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T9406

 

TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s.29 application for hearing of industrial dispute

Australian Municipal, Administrative, Clerical and Services Union
(T9406 of 2001)

and

Migrant Resource Centre (Southern Tasmania) Inc.

 

COMMISSIONER T J ABEY

HOBART, 1 June 2001

Industrial dispute - alleged unfair termination of employment - no valid delegation of authority to terminate - no valid reason to summarily terminate - summary termination of employment harsh and unjust - reinstatement ordered

REASONS FOR DECISION

On 5 February 2001, the Australian Municipal, Administrative, Clerical and Services Union (ASU) applied to the President, pursuant to Section 29(1) of the Industrial Relations Act 1984, for a hearing before a Commissioner in respect of an industrial dispute with the Migrant Resource Centre (Southern Tasmania) Inc. (MRC) arising out of the alleged unfair termination of employment of Mrs Maureen Adamson.

On 9 February 2001 the President convened a hearing before myself at "Lyndhurst", 448 Elizabeth Street, North Hobart, Tasmania to commence at 2.15pm on Friday 23 February 2001.

Mr I Paterson of the ASU appeared for the applicant and Mr K Godfrey from Jobs Australia appeared for the employer.

Following preliminary submissions the hearing was adjourned into private conference, with the Commission, in an effort to find a resolution to the dispute. This proved to be unsuccessful and the matter was adjourned until 26 March. Further hearings took place on 27 March, 9 April and concluded on 10 April. A number of documents were subsequently submitted as supplementary submissions which I allowed to form part of the record.

Evidence

During the hearing evidence was taken from the following witnesses:

  • Mrs Maureen Adamson, the applicant, who prior to the termination of her employment, was the Office Manager with the Migrant Resource Centre [MRC].

  • Mrs Barbara Ulla-Britt Blomberg, a member of the board of management of the MRC since August 1999 and also a member of the executive committee.

  • Mrs Anne Fitzgerald, a clinical psychologist based at the Hobart Pain Clinic at Calvary Hospital.

  • Ms Merrilyn Ireni Orr, a former work colleague of the applicant.

  • Mrs Amal Deborah Provan, the General Manager of the MRC since January 2000.

  • Sielito, a member of the board of management and executive committee of the MRC.

In addition approximately 80 documents were submitted into evidence and the Commission conducted on site inspections.

Sequence of Events [Summary]

The catalyst for the application was the summary termination of Mrs Adamson on 5 February 2001. In his closing submission Mr Godfrey submitted that events prior to December 2000 were not relevant to the circumstances of the termination in February 2001. However this does not sit entirely comfortably with Mr Godfrey's later contention that "... the broad approach for approval [to terminate] ..."1 was determined at a management committee meeting in November 2000.

I have reached the conclusion that whilst the fairness or otherwise of the termination must ultimately turn on the circumstances of the actual termination and the events immediately preceding this, it would be folly to view these events in a clinical vacuum. To provide context, I have therefore prepared the following short form summary of relevant events in the 18 months or so preceding the termination. Where necessary, a more extensive analysis of the most critical issues is provided later in the decision.

Mrs Adamson commenced employment with the MRC in October 1997 in the position of Office Manager.

From September 1999 through to December 1999 Mrs Adamson was Acting Executive Officer pending the selection of a new Executive Officer. (Note: the title of this position subsequently changed to General Manager). Mrs Adamson was an applicant for this position. A few days after the interview Mrs Adamson heard through "gossip" that she was not successful. She raised her concern as to this breach of confidentiality with the board. Mrs Adamson said in her evidence that her concerns related to process rather than the outcome. Further, she believed that the successful candidate, Mrs Provan "was the best candidate at the time".2

Mrs Adamson said that she was told by members of the board that her contribution to the MRC was valued and that she was encouraged not to resign. This was not contested.

Immediately prior to the commencement of the new General Manager, Mrs Adamson had preliminary discussions with the chair of the board, Mr Abdullah, concerning a revised position description, title and salary review. These issues were referred to Mrs Provan for attention on her commencement in January 2000.

Mrs Adamson and Mrs Provan worked together for the next 14 weeks. This period appeared to be largely unremarkable although there was some evidence of growing tensions between the two, particularly in relation to an apparent lack of clarity as to delineation of respective responsibilities. Some discussions took place in regard to position description but the matter was certainly not finalised.

On 25 May 2000 Mrs Adamson went on sick leave for a week and a half. She returned to work briefly but in early June was hospitalised for major spinal surgery, a consequence of a car accident several years earlier. It was clear that an extended period of convalescence would be necessary following the surgery. As it turned out Mrs Adamson did not return to work [save for a few hours on 16 November] until the day of her dismissal in February 2001.

A number of events occurred during July whilst Mrs Adamson was on sick leave.

Firstly, on 18 July the board adopted a new position description and title for Mrs Adamson's position. It is common ground that Mrs Adamson had not seen the new position description prior to its presentation to the board. In response to a question from the Commission, Mrs Provan said she considered the new position description as being "neutral to her original position but I would probably accept that Maureen Adamson would see it as a downgrading ..." Following representations from the ASU3, the MRC agreed to revert to the status quo.4

Secondly, the car park previously occupied by Mrs Adamson was reallocated to another staff member. Mrs Adamson first heard of this decision when a staff member telephoned her with an invitation to participate in an arrangement whereby she would pay for an adjoining car park. Mrs Adamson said that she had been allocated a car park since commencement, a driver's licence was an advertised prerequisite for her position, and that she was required to use her vehicle for work purposes. Aside from that, her restricted mobility following surgery was an additional consideration. Mrs Provan maintained that car parking spots were allocated on a hierarchical [work] needs basis and that Mrs Adamson's position description did not require her to use a vehicle for work purposes.

