Banker Loses Unfair Dismissal Case After Failing to Read Crucial Seven-Page Policy

A senior banker at the National Australia Bank (NAB) has lost his bid for unfair dismissal after admitting he failed to read a seven-page policy document that the Fair Work Commission (FWC) identified as crucial to his role. Steven Knowles, who had worked in banking and finance since 1983, argued he was overwhelmed by an "avalanche" of tasks and worked up to 18-hour days following a promotion in September 2024.

Knowles claimed that inadequate training and an unsympathetic manager contributed to his struggles, stating in an email to his supervisor, "Ms Z," that he was "drowning" and "fear[ed] going to work." He alleged his supervisor had a "tendency to condescend and impose a sense of unworthiness" and a "witch-hunt mentality."

Despite acknowledging some criticisms of management, including that his supervisor was likely "abrasive" and a prior warning was "grossly disproportionate," FWC Commissioner Jennifer Hunt found that Knowles' failure to read and understand NAB's covenant policy ultimately justified his dismissal. This policy requires bankers to monitor customers' financial health and report potential risks.

"His failure to read and understand the Covenants Policy, as directed, was his undoing," Commissioner Hunt stated. She noted the document was "a short document; only seven pages and should take an average reader less than 15 minutes to read it." The commissioner added that Knowles had promised to review the policy after earlier compliance issues and was later directed to do so, but admitted he still had not read it before further problems arose.

Commissioner Hunt emphasized the importance of financial covenants in the banking industry for managing risk, describing it as "bread-and-butter work" and a "core responsibility" for Knowles. When questioned, Knowles accepted that reading the policy would likely have prevented his later mistakes.

NAB presented evidence that Knowles had completed covenant compliance training months before his dismissal and had received multiple reminders about overdue covenants. While the bank initially alleged Knowles' delay in processing a loan extension led to a customer account exceeding its limit by $2.6 million, it later conceded the facility remained secured.

Knowles was dismissed in May 2025 after eight months in the senior role. He contended that he was not the only employee struggling with the workload. He also highlighted the personal impact of losing his job, particularly his plans to assist his three adult children with home purchases, a plan that depended on his continued employment and ability to secure finance.

While Commissioner Hunt accepted that Knowles had been under "considerable strain," she concluded that his workload was not excessive compared to his colleagues and ruled that the dismissal was not harsh, unjust, or unreasonable. She acknowledged Knowles as an experienced banker who took pride in his work. Despite the dismissal, the commissioner remarked, "In life, sometimes steps forwards and backwards are required."