[2017] FWC 2265
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.394 - Application for unfair dismissal remedy

Kirsten Hoolahan
v
North Ryde Community Pre-School Inc T/A North Ryde Community Preschool
(U2017/324)

COMMISSIONER JOHNS

SYDNEY, 24 APRIL 2017

Application for Relief of Unfair Dismissal – whether employee was dismissed – whether conduct or course of conduct by the employer forced employee to resign – constructive dismissal.

Introduction

[1] On 10 January 2017 Kirsten Hoolahan (applicant) made an application to the Fair Work Commission (Commission) pursuant to section 394 of the Fair Work Act 2009 (FW Act) for a remedy in respect of her dismissal by North Ryde Community Pre-School Inc T/A North Ryde Community Preschool (Employer/respondent).

[2] On 8 February 2017 the respondent filed a response to the unfair dismissal application. In its response the respondent objected to the Commission exercising jurisdiction in relation to the application on the basis that, it submitted, the applicant was not dismissed.

[3] The respondent declined to participate in Member assisted mediation. Consequently the matter was listed for jurisdictional hearing on Wednesday, 12 April 2017.

Permission to be represented

[4] At the Mention/Directions hearing conducted on 21 February 2017, the Commission, as presently constituted, granted both parties permission to be represented. Having regard to the nature of the jurisdictional objection I was satisfied that the matter was invested with sufficient complexity such that I would be assisted in the efficient conduct of the matter if I allowed both parties to be represented pursuant to s.596(2)(a) of the FW Act. Consequently, permission was granted to each party to be represented.

The hearing

[5] At the jurisdictional hearing on 12 April 2017:

[6] In advance of the jurisdictional hearing the parties had filed materials. Consequently, in coming to this decision the Commission, as presently constituted, has had regard to the following:

[7] Because the parties filed Exhibit R3 no witness was required for cross-examination.

Background

[8] The following matters were either agreed between the parties or not otherwise substantially contested:

[9] The applicant submitted she was unfairly (constructively) dismissed and seeks an Order that she be compensated in the amount of 6 months total remuneration.

Protection from Unfair Dismissal

[10] An order for reinstatement or compensation may only be issued where the Commission is satisfied the applicant was protected from unfair dismissal at the time of the dismissal.

[11] Section 382 sets out the circumstances that must exist for the applicant to be protected from unfair dismissal:

[12] There is no dispute, and the Commission, as presently constituted, is satisfied, the applicant has completed the minimum employment period, and is covered by an enterprise agreement, namely the North Ryde Community Preschool Inc. Employees Collective Agreement 2015 (Agreement). Consequently, the Commission, as presently constituted, is satisfied the applicant was protected from unfair dismissal.

[13] I will now consider if the dismissal of the applicant by the respondent was unfair within the meaning of the FW Act.

Was the dismissal unfair?

[14] A dismissal is unfair if the Commission is satisfied, on the evidence before it, that all of the circumstances set out at s.385 of the FW Act existed. Section 385 provides the following:

Note: For the definition of consistent with the Small Business Fair Dismissal Code: see section 388.”

Was the applicant dismissed?

[15] A person has been unfairly dismissed if the termination of their employment comes within the definition of “dismissed” for purposes of Part 3–2 of the FW Act. Section 386 of the FW Act provides that:

[16] The applicant relies upon s.386(1)(b).

Was the applicant forced to resign?

[17] The applicant submitted that she was forced to resign from employment with the respondent because of conduct, or a course of conduct, engaged in by the respondent. The applicant submitted that:

[18] The respondent submitted the conduct, or course of conduct claimed to have occurred by the applicant did not fall within the meaning of s.386(1)(b) because:

Legal principles

[19] The classic example of a constructive dismissal is when an employee is faced with an ultimatum from their employer to “resign or be sacked”. In examples such as these, if the employee takes up the ‘invitation’ to resign, it is the employer’s action that is the “critical action” 13 which brings the employment to an end. If the employee is left with no real choice other than to resign s.386(1)(b) will be enlivened.

[20] That is not the situation in the present matter. There was no threat of termination of employment made by the respondent. On the contrary, all of its correspondence in December 2016 expresses the expectation that the applicant will return to work.

[21] Creighton and Stewart’s Labour Law 14 observes that,

[22] In Davidson v Commonwealth15 the Full Bench refused permission to appeal against a decision at first instance which found that Mr Davidson had not been constructively dismissed in circumstances where his employer, the Department of Climate Change and Energy Efficiency, had decided to suspend him on pay while it conducted an investigation into allegations of a breach of the Australian Public Service Code of Conduct. In its decision the Full Bench cited with approval a passage from O’Meara v Stanley Works Pty Ltd,16 that,

[23] In declining permission to appeal the Full Bench also noted the findings made by the Commissioner at first instances that Mr Davidson had alternatives to resignation, that it was open to him to engage in other conduct. 18 It then observed that,

[24] In Bruce v Fingal Glen Pty Ltd20 the Full Bench refused permission to appeal against a decision at first instance which found that Ms Bruce had not been constructively dismissed in circumstances where his employer, the Fingal Glen Pty Ltd, had frequently paid her wages late, was not paid on time for a period of annual leave and did not make superannuation contributions on her behalf. Consequently, the decision at first instance was upheld. In that decision the Senior Deputy President said he was,

[25] In the appeal decision the Full Bench usefully set out the relevant legislative provisions and case law as follows,

[26] In coming to this decision the Commission, as presently constituted, accepts and adopts the principles summarised by the Full Benches referred to above in determining whether Ms Hoolahan was forced to resign by North Ryde Community Pre-school Inc.

