decision in Bupa Aged Care Australia Pty Ltd v Tavassoli [2017] FWCFB 3941, is whether the employer acted with the intention of ending the employment, or whether ending it was the probable result of the employer's conduct, so that the worker had no effective or real choice but to resign.

The Full Bench stressed that the line must be drawn carefully: having good reasons to resign does not, on its own, make a resignation forced. It also considered whether the employment would have continued if the employer had acted differently.

Applied here, the Full Bench agreed the poster was the starting point, an act that 'publicly sexualised, demeaned and humiliated' Ms Yelda. What followed formed one course of conduct: an investigation whose outcome was never shared, no proper apology, no written account of how many posters were distributed, returned and destroyed, and a prolonged silence from early 2018. Those failures were still continuing when she resigned, so the long gap since 2016 did not break the link. Ms Yelda's evidence, not challenged in cross-examination, was that she had loved her job and would have returned with a real apology and support. Given the silence, the Full Bench said, it was unclear what other outcome than resignation could have been expected.

Sydney Water also argued that the $100,000 award had already compensated her for the poster. The Full Bench rejected this: the award came after she resigned and was no barrier to relying on the same conduct. It found errors in how the Deputy President described the investigation evidence, but none that amounted to appealable error, and refused permission to appeal.

What this means for you

If you are off work after something your employer did, and the employer stops communicating, never reports back on its investigation or treats you as if you no longer work there, that pattern can amount to a forced resignation. Keep records of what was promised and what never arrived, and consider getting advice before you resign. For employers, the lesson is to finish investigations, report the outcome to the person affected and keep in contact, even when litigation is running.

A general protections dismissal claim must be lodged within 21 days of the dismissal.

The takeaway

Silence can be conduct. An employer that leaves an injured worker without an investigation outcome, an apology or any contact for years may find that her resignation is treated as a dismissal.

Note: This decision dealt only with whether Ms Yelda was dismissed; the matter was then to be listed for a conciliation conference, and no later decision was found. No further appeal was found. The law has moved since: for general protections applications made from 7 July 2026 (Act No. 62 of 2026), the Commission no longer needs to decide whether there was a dismissal before dealing with the dispute (s 368(1A)), although dismissal must still be proved if the claim goes to court. Since 13 December 2022 employers have had a positive duty under the Sex Discrimination Act 1984 (Cth) to take reasonable steps to prevent sexual harassment, and since 6 March 2023 Part 3-5A of the Fair Work Act has prohibited sexual harassment in connection with work.

Resignation found to be a dismissal; employer's appeal refusedForced resignationGeneral protectionsSexual harassmentInvestigations

Fair Work Commission (Full Bench) · 5 May 2022

Sydney Water Corporation v Reem Yelda [2022] FWCFB 67, Deputy President Masson, Commissioner Simpson and Commissioner Mirabella. Read the full decision

This is a plain-English summary of the published decision, for general information. It is not legal advice, and every case turns on its own facts.

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