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T12672

 

TASMANIAN INDUSTRIAL COMMISSION

Decision Under Appeal

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

Douglas Joseph Peter Massey
(T12672 of 2006)

and

Sphere Pty Ltd trading as Barron's Char Grill

 

COMMISSIONER JP McALPINE

HOBART, 4 July 2006

Industrial dispute - termination of employment - threshold issue - jurisdiction found - matter to be relisted

REASONS FOR DECISION

[1] On 12 May 2006, Douglas Joseph Peter Massey (the applicant), applied to the President, pursuant to s.29(1A) of the Industrial Relations Act 1984 (Tasmanian Act), for a hearing before a Commissioner in respect of a dispute with Sphere Pty Ltd trading as Barron's Char Grill (the respondent) arising out of his alleged unfair termination of employment.

[2] The matter was listed for hearing at 3.15 pm on Thursday, 25 May 2006 at the Magistrates Court, 19 King Edward Street, Ulverstone, Tasmania.

[3] The applicant was employed by the respondent, from February 2006 until 22 April 2006, as a kitchen hand. In his application the applicant stated he was engaged as a casual/part-time employee. The applicant's employment status was not tested. The applicant was employed under the State Restaurant Keepers Award.

[4] Mr Cornish, of the Tasmanian Chamber of Commerce and Industry Limited, for the respondent, informed the Commission that the Restaurant Keepers Award, for this employer, was transmitted into a Notional Agreement Preserving State Award (NAPSA) pursuant to Schedule 8, Part 3 of the Workplace Relations Act 1996 (as amended) (Commonwealth Act). The alleged termination of employment took place after the enactment of the WorkChoices amendments on 27 March 2006.

[5] At the outset of the hearing, Mr Cornish raised a threshold issue with respect to this Commission's jurisdiction over the instant matter. He stated the respondent was a Constitutional Corporation and, as such, the instant industrial matters fell within the jurisdiction of the Commonwealth Act.

[6] The Commission chose to deal with the threshold issue in the first instance.

BACKGROUND

[7] The applicant was unrepresented at the hearing and did not contribute to the ensuing debate.

[8] In a written submission Mr Cornish argued a number of points.

[9] In the first instance, Mr Cornish argued the respondent was a Constitutional Corporation and, as such, the Commonwealth Act applied. He sought to demonstrate the respondent was indeed a Constitutional Corporation by dint of it's registration as an Australian Proprietary Company, limited by shares and the fact that it's main function was to trade.

[10] Mr Cornish cited placitum 51(xx) of the Commonwealth Constitution:

"51. The Parliament shall, subject to this Constitution, have power to make laws for the peace, order, and good government of the Commonwealth with respect to:

..................

(xx) foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth."

[11] Mr Cornish argued the Tasmanian Act was inconsistent with the Commonwealth Act, and as such the Commonwealth Act prevailed. He further cited s.109 of the Commonwealth Constitution:

"When the law of the State is inconsistent with a law of the Commonwealth, the latter shall prevail, and the former shall, to the extent of the inconsistency, be invalid."

FINDINGS

[12] It is evident from the second reading speech in the Upper House of the Tasmanian Parliament that the intention of the introduction of the amendment to s.30(A) of the Tasmanian Act was to offer a means of redress to those employees, employed by constitutional corporations, who would lose the means of relief for alleged unfair dismissal as a consequence of the then intended introduction of the WorkChoices amendments of March 2006 to the Commonwealth Act.

[13] As a result of a decision handed down by Abey C in T9604 of 2001 Joshua John Strudwick v Irish Murphy's Pty Ltd ACN 004 897 198, known as the Irish Murphy's Case, the Tasmanian Parliament sought to amend the Tasmanian Act to cover employees who alleged unfair dismissal from a Constitutional Corporation.

"Mr Harriss

......................................................Madam Deputy Chair, it might be appropriate to raise at this stage my understanding, basic as it is, about the Tasmanian Industrial Commission case of recent times, and if I can refer to it as the Irish Murphy's case where a person, as an employee, was under the provisions of section 30A, the employee sought redress to the Tasmanian Industrial Commission. Commissioner Abey reflected, extrinsically as he is allowed to do, on those words of the honourable Leader which were important to get on the public record at that time.

Consequently Commissioner Abey reaffirmed the position that the employee who was seeking redress had no right before the Tasmanian Industrial Commission, so my question is:

does the Government still hold to that position as relating to employees of constitutional corporations?

Ms THORP - The honourable member has brought up the instance that led to the rewording of this clause, basically.

..................................