Thirdly, Mrs Adamson's work station was relocated. Prior to going on sick leave Mrs Adamson shared an office with another staff member. During a visit to the office to pay her membership fee, Mrs Adamson discovered that her work station had been relocated to a public area immediately behind the reception.

Mrs Adamson was clearly upset by these events and telephoned Mrs Provan to express her concern. Mrs Provan said she was reluctant to discuss these issues whilst Mrs Adamson was on sick leave, but would do so on her return. Mrs Provan also requested that Mrs Adamson in future make an appointment with her and not to come into the office in her absence.

Mrs Adamson wrote to the board re the work station and carpark issues on 14 August5. It is fair to say that these two issues remained very much alive over the following months.

On 7 August a significant incident occurred when Mrs Adamson visited the office to present a sick certificate. She had telephoned to advise of her intentions earlier in the day but the General Manager was absent when Mrs Adamson arrived. Shortly thereafter Mrs Provan arrived and confronted Mrs Adamson who was in the tea room with other staff members. Mrs Provan said she was "... firm in my questioning of her ..."6 Mrs Adamson said:7

"The manager's behaviour and attitude to me is unacceptable. It was hostile, intimidating and humiliating and made me feel most unwelcome."

Ms Orr said that Mrs Adamson was distressed by the event and that "I myself felt quite distressed that I had to be in the middle of the whole situation".8

Mrs Adamson wrote to the board chair concerning this incident.9 It is not clear whether the board considered this complaint but certainly no formal response was forthcoming. There can, however, be little doubt that this incident exacerbated an already deteriorating relationship between Mrs Adamson and Mrs Provan.

Over the next two months there was some limited dialogue between Mrs Adamson's rehabilitation coordinator, Celia Leonard, and Mrs Provan concerning a graduated return to work program. These negotiations were unsuccessful and on 16 October CRS Australia advised "a return to work at the Migrant Resource Centre is currently not appropriate".10 From the MRC point of view it would appear that Mrs Adamson's request for board involvement in the return to work plan negotiations was a major sticking point.

In October Mrs Adamson lodged a complaint with the Anti-Discrimination Tribunal.11 Mrs Provan agreed that she had informed the staff of this complaint to "... dispel any gossip or hearsay ..."12 Mrs Adamson said she was "most distressed"13 by this action.

On 9 November Ms Leonard sent an e-mail to Mrs Provan advising that "Maureen's GP has certified her fit to return to work with reduced hours from the 15th November 2000".14 Apparently Mrs Provan was attending a conference in Perth at this time. Mrs Adamson said she also advised Mr Abdullah of the doctor's recommendation.

Mrs Adamson returned to work on 16 November and submitted a medical report from Dr Begbie dated 15 November. This report said in part:15

"Due to the difficulties of returning this patient to work on a graded scheme, I am therefore committing her to full time work as she is now fit to return to work. It would have been better, however, if there were not intransigence on the part of the work place to accommodate my original request.

This document is taken to be a certificate to return to full time duties from 16th November, 2000."

The report also recommended the return of her original work space as "an integral part of her successful rehabilitation ...".

The following is Mrs Adamson's account of what occurred when she returned to work:16

"I was thrilled that the doctor thought I was fit enough for work and I returned to work to start my job and sat in my work station and was working as normal and I got a phone call from the chair of the board, Harun, and he told me to leave the premises and I thought perhaps he might be under the impression that I'm not fully fit for work and I actually said to him, my doctor has declared that I'm fully fit for work and he said, I don't care what your doctor said, I'm ordering you to leave the premises immediately. I was really distressed at this outcome because it was a very big day for me to get back to work and I again asked him if he was ignoring the medical evidence and he directed me again to leave the premises and I said, would he come and see me. He said, he couldn't. He said, he believed I could be a workers' comp risk and there were work station issues and duties to be resolved and he believed I could be a workers' comp risk. That was very demoralising for me because I had gathered my strength to go back to work actually."

Mrs Provan in her evidence expressed considerable surprise that Mrs Adamson had returned to work.17

It is clear that Mrs Adamson was medically cleared to return to work on 16 November. However given that the previous advice via Ms Leonard had been less than precise, I am surprised that Mrs Adamson did not make a more determined effort to contact Mrs Provan prior to her return to work.

Mrs Adamson left the workplace on the advice of the ASU. Later that day Mr Abdullah sent an e-mail to the ASU stating:18

"I am prepared to grant Maureen Adamson special leave on full pay until this matter is finalized. This leave is subject to the condition that Maureen does not report for work at the MRC until the Board authorizes her to do so."

This position was subsequently confirmed by the board and conveyed in the following terms:19

"Maureen Adamson is also not required to attend for work duties but will be paid her full wages as normal until the matters arising can be resolved. However, the Board believes that matters in this case will be difficult to resolve as the situation appears to be untenable and would therefore like to suggest that you discuss with your member ways that this can be resolved including the possibility of a negotiated departure package."

On 8 December a meeting took place to discuss the carpark and work station issues. In correspondence of the same date the ASU confirmed its position in the following terms:20

"To facilitate a return to work the ASU proposes that there be a risk analysis and assessment of the proposed work station and other related issues, including the provision of car parking. The assessment to be undertaken by the CRS in consultation with her treating specialist Mr Hunn.

The outcome of such an analysis should then provide a basis for resolution of the issues. Further, a process be developed for monitoring the workplace over time.

Until the outcome is known Mrs Adamson will not be required to attend work and will continue to be paid wages."

On 21 December the MRC responded as follows:21

"The Migrant Resource Centre (Southern Tasmania) Inc will take steps to have CRS and another agency such as MAIB look at the workplace to make assessments in regard to the suitability of the workspace for Maureen Adamson."

