[2016] FWCFB 922
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.604 - Appeal of decisions

Kirsten Dale
v
Hatch Pty Ltd
(C2015/7125)

VICE PRESIDENT HATCHER
DEPUTY PRESIDENT BULL
COMMISSIONER PLATT



SYDNEY, 15 FEBRUARY 2016

Appeal against decision [2015] FWC 4970 and order (PR572764) of Deputy President Asbury at Brisbane on 12 October 2015 in matter number U2014/16010.

Introduction

[1] Ms Kirsten Dale has appealed a decision issued on 12 October 2015 by Deputy President Asbury 1 in which her application for an unfair dismissal remedy against Hatch Pty Ltd (Hatch) was dismissed (Decision). A formal order dismissing the application was separately made2 (Order). On 27 November 2015 a differently constituted Full Bench (Hatcher VP, Hamilton and Bull DPP) granted Ms Dale permission to appeal. The full hearing of her appeal took place before us on 22 December 2015.

[2] The basic facts concerning Ms Dale’s employment with Hatch were summarised in the Decision as follows:

[3] Ms Dale’s unfair dismissal remedy application was heard by the Deputy President in relation to all issues. The application was ultimately dismissed by the Deputy President on the basis of a jurisdictional issue raised by Hatch, namely that the termination of Ms Dale’s employment did not fall within the definition of “dismissed” in s.386 of the Fair Work Act 2009 (FW Act). Section 386 relevantly provides:

[4] It appears not to have been in contest between the parties that, if the exception in s.386(2)(a) did not apply, then the termination of Ms Dale’s employment fell within that part of the general definition of “dismissed” in s.386(1)(a). It was certainly never argued by Hatch either at first instance or in the appeal that Ms Dale’s employment was not terminated on its initiative. The Decision reflects the basis upon which the proceedings were conducted, in that the Deputy President stated:

[5] The Deputy President determined that Ms Dale had been employed by Hatch under a contract of employment for a specified task and thus fell within the exception in s.386(2)(a). Her conclusion was that Ms Dale was employed “for the specified task of carrying out the administration role of Site and Facilities Administration Lead on the Grosvenor Project” 3, and, in relation to the document that constituted her contract of employment, the Deputy President said:

[6] The Deputy President rejected the propositions that the fact that under the contract Ms Dale could be required to perform tasks other than those required for her role, and that the contract could be terminated by Hatch with notice at any time, derogated from it being a contract for a specified task. 4 The Deputy President went on to find that Ms Dale’s employment had been terminated on completion of the task, in that termination occurred upon Hatch’s client for the Grosvenor Project, AAMC, informing it that Ms Dale’s role had been “demobilised”.5

[7] Ms Dale submits that the Deputy President erred in concluding her contract of employment was for a specified task and in dismissing her unfair dismissal remedy application on that basis, and that she was entitled to have her application determined on its merits.

Contract of employment for a specified task

[8] The consideration of Ms Dale’s appeal must start with determining the meaning of the expression “contract of employment … for a specified task” in s.386(2)(a). The ordinary meaning of the word “task” is, as stated in the Decision 6, a piece of work to be performed or undertaken. That was the meaning assigned to the term in the decision of a Full Bench of the Australian Industrial Relations Commission (AIRC) in Qantas Airways Limited v Fetz7. It must be the task of the employee, not the employer, as was pointed out by Wilcox CJ in Drury v BHP Refractories Pty Ltd8 in relation to the same expression then appearing in reg.30B(1)(b) of the Industrial Relations Regulations:

[9] The task must be “specified” - that is, identified in definite terms. In a written contract of employment, it could usually be expected that the task would be identified in express words, although it is not impossible to conceive of a case whereby the task might be specified as a matter of necessary implication. Further, the relevant contract of employment must be “for” the specified task, meaning that it has been entered into for the purpose of the performance and completion of that task.

