[2012] FWA 2445

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FAIR WORK AUSTRALIA

DECISION

Fair Work Act 2009
s.394—Unfair dismissal

Amnon Rosenfeld
v
United Petroleum Pty Ltd T/A United Petroleum
(U2011/13440)

COMMISSIONER RYAN

MELBOURNE, 22 MARCH 2012

Application for unfair dismissal remedy - jurisdiction - genuine redundancy - not a genuine redundancy.

[1] An application was made by Mr Amnon Rosenfeld (the Applicant) pursuant to s.394 of the Fair Work Act 2009 (the Act) in relation to his termination of employment from United Petroleum Pty Ltd (the Respondent).

[2] The Applicant was employed by the Respondent as a Leasing Manager from 20 December 2010 and his employment was terminated in writing on 3 November 2011, effective from close of business on that day. The letter of termination was in the following terms:

[3] The Applicant contends that his termination from employment was not a genuine redundancy. The Respondent contends that it was.

[4] The Applicant seeks a remedy for unfair dismissal.

[5] The application was listed for hearing on 5 March 2012 for both determination of the jurisdictional issue (genuine redundancy) and for determination of the merit of the application. However the hearing on 5 March 2012 was limited to dealing with the jurisdictional challenge raised by the Respondent that the dismissal was a case of a genuine redundancy.

Genuine Redundancy

[6] Section 389 defines “genuine redundancy”.

[7] Where, as in the present matter, the employer asserts that a termination was a “genuine redundancy” then the employer must first establish that both of the criteria in s. 389(1) have been met. If both criteria in s.389(1) have been satisfied a dismissal may still not be a “genuine redundancy” if redeployment was reasonable in accordance with s.389(2).

[8] I have separately considered each of the two elements of s.389(1) of the Act.

Did United Petroleum P/L no longer require Mr Rosenfeld’s job to be performed by anyone because of changes in the operational requirements of the employer’s enterprise?

[9] Evidence for the Respondent was given by Mr Joel Toey, Human Resources Manager for the Respondent and by Mr Anastasiou, formerly Head of Property for the Respondent.

[10] The evidence for the Respondent clearly discloses that the Respondent has undertaken a significant restructuring of its property section.

[11] What is clear from the evidence is that the job performed by the Applicant has at all times been required by the Respondent to be done by someone.

[12] The evidence of the Respondent was that it needed to employ a senior employee with skills which none of the existing employees had. As a result of the employment of the new senior employee 90% of the work performed by Mr Anastasiou was taken off him and all of the work performed by the Applicant was taken off him and given to Mr Anastasiou. The Applicant was dismissed as there was no work for him to perform. In early December 2011 Mr Anastasiou left his employment with the Respondent and the Respondent advertised a position for a new employee to perform the same job as had been performed by the Applicant. The Applicant was offered this new position which he declined as the remuneration package was different to the remuneration package the Applicant had been employed under.

[13] The Respondent submits that the taking work off the Applicant and giving it to Mr Anastasiou is consistent with the concept of redistribution of work as discussed in Ulan Coal Mines Ltd v Howarth [2010] FWAFB 3488 and the decision of Ryan J in Jones V Dept of Energy and Minerals 1 and thus meets the test for being a genuine redundancy.

[14] However in the present matter there was no redistribution of the Applicant’s job amongst other employees. Rather the entirety of the Applicant’s job was given to Mr Anasatasiou.

[15] If there was a genuine redundancy in relation to any employee of the Respondent it was most likely to be the case for Mr Anastasiou. The evidence of the Respondent makes clear that 90% of Mr Anastasiou’s job was given to the new more senior employee leaving only 10% of Mr Anastasiou’s original job to be done by him.

[16] Unfortunately for the Applicant the Respondent decide to take the entirety of the Applicant’s job and give it to Mr Anastasiou and when Mr Anastasiou left the entirety of the Applicant’s job was recreated as a separate position within the Respondents property unit.