By letter dated 8 January 200122 the MRC proposed that the cost of the assessment be borne by Mrs Adamson. This was rejected by the ASU in correspondence dated 9 January.23

A special board meeting took place on 12 December. It would appear that the sole purpose of this meeting was to consider a report prepared by the General Manager.24 This report raised a number of issues of concern relating to the operation of the board. It also raised a number of issues directly related to and critical of Mrs Adamson. Mrs Provan described the report as a "public document".25 And later:26

"I wrote it with the intention that anybody with a stake in the organisation would be comfortable to read it, yes."

A number of staff "who wanted to provide some support for the manager"27 also attended this board meeting. The resolution passed by the board was effectively a vote of confidence in the manager.28 Mrs Adamson was clearly incensed by certain aspects of this board meeting and wrote to Mr Abdullah advising that legal action for defamation would be instituted.29

By correspondence dated 10 January the MRC directed Mrs Adamson to return to work on 15 January.30 Mrs Adamson stated that she did not receive this letter and only became aware of the requirement through a casual conversation with Mr Paterson on the afternoon of Friday 12 January. Mrs Adamson said:31

"I couldn't believe it actually because I believed it was a complete back-down on what I'd been told on 8 December ... I felt betrayed."

Mrs Adamson said that the shock of hearing of this requirement aggravated the pain associated with her injury. She visited her doctor and obtained a medical certificate for the period 13 to 27 January.

Mrs Adamson travelled to Queensland on 15 January for a planned 3-week visit. Arrangements for this trip had been made in August but it was common ground that no leave application had been submitted. Mrs Adamson said that her union had advised her that this would be okay as she was suspended on full pay pending a workplace assessment.32

Circumstances Leading to Dismissal

On 24 January the MRC wrote to Mrs Adamson in the following terms:33

"We look forward to your return to work at 9am on Monday 29 January 2001.

As previously indicated this return to the work will be into the Office Manager position as stated in your contract of employment (September 1997) and as described in the original position description attached to that contract. However, given the number of months you have been absent from the workplace we will not be expecting you to take up all duties to their full capacity until we believe you have fully resettled into your role again. In this light, your Manager will meet with you, on your return, regarding a reintegration program.

At its most recent Board meeting the Migrant Resource Centre Board of Management made a decision to have a comprehensive workplace assessment conducted against the occupational, health and safety standards. This will naturally include the work station allocated to yourself. And, as previously stated, the MRC will take into consideration any reasonable modifications required of that work station in order to accommodate your current physical condition, and so as to ensure no aggravation of this physical condition occurs."

The ASU was copied in on this correspondence.

Mrs Adamson was still in Queensland and the ASU responded advising that she would be unable to return until 5 February.34 The MRC responded the same day rejecting the terms of the ASU letter.35 Later that same day the Anti-Discrimination Commission issued an interim order constraining the MRC from doing any act to:36

"1. Deem Ms Maureen Adamson to have abandoned her employment during the period of this order;

2. Terminate the employment of Ms Maureen Adamson during the period of this order;

The above orders are to remain in force from 5pm Thursday 25th January, 2001 until 9am Monday 5th February, 2001."

By facsimile of same date the MRC accepted the Interim Order but noted that the absence during the week commencing 29 January was "unauthorised".37

On 5 February Mrs Adamson reported to the MRC office at approximately 9.25am. She was accompanied by Mr Paterson. Mrs Adamson's recollection of this meeting is contained at pages 17 to 19 of the transcript and is too lengthy to reproduce. The essential elements can be summarised as follows:

  • Mrs Provan refused to have a meeting.

  • Mrs Provan instructed Mrs Adamson to commence work.

  • Mrs Adamson repeatedly said that she was there to start work and that she wanted to discuss details of the proposed reintegration program.

  • Mr Paterson advised that in view of the refusal to meet he proposed to take Mrs Adamson to his office for a short period [approximately 30 minutes] to get further instructions on how to progress the matter and to then provide a response. Mrs Provan allegedly acknowledged this by nodding her head.

  • Mrs Provan did not warn of the consequences of leaving the office.

  • Mrs Adamson intended to return following the meeting.

Mrs Provan's recollection of the meeting was similar to that of Mrs Adamson. Points of difference or emphasis can be summarised as follows.

  • There was no arrangement for a meeting and she would in any event require representation.

  • Mrs Provan directed Mrs Adamson to commence work on two or three occasions and did not get a response.

  • Mrs Provan did not say Mrs Adamson would be terminated if she left but did advise that she would be disobeying a lawful directive from her supervisor.

  • Mrs Provan was told by Mr Paterson that she was being aggressive and by Mrs Adamson that she was lying and that she was a joke.

  • Neither Mrs Adamson nor Mr Paterson sought approval to leave the workplace.

In response to a question as to how she understood the letter of 24 January, Mrs Adamson said:38

"... my understanding of this letter is that I would not be required to take up my duties to my full capacity and I would meet with my manager regarding a reintegration program. I understood from this that I wouldn't be required to do them to the full capacity until I'd fully resettled so it was the interim period between when I returned and when I was able to fully take on all my duties, that that was the query that I really had when I entered and I understood the reintegration program, that was what we had to meet to talk about."

In response to a question from the Commission, Mrs Adamson said she was prepared to sit at the new work station and understood that that would happen. Her main concern was to find out about the reintegration program.39

Mrs Adamson and Mr Paterson then went to the ASU office. Shortly after their arrival [9.54am] a facsimile letter addressed to Mrs Adamson arrived expressed in the following terms:40

"We refer to your attendance at the premises of the Migrant Resource Centre (Southern Tasmania) Inc. at 9.30am on Monday 5th February 2001.

