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T11685

 

TASMANIAN INDUSTRIAL COMMISSION

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

Elizabeth Margaret Hingston
(T11685 of 2004)

and

Dimension Property Services Australia Pty Ltd

 

COMMISSIONER T J ABEY

HOBART, 25 November 2004

Industrial dispute - alleged unfair termination - severance pay - alleged breach of award - minimum period of engagement - Saturday work - notice - order

REASONS FOR DECISION

[1] On 27 August 2004, Elizabeth Margaret Hingston (the applicant) applied to the President, pursuant to Section 29(1A) of the Industrial Relations Act 1984, for a hearing before a Commissioner in respect of an industrial dispute with Dimension Property Services Australia Pty Ltd arising out of the alleged unfair termination of her employment, severance pay and alleged breach of the Cleaning and Property Services Award.

[2] This matter was listed for Hearing (Conciliation Conference) on 22 September 2004. The applicant appeared for herself, together with her husband, Mr Greg Hingston.

[3] The employer was not represented and no explanation had been provided to the Commission as to this non-attendance. Having satisfied myself that the employer had been properly notified (by Notice of Hearing dated 31 August 2004 and again by NOH dated 17 September changing the hearing time by two hours) I decided to hear the applicant's case.

[4] Following the hearing the Commission forwarded the transcript to the employer under cover of letter dated 4 October 2004. This correspondence advised that the Commission would take into account any written submission lodged prior to 20 October 2004. A written submission was received from the employer on 20 October and has been taken into account in this decision, as has the right of reply from the applicant, dated 28 October 2004.

[5] Mrs Hingston commenced employment as a cleaner on 17 March 2002. Her employment was terminated by the employer on 6 August 2004. The applicant contends that she was unfairly terminated and that the employer was in breach of the Award for the duration of her employment.

[6] The relevant award is the Cleaning and Property Services Award.

Alleged Award Breach

[7] Mrs Hingston was employed as a part-time Property Service Employee Grade 1.The relevant award rate at the time of termination was $16.09 per hour.

[8] Mrs Hingston was engaged to clean the Sheffield branch of a bank. This task was performed in the late afternoon after closing. Initially she was engaged to work 30 minutes per day, five days per week.

[9] In September 2003 the employer reduced the shift to fifteen minutes per day, although according to Mrs Hingston, she was still required to perform the same amount of work.

[10] The applicant asserts that the employer was in breach of the award in that the minimum period of engagement requirements were not observed. There is a consequential flow on application in relation to annual leave payments.

[11] The applicant also asserts that she should have been paid penalty rates for shifts performed on Saturday morning.

Minimum Period of Engagement:

[12] Clause 22(d) of the award reads:

"(d)  Minimum Start

    A part-time or casual employee shall be engaged for a minimum period of two hours for each separate engagement at the appropriate rate of pay, provided that in exceptional circumstances the employer may, with the agreement of the Liquor, Hospitality and Miscellaneous Union - Tasmanian Branch, engage an employee for a lesser number of hours than two hours as prescribed herein."

[13] Mrs Hingston said she had not signed any agreement to work less than two hours per engagement. As to any agreement with the union, Mrs Hingston said:1

"Do you know of whether there is any agreement with the union for you to work less than two hours a day, or to be paid less than two hours a day? So the recording can pick this up, can you answer yes or no?

MRS HINGSTON: Sorry, no."

[14] The employer in a written submission said:

"10. Dimension has paid Mrs Hingston for the time actually spent on the site.

...

12. Mrs Hingston completely understood her role and the nature of requirements of the role and was happy to be paid according to her actual attendance, until we were requested by the client to terminate her services."

[15] Many, perhaps most awards provide minimum periods of engagement for casual and part-time employees. It could be argued that the prescription in this award is less onerous than many other awards, which prescribe minimum engagement periods of three, sometimes four hours.

