Has the appeal in QUD 285 of 2018 been substantiated?
239 We have found that the decision of his Honour in [2018] FCA 224 was attended by errors in respect of the manner in which the primary Judge framed the test for the application of the Exception to s 119(1)(a). The question now remaining is whether the decision of the primary Judge ought nonetheless be affirmed on other grounds, in particular that the termination of the affected employees was not due to the "ordinary and customary turnover of labour" because there was no evidence that the turnover of labour was ordinary and customary when considering the circumstances of the employer concerned, the industry concerned or the employees concerned (notice of contention, ground 2).
240 As we have already noted, prima facie the employees whose employment was terminated at the employer's initiative because the employer no longer required the job done by the employees to be done by anyone were entitled to redundancy pay in accordance with s 119(1)(a) FWA. It is not controversial in either appeal that the employer bore the onus of proof that the Exception applied and the employees whose employment was terminated were not entitled to receive redundancy payments (see for example discussion of general principles referable to "avoidance" of claims which a plaintiff otherwise has in JD Heydon Cross on Evidence at [7065]). The primary Judge in [2018] FCA 224 found at [81] that the appellant had not discharged that onus of proof in circumstances where:
80. That evidence shows that, by the time Spotless lost its contract with Lend Lease, the contractual relationship with Lend Lease had existed continually for more than 20 years, that throughout that period Berkeley had employed all the employees necessary to provide the contract services and that the affected employees had been employed by Berkeley for that purpose for between four and 21 years. This evidence therefore appears to show the opposite of the circumstances in which the Exception applies. That is, it appears to show that the terminations and the connected job redundancies were, for Berkeley, as the employer, uncommon and extraordinary and not a matter of long-continued practice.
241 So far as appears from the Appeal Book in this appeal, the evidence adduced by the appellant in the proceedings at first instance were the witness statements of the following witnesses:
Matthew Potter, an employee of Spotless Management Services Pty Ltd and National Human Resources Manager within the Spotless Group;
Michael McDonald, an employee of Spotless Management Services Pty Ltd and formerly employed as the Operations Manager for the management of integrated services contract with Lend Lease at the Sunshine Plaza Shopping Centre;
Michelle Bennett, an employee of Spotless Management Services Pty Ltd and the State Manager of Queensland, Education, Business and Industry, Leisure, Sport and Entertainment; and
Pamela Fleming, an employee of the Spotless Group subsidiary Spotless Management Services Pty Ltd and the Operations Manager for cleaning services at Clean Domain (a business within Spotless), who also had managerial responsibility for a number of sites in the central business district of Brisbane where Spotless' cleaners worked.
242 The witness statements of Mr Potter, Mr McDonald and Ms Fleming were tendered at the hearing before his Honour. The witnesses also gave oral evidence.
243 Ms Bennett's witness statement was tendered, however the extent to which the appellant relied on the annexures to her statement was limited.
244 The evidence of Matthew Potter in his witness statement was, in summary, as follows:
(1) The Spotless Group consisted of 61 entities, 26 of which were employing entities. Berkeley was one such employing entity. The Spotless Group operated as a contracting business that provided clients with over 100 services under a range of different "brands" on a contract basis including catering and hospitality, cleaning, plant and equipment maintenance, ground and garden maintenance, laundry services, general maintenance, security, and other services.
(2) The number of contracts held by the Spotless Group, and services it had, changed regularly because contracts with clients ended or were renegotiated, and new clients were won and mobilised.
(3) The Spotless Group serviced clients that operated in a wide range of industry sectors. The operations and management structure were primarily arranged and managed through an industry sector focus, rather than a "brand" focus. The Spotless Group had several divisions, namely: business and industry; education; government; health; resources; public-private partnerships; defence; leisure, sport and entertainment; infrastructure, telecommunications and utilities; and laundries.
(4) There were numerous companies in the facility services market including Sodexo, Broadspectrum, ISS, Compass and Delaware North.
(5) Clients often conducted competitive tender processes to get the best possible service at the lowest price.
(6) At any point in time, the Spotless Group was in the process of tendering or bidding for new contracts, and mobilising and demobilising sites as contracts were won and lost.
(7) The Spotless Group's contracts with clients varied greatly in terms of the scope and scale of the services provided and the period over which the services were to be provided.
(8) At the time of making the statement, the Spotless Group had approximately 424 client contracts with over 350 different clients.