You were directed on a number of occasions to commence your duties as Office Manager and either you, or your union representative on your behalf, refused to commence work and refused to obey these directions.

You then absented yourself from the workplace without either asking for or being given approval to do so, this is in addition to your unauthorised absence last week.

The management committee of Migrant Resource Centre (Southern Tasmania) Inc. considers that your actions in these matters constitutes serious and wilful misconduct and accordingly advises that your employment is terminated for misconduct immediately.

Any outstanding entitlements due to you will be forwarded to you as soon as possible."

The employer contends that Mrs Adamson was guilty of misconduct by disobeying a lawful instruction. I must say however that the evidence as to whether this was the real reason is equivocal as shown by the following exchange between Mr Godfrey and Mrs Provan:41

"Just refresh our memory on the grounds for Mrs Adamson's dismissal? Or were they related to these serious concerns?............ As a result of a number of concerns, that's correct.

No, but were the serious concerns that Mrs Adamson put in this letter, were they the reasons why she was dismissed? There is a letter saying why she was dismissed. Do they talk about concerns about her performance?............ I believe so, yes."

...

So you have the termination letter. Can you read it to us?

...

Can you tell me where it redresses the concerns in the letter that you were talking about in-camera?............ Yes, the fourth paragraph. That actions - that wilful misconduct - serious and wilful misconduct.

That's not what those concerns are about. Surely the wilful misconduct was refusing her direction?............ That's right. I'm sorry.

So you dismissed the person for misconduct and disobeying lawful direction on the spot then? Yes?............ Yes.

So the concerns raised previously were not a reason for dismissal?............ No, not in this instance, no."

Mr Paterson submitted that there were no grounds for summary dismissal:42

"The bar is lifted higher by terminating someone without notice and the requirements, I would submit, have not been met."

Did Mrs Provan Have the Authority to Terminate?

Mrs Provan stated that she did not have the power to hire and fire unless it was specifically delegated by the Board. This is consistent with Mrs Adamson's letter of appointment which states:43

"Termination of employment, either by yourself or the Committee of Management, except in case of misconduct must be signified by not less than four weeks' written notice."

The question therefore is, was the authority to summarily terminate Mrs Adamson specifically delegated to Mrs Provan by the Committee of Management?

Nothing was put forward which suggested that either of the board meetings in December 2000 or January 2001 resolved to provide such delegation.

Mr Godfrey said that "the broad approach for approval was done at a full management committee meeting in November."44. Sielito said that "we'd already given authority for this to take place at a full board meeting."45. The evidence of Mrs Blomberg was that she could not recollect the board ever delegating authority to Mrs Provan to terminate the employment of Mrs Adamson.46

It transpires that the board meeting that Mr Godfrey and Sielito were referring to was that which was held on 21 November 2000. Resolution 00/93 of that meeting reads as follows:47

"That the Board ratify the letters to M. Orr, M. Adamson and the ASU, and that the advice of the Job's Australia IR consultant continue to be taken in these matters.

          Unanimous"

In relation to this resolution Mr Paterson said:48

"I don't imagine any situation occurring where the Jobs Australia consultant could advise or instruct something be done for which the primary authority did not exist. This resolution does not do what Mr Godfrey had said previously in his submissions. It does not delegate authority. It determines where the organisation will get its advice."

I accept the submission of Mr Paterson. This resolution does no more than say that the board will continue to take advice from a particular source. It is certainly not a specific delegation to "hire and fire" and indeed it does not even state that such advice would necessarily be accepted. It is important to note that the resolution is drafted in the context of the advice being to the board, rather than specifically to Mrs Provan.

That this was not a specific delegation tends to be supported by subsequent events.

When asked whether she took any action to ensure she had the authority of the board, Mrs Provan said:49

"I did a phone around of board members to ascertain their feelings on the situation and to seek an authority to act in an appropriate manner, which would include dismissal if it be necessary."

This action resulted in a letter to Mrs Provan from Mr Abdullah expressed in the following terms:50

"This letter provides you, as the Manager of the MRC (Southern Tasmania) Inc., with the following authority:

If Maureen Adamson refuses to obey a lawful direction of her supervisor - you, as her supervisor, have the full authority of the majority of the MRC Board of Management to dismiss her for misconduct."

Mrs Provan went on to say that, of the 10 voting members, only seven were approached. Mrs Provan said that she needed a majority and she did not consider it necessary to approach all members once this was achieved.51

Later Mrs Provan said:52

"They were two board members that we felt were possibly not in a position to be objective in this matter.

Would you say that there would have been a possible breach of confidentiality if these people were apprised of what was happening?............ There was certainly a suspicion of that, yes."

It is common ground that the decision to terminate Mrs Adamson was not ratified at the February board meeting. In this context Mr Paterson referred to the decision of Evans J in The Queen v Watling; Ex Parte Northern Residential Support Group Incorporated.53

In this matter Evans J said:54

"A primary aspect of the concept of ratification is the validation of an invalid action. It is only invalid acts which require ratification. The following passage from The Laws of Australia, 8.1.12, is a concise statement of the applicable law:

'Ratification refers to the approval of an act originally done without authority. Where the act has been done by a person expressly on behalf of another, though without prior authority to do so, and is subsequently ratified by that other person, the relationship of principal and agent or the relevant authority is constituted retrospectively, and the act is as valid and as effectual as it would be if it had been done with prior authority. The doctrine applies regardless of whether the intermediary was an agent exceeding authority, or was a person having no authority at all. The act is not merely validated from the date of ratification, but takes effect from the time of the agent's act.' "

Retrospective ratification is not an issue in this case. It follows therefore that for Mrs Provan to be authorised to terminate Mrs Adamson, there must have been a valid delegation of power in the first place.

