Page 18 Page 19 FOCUS HR | IR July Update 2026 FOCUS HR | IR July Update 2026 Few unfair dismissal decisions this year attracted as much attention as Donato v Queensland Venue Co Pty Ltd. What began as a workplace prank involving a collection of rubber ducks ultimately ended with two employees losing their jobs, a Fair Work Commission hearing and a decision that serves as an important reminder about workplace investigations, proportionality and common sense. What Happened Serena Donato and Emma Donato were employed by Queensland Venue Co and worked in a venue where workplace banter, practical jokes and light-hearted interactions between employees were not uncommon. Over a period of time, small rubber ducks began appearing around the workplace. The ducks were placed in different locations and became something of an ongoing workplace joke. However, concerns arose when some of the ducks were arranged in the shape of a pentagram. A manager complained that the display was disturbing and inappropriate, describing it as a satanic image associated with the devil. The manager claimed the displays made her feel uncomfortable and intimidated and alleged that the conduct amounted to workplace bullying. The matter escalated rapidly. Rather than being treated as a workplace conduct issue capable of informal resolution, the allegations were investigated as potential serious misconduct. The employer formed the view that the employees had deliberately engaged in behaviour designed to intimidate and upset the manager. Both employees were terminated without notice. The employees subsequently lodged unfair dismissal applications in the FWC, arguing there was no valid reason for dismissal and that the employer had dramatically overstated the seriousness of the conduct. During the hearing, evidence revealed that approximately one month after the dismissals occurred, the manager who had complained about the satanic symbolism obtained a tattoo of a pentagram. The Commission observed that a person genuinely terrified by the symbolism of a pentagram would be unlikely to voluntarily have the same symbol permanently tattooed on their body. The evidence significantly undermined the seriousness of the concerns that had formed the basis of the dismissals. The Decision The FWC ultimately concluded there was no valid reason for dismissal. After reviewing the evidence, the Commission found the conduct did not constitute workplace bullying and did not amount to serious misconduct. Why This Matters Although the facts of the case are unusual, the principles applied by the Commission are highly relevant to all employers. The decision reinforces several important workplace management principles: • allegations of bullying must be supported by evidence and assessed objectively; • workplace investigations must focus on facts rather than assumptions; • disciplinary outcomes must be proportionate to the conduct established; and • employers should avoid allowing emotional reactions to drive disciplinary decisions. DONATO V QUEENSLAND VENUE CO PTY LTD [2026] FWC 362 The Commission was not satisfied that the employees had engaged in conduct intended to intimidate, threaten or psychologically harm the manager. Instead, the Commission considered the employer had incorrectly elevated what was, at worst, immature workplace behaviour into allegations of serious misconduct and that the employer’s conclusions were not supported by the evidence available at the time the dismissals were made. The Commission found both dismissals were harsh, unjust and unreasonable and declined to order reinstatement but awarded compensation to both employees. Emma Donato was awarded compensation of $8,405.76. Serena Donato was awarded compensation of $7,050.00. FUTURE PREDICTIONS & EMERGING TRENDS
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