Details  Created: 15 May 2020

The Industrial Magistrate has dismissed a claim for redundancy payments on the basis that it was an abuse of process to relitigate the same issue against the same party in circumstances where that issue was refused by the Industrial Magistrates Court (IMC) in a previous claim. 

First Originating Claim

The claimant had initially lodged an Originating Claim in the IMC alleging the respondent failed to comply with the Freo Group Pty Ltd Maintenance and General Services Agreement 2016 (Cth) (EBA 2016) by failing to pay the claimant a redundancy payment under cl 20.8 of EBA 2016 and failing to pay in lieu of notice under cl 18.1 of the EBA 2016.

A preliminary issue was considered by the IMC in relation to the application of EBA 2016 and Reasons for Decision with respect to that preliminary issue were delivered at a later date.  

However, during the directions hearing, the IMC identified a number of issues concerning the application of EBA 2016 and that the application did not concern a claim for redundancy under the relevant provisions of the Fair Work Act 2009 (Cth) (FWA).

The claimant subsequently lodged an applicant to amend the claim (Claimant’s Application), seeking that the following be added:

‘8. In the alternative the respondent failed to pay notice and redundancy to the claim (as particularised above) pursuant to s 117 and s 119 of the Fair Work Act’.

The respondent opposed the Claimant’s Application.

The IMC refused the Claimant’s Application for various reasons, including that the claimant sought to introduce a new cause of action and had given no reason for delay in applying to amend the claim or why the provisions of the FWA had been overlooked.

The claimant then lodged a notice of discontinuance withdrawing the whole claim.  

Second Originating Claim (current application)

The claimant then lodged a second Originating Claim (Second Claim) alleging that the respondent contravened the FWA by failing to pay the claimant a redundancy payment under s 119 of the FWA and failing to a payment in lieu of notice under s 117 of the FWA.

The respondent sought the Second Claim be struck out or dismissed for reasons including that it was frivolous and vexatious, an abuse of the Court’s process, res judicata, and a waste of the Court’s resources where the claim was essentially a resubmission of argument that the claimant has had determined by the Court.

The claimant contended that the subject matter of the first claim had never been finally litigated as the IMC refused to allow the Claimant’s Application to amend the claim and, thus, the claimant’s current claim had not been determined at all.

The Industrial Magistrate found that, whilst acknowledging that from the claimant’s perspective there is no final judgment, the Second Claim ought to be dismissed as an abuse of process as it sought to litigate the same issue against the same party in circumstances where that issue was refused by the IMC in the first claim.

The Industrial Magistrate also found that the Second Claim was oppressive and unfairly revived previous failed litigation, and that it would not be efficient, economical, and expeditious for the claim to continue.

The decision can be read here. 

Details 

Created: 15 May 2020

The Commission has determined it has jurisdiction to hear the substantive claim of the applicant who claimed he had been denied a benefit for payments of a bonus under a previous contract of employment with the respondent.

The applicant’s initial contract, which had commenced in 2013 (2013 Contract), was terminated by agreement in 2017. The applicant and respondent then entered into a second contract in 2017 (2017 Contract), which did not include a term for bonus payment.  

At the termination of the applicant’s employment in 2019, the respondent denied the applicant’s request for bonus payments he submitted were due under the 2013 Contract.

The respondent objected to the Commission hearing on the basis that the applicant’s salary exceeded the prescribed amount found in s 29AA(5) of the Industrial Relations Act 1979 (WA) (Act). Section 29AA provides that the Commission must not determine a contractual benefit claim if the employee’s salary exceeds the prescribed amount.

The respondent also referred to reg 5(2) of the Industrial Relations (General) Regulations 1997 (WA) (Regulations), which sets out the method for calculating an employee’s salary for the purposes of s 29AA(5) of the Act. It argued that on proper construction of the Act and the Regulations, the relevant salary rate for the purposes of this matter was the salary paid at the time of the applicant’s dismissal in 2019, which was the amount under the 2017 Contract and over the prescribed amount.