[10] A critical element in this part of the exception in s.386(2)(a) is, we consider, that the task be sufficiently definite in its nature and delineation such that identification of when the task is completed is not a matter of doubt or speculation or contingency but is clear and predictable. We draw that inference from the fact that s.386(2)(a) requires the termination of employment to occur at the end of the completion of the task, thus requiring it to be identifiable with certainty. The context supports that inference in that the other exceptions contained in s.386(2)(a) - a contract for a specified period terminating at the end of that period, or for the duration of a specified season terminating at the end of the season - likewise involve the termination of employment occurring at an identifiable time or upon an identifiable event.

[11] In the Decision the Deputy President said “For the purpose of the phrase ‘specified task’ the term ‘task’ has been treated as being synonymous with the terms role, job or project that an employee is employed specifically to perform as distinct from the employer’s undertaking”. 9 We do not accept that “task” in s.386(2)(a) necessarily means the same thing as a role, job or project which the employee is engaged to perform. A “role”, as a matter of the ordinary meaning of the term, usually involves a collection of work duties and functions required to be performed on an ongoing basis for an indefinite period of time. It does not usually involve the completion of a discrete piece of work. A “job”, if the word is used in the narrow sense of “a piece of work; an individual piece of work done in the routine of one's occupation or trade”10, would equate to a task, but not if it is used in its wider sense as “a post of employment”. A project, if it is a project to be undertaken and completed by the employee, may equate to a “task” but not if the project is the broader employer’s project upon which the employee works, for the reasons explained in Drury. In Qantas Airways Limited v Fetz the Full Bench referred to a “task” as normally applying to an “identifiable project or job” able to be described with sufficient particularity. In doing so, we consider that “project” and “job” are to be understood in the narrower senses we have identified.

[12] The Deputy President cited three authorities to support the approach taken by her to the interpretation of “specified task” in the Decision. Two of these authorities are, we consider, entirely consistent with the approach we prefer. In the first, Hewitt v ACTek Custom Engineering Pty Ltd 11, a decision of the AIRC, an employee engaged to personally develop a piece of software for cash registers for an employer with no software expertise was held to have been employed under a contract of employment for a specified task. In that decision the AIRC (Lacy SDP) articulated the meaning of “specified task” in a manner with which we agree as follows (footnotes omitted):

[13] In the second decision (chronologically speaking), Henderson v John Holland Pty Ltd 12, an employee engaged to undertake the concrete finishing work on a specific construction project was held to have been employed under a contract of employment for a specific task. In that case it is reasonably apparent that there was a discrete piece of work on a project which the relevant employee had to complete.

[14] The third decision, Derar v Recruitco Pty Ltd 13, is problematic. That case involved a casual employee of a labour hire company who was assigned to work for a particular client (a retail grocery distributor) and did so, on a regular and systematic basis, for a period of over six years. The employee claimed his employment with the labour hire company terminated when the client informed the labour hire company his assignment was terminated. This occurred after some absences from work by the employee, alleged to be unauthorised, due to the birth of his child. The following conclusion was stated in that decision:

[15] We cannot, with respect, accept that an employment contract to perform work of an ongoing and generic nature for a third party client until that client no longer requires the person to perform the work constitutes an employment contract for a specified task. There was no identifiable or distinct piece of work that was required to be performed or any specific result required to be achieved. The facts did not suggest that the employee had completed any particular piece of work or even that the work performed by the employee was no longer required to be performed when the assignment was terminated, but only that the client did not want him to perform it anymore. We do not consider that the employment “task” of an employee can be defined simply by reference to the currency of a commercial labour hire arrangement between the employer and a client without doing violence to the ordinary meaning of the word. Nor do we consider that a task is something which can be regarded as completed for the purpose of s.386(2)(a) when a third party client decides it does not want the employee of the employer to perform the relevant work anymore. A “task”, properly understood, is one which is completed when the employee finishes the work involved in it.

Was Ms Dale employed under a contract of employment for a specified task?

