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T6795

 

TASMANIAN INDUSTRIAL COMMISSION

Industrial Relations Act 1984
s70 appeal against decision

Australian Liquor, Hospitality and Miscellaneous Workers Union -
Tasmanian Branch

(T6795 of 1997)

 

FULL BENCH:
DEPUTY PRESIDENT B R JOHNSON
DEPUTY PRESIDENT J G KING
COMMISSIONER R J WATLING

 

HOBART, 14 April, 1997

Appeal - declaration by President Westwood on 6 February 1997 in matter T6540 of 1996 - Clause 9 - Annual Leave, Restaurant Keepers Award - declaration revoked - matter T6540 referred back to President Westwood

REASONS FOR DECISION

On 30 September 1996 the Chief Executive, Workplace Standards Authority (the Authority) applied to the President, pursuant to sub-section 43(1) of the Industrial Relations Act 1984, for an interpretation of Clause 9, Annual Leave of the Restaurant Keepers Award.1 Specifically, the issue put to the President was whether absences on workers compensation leave affected an employee's "continuous service" for purposes of accruing annual leave entitlements.

In his Reasons For Decision of 6 February 1997 the President, acting in accordance with sub-section 43(4) of the Act, made a declaration in the following form:2

"... I declare, pursuant to section 43 of the Act, that an absence on workers compensation interrupts continuous service for the purposes of Clause 9, Annual Leave, of the Restaurant Keepers Award."

On 25 February 1997 the Australian Liquor, Hospitality and Miscellaneous Workers Union - Tasmanian Branch (the Union), an organisation whose members are affected by the above declaration, appealed against the declaration on the following grounds:

"1.  The President erred in law and in fact in concluding that an employee's absence on workers compensation is an interruption to the provision of continuous service to the employer and consequently does not count for the purposes of calculating annual leave entitlements.

2.  The President erred in law and in fact in deciding that only absences from employment authorised by an award do not affect continuous service under an employment contract.

3.  The President erred in law in deciding that since no reference is made in the award to workers compensation legislation then the absence on workers compensation is to be excluded.

4.  The President erred in law in that in making his decision, he failed to have regard to the public interest as he is required so to do by Section 20(1)(d) of the Industrial Relations Act 1984.

5.  The President erred in law and in fact in exercising a jurisdiction he did not have in that he decided a matter relating to workers compensation."

Subsequently, the appellant abandoned Ground 5.

At the hearing of the appeal Mr S Cooper, legal practitioner, appeared by leave for the appellant Union; Mr G J Williams appeared for the Authority; and Mr S J Gates appeared for the Tasmanian Chamber of Commerce and Industry Limited (TCCI).

When proceedings began on Friday 14 March 1997, Mr Cooper's opening submissions gave rise to a procedural question concerning his desire to tender a number of decided authorities that, he acknowledged, were not put to the President in the hearing at first instance. Mr Gates objected to the tender on the grounds that, pursuant to sub-section 71(8) of the Act, such matters "shall be admitted only by leave of the Full Bench hearing the appeal".

In the discussion that followed it became apparent to us that two of the authorities involved are decisions of the Supreme Court of Tasmania that relevantly bear on the issue that was before the President. In those cases, the Court considered the predecessor legislation3 to section 84 of the Workers Rehabilitation and Compensation Reform Act 1995,4 the substance of the two provisions, if not the form, being arguably identical.

The existence of these two authorities (but not the others on which Mr Cooper sought to rely) caused us some concern, for the reasons that follow. In the proceedings at first instance the record shows the President was alive to and positively directed the parties' attention to the possibility of there being some relevant relationship between section 84 of the Workers Rehabilitation and Compensation Reform Act 1995 and section 42 of the Industrial Relations Act 1984. This latter enactment provides that "an award has effect subject to the provisions of any Act dealing with the same subject-matter".

We think it is important to record that discussion as it actually occurred:5

"PRESIDENT: ... and before you go further on it (section 84), could I direct your attention to section 42 of the Industrial Relations Act.

