Specialty Fashion Group has landed in hot water over the axing of several employees within its merchandising and quality control departments earlier this year.
Fair Work Australia (FWA) ruled the five redundancies, announced on June 23, were not genuine and has ordered another case to determine whether the terminations were harsh, unjust or unreasonable.
The workplace watchdog found the publicly listed retail group failed to adhere to requirements within the Textile, Clothing, Footwear and Associated Industries Award when handing out the redundancies.
FWA vice president Graeme Watson said the company did not adhere to a consultation clause for affected employees.
"The definition of genuine redundancy only applies if Specialty Fashion Group has complied with its consultation obligations. On the evidence before me I am unable to conclude that it has."
For more, pick up the November 4 edition of Ragtrader.