[16] With these observations in mind, it is necessary to analyse the provisions of Ms Dale’s contract of employment with Hatch. The contract was in writing and was entered into on 27 August 2012. It was contained in a document entitled “Kirsten Dale - Contract of Employment: Project Specific - Fixed Term Full Time” (Contract). It contained the following relevant provisions:

1. Position:

You will commence with Hatch in the position of Site & Facilities Administration Lead within the PDG - Project Support Group.

 

 
 

4. Duties:

You are employed on a fixed term basis to provide support on the Grosvenor Project. You will be required to perform the duties of your position and such other duties, within your skill and capability, as are requested of you. If you have any queries in this regard please contact [name removed].

     
 

5. Location:

Your initial place of work is Moranbah; however, you may be required to work at other locations according to business or operational needs. This clause is to be read in conjunction with Clause 19 - Mobility and Travel.

   

 

6. Commencement date:

3 September 2012

 

7. Completion date:

This Project Specific Contract and your employment with Hatch will automatically terminate upon your demobilisation from the Grosvenor Project.

Hatch will notify you as soon as possible of its reasonable satisfaction that your position on the Grosvenor Project has been completed. Termination of this contract, however, is not conditional upon Hatch having given you such notice.

 

 
 

27. Notice of Termination:

This contract will terminate on your demobilisation from the Grosvenor Project as specified in Clause 7 – Completion Date. Should you wish to terminate your employment prior to the completion of your role on the Grosvenor Project, you must give, if within your probation or minimum employment period, at least one (1) week written notice, thereafter four (4) weeks written notice to your Manager.

Hatch reserves the right at any time to terminate your employment by giving, if within your probation or minimum employment period, at least one (1) week written notice, thereafter four (4) weeks written notice or payment in lieu thereof, except in the case of serious misconduct when you may be dismissed without notice.

The notice period provided by Hatch will be increased by one (1) week if you are over 45 years of age and employed for more than two (2) years of continuous service with Hatch.”

[17] Ms Dale was also provided with a letter dated 28 August 2012 which was headed “Re Grosvenor Project - Brisbane Assignment” (Assignment Letter). The Assignment Letter included the following statements:

[18] There is nothing in the provisions of the Contract which either specifies a task to be performed or provides that the Contract is coterminous with any such task. Clause 4 of the Contract specified that employment is on a “fixed term basis”, but no fixed period of time is specified anywhere in the Contract and Hatch did not contend that it was a “contract of employment for a specified period of time” for the purpose of s.386(2)(a). Clause 7 referred to the Contract, and the employment, terminating on Ms Dale’s “demobilisation” from the Grosvenor Project, but it is not apparent that this was referrable to the completion of any particular task or piece of work. The same can be said in relation to the reference in clause 7 to Ms Dale being notified of the completion of her position: for the reasons already stated, a “position” is not the same thing as a task. Read in its commercial context, we consider that the Contract is to be read as providing that the purpose of the employment was for Ms Dale to undertake an administrative role on the Grosvenor Project, and that this was to terminate when AAMC decided that it did not require Hatch to provide Ms Dale’s services any further.

[19] There was some debate between the parties about the contractual effect, if any, of the Assignment Letter, and whether it operated to alter the effect of the Contract. We do not think anything turns on this because the nature and purpose of the employment in both the Contract and the Assignment Letter are expressed in consistent terms.

[20] The circumstances in which the employment actually terminated confirm our understanding of the Contract and the employment. The evidence disclosed that as the construction phase of the Grosvenor Project began to wind down, AAMC decided it was no longer necessary to maintain the discrete position of Site & Facilities Administration Lead in its structure, and accordingly that it was no longer necessary for Hatch to supply the services of Ms Dale to fill that position. The facts in this respect were described by the Deputy President in the Decision as follows:

[21] There is no issue that the Deputy President correctly described the facts. However the above passage confirms that Ms Dale’s employment did not end because she had completed any particular task. Although the volume of the duties she performed had diminished, the work which she had been required to perform continued and was performed by AAMC employees. The cause of her termination was the decision by AAMC to restructure its workforce with the result that the role filled by Ms Dale was abolished. For the reasons we have already stated, a “role” as ordinarily understood is not a task, and the abolition of a role does not constitute completion of a task. We do not consider therefore that Ms Dale was employed under a contract of employment for a specified task or that her employment terminated on completion of any specified task.

