Not-for-profit Association not a trading corporation
The applicant was employed by the respondent as the Manager of a caravan park and accommodation, until he was advised that he was no longer the Manager, and his duties were reduced to taking bookings. The applicant claimed these changes were made unilaterally and amounted to a repudiation of his employment contract, leading to his unfair dismissal claim.
The respondent denied that the applicant was dismissed, asserting that he voluntarily resigned from his position. Additionally, the respondent argued it was a national system employer under the Fair Work Act 2009, which meant the Commission lacked jurisdiction to hear the applicant’s claim.
Commissioner Walkington determined that the respondent was not a trading corporation, as the respondent’s trading activities represent only a small portion of the respondent’s income, and as the overall nature of the activities of the organisation was not that of a trading corporation. The evidence showed that the respondent’s primary purpose is to assist and support community members through housing, education, employment, social welfare, and cultural initiatives. The Commissioner concluded that the activities of the respondent, including the receipt of rental payments and community contribution fees, did not constitute trading activities. As a result, Commissioner Walkington determined that the Commission did have jurisdiction to hear the matter.
The decision can be read here.