Ms THORP - ...... Because the interpretation from my understanding is, and I do not have all the facts at my fingertips, there was an argument as to whether or not the person in this instance had access to the Tasmanian Industrial Commission for redress of their problems. In this instance it has been reworded to reaffirm the commitment of the Government that no-one, who is otherwise excluded from access to redress or their complaints about unfair dismissal, is left out in the cold. If someone is under a Federal award that covers unfair dismissal provisions then that is where they are heard but if, however, there are some parts in that award, as I mentioned before, like only six months of being on probation, that specifically in the award is stated as he had no redress. That is all we are doing. We are saying, `All right, you can come and knock on the door of the Tasmanian Industrial Commission'.

It is only when people are excluded from hearing under the Federal award, specifically excluded, that they have this access open to them. This is purely and simply to give people protection so there is not a group of people out there who have nowhere to go and the very case that you brine meant that the wording was reworked so the intention was clear and that is exactly what it says:

'who is employed, or was employed, under a federal award but who is, or was, excluded from, or for any other reason does not have, or did not have at the relevant time, access to a remedy for termination of employment;'

That is quite clear. If they are covered under the award then that is where they go for their redress. If, under the provisions of the award they are excluded from that avenue of redress, then we are saying you have the option - people may not take it up - of going to the Tasmanian Industrial Commission.

Mr Harriss - Just before you sit down - through you, Madam Deputy Chair - there is no ambiguity about an employee of a constitutional corporation having redress to the Tasmanian Industrial Commission?

Ms THORP - I do not believe so. I do not believe there is any confusion at all."1

[14] The resulting legislation reads at s.30(A):

"30A. Employees under federal award

A person -

(a) who is employed, or was employed, under a federal award but who is, or was, excluded from, or for any other reason does not have, or did not have at the relevant time, access to a remedy for termination of employment; or

(b) to whom the termination provisions contained in Division 3 of Part IVA of the Commonwealth Act do not, or did not at the relevant time, apply -

may apply to the Commission for the hearing of a dispute specified in section 29(1A)(a) or (b)."

[15] It should be noted that in the WorkChoices amendments to the Commonwealth Act the relevant section on Termination of Employment has changed from Division 3 of Part IVA, subdivision A, to Part 12 Division 4. There are also changes made to the content of the Commonwealth Act.

[16] However, s.16 of the Commonwealth Act expressly excludes some State and Territory laws:

"16. Act excludes some State and Territory laws

(1) This Act is intended to apply to the exclusion of all the following laws of a State or Territory so far as they would otherwise apply in relation to an employee or employer:

(a) a State or Territory industrial law;

(b) a law that applies to employment generally and deals with leave other than long service leave;

(c) a law providing for a court or tribunal constituted by a law of the State or Territory to make an order in relation to equal remuneration for work of equal value (as defined in section 623);

(d) a law providing for the variation or setting aside of rights and obligations arising under a contract of employment, or another arrangement for employment, that a court or tribunal finds is unfair;

(e) a law that entitles a representative of a trade union to enter premises."

[17] In the instant matter the conditions under which the applicant was employed, were subject to a NAPSA. The status of a NAPSA has not been defined beyond it being a transitional device. I have taken it to be an instrument of the Commonwealth Act.

[18] I accept the respondent is a Constitutional Corporation, to which s.16 of the Commonwealth Act applies. Section 16 specifically excludes State industrial law, which, arguably would render s.30(A) of the Tasmanian Act inconsistent with the Commonwealth Act. The constitution is clear in s.109, that the Commonwealth law will take precedent to the extent of any inconsistency.

[19] The Commonwealth Act was passed in the House of Representatives on 10 November 2005. It was referred to the Senate on the same day and passed on 2 December 2005.

[20] The Tasmanian Act was committed in the House of Assembly on 10 November 2005 and finally passed on 1 December 2005.

[21] It is my view the Tasmanian Parliament, in full knowledge of the intent and structure of the then proposed Commonwealth Act and with the implications of s.109 of the Constitution, took the decision to avail those employees who would have no recourse in the proposed federal system, an avenue to progress claims for unfair dismissal.

[22] The avenue offered to these employees is explicitly through the Tasmanian Industrial Commission, consequently the Tasmanian Industrial Commission does have jurisdiction in the instant matter, and I so find.

[23] The case will now proceed to hearing and the parties will be notified of the hearing date in due course.

 

James P McAlpine
COMMISSIONER

Appearances:
Douglas Joseph Peter Massey for himself
Mr S Cornish, Tasmanian Chamber of Commerce and Industry Limited, with Mrs P Meyers for Sphere Pty Ltd trading as Barron's Char Grill

Date and place of hearing:
2006
May 25
Ulverstone

1 Hansard, Tuesday, 29 November 2005, (pages 33-78) [2.49 p.m.]