[22] There is one other aspect of the Contract which requires comment. Clause 27 of the Contract provided, among other things, that Ms Dale’s employment could be terminated by Hatch without cause on one week’s notice during the probation or minimum employment period and on four weeks’ notice thereafter. In relation to employment contracts for a specified time, it was held in Andersen v Umbakumba Community Council 14 (in the context of the termination of employment provisions of the Industrial Relations Act 1988) that an employment contract will not be one for a specified period of time if it gives either party an unqualified right to terminate the contract on notice or with payment in lieu of notice within any specified term.15 The basis for this proposition is that a specified period of time is a period of employment that has certainty as to its commencement and time of completion, and where a contract provides a broad or unconditional right of termination during its term, the period of the contract is indeterminate and thus not for a specific period of time.16

[23] We would be inclined to the view that, by parity of reasoning, this proposition would apply to the exception for contracts of employment for a specified task. Employment for a specified task would equally suggest certainty that the period of employment began and ended with the commencement and completion of the task, and that a broad or unconditional right of termination is inconsistent with that certainty. If so, the existence of such a right in clause 27 would provide further support for our conclusion that Ms Dale’s contract of employment was not for a specified task. However we note the following comment made by Hatcher VP in Jin v Sydney Trains 17 as follows (emphasis added):

[24] We were not addressed in relation to this issue, and it is not necessary for us to express a final view about it in order to determine this appeal. Accordingly it can be left for another day.

[25] We conclude therefore that the “specified task” exception in s.386(2)(a) was not applicable, and that the Decision was in error to the extent that the contrary conclusion was reached. As earlier stated, it was not in dispute that the termination of employment otherwise fell within the general definition of “dismissed” in s.386(1)(a). We note, having regard to the terms of the Contract, that there might have been available an argument that the Contract, and the employment, terminated not at the initiative of Hatch but according to its terms upon Hatch being notified by AAMC that Ms Dale’s position was no longer required. However, that was not argued before us, and we propose to proceed on the basis that Ms Dale was dismissed by Hatch. It is therefore now necessary for there to be a determination as to whether Ms Dale’s dismissal was harsh, unjust or unreasonable (there being no other jurisdictional objection raised by Hatch).

Was Ms Dale’s dismissal unfair?

[26] In the hearing before the Deputy President, Ms Dale ran her case substantially on the basis that the real reason for her dismissal was not the abolition of her position but rather that she had made a complaint about certain conduct by the AAMC Site Manager at the Grosvenor Project. In the course of her consideration of Hatch’s jurisdictional objection to Ms Dale’s unfair dismissal remedy application, the Deputy President rejected this contention:

[27] The other aspect of Ms Dale’s case at first instance was that there were other roles she could have filled, and therefore that her dismissal was not required by the abolition of her existing position. The Deputy President also rejected this contention in the course of her consideration of the jurisdictional objection in the following terms:

[28] Importantly, at the hearing of the appeal counsel for Ms Dale submitted that, for the purpose of the determination of her unfair dismissal remedy application, he did not challenge the above findings, and was content to have the application determined on the basis of those findings. His submission was that, should his appeal succeed, this Full Bench should determine Ms Dale’s application on the material before it rather than remit the matter to a single member for a re-hearing. Hatch did not oppose this course being taken.

[29] Accordingly we will determine Ms Dale’s unfair dismissal remedy application ourselves on the basis of the evidence as it currently stands and the findings of the Deputy President to which we have referred.

[30] Section 387 of the FW Act requires the Commission, in considering whether a dismissal was harsh, unjust or unreasonable, to take into account a number of matters specified in paragraphs (a) to (h) of the section. We will deal with each of these matters in relation to Ms Dale’s application in turn below.