[17] I note the decision of Hamberger SDP in Kekeris v A. Hartrodt Australia Pty Ltd [2010] FWA 674 and which was referred to by the Full Bench in Jones’s case in the following terms:

[18] Applying the test “Whether the job previously performed by the applicant still exists?” to the facts in the present matter leads to the conclusion that the job previously performed by the Applicant still existed after the dismissal of the Applicant. It is clear and I so find that the Respondent continued to require the Applicant’s job to be performed by someone and that notwithstanding this the Respondent dismissed the Applicant and gave the entirety of his job to another employee.

[19] The Respondent has not met the first criteria for a genuine redundancy as set out in s.389(1)(a) of the Act.

Did a modern award apply to Rosenfeld’s employment?

[20] The Applicant contends that either or both the Clerks - Private Sector Award 2010 or the Real Estate Industry Award 2010 applied to the Applicant during his employment.

The Respondent contends that no award applied to the Applicant’s employment. The Respondent considered each of the following awards: Clerks - Private Sector Award 2010, Hydrocarbons Industry (Upstream) Award 2010, Oil Refining and Manufacturing Award 2010, Real Estate Industry Award 2010 and the Vehicle Manufacturing, Repair, Services and Retail Award 2010.

[21] In relation to the Real Estate Industry Award 2010 the Respondent’s contentions were as follows:

[22] I do not agree with the Respondents submission in relation to the Real Estate Industry Award. As clause 4.7 of the Real Estate Industry Award makes clear it is possible for an employer to be covered by more than one modern award.

“4.7 Where an employer is covered by more than one award, an employee of that employer is covered by the award classification which is most appropriate to the work performed by the employee and to the environment in which the employee normally performs the work.”

[23] The real estate industry is described in clause 3.1 of the Real Estate Industry Award in the following terms:

[24] The Respondent’s own evidence discloses that the Respondent has a dedicated property team of employees to manage the property business of the Respondent. The Respondent, at the request of the Tribunal, filed a copy of the staff profile of the property unit within the Respondents business as at the date of the Applicant’s dismissal. The chart with all names other than the Applicant’s removed is as follows:


[25] The very structure of the Respondent’s property unit satisfies me that the Respondent is an employer in the real estate industry. The Respondent is an employer within the real estate industry just as it is also an employer in the repair, services and retail part of the vehicle industry through its business of selling petroleum fuels and other retail items.

[26] Whilst the Applicant contends that his employment would have been covered by the classification of Property Management Supervisor as defined at item B.2.3 of Appendix B to the Real Estate Industry Award it is arguable if that is the correct classification. However I am satisfied that the evidence in this matter leads to the conclusion that the Applicant performed work which falls squarely within the classification of Property Management Representative as defined at item B.2.2 of Appendix B to the Real Estate Industry Award.

[27] The Respondent is an employer to whom the Real Estate Industry Award 2010 applied in relation to the employment of the Applicant.

Section 389(1)(b) and the obligation to consult

[28] The Respondent had an obligation to consult with the Applicant about the redundancy as required by clause 8 Consultation regarding major workplace change of the Real Estate Industry Award as follows:

[29] The evidence of the Respondent in this matter discloses that the Respondent did not meet the requirements of clause 8 of the Real Estate Industry Award before terminating the Applicant. Whilst this can be explained through the view the Respondent took as to the non application of the Real Estate Industry Award to the Applicant the result is nevertheless that the Respondent failed to comply with the award.

[30] As the Respondent did not comply with the obligation under the Real Estate Industry Award to consult with the Applicant about the redundancy then the Respondent has not met the second criteria for a genuine redundancy as set out in s.389(1)(b) of the Act.

[31] I find that the dismissal of the Applicant was not a genuine redundancy within the meaning of s.389(1) of the Act.

Future Proceedings

[32] At the hearing of this application on 5 March 2012 I advised the parties that if I decided that the dismissal was not a genuine redundancy then I would relist the matter at first instance for a telephone conference for the purposes of programming the hearing of the merits of the case. I will separate to this decision issue a Notice of Listing for a programming hearing which will be conducted by telephone.

COMMISSIONER

Appearances:

A. Rosenfeld on his own behalf

R. Millar, of Counsel, for United Petroleum Pty Ltd

Hearing details:

Melbourne
2012
March 5

 1   [1994] IRCA 42 (20 September 1994)

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