(9) The average contract term was 4.92 years for new contracts won as at December 2016 for the financial year ended (fye) June 2017. The average contract term was 2.6 years for contracts won in the fye June 2016, and 2.21 years for contracts won in the fye 30 June 2015.
(10) In the financial year ended June 2016, the Spotless Group secured 44 new contracts, was unsuccessful in securing 85 new contracts, successfully renewed 86 contracts, and was unsuccessful in renewing 44 contracts. In the fye June 2015, those numbers were 54, 152, 79 and 59 (including the Sunshine Plaza Contract). In the fye June 2014, those numbers were 52, 110, 67 and 59. In the last six months of the fye June 2013, those numbers were 25, 28, 62 and 52.
(11) The Sunshine Plaza Contract fell within the Business and Industry sector of the Spotless Group. That sector had, at the time of making the statement, approximately 136 client contracts, 154 in the fye June 2016, 158 in the fye June 2015, and 166 in the fye June 2014. The average contract term for new contracts won as at December 2016 was 3.4 years for the fye June 2017, 3.12 for the fye June 2016, and 2.24 years for the fye June 2015 (being the year in which the Sunshine Plaza Contract was lost).
(12) In the business and industry sector for the fye June 2016, the Spotless Group was successful in securing 13 new contracts, not successful in securing 27 new contracts, successfully renewed 18 contracts, and was not successful in renewing 25 contracts. For the fye June 2015, those numbers were 20, 71, 19 and 32 (including the Sunshine Coast Plaza Contract). For the fye June 2014, those numbers were 13, 38, 23 and 38. For the last six months of the fye June 2013, those numbers were 13, 22, 12 and 45.
(13) With the exception of some employees, the Spotless Group recruited employees solely to work on a specific client contract. Those employees had their employment "tied" to a particular contract. Mr Potter referred to such employees as "contract requirement employees".
(14) Contract requirement employees accounted for 93% of the Spotless Group workforce. Spotless Facilities Services Pty Ltd and Spotless Services Australia Pty Ltd were the main employing entities for contract requirement employees. The need for contract requirement employees depended on the demand for labour, which fluctuated with the turnover of client contracts.
(15) When the Spotless Group acquired Berkeley, the employing entity remained as Berkeley.
(16) The Spotless Group employed approximately 582 "support service" personnel who did not have their employment tied to a particular contract.
(17) The Spotless Group also employed approximately 1,050 casual employees in its "staffing services unit", which filled short term vacancies as they arise.
(18) When the Spotless Group lost a contract, the termination of employment of the employees tied to that contract was often terminated. The Spotless Group took reasonable steps to redeploy employees to other client contracts or find alternative employment with another service provider, but it was not always possible. Hundreds of employees ended their employment with the Spotless Group each year for this reason.
(19) Simply because the Spotless Group won a new contract did not always mean the workforce from a lost contract could be redeployed to the new contract. The industry sector and geographical location of the contract influenced the number of employees, skill set and experience required, which potentially prevented redeployment.
(20) Employees were terminated if they were not successfully redeployed to another contract. For the fye June 2017 (only including up to early November 2016), 74% of the contract requirement employees of the Spotless Group (with the exception of the laundries and infrastructure, telecommunications and utilities sector) who were tied to contracts that were lost were terminated. For the fye June 2016, 59% of contract requirement employees tied to contracts that were lost were terminated. For the fye June 2015, 69% of contract requirement employees tied to contracts that were lost were terminated. For the fye June 2014, 78% of contract requirement employees tied to contracts that were lost were terminated. For the last six months of the fye June 2013, 87% of contract requirement employees tied to contracts that were lost were terminated.
(21) For the building and industry sector of the Spotless Group, for the fye June 2017 (only including up to early November 2016), 62% of contract requirement employees tied to contracts that were lost were terminated. For the fye June 2016, 80% of contract requirement employees tied to contracts that were lost were terminated. For the fye June 2015, 83% of contract requirement employees tied to contracts that were lost were terminated. For the fye June 2014, 79% of contract requirement employees tied to contracts that were lost were terminated. For the last six months of the fye June 2013, 88% of contract requirement employees tied to contracts that were lost were terminated.
