A Townsville unfair dismissal case involving a local car dealership has highlighted the serious risks of poorly handled workplace and HR investigations.
A Townsville car saleswoman who quit her job after a dispute over skirt length has lost her unfair dismissal case — with the Fair Work Commission (FWC) ruling she was not forced to resign, despite what it called a “fumbled HR investigation” that caused her significant embarrassment and distress.
What This Townsville Case Reveals About Workplace Investigations.
Amy Tonkin, a product specialist at Mike Carney Toyota, alleged she had no choice but to resign after management raised repeated concerns about her uniform skirt, including a widely circulated HR memo that made reference to her “body proportions”.
In his 1 August decision, Deputy President Nicholas Lake dismissed Tonkin’s claim but was scathing of the dealership’s handling of the matter, describing the investigation as poorly executed, insensitive, and avoidable.
“To include explicit reference to her body proportions in a written memo advising her to obtain a larger skirt, and then copy in several of her line managers, was not acceptable,” Mr Lake said. “This approach was fumbled from start to finish.”
The dispute began after a business customer complained about a so-called “short skirt club” among female staff. Although the dealership did not accept this claim, HR officer Lyndel Spokes told Tonkin her skirt was non-compliant and advised her to try on a larger size. Days later, Spokes formalised the conversation in writing — but copied in Tonkin’s managers and noted her “body proportions”, leaving her “mortified”.
Tonkin took stress leave after what she described as a mental breakdown, telling her doctor she believed her body shape was the problem. She returned to work but further clashes followed, including an instruction from the general manager to immediately purchase new trousers. On 28 January, she resigned by email.
While Mr Lake accepted Tonkin was embarrassed and should have received an apology, he concluded she was not forced out of her job and therefore could not establish unfair dismissal.
“The employer’s investigation was fumbled, insensitive and poorly handled, but it did not amount to constructive dismissal,” he ruled.
The decision is a clear reminder for Townsville employers that even when dismissal claims fail, poorly managed investigations can still expose organisations to reputational damage, mental health impacts, and regulatory scrutiny.