In my view there was no such valid delegation. It is not unusual in meeting procedure to deal with matters "out of session" and to record the decision as a resolution in the minute book. In this case there was no meeting, the views of known opponents were specifically excluded from the process, the "decision" has not been minuted and there has been no ratification by a subsequent board meeting. The perception that one or more members of the board may have constituted a security risk is immaterial. They were presumably properly elected or appointed board members and they were entitled to have proper knowledge of what was contemplated and to express their view.

For these reasons I conclude that there was not a valid delegation of authority to terminate the employment of Mrs Adamson.

There is a further related issue which might more comfortably come under the heading of procedural fairness. However, as it is a direct consequence of the exclusion of the above board members, I will deal with it here.

The MRC concedes that some of the decisions taken were driven by a fear that an Interim Order from the Anti-Discrimination Commission [ADC] may have precluded them from taking actions they wished to pursue.

The following exchange between Mr Godfrey and Mrs Provan illustrates this point:55

"Did you consider Mrs Adamson's conduct at that time to constitute serious and wilful misconduct?............ Yes.

When you spoke to the chairperson, did the chairperson confirm that you could proceed with termination?............ He requested that I proceed immediately.

It seems undue haste that you enacted this termination. Why did you act so quickly?............ Again, we were concerned that an interim order or something to that effect may - I'm not sure of the terminology, may come our way.

Given the past behaviour of Mrs Adamson, you thought that to act quickly was essential?............ Yes."

In his closing submissions Mr Godfrey had this to say:56

"There can be no question that the committee did not authorise the action that was going to be taken. She then rechecked with the full management committee - not the executive - the full management committee except for those who had reasonable excuse to believe would have relayed in advance any actions which we might have decided upon and we would say then incurred possibly further action in regard to interim orders. And we resile not at all from saying that we decided that our actions needed to be taken immediately to stop us from being constrained for ever and a day by the ADC."

Whilst the existence of the Anti-Discrimination legislation is a valid explanation for some of the employer's actions in this case, it must be acknowledged that it is the will of Parliament that the ADC be given power to issue interim orders. I would observe in passing that actions taken by an employer to circumvent these powers will in no way render an action, which is otherwise unfair, as being less unfair, or indeed, fair.

Was There a Valid Reason For Termination?

The position of the MRC is well summed up in the following statement from Mr Godfrey:57

"In the opinion of the management committee of the Migrant Resource Centre, Mrs Adamson clearly is guilty of serious and wilful misconduct in that she wantonly ignored directions from the employer, proceeded on leave from her employment without permission, and absented herself from the workplace without the authority of her employer. The matters clearly constitute a valid reason for termination in accordance with section 30(3) of the Act."

By contrast, Mr Paterson said:58

"The union submits that in accordance and consistent with section 30(3), there was not a valid reason connected with either capacity, performance or conduct or the operational requirements of the employer's business."

Mr Godfrey referred to events prior to December 2000 as "useful background information",59 but not relevant to the actual termination in February 2001.

I accept that this application must turn on the question of whether the events of February 2001 constitute serious misconduct as prescribed in Clause 3 of the Community Services Award.

The events in question are:

  • The absence of Mrs Adamson in Queensland during the week prior to 5 February.

  • The action taken by Mrs Adamson to leave the work-place on 5 February for the purpose of taking advice from her union representative.

Serious misconduct brings with it an onerous test. It is well established that behaviour which constitutes serious misconduct must be of such nature so as to strike at the heart of the employment contract. I readily accept that unauthorised absence would in many circumstances constitute serious misconduct.. However every case must be looked at on its merits and it would be quite wrong to look at any single act without regard to the circumstances leading up to it or indeed the environment of the day.

In the instant case the events of the previous 15 months simply cannot be washed away as if they did not happen. Indeed these events coloured in a very tangible way the relationship between Mrs Adamson and Mrs Provan, Mrs Adamson and the board and Mrs Provan and the board.

The events of February could fall into one of three categories:

  • They amounted to serious misconduct on a stand alone basis.

  • They represented the proverbial straw that broke the camel's back.

  • They were entirely explainable in light of events that preceded them.

Mr Godfrey's view of the background events was made abundantly clear in the following passage:60

"Whatever we believe about the catalogue of events, it is obvious that Mrs Adamson embarked on a concerted and deliberate attack to enforce her views on what the organisation should be. What reasonable and professional person would firstly try to denigrate her supervisor, write long and ranting diatribes to the committee of management, instigate action in the Anti-Discrimination about an imagined disability and threaten to sue the chairperson and by association her employer over alleged sleights. Are these the actions of a professional and balanced employee?"

I do not propose to review the evidence of these earlier events in any great detail. A number of the issues will presumably be the subject of an investigation by the ADC. I do however wish to make a number of observations.

The uncontested evidence is that Mrs Adamson was asked by members of the board not to resign when she was the unsuccessful candidate for the General Manager position. I can only conclude that this meant that the board had no significant difficulties with her performance prior to December 1999.

It is to be expected that the advent of a General Manager recruited from outside operating in close proximity with an unsuccessful candidate would create some friction and tension, at least initially. This of course is not an unusual occurrence and in my experience these initial difficulties are more often than not worked through to a constructive relationship.

I must say I was initially troubled by Mrs Adamson's apparent predilection towards making direct representations to the board or the chair rather than through the General Manager. This is at odds with a normal corporate management structure and I would certainly understand if it was a source of annoyance and frustration for Mrs Provan, which I suspect it was.