[16] The employer provided no evidence of any agreement with the union, which would allow for a lesser period of engagement, even though the issue was clearly "flagged" during Mrs Hingston's submissions.

[17] In essence the employer contends that by working the hours as directed, Mrs Hingston agreed to the arrangement. Even if that was the case, such agreement must be read in the context of s.85 of the Act:

"Awards and registered agreements prevail

85. (1) Any provision of an award or a registered agreement that is inconsistent with a provision of a contract of service prevails over the latter provision to the extent of that inconsistency.

(2) Any provision of a contract of service that is inconsistent with a provision of an award or a registered agreement is to be construed and has effect as if it were modified to conform to the provision of that award or registered agreement.

(3) Any provision of a contract of service that provides for any conditions of employment that are more favourable than those provided by an award or a registered agreement is not inconsistent only because of that fact."

[18] It is simply not open to an employer and an employee to agree to something that confers a lesser benefit than that prescribed by the award.

[19] It may well be contended that the circumstances of this particular cleaning contract render a requirement for a two hour minimum to be unduly onerous on the employer. If that was the case there was an avenue open to the employer to regularise a more acceptable alternative. There is no evidence that the employer even approached the union, let alone enter into an agreement pursuant to Clause 22(d) of the Award.

[20] In the circumstances I have no alternative but to find that the two-hour minimum must apply on each occasion Mrs Hingston was required to perform cleaning duties in the bank.

[21] In relation to annual leave, Clause 9(e) reads:

"(e)  Payment for Period of Leave

    (i) Subject to the provisions of paragraph (ii) of this subclause, an employee before going on leave shall be paid the amount of wages he/she would have received in respect of the hours excluding overtime which he/she would have worked had he/she not been on leave during the relevant period. In addition thereto, he/she shall be paid a loading of 17.5 per cent.

    (ii) In the event of an employee's ordinary weekly hours of work having varied in the period during which the annual leave has accrued the number of hours per week on which leave payments are calculated shall be the average number of hours per week worked during the said period of accrual."

[22] It follows that payment for annual leave should be based on the two hour minimum period of engagement, as this is what Mrs Hingston should have been paid had she not been on leave during the relevant period.

[23] The calculations relevant to the amount necessary to remedy this breach, including the consequential breach of the annual leave clause, are shown at Appendix 1.

Saturday Work:

[24] It is clear that the employer required the cleaning work to be performed each day, Monday to Friday, after the bank had closed.

[25] Mrs Hingston, for her own personal reasons, chose to perform the Friday evening shift on Saturday morning. It would seem that the employer accepted this arrangement, or at least allowed it to continue.

[26] Mrs Hingston claims that she should have been paid the additional penalty rate applicable to Saturday work.

[27] I acknowledge and respect the personal reasons Mrs Hingston had for not working on Friday evening. It would however be unfair for the employer to be faced with additional costs, simply as a consequence of facilitating Mrs Hingston's preferred working arrangements.

[28] This aspect of the claim is rejected.

Alleged Unfair Termination of Employment

[29] Mrs Hingston explained the circumstances of the termination as follows:2

"THE COMMISSIONER: Why do you say you were unfairly terminated?

MRS HINGSTON: Well, they rang me up the Tuesday, determined that I was no longer required and that I had to the end of the week."

[30] The employer sent a letter of termination as follows:

"As you would be aware the client at the Sheffield Commonwealth Bank has made several complaints regarding the standard of cleaning.

We have been requested by the client to install a new cleaner.

Accordingly, you are required to finish work on Friday August 6 2004 and all keys and access codes should be returned to the branch on this date."

[31] Mrs Hingston said she had never been warned by the employer as to her standard of work.

[32] Mrs Hingston acknowledged that on occasions a back injury prevented her from doing the vacuuming. On these occasions a member of the bank staff would do the vacuuming. One such occasion occurred just prior to termination:3

"THE COMMISSIONER: When your back was - when you couldn't do it did you tell them?

MRS HINGSTON: I gave them prior notice.