MR WILLIAMS: Yes, I'm familiar with 42, Mr President, yes.

PRESIDENT: And - well section 42 expressly says: an award has effect subject to the provisions of any act dealing with the same subject matter.

MR WILLIAMS: Yes.

PRESIDENT: Can you tell me about section 84 of the (Workers Rehabilitation and Compensation Act).

MR WILLIAMS: Yes. My understanding of section 84, Mr President, is it's the taking of annual leave whilst on incapacity, not the accrual. I believe in summary that that act - that precedent says that a person cannot be sent on annual leave whilst they are on workers' compensation.

PRESIDENT: Right. Okay. So its got - but what about the business?

MR WILLIAMS: I don't believe it has any effect in relation to accrual matters.

PRESIDENT: Has that been tested anywhere.

MR WILLIAMS: Not to my knowledge, Mr President. That provision was similar to the - I think into its ... act and also that words to that effect were in the 1927 act ..."

Mr Williams then goes on to add some further explanation that is not relevant for present purposes. The importance of the above discussion, in our mind, is that his response took the President away from the very issue that now appears to be the principle focus of the Union's appeal.

After taking these matters into consideration we formed the opinion that, in the circumstances, it is arguable that the question of a relationship, if any, between section 84 of the Workers Rehabilitation and Compensation Reform Act 1995 and section 42 of the Industrial Relations Act 1984, was not an issue before the President at first instance.

We then adjourned the hearing for the purpose of discussing our opinion with the parties in chambers. Subsequently, on our own motion, we adjourned the hearing to Wednesday 26 March in order that the parties might have time to obtain further instructions.

Upon the resumption of proceedings and after hearing brief submissions from the parties we determined the appeal extempore, giving a decision to the following effect.

In this matter we order:

1.  Pursuant to section 71(13)(a) of the Act and acting with the consent of the parties, we revoke the declaration of the President as it appears at page 8 of his Reasons For Decision of 6 February 1997 in matter T6540 of 1996, specifically "... I declare, pursuant to section 43 of the Act, that an absence on workers compensation interrupts continuous service for the purposes of Clause 9, Annual Leave, of the Restaurant Keepers Award".

2.  Pursuant to section 71(13)(c) of the Act, we refer matter T6540 of 1996 back to the President with the direction that he re-hear the subject-matter de novo, that is, as a new matter.

We take this action because of the exceptional circumstances that exist in this case. The particular exception is that, at pages 13-14 of transcript in matter T6540 of 1996 (pages 22-23 of the Appeal Book) the President specifically directs the then applicant's attention to the question of the relationship, if any, between section 84 of the Workers Rehabilitation and Compensation Reform Act 1995 and section 42 of the Industrial Relations Act 1984, asking among other things if the matter had been tested. He was informed that, to the best of the then applicant's knowledge, it had not been tested.

It is arguable, in the circumstances, that this is not a case of an incompetent submission at first instance or a case in which the parties simply "played dead". What the case seems to amount to, exceptionally we think, is a very positive misdirection, albeit unintended, of the President. This had as its outcome the effect of ensuring that the issue was not properly or fully addressed before him.

 

B R Johnson
DEPUTY PRESIDENT

Appearances:
Mr S Cooper of Counsel with Ms P Shelley for the Australian Liquor, Hospitality and Miscellaneous Workers Union - Tasmanian Branch.
Mr S J Gates for the Tasmanian Chamber of Commerce and Industry Limited.
Mr G J Williams for the Chief Executive, Workplace Standards Authority.

Date and Place of Hearing:
1997
March 14, 26
Hobart

1 T6540 of 1996
2 T6540, p.8.
3 Workers' Compensation Act 1927, s.8c.
4 Cannon v Coates Patons (Australia) Ltd [1985 Tas.R.157] per Cosgrove J and Foster v Fonthill Pty Ltd [1987 Tas.R.159] per Cosgrove J.
5 T6540, transcript 7/11/96 at pp.13-14.