The following exchange between the Commission and Mrs Provan throws some light on this issue:61

"COMMISSIONER: Thank you. Mrs Provan is there any policy, formal or otherwise, concerning what right the staff, not necessarily Mrs Adamson, but the staff in general have of making direct representations to the board?............ I can't recollect anything in writing but, certainly, when I commenced in the organisation it had been a concern of the staff that they would like the opportunity to be able to address certain issues to the board directly and we certainly encourage that.

Encourage?............ Absolutely."

Thus it is clear that the MRC actively encouraged staff to make direct representations to the board. I suspect the attendance of a number of staff at the special board meeting on 12 December is an example of this policy in action. Given this policy, it would be wrong for me to be critical of Mrs Adamson's actions. I do accept that this made the management role of Mrs Provan more difficult, but this is a direct consequence of a policy freely adopted by the board.

There was clearly three major issues which led to a rapid deterioration in the working relationship. They were:

  • The acceptance by the board of a revised position description and change in title for Mrs Adamson.

  • The re-allocation of a free parking space previously occupied by Mrs Adamson.

  • The relocation of Mrs Adamson's work station from a shared office to a public position immediately behind the reception area.

On the available evidence I am satisfied that these decisions were made without any consultation with Mrs Adamson and at a time when Mrs Adamson was absent on sick leave recuperating from major spinal surgery. It is also apparent that Mrs Adamson learnt of these decisions almost by accident, and certainly not through direct communication from the General Manager.

All of the above issues would arguably fall within the province of management prerogative and as such not something that this Commission would lightly interfere with. I must however observe that to take these decisions in such a unilateral and non consultative manner was both unnecessary and unreasonable.

The incident on 7 August was also unnecessary and regrettable.

I do accept that in the normal course of events, Mrs Adamson's apparent insistence on having a member of the board involved in the return to work plan negotiations, to be unreasonable. Again this was no doubt an indirect outcome of the policy regarding staff representations to the board.

I find it surprising that Mrs Provan considered it necessary to discuss Mrs Adamson's ADC complaint with the staff.

The decision, apparently taken by Mr Abdullah rather than the board, to require Mrs Adamson to pay for the workplace assessment is in my experience unheard of. There was arguably no compulsion on the MRC to undertake the assessment. The employer did, in my view, agree to undertake the assessment and that is to their credit. It may well have been that the cost of the assessment was greater than originally anticipated. If that was the case the appropriate response would have been to consult with Mrs Adamson and/or the ASU with the view of exploring alternatives. To require Mrs Adamson to pay for the assessment without explanation or consultation was, in my view, quite unreasonable and Mrs Adamson had every reason to feel aggrieved by this turn of events.

The above snapshot of the preceding months should be taken into account when considering the events which led to the ultimate dismissal.

I turn firstly to consider the "unauthorised" absence during the week commencing 29 January 2001.

Mrs Adamson made arrangements in August 2000 to go to Queensland during January 2001. She was on sick leave at the time the bookings were made. It is common ground that she did not apply for leave for this period.

Following the aborted return to work on 16 November Mr Abdullah sent an e-mail to the ASU which stated inter alia as follows:62

"I am prepared to grant Maureen Adamson special leave on full pay until this matter is finalized. This leave is subject to the condition that Maureen does not report for work at the MRC until the Board authorizes her to do so."

On 19 November Mr Abdullah wrote to Mrs Adamson in the following terms:63

"As you are probably aware, the Board met on Friday 17th November, 2000.

Given the circumstances, the Board has decided that you are not required to attend for work duties until matters are resolved, however you will continue to be paid your wages as normal. We have written to the Union to endeavour to resolve this situation."

Following the meeting on 8 December Mr Paterson wrote to the MRC confirming the ASU position. This letter said in part:64

To facilitate a return to work the ASU proposes that there be a risk analysis and assessment of the proposed work station and other related issues, including the provision of car parking. The assessment to be undertaken by the CRS in consultation with her treating specialist Mr Hunn.

The outcome of such an analysis should then provide a basis for resolution of the issues. Further, a process be developed for monitoring the workplace over time.

Until the outcome is known Mrs Adamson will not be required to attend work and will continue to be paid wages."

In a response dated 21 December the MRC effectively rejected the car park proposal. In relation to the workplace assessment, the letter said:65

"The Migrant Resource Centre (Southern Tasmania) Inc. will take steps to have CRS and another agency such as MAIB look at the workplace to make assessments in regard to the suitability of the workspace for Maureen Adamson."

From the above exchange of correspondence, together with the 8 December meeting, Mrs Adamson could have reasonably concluded that she was on "special leave on full pay" at least until the workplace assessment was completed. I distinguish this status with that of "suspension", with an attendant capacity of the employer to require a return to work, effectively "at will" and without reason.

Without any prior warning Mrs Adamson learnt, almost by accident, on Friday 12 January, that she was required to report for work on the following Monday 15 January. According to Mrs Provan this decision was taken by the board on 19 December. She also agreed that there was no reason why Mrs Adamson could not have been advised immediately thereafter that she was expected to return to work on 15 January. There was no explanation provided as to the extraordinarily short notice that was subsequently given. This is particularly surprising given that the MRC had complained [with some justification] as to the lack of notice on Mrs Adamson's part when she returned to work on 16 November.

In all the circumstances I consider that the requirement to return to work on 15 January to be quite unreasonable.

Mrs Adamson was due to travel to Queensland on 15 January. It appears that Mrs Adamson sought advice from the ASU as to ability to leave the State. She also asked the ASU to advise the MRC of her circumstances, albeit in less than precise terms.66

In an ideal world it would have been far preferable had Mrs Adamson made direct contact with MRC and advised of her intentions. Whether that could or would have been accommodated is another issue. I do however accept that the employment status of Mrs Adamson immediately prior [special leave on full pay] was such that an application for annual leave would not have been necessary. I also accept that the environment at the time was less than ideal. In all the circumstances I conclude that the failure of Mrs Adamson to seek approval from the MRC to travel interstate was at least understandable.