THE COMMISSIONER: Right.

MRS HINGSTON: I used to like get there earlier, say half past four as they locked up of a night time and they would be around having a smoke around the back and I would say, "I can't do it tonight." And Ross would say, "I'll do it in the morning before we open up."

THE COMMISSIONER: Right. And did that happen on this occasion? Please say that again?

MRS HINGSTON: Yes."

[33] The employer in a written submission said:

"6. Her continuous back problems were preventing her from her cleaning duties, particularly vacuuming and on numerous occasions she had enlisted bank staff to do these tasks for her.

7. The bank Manager, (our client) had approached Dimension to remove Mrs Hingston from the role as every time she had been asked to rectify a problem with the cleaning standard she wouldn't do it because of her back problem.

8. The bank manager was not happy paying for a cleaner who could not perform to the specification as contracted with the CBA.

9. Every time Dimension did approach Mrs Hingston about the cleaning standards, her reply was that the bank manager did not like her.

...

Dimension Property Services Australia Pty Ltd offered Mrs Hingston employment on the basis of delivering the agreed specification to our client the Commonwealth Bank. Dimensions have had nothing but problems at this site since the engagement of Mrs Hingston and with great patience Dimension have hoped for Mrs Hingston to improve not only the cleaning standards but also her professionalism."

Finding

[34] The fact that a client requires/requests a contractor to replace an employee is not, in itself, a valid reason for termination. The employer is still obliged to observe the normal standards of fairness in relation to a termination of employment. This includes the existence of a valid reason for termination and observance of procedural fairness.

[35] In this case there is insufficient evidence before the Commission to make a finding, one way or the other, as to whether or not there was an unfair termination. I refer in particular as to the nature and cause of Mrs Hingston's back injury, her capacity to perform the work, counselling, rehabilitation and/or alternative work methods.

[36] In the circumstances I refrain from making any finding in relation to the termination.

[37] In accordance with Clause 14, Mrs Hingston should have been given one week's notice of termination. She was in effect given four days' notice. It follows that there is one day of two hours still outstanding.

ORDER

Pursuant to s.31 of the Industrial relations Act 1984, I hereby order that Dimension Property Services Australia Pty Ltd, 67 Inkerman Street, St Kilda, Victoria 3182 pay to Mrs Elizabeth Margaret Hingston, fifteen thousand four hundred and sixty nine dollars and seventy cents ($15469.70), such payment to be made not later than 4.00pm on Friday 17 December 2004.

 

Tim Abey
COMMISSIONER

Appearances:
Mrs E Hingston, self-represented, with Mr G Hingston

Date and Place of Hearing:
2004
September 22
Ulverstone

Appendix 1

1. Minimum Period of Engagement
   
Relevant wage rate  
   
As at 17/03/02 $14.94 ph
As at 01/08/02 $15.53 ph
As at 01/08/03 $16.09 ph
   
Assumption: Applicant worked five days per week, 52 weeks per year, i.e. Calculations include periods of annual leave
 
Period Payment Received Payment Required
     
17/03/02 to 31/07/02 - 19 weeks $709.70 $2836.60
01/08/02 to 31/07/03 - 52 weeks $2018.90 $8075.60
01/08/03 to 30/09/03 less two weeks' unpaid leave - 6 weeks $241.30 $965.40
01/10/03 to 06/08/04 - 45 weeks $905.10 $7240.10
Total $3875.00 $19119.70
Difference owing   $15244.70
     
2. Annual Leave Loading    
     
Total period of employment - 2 years: 19 weeks    
     
Annual leave accrued: 9.46 weeks    
     
Annual leave loading (est.) $64.30 $257.10
Difference owing   $192.80
     
3. Payment in Lieu of Notice    
     
One day at two hours   $32.20
     
Total Amount Owing   $15469.70

1 Transcript PN 19
2 Supra PN 153, 154
3 Supra PN 194 to 199