The applicant argued that the benefit he claimed he was entitled to was provided in the 2013 Contract. He asserted that the relevant salary rate to be considered was the rate paid under the 2013 Contract, which was under the prescribed amount found in s 29AA of the Act.

The Commission rejected the respondent’s contentions that the relevant salary to be considered was the salary at the time of the applicant’s dismissal. Commissioner Walkington found s29AA of the Act to mean it is the employee’s salary under the contract under which the benefit is claimed that is relevant.

The Commission found that as the relevant salary rate provided under the 2013 Contract was under the prescribed amount, it therefore has jurisdiction to hear the substantive claim.

The decision can be read here.

Details 

Created: 15 May 2020

The Industrial Magistrate has dismissed a claim for unpaid wages alleged to be owed under an oral contract of employment as the claimant was found not to be an ‘employee’ of the respondent for the purposes of the Fair Work Act 2009 (Cth) (FWA).

The claimant alleged he was employed by the respondent pursuant to an oral agreement to assist in providing business knowledge for the respondent’s new business and act as a salesperson at the store for an extended period.

The respondent denied the claim and argued that the claimant was never employed by the respondent, but was given a total of $5,500 by the business owner as a goodwill gesture for introducing a customer and providing advice on how to improve the business.

The Industrial Magistrate found, on examination of the evidence provided, there was no employment agreement, written or oral, between the claimant and respondent. Scaddan IM found, therefore, that the claimant was not an ‘employee’ pursuant to the FWA and the Industrial Magistrates Court does not have jurisdiction to make an order for payment of alleged unpaid wages.

Scaddan IM noted that the claimant’s evidence objectively showed that there was no intention to create legal relations between the parties involving the performance of work.

The claim was dismissed.

The decision can be read here.

Details 

Created: 15 May 2020

The Industrial Magistrate has upheld, in part, a claim for unpaid entitlements including award wages, annual leave and accrued long service leave by an employee of a financial services provider.

The applicant alleged that the respondent contravened the Fair Work Act 2009 (Cth) and the Clerks – Private Sector Award 2010 (Cth) (the Award) by failing to pay him award wages under the provisions of the Award, annual leave not taken during the course of employment, and accrued long service leave.

In relation to the alleged unpaid award wages, Scaddan IM noted that cl 4.1 of the Award provided that:

‘[t]his award covers employers in the private sector throughout Australia with respect to their employees engaged wholly or principally in clerical work…’

On examination of the relevant material and evidence provided, the Industrial Magistrate found that, while the respondent was an employer in the private sector, the applicant was not engaged in wholly, or even principally, ‘clerical work’. The Industrial Magistrate found that the applicant’s duties and tasks extended to providing financial advice and reports to the company’s clients.

Therefore, the Industrial Magistrate concluded that the Award did not cover the respondent’s employment of the applicant and the applicant was not entitled to any award wages.

However, Scaddan IM upheld the applicant’s claim for untaken accrued annual leave on the basis that the respondent could not and did not produce any employment records, and there was no evidence to suggest that the applicant’s allegation concerning the failure to pay untaken annual leave was not bona fide.

In relation to the applicant’s claim for long service leave payment, the respondent argued that by failing to attend an alternative office to undertake work, the applicant refused to carry out a lawful and reasonable direction by his employer. As such, the applicant had engaged in such ‘serious misconduct’ that it was not required to pay the him his entitlements.

Scaddan IM found that, having regard to all the evidence, the applicant’s employment was not terminated for ‘serious misconduct’, but due to either a shortage of work or because the respondent was restructuring its business. Scaddan IM determined that even if the applicant did not attend work at an alternative office, this, of itself, would not amount to such ‘serious misconduct’ to deny his long service leave entitlements.

Scaddan IM ordered that the respondent pay the applicant accrued unpaid leave amounting to $33,244 and long service leave totalling $6,881. Scaddan IM dismissed the applicant’s claim for award wages.

The decision can be read here.