The requirement to attend for work on Monday 29 January was effectively conveyed to Mrs Adamson on the last working day prior to the long weekend. This resulted in a flurry of correspondence between the ASU, the MRC and the ADC. Prior to the end of the working day the ADC issued an Interim Order covering the period 25 January through 5 February 2001.67

The MRC acknowledged this development in the following terms.68

"We refer to your fax dated 25th January, 2001.

It is interesting to note that Maureen Adamson is in Queensland when no leave has been approved and any medical certificate been received, and therefore the absence for the week commencing 29th January 2001 is unauthorised.

However we shall comply with the Anti-Discrimination Commission's interim order which is valid until 9am on 5th February 2001, and we will take no further action during this period."

I accept that MRC did not approve this absence and are therefore entitled to consider it to be "unauthorised", notwithstanding the ADC Order. This however does not inevitably lead to the conclusion that the absence constituted "serious misconduct". I accept that the omission of Mrs Adamson was probably misguided and at worst, conceivably inappropriate. In light of the background circumstances however I conclude that this absence fell a long way short of constituting serious misconduct.

I turn now to consider the second leg of the "serious misconduct" question. In Mr Godfrey's words:69

"Mrs Adamson repeatedly refused to commence work and then absented herself from her workplace without permission or agreement of her employer."

The nub of this question essentially revolves around the expectation on Mrs Adamson's part that there would be a meeting to discuss the "reintegration program" and Mrs Provan's refusal to have a meeting at that time and without representation.

The letter from the MRC dated 24 January states in part:70

"However, given the number of months you have been absent from the workplace we will not be expecting you to take up all duties to their full capacity until we believe you have fully resettled into your role again. In this light, your Manager will meet with you, on your return, regarding a reintegration program."

It is of significance that a copy of the letter was sent to the ASU. Given the "hands on" role the union had played in virtually every aspect of this matter, it should not have come as a surprise to Mrs Provan that Mr Paterson accompanied Mrs Adamson on her return to work. Secondly, the letter clearly states that "... your manager will meet with you, on your return, regarding a reintegration program" [my emphasis].

In these circumstances it was quite reasonable for Mrs Adamson to anticipate that a meeting to discuss the reintegration program would happen first up. I also accept that in the absence of a pre-arranged meeting, it was quite open for Mrs Provan to wish to defer any meeting until her adviser could be present. Both positions were equally valid. Unfortunately Mrs Provan did not explain her position other than to refuse a meeting.

According to Mrs Adamson she made it clear that her wish was to commence work. She did not impose any pre-conditions other than a desire to discuss the reintegration program in the presence of her representative.

I have no doubt that the atmosphere was tense and Mr Paterson presumably decided that the best course of action was to take Mrs Adamson back to his office for a short period to consider the position. There can be no suggestion that Mrs Provan either agreed to this or even condoned it. The evidence was that she acknowledged this with a nod of the head. By the same token Mrs Provan certainly did not indicate that such action would lead to termination.

Within a few minutes of arriving back at the ASU office the letter of termination was received.71

In closing submissions Mr Godfrey said that the MRC was not challenging Mrs Adamson's right to consult with union but that should have occurred during a recognised work break.

Mr Paterson referred to a decision of Westwood P.72 This case involved an employee who absented himself from the workplace following a heated discussion for the purpose of taking advice from the Workplace Standards Authority. After reviewing the evidence the President concluded:73

"In these circumstances I do not consider the "walk out" by Mr Patterson should be regarded as the abandonment of his employment."

Whilst not on "all fours" with the instant case, there are similarities. As I have said earlier, a single act cannot be looked at in isolation of all the events that surround it. Having regard to all the circumstances I am unable to conclude that the actions of Mrs Adamson on 5 February were of such moment as to strike at the heart of the employment contract, and thus constitute serious misconduct.

Findings

For the reasons outlined above I find as follows:

    1. Mrs Provan did not have valid delegation of authority to terminate Mrs Adamson on 5 February 2001.

    2. The MRC did not have a valid reason to summarily terminate Mrs Adamson on 5 February 2001. In these circumstances it is unnecessary to consider the question of procedural fairness.

    3. The summary termination of Mrs Adamson's contract of employment was harsh and unjust.

Remedy

The primary remedy under S.31 is of course reinstatement or re-employment. It is only where that is considered to be impracticable, that compensation should be contemplated.

Mr Paterson argued strongly that the applicant should be reinstated on full pay but that she not be required to attend for work pending resolution of workplace issues.

Mr Godfrey contended that reinstatement in any capacity "is both impracticable and we would say undesireable".

And further:74

"It is clear that it would be impossible for the parties to work together, and in particular, the manager and Mrs Adamson to work together and that the matters of the ADC and the defamation are, and still would be, pending. A loaded gun aimed at the head of her employer."

Mr Paterson submitted that "no reliance or weight should be placed to the detriment of the employee on the legitimate exercise of rights". He made the point that the MRC Grievance Procedure75 clearly acknowledges recourse to external bodies.

There is force in Mr Paterson's submission. It would be quite wrong to conclude that the reference of a complaint to an external agency, whether it be the Industrial Commission, the Anti-Discrimination Commission or indeed the Civil Courts would in itself lead to an irreparable breakdown in the employment relationship. The real issue is the relationship itself, and most importantly, whether any fractures are capable of healing.

On this question the following exchange between Mr Godfrey and Mrs Provan is of interest:76

"Just one final question. Do you think it is possible for Mrs Adamson to work again in the Migrant Resource Centre in a manner which would be professional and, shall we say, good humoured, amiable, courteous?............ I don't know but I would suggest that based on the documentation and the correspondence, that there would be a lot of hard work involved in recovering the relationship, yes.

