When Losing a Driver’s Licence Becomes an Unfair Dismissal Claim
A recent Fair Work Commission matter has highlighted an issue that is particularly relevant across the automotive industry:
What happens when an employee can no longer legally drive, but driving forms part of their role?
At first glance, the situation appeared relatively straightforward.
The employee’s driver’s licence had been suspended following a medical incident while driving, meaning they could no longer perform duties involving vehicle operation.
However, the matter still proceeded as an unfair dismissal claim before the Fair Work Commission.
Importantly, this was not a misconduct matter.
There were no allegations involving:
• unsafe behaviour
• drugs or alcohol
• deliberate wrongdoing
• reckless conduct
The issue arose following a medical episode outside the employee’s control.
Why the employee brought the claim
The employee argued that:
• the licence suspension was temporary rather than permanent
• there was a reasonable prospect of regaining medical clearance
• the business moved too quickly in terminating employment
• alternative duties or temporary arrangements should have been considered
This is where these situations become more complex than many businesses initially assume.
The question before the Commission was not:
“Was the medical incident the employee’s fault?”
The real issue was:
“Could the employee continue performing the inherent requirements of the role, and was the business reasonable in how it responded?”
What the Commission examined
The Commission looked closely at:
• whether driving was genuinely an inherent requirement of the role
• the operational impact on the business
• how long the business had already waited
• whether alternative duties had been explored
• whether the incapacity was temporary or indefinite
• the level of certainty surrounding a return to work
The employer was ultimately successful because it was able to demonstrate:
• driving was an essential part of the role
• the operational impact was significant
• medical clearance remained uncertain
• a reasonable period of time had already passed
• alternative duties had been considered but were not reasonably available
Why this matters
For dealerships and automotive businesses, this issue is particularly relevant because many roles involve:
• moving customer vehicles
• test drives
• deliveries
• workshop movement
• transport responsibilities
• driving as part of day-to-day operations
The key lesson is this:
Losing a driver’s licence does not automatically justify dismissal.
Businesses should be able to clearly demonstrate:
• why driving is essential to the role
• what operational limitations exist
• what alternatives were considered
• why continued employment was no longer reasonably sustainable
Practical considerations
Businesses should ensure:
• position descriptions clearly identify driving requirements
• employment contracts reference licence obligations where appropriate
• medical restrictions and conversations are documented carefully
• redeployment or temporary duty options are genuinely assessed
• decisions are not rushed while medical outcomes remain uncertain
Strong documentation and a fair decision-making process are often the difference between defending a claim successfully and becoming exposed unnecessarily.