245 In oral evidence, Mr Potter additionally deposed, inter alia, that:
The expression "contract requirement employees" was his own term, was not used by any other managers or employees, and did not appear in employment contracts of employees working at Sunshine Plaza Shopping Centre (transcript p 41);
The employment contracts did not identify the contract with Lend Lease, or "tie" the employment to that contract or any others (transcript p 42);
The employment contracts did not specify that if the client contract ended, the employment of employees ended (transcript pp 42-44, 49);
His reference to "contract requirement employees" was a reference to the purpose of the employee being employed in the first place namely to service a customer (transcript p 51); and
Redeployment of employees in the Spotless Group increased from fye June 2014 to fye June 2016 (transcript p 53).
246 Mr McDonald had previously worked as the operations manager in the Business and Industry Division of the Spotless Group. In that role, Mr McDonald managed various cleaning contracts for Spotless Group on the Sunshine Coast, namely:
in Caloundra he managed a cleaning contract with Stocklands; and
in Kawana he managed the contract between Spotless Group and Mirvac Retail, for the cleaning and security services at Kawana Shopping World.
247 In summary, Mr McDonald's evidence as set out in his witness statement and given at the hearing was as follows:
(1) From June 2013 to 1 September 2014, Mr McDonald's role as an Operations Manager included management of the integrated services contract with Lend Lease at the Sunshine Plaza Shopping Centre.
(2) Ms Fleming, who reported to Mr McDonald, was the site contract manager and was based at the Sunshine Plaza every day.
(3) The Sunshine Plaza contract had expired when Mr McDonald assumed responsibility, but it continued to operate while Lend Lease decided if they wanted to renew the contract or go to the market to tender.
(4) Mr McDonald directed Ms Fleming to tell the staff that Lend Lease had decided to tender to the market for the Spotless Group's work covered by the Sunshine Plaza contract.
(5) Staff would often ask Mr McDonald if there was any news or updates in relation to the tender. In response, Mr McDonald would advise that the process was ongoing, specify any feedback from Lend Lease and state that employees needed to "put their best foot forward" to demonstrate to Lend Lease the benefits of Spotless Group retaining the Sunshine Plaza contract.
(6) Following the loss of the tender, Mr McDonald and Ms Michelle Bennett decided to tell the staff at Sunshine Plaza about the loss of the contract and manage the demobilisation on 1 September 2014.
(7) Over the weekend of 30 and 31 August 2014, Mr McDonald prepared a template letter to be given to employees to notify them that Spotless Group had lost the Sunshine Plaza contract, was required to exit on 30 September 2014, and as a result, their employment at Spotless Group would be terminated unless they could be placed in another role within Spotless Group.
(8) From his experience of demobilising the Kawana Shopping World contract, Mr McDonald learned the procedure of demobilising contracts at the Spotless Group and that he needed to explain to the Spotless employees that they could apply for a job with the incoming contractor or find alternative work within Spotless.
(9) Mr McDonald notified Spotless employees at Kawana Shopping World that the contract had been lost in May 2014. It was easier for employees to be transferred within Spotless when that contract ended, as the Sunshine Plaza contract was still operating and some employees were transferred in early May 2014. Mr McDonald did not remember the names of employees who were transferred.
(10) Since moving on to a new role on 2 September 2014, Mr McDonald had also overseen the demobilisation of other contracts by Spotless, including a longstanding contract Spotless held to provide services to the Suncorp Stadium in December 2015. Spotless had held the contract for more than 25 years and the employees who worked on that contract were not paid any redundancy pay when their employment at Spotless Group ended on the basis that their employment was terminated due to ordinary and customary turnover of labour.
(11) On 1 September 2014, Mr McDonald noticed that a number of SECUREcorp packs had been left in the staff room. Meetings with employees were organised in groups of 3-4 employees in the staff room. Each staff member was given a notice letter.
(12) Mr McDonald explained to each employee what had happened and talked them through the process and the options of either moving forward of either applying for a role with the incoming contractor or seeking an alternative role with Spotless.
(13) Mr McDonald advised staff that they could apply for and may be offered employment with SECUREcorp (the incoming contractor) and advised that they could take employment packs which had been left in the staff room by SECUREcorp.
(14) Ms Bennett arranged for Ms Fleming, Gerard Nolan and Michael David, another Operations Manager at Spotless, to manage the demobilisation of the Sunshine Plaza contract after Monday, 1 September 2014 when he moved into his new role.