Given the actions of Mrs Adamson, wouldn't you say it would be near impossible?............ Yes."

I would observe that Mrs Provan's unprompted response was not entirely negative on the possibility of recovering the relationship. I place a greater weight on this than I do to her response to the leading question that followed.

I also note that throughout January 2001 the MRC repeatedly indicated that Mrs Adamson was required at work. For example, the letter from Mr Abdullah dated 8 January concludes:77

"As we are all working towards expediting Mrs Adamson's return to work the MRC looks forward to your earliest assistance in these matters."

For Mr Godfrey's submission to be accepted, logically I must conclude that the events of 5 February alone were so damaging, as to render the employment relationship as irretrievable. I am unable to conclude that that is the case.

I propose to order reinstatement, albeit with some attendant observations.

Firstly, I accept the submission of Mr Godfrey concerning a reinstatement without a requirement to attend for work, pending a resolution of certain workplace issues.

The reinstatement I propose will be without any pre-conditions.

I fully accept that the relationship between Mrs Adamson and Mrs Provan has been strained and if the parties maintain the respective mind sets of earlier this year, there is no chance that the relationship can be successfully re-established.

For Mrs Adamson's part, it will require an acceptance that Mrs Provan is the General Manager and a cessation of the practice of going directly to the board, other than in accordance with the Grievance Procedure. I say this irrespective of the board policy on this question, which I consider to be inconsistent with sensible management practice.

For the MRC management, it will mean that existing and future issues should be considered on their merits in a consultative manner, rather than the exercise of unilateral "management prerogative". This should not be interpreted as meaning that management can never make a decision, indeed to the contrary.

I should add that I consider the unfairness associated with this dismissal to be at the upper end of the spectrum. Had I been considering the question of compensation it would have been the maximum allowable under the Act, that is, six months' salary. I am not however satisfied that reinstatement is impracticable.

ORDER

Pursuant to Section 31 of the Act I hereby order:

Part A

1. Mrs M Adamson be reinstated by the Migrant Resource Centre (Southern Tasmania) Inc. to the position she occupied prior to 5 February 2001, or to a position at least equivalent in terms of salary and status, such reinstatement to be without loss of accrued entitlements and continuity.

2. The reinstatement is to be effective from 5 February 2001.

3. Mrs Adamson is to resume her duties at a date mutually agreed but not later than Tuesday 12 June 2001.

4. The applicant and the employer are to confer prior to 8 June 2001 for the purpose of settling details associated with this order. It is open for either party to be represented by an agent at this conference. It shall be the responsibility of the applicant to initiate this conference.

Part B

Nothing in this order shall be construed as preventing the parties from agreeing on an alternative solution to this dispute provided that such agreement is reached prior to 12 June 2001. In the event that an alternative solution is agreed, it shall be the responsibility of the applicant to advise the Commission accordingly not later than 12 June 2001.

 

Tim Abey
COMMISSIONER

Appearances:
Mr I Paterson, for the Australian Municipal, Administrative, Clerical and Services Union, with Mrs M Adamson.
Mr K Godfrey, of Jobs Australia, for the Migrant Resource Centre (Southern Tasmania) Inc., with Mrs A Provan and Mr H Abdullah.

Date and Place of Hearing:
2001
February 23
March 26, 27
April 9, 10
Hobart

1 Transcript p. 238
2 Transcript p. 33
3 Exhibit A1.27
4 Exhibit A1.28
5 Exhibit A1.30
6 Transcript p. 136
7 Exhibit A1.21
8 Transcript p. 121
9 ExhibitA1.29
10 Exhibit A1.33
11 Exhibit R17
12 Transcript p. 165
13 Exhibit A1.37
14 Supplementary submission
15 Exhibit A1.6
16 Transcript p. 47
17 Transcript p. 140
18 Exhibit A1.8
19 Exhibit A1.9
20 Exhibit A1.5
21 Exhibit A1.14
22 Exhibit A1.15
23 Exhibit A1.16
24 Exhibit A1.43
25 Transcript p. 172
26 Transcript p. 173
27 Transcript p. 176
28 Transcript p. 176
29 Exhibits A1.44 and A1.45
30 Exhibits A1.17 and A1.18
31 Transcript p. 27
32 Transcript p. 28
33 Exhibit A1.1
34 Exhibit A1.21
35 Exhibit A1.22
36 Exhibit R21
37 Exhibit A1.23
38 Transcript p. 69
39 Transcript p. 95
40 Exhibit A1.3
41 Transcript pp. 197 and 198
42 Transcript p. 228
43 Exhibit A1.25
44 Transcript p. 238
45 Transcript p. 207
46 Transcript p. 105
47 Exhibit R29
48 Transcript p. 241
49 Transcript p. 150
50 Exhibit R9
51 Transcript p. 150
52 Transcript p. 150
53 [1999] TASSC 99
54 p. 3
55 Transcript p. 153
56 Transcript p. 239
57 Transcript p. 239
58 Transcript p. 225
59 Transcript p. 235
60 Transcript p. 236
61 Transcript p. 193
62 Exhibit A1.8
63 Exhibit A1.10
64 Exhibit A1.5
65 Exhibit A1.14
66 Exhibit A1.20
67 Exhibit R21
68 Exhibit A1.23
69 Transcript p. 238
70 Exhibit A1.1
71 Exhibit A1.2
72 T6945 of 1997, Patterson v Betta Milk Co-op
73 p. 12
74 Transcript p. 240
75 Exhibit A5
76 Transcript p. 155
77 Exhibit A1.15