Paragraph 387(a)

[31] Ms Dale was not dismissed for a reason relating to her capacity or conduct, so the question as to whether any such reason was a valid one does not arise.

Paragraph 387(b)

[32] Ms Dale was not dismissed for a reason relating to her capacity or conduct, so no issue arises as to the notification of such a reason.

Paragraph 387(c)

[33] Ms Dale was not dismissed for a reason relating to her capacity or conduct, so the issue of whether she was given an opportunity to respond to any such reason does not arise.

Paragraph 387(d)

[34] There was no evidence that suggested that Hatch denied Ms Dale the assistance of a support person at any discussion which may have occurred concerning her dismissal.

Paragraph 387(e)

[35] The dismissal was not related to any unsatisfactory performance on the part of Ms Dale, so no issue arises as to whether she had previously been warned about unsatisfactory performance.

Paragraphs 387(f) and (g)

[36] Hatch is a large employer with a dedicated human resources team, and accordingly there was no adverse impact on its capacity to follow appropriate procedures in effecting the dismissal.

Paragraph 387(h)

[37] We consider that the following matters are relevant and weigh against the proposition that Ms Dale’s dismissal was unfair:

[38] The only contention advanced before us as to why the dismissal was unfair was that Ms Dale was not afforded her entitlements under “the Act and the Award”, and that she should be compensated for this. It appears that this is a reference to notice payments and redundancy pay benefits. The requirement for a payment in lieu of notice (since the dismissal had immediate effect) would appear to have been satisfied by the payment of two weeks’ salary (see s.117 of the FW Act). Ms Dale was not dismissed on the basis of redundancy, which explains why Hatch did not pay her any redundancy pay benefits under s.119 of the FW Act or under any applicable modern award, if any. We do not propose to express a view as to whether the circumstances of Ms Dale’s dismissal gave rise to any entitlement to redundancy pay benefits because we do not consider that the unfair dismissal provisions of the FW Act are properly to be used as a substitute mechanism for the recovery of monetary entitlements under the FW Act or a modern award. If Ms Dale believes she has an entitlement to redundancy pay, then she should make an appropriate application to a relevant court for the recovery of this entitlement. We do not regard this as a matter relevant to whether Ms Dale’s dismissal was unfair in circumstances where her dismissal is not now alleged to be unfair on any other basis.

Conclusion

[39] Having regard to the above matters, we are not satisfied that Ms Dale’s dismissal was harsh, unjust or unreasonable. There is therefore no reason to disturb the Deputy President’s Order dismissing Ms Dale’s unfair dismissal remedy application.

Orders

[40] Having regard to the above conclusions, we make the following orders (in addition to the order we have already made granting permission to appeal):

[41] Finally we note that Ms Dale was represented in this appeal by Mr Shepley of counsel pro bono. We express our gratitude to him for appearing and providing us with appropriate assistance on this basis.

al of the Fair Work Commission with the memeber's signature.

VICE PRESIDENT

Appearances:

J. Shepley of counsel for Kirsten Dale.

L. Copley of counsel for Hatch Pty Ltd.

Hearing details:

2015.

Brisbane:

22 December.

 1   [2015] FWC 4970

 2   PR572764

 3   Decision at [76]

 4   Decision at [80]-[81]

 5   Decision at [83]-[87]

 6   Decision at [76]

 7   (1998) 84 IR 52 at 66

 8   [1995] IRCA 293

 9   Decision at [76]

 10   Macquarie Online Dictionary

 11   PR904665, [2001] AIRC 500

 12   PR917230[2002] AIRC 475

 13   [2013] FWC 9791

 14   (1994) 126 ALR 121

 15   (1994) 126 ALR 121 at 125-6; see also Cooper v Darwin Rugby League Inc. (1994) 57 IR 238 and Ledington v University of Sunshine Coast (2003) 127 IR 152

 16   Ledington at [34]

 17   [2015] FWC 4248

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