(15) Mr McDonald had no further direct involvement in the demobilisation of the Sunshine Plaza contract.
248 Ms Bennett's evidence as found in her witness statement was, in summary:
(1) Ms Bennett had been employed by Spotless since 2008, holding various management roles responsible for operations of Spotless Group in Victoria, Tasmania and Queensland.
(2) Prior to her employment with Spotless, Ms Bennett was employed as an Operations Manager in Victoria by Alliance Catering which was acquired by Spotless in 2008. From 2014, she had held management roles for Alliance/Spotless for 17.5 years.
(3) From the time Ms Bennett commenced her current role in April 2013, Ms Bennett had overarching responsibility for Berkeley's contract with Lend Lease. At the time, there was a separate State Manager who was responsible for cleaning services in Queensland, Gerard Nolan. That position no longer exists and it became the responsibility of Ms Bennett.
(4) Ms Bennett was not involved in the recruitment process of any staff who worked at the Sunshine Plaza.
(5) Ms Bennett detailed her involvement with the 2014 Sunshine Plaza contract tender process, including attending the site tender walkthrough. Ms Bennett noted that the tender process was very protracted.
(6) Ms Bennett knew that the staff who worked at the Sunshine Plaza were advised that Berkeley was going through the tender process at staff meetings throughout 2014, based on discussions with Ms Fleming.
(7) Staff were being told that it was "business as usual" until the tender process had been completed. Ms Bennett had this discussion with at least four staff located in the food court on different visits to the Sunshine Plaza in 2014.
(8) Following notification that Berkeley was unsuccessful in the tender, Ms Bennett spoke with Mr McDonald and Mr Nolan and told them they should arrange meetings with the staff at Sunshine Plaza on 1 September 2014; and that they needed to issue staff with letters notifying them that Berkeley had lost the Sunshine Plaza contract; the contract would end on 30 September 2014; and their employment would come to an end unless they were redeployed within the Spotless Group.
(9) Ms Bennett said "this is Spotless' standard practice when it loses a client contract. The nature of Spotless' business and the industry is that client contracts are continually won and lost. Spotless is constantly mobilising when client contracts are won and demobilising when client contracts end or are lost".
(10) Ms Bennett had previously overseen the demobilisation, in an advisory position to the operations team, for similar contracts such as Kawana Shopping Centre and Stanwell Power Station (which involved multiple service lines) in 2014.
(11) Ms Bennett was further involved in the demobilisation of contracts with Stockland Group in September 2015 and Vicinity Group in October 2016.
(12) When Mr McDonald and Ms Bennett arrived at the Sunshine Plaza on 1 September 2014, she saw that packs containing information about employment with SECUREcorp (including job application forms) had been left in the staff room.
(13) On 1 September 2014, staff briefings took place to advise staff of the loss of contract and give them formal written notice. Ms Bennett only attended 3 or 4 meetings as Mr McDonald and Ms Fleming mostly conducted the meetings.
(14) In the meetings attended, Mr McDonald advised staff that Spotless had not been successful in securing the contract and SECUREcorp would be taking over from Spotless on 30 September 2014. Staff were issued with a notice letter and the SECUREcorp employment pack.
(15) In the meetings Ms Bennett attended, the issue of redundancy pay was not mentioned.
(16) To ensure that all staff were aware of the loss of contract, further meetings were held by Ms Fleming and Mr David, an operations manager from another part of Spotless. Ms Bennett was not present at these meetings but understood that this had occurred.
(17) Based on the meetings Ms Bennett attended, and feedback from Mr McDonald and Ms Fleming, some of the staff were nervous about what the future held for them at the Sunshine Plaza. Other staff were quite blasé when they received the news. Ms Bennett recalled some staff reacting by sayings words like "ok - let's see what happens" but she was unable to remember who specifically said this. Others did not comment at all. The staff were informed that if they had any questions once the news had sunk in, they should contact Ms Fleming.
(18) At the meetings attended by Ms Bennett, all staff were advised that she would attend a meeting to ask for an adjustment of the final date of the Sunshine Plaza contract. Mr McDonald and Ms Fleming told her that staff were advised of the likely extension of the contract at meetings with staff which Ms Bennett did not attend.