Consideration

[27] The conduct complained about by the applicant was, she submitted, “the refusal of the respondent to agree … to meet with the applicant and her representative to discuss what might be done to ensure her safe return…”

[28] No doubt an employer has a duty to provide a safe workplace both at common law and under statute. There are also statutory duties to consult. However, there is nothing to be found in the correspondence sent by the respondent on 12 and 16 December 2016 that indicates that it intended to ignore those obligations. It is true that in its responses to the applicant’s letter of demand sent on 5 December 2016 the respondent did not directly engage with the request for a meeting, but that is quite different from refusing to comply with statutory obligations to consult about workplace health and safety issues. The respondent’s conduct did not rise to the high bar necessary to establish that the applicant’s employer had engaged in conduct (or a course of conduct) that repudiates the contract of employment.

[29] Further, the applicant had available to her a number of options or alternatives to resignation. In its submissions the respondent identified at least two other options available to the applicant, namely that she could have invoked the respondent’s internal Staff Grievance Policy or taken steps under the Dispute Settlement Procedure (DSP) in the Agreement.

[30] Having regard to the applicant’s dissatisfaction about how the respondent conducted the investigation into allegations made against her I can full appreciate that she would have very little confidence in the respondent fairly applying the internal Staff Grievance Policy. Accordingly, while it was an option available to her (as an alternative to resignation), as a practical measure it was unlikely to be invoked in all the circumstances.

[31] However, the same cannot be said for the DSP. It provides for a mechanism to resolve disputes about “the interpretation, application or operation of a provision of [the] Agreement or the National Employment Standards”. If unresolved internally such disputes can be “referred to the Fair Work Commission”. The Commission is invested with powers of mediation, conciliation and arbitration. The relevant clause of the Agreement that may have given rise to an application of the DSP is clause 42. It provides for procedures for dealing with job performance problems. Ms Hoolahan’s issues with the respondent arise out of its investigation of her. She had concerns about a safe return to work following that investigation. Clause 42 either directly, or indirectly, could have given her access to the DSP and ultimately access to the independent national workplace tribunal to assist her to resolve her outstanding concerns. For reasons not satisfactorily explained during the jurisdictional hearing, Ms Hoolahan decided not to invoke the DSP and seek assistance from the Commission (other than through an unfair dismissal application). Having regard to the seriousness of the issue (the respondent not responding to a request for a meeting) it was open to the applicant to resolve the matter by a means other than resignation.

[32] In addition to activating the DSP the applicant could have, if she thought she was being bullied herself, made an application to the Commission for Orders to stop bullying. Further, she could have raised concerns she had about her health and safety in the workplace with the SafeWork NSW. Again, for reasons not satisfactorily explained the applicant chose not to do so.

[33] No doubt the applicant felt annoyed or even disillusioned by the failure of her employer to respond to a request for a meeting. However, resigning in the face of that failure to respond was not an understandable response. It was certainly not the probable result of the respondent’s conduct. It could not be fairly said the applicant had no other choice other than to resign.

[34] Given the many other options available to the applicant to contest her employer’s failure to take up her request for a meeting to discuss the basis for her return to work, and taking into account the nature of the respondent’s conduct, I am not satisfied that the applicant’s resignation was objectively the probable result of the respondent’s conduct.

[35] Consequently, I find that the applicant was not forced to resign from her employment because of conduct, or a course of conduct, engaged in by the respondent.

[36] I find that the applicant was not dismissed from her employment with the respondent within the meaning of s.386 of the FW Act.

Conclusion

[37] The Commission, as presently constituted, is satisfied that the applicant was protected from unfair dismissal, but that there was no dismissal by the employer. Consequently, the application for an unfair dismissal remedy must be dismissed.

[38] An order to that effect will be issued with this decision.


COMMISSIONER

Appearances:

Mr G Baldwin for the applicant

Mr J Stanton for the respondent

Hearing details:

2017

Sydney,

April, 12

 1   PN135.

 2   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [22]-[24], Annexures 8, 9 & 10.

 3   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [24], Annexure 10.

 4   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [25]; Affidavit of Kirsten Hoolahan dated 6 March 2017 at [59], Exhibit KH-1 24-25.

 5   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [28]; Affidavit of Kirsten Hoolahan dated 6 March 2017 at [60], Exhibit KH-1 26-27.

 6   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [29], Annexure 11.

 7   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [29]-[30], Annexures 11 & 12.

 8   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [31], Annexure 13.

 9   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [32].

 10   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [34], Annexure 14.

 11   Witness statement of Laura Tava-Petrelli dated 23 March 2017 at [33]; Affidavit of Kirsten Hoolahan dated 6 March 2017 at [61], Exhibit KH-1 28.

 12   [1995] NSWIRC 175.

 13   Mohazab v Dick Smith Electonics Pty Ltd (No 2) (1995) 62 IR 200.

 14   6th edition (2016), pp779-780.

 15   [2011] FWAFB 6265.

 16   (2006) 58 AILR 100-529; PR973462.

 17   Ibid at [23].

 18   Davidson v Commonwealth (2011) 213 IR 120, at para 7.

 19   Ibid at para 14.

 20   [2013] FWCFB 5279.

 21   Bruce v Fingal Glen Pty Ltd (in liq) [2013] FWC 3941, [26].

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