NLRB Alleges Unlawful Termination by Atlassian in June 2023

The National Labor Relations Board (NLRB) has alleged that Atlassian unlawfully terminated software engineer Denise Unterwurzacher in June 2023. The NLRB contends that Unterwurzacher's comments regarding workplace changes and CEO Mike Cannon-Brookes were protected under U.S. labor law, while Atlassian maintains her termination was due to "acrimonious communications and ad hominem attacks" and not legally protected.

Background of the Allegation

Denise Unterwurzacher's termination followed the implementation of a "re-levelling" plan at Atlassian in June 2023. This plan significantly impacted employees, resulting in demotions and job losses for a number of them.

The events leading to the termination included an internal "Ask Me Anything" video call, where employees openly discussed the re-levelling plan. During this call, CEO Mike Cannon-Brookes engaged with employee disagreements and complaints expressed in the chat.

Following the call, Unterwurzacher posted a comment on an internal company Slack channel. Her comment specifically referenced Cannon-Brookes's presence at his NBA team's headquarters and his statements during the aforementioned call.

Positions of the Parties

National Labor Relations Board (NLRB)

NLRB prosecutors allege that Unterwurzacher's actions were consistent with Atlassian's "Open Company, No Bullshit" philosophy. They assert that her actions were protected under U.S. labor law.

NLRB attorney Colton Puckett stated that employees are permitted to collectively discuss and protest working conditions, even if management disapproves of the manner of expression. The NLRB further argues that upholding the firing would undermine established U.S. labor law principles concerning employee rights.

Atlassian's Stance

Atlassian, through its attorney Troy Valdez, has denied any wrongdoing, stating it does not comment on individual employment disputes. The company's stated reason for Unterwurzacher's termination was that she had "engaged in acrimonious communications and ad hominem attacks against teammates and colleagues."

Atlassian argued that her comments were not legally protected, asserting that while employees can voice workplace issues, they must do so professionally and respectfully.

Atlassian characterized her remarks as an "irrelevant personal attack and insult directed at a colleague, essentially calling him a 'rich jerk'," contending that the law does not protect abusive or gratuitously insulting conduct.

Legal Implications

This case is expected to critically examine how newly confirmed appointees to the NLRB interpret the scope of legal protections for employees who discuss and take collective action on workplace issues. The outcome could be particularly significant for non-union environments.