(19) On 1 September 2014, Ms Bennett met with Dianne Healey (operations manager for Lend Lease) and negotiated an extension of time to the Sunshine Plaza contract to deal with an issue pertaining to a sufficient notice period for some employees (as some staff were over 45 years of age, they would need to be paid out several days in lieu of notice, Spotless proposed to invoice Lend Lease for this additional cost). On 3 September 2014, Lend Lease confirmed that the contract would be extended until 8 October 2014. Following confirmation of the contract extension, Ms Bennett confirmed these details with Ms Fleming and a notice was posted in the staff room informing them that the contract would be extended until 7 October 2014.
(20) Upon notification of loss of the Sunshine Plaza contract, affected employees were advised that they could apply for a role with SECUREcorp and provided with a SECUREcorp employment pack. They were also advised they could seek redeployment. Given the regional location, there were not many positions close to the Sunshine Plaza.
(21) A requirement of Spotless is that when an employee leaves employment, an employment termination form must be completed by the relevant manager and provided to the payroll department. Ms Bennett stated: "This Form was updated at the time we were demobilising the Sunshine Plaza Contract. Even though in the case of some employees the old forms had been completed and signed, payroll advised that they required new forms to be completed for all staff. In the case of Sunshine Plaza staff, the box selected on the new form as the reason for termination was "Termination - Loss of Contract, ordinary & customary turnover of labour (no severance pay)". By the time the new forms were completed on around 10 October 2014, employees had already ceased employment so they were only signed by Gerard Nolan as the department manager. Gerard Nolan is no longer employed by Spotless and neither is Michael David who signed some of the original forms."
(22) In preparing for costs assessments as part of a tender, Spotless Group did not factor in the cost of severance pay because it relied on the longstanding ordinary and customary turnover of labour exception.
249 In summary, Ms Fleming's evidence as set out in her witness statement and given at the hearing was as follows:
(1) Ms Fleming was the "on-site go-to person" for employees of Berkeley, as the Contract Manager for Berkeley at the Sunshine Plaza.
(2) Ms Fleming inducted new employees and, as part of that induction process, explained to them that Lend Lease had engaged the Spotless Group to provide the services and it was Lend Lease who ran the Sunshine Plaza.
(3) Staff were informed about the tender process in 2014 and many staff had asked her questions about what was going to happen with the tender.
(4) Staff were informed that the tender had been unsuccessful and were given a list of jobs within the Spotless Group that they could apply for as well as employment packs from another prospective employee, SECUREcorp.
(5) Some staff enquired about their entitlements after SECUREcorp notified staff about who had been successful in obtaining employment. Ms Fleming told the staff she did not know if they would get a redundancy.
(6) Some staff had conversations about the fact that, if they did not arrange employment with SECUREcorp, they would be unemployed because Spotless did not have any jobs near them and they did not want to move.
(7) In filling out the termination form, Ms Fleming initially ticked the box labelled "loss of contract, position redundant (no equivalent Spotless position available)", but was later told by Gerard Nolan to tick the box labelled "termination - loss of contract, no redundancy".
(8) Ms Fleming did not know whether staff were entitled to a redundancy.
250 His Honour's decision relied primarily on evidence of the business practices adopted by the employer, Berkeley. His Honour noted that the contract facility services industry in which the Berkeley operated was "fiercely competitive" and that at any one time the Spotless Group was negotiating contracts (at [50]). Importantly, his Honour noted at [50] that, at the trial, the appellant contended that if a client contract were lost, it was normal practice for Spotless to terminate the employment of those employees, if redeployment was not possible, and that it did not generally make redundancy payments in those circumstances. We note that at [40]-[45] his Honour detailed the evidence on which the appellant relied concerning relevant practices of the Spotless group, in particular the evidence of Mr Potter.
251 In reaching the conclusion that the Exception did not apply, it is clear that his Honour also referred to evidence relevant to determining the expectations of the affected employees, including that:
the contracts of employment provided for permanent employment;
the contracts of employment contained no date of expiry;
there was no term in the contracts of employment which rendered that employment subject to or dependent upon the employer's continuing tenure of contract with its client;
relevant employees had been employed for terms ranging between four and 21 years;
affected employees who gave evidence attested to their expectation of ongoing employment, based on circumstances such as their long term employment, their permanent employment status, their regular and set roster arrangements, and the absence of any suggestion that their employment would be terminated in the event that the employer lost any particular contract; and
none of the employees were cross-examined at the trial.
252 His Honour misstated the statutory test referable to the Exception and failed to have regard to a number of relevant factors referable to grounds of appeal 1(b), (c) and (d). His Honour found that the appellant had contravened provisions of the FWA, that the affected employees were variously entitled to compensation, and that the appellant was liable to pay pecuniary penalties in respect of its contraventions. The fact that, in so finding, his Honour disregarded factors relevant to both the appellant and the respondent is not to the point. However, on balance we are satisfied that, having reviewed the evidence of the appellant before his Honour, even if his Honour had applied the correct test the outcome would have been no different.
253 Section 28 of the Federal Court of Australia Act 1976 (Cth) relevantly provides:
(1) Subject to any other Act, the Court may, in the exercise of its appellate jurisdiction:
(a) affirm, reverse or vary the judgment appealed from;
(b) give such judgment, or make such order, as, in all the circumstances, it thinks fit, or refuse to make an order;
…
254 As the High Court explained in Conway v The Queen (2002) 209 CLR 203; [2002] HCA 2 at 220:
36. … Section 28(1)(f) of the Federal Court of Australia Act empowers the Federal Court to allow an appeal "on any ground upon which it is appropriate to grant a new trial''. This power is expressed in wide terms and should be given a liberal construction. It is a power that must, of course, be exercised judicially. But there is nothing unjudicial, arbitrary or capricious in refusing to order a new trial when, although error has occurred, no miscarriage of justice has occurred. The common law courts applied such a rule in civil proceedings for more than a century. …
37. Very early in the history of the Federal Court, a Full Court of that Court held that the general rule referred to in Stokes applied to s 28(1)(e) of the Federal Court of Australia Act. In Duff v The Queen, Brennan, McGregor and Lockhart JJ said that in a criminal appeal the grounds under this paragraph are not to be taken as identical with the grounds in the common-form criminal appeal statutes, a view later rejected by this Court in Chamberlain v The Queen [No 2]. Nevertheless, their Honours accepted that:
[T]he new trial grounds contain a qualification that, if the appellate court feels some reasonable assurance that the blemish at the trial could not reasonably be supposed to have influenced the result, the conviction under appeal may be allowed to stand. The qualifying rule and the proviso in the common form statute have a similar operation, for they avoid the need to quash a conviction whenever an error in the summing-up or in the admission or rejection of evidence or in procedure is established, whether the error be material or not.'' …
(Footnotes omitted.)
255 In this case, key evidence before his Honour as advanced by the appellant was, in summary
93% of employees were engaged by the Spotless Group on the basis of contractual relationships between the Spotless Group and third parties;
According to Mr Potter, across the fye June 2014 to June 2016 between approximately 60% and 90% of "contract requirement employees" of the Spotless Group tied to contracts that were lost were terminated, and in respect of the building and industry sector in the Spotless Group, between approximately 60% and 85% of such employees were terminated.
Mr McDonald and Ms Fleming did not know the specific entitlements of individual employees including whether those employees were entitled to redundancy.
Client contracts were continually won and lost, and the Spotless Group was constantly mobilising when contracts were won and demobilising when client contracts ended or were lost.
As part of the induction process for new Berkeley employees, Ms Fleming explained to them that Lend Lease had engaged the Spotless Group to provide the services and it was Lend Lease who ran the Sunshine Plaza Shopping Centre.
At the point of termination, Berkeley employees were told that their employment would come to an end unless they were redeployed within the Spotless Group and were actively encouraged to either seek redeployment or apply for work with the incoming contractor.
The Spotless Group employees in respect of a long-standing contract with Suncorp Stadium were not paid redundancy pay when that contract ended.
256 However:
None of this evidence supported a finding that the reasonable expectations of affected employees were anything other than that they had ongoing employment, particularly in light of their long history of employment, the information provided to them at the time of their engagement and during their employment, and the terms of their individual employment contracts.
While evidence across the Spotless Group was relevant to the question of ordinary and customary turnover of labour of the appellant, there was no evidence that affected employees were told of the alleged business practice of Spotless Group of terminating employees when external contracts were lost.
The evidence did not demonstrate that the employment of employees of Berkeley was, or had ever been, contingent on any external contract.
The witnesses of the appellant who gave evidence of alleged dependency of employment of affected employees on external contracts, were management staff of the Spotless Group. To that extent a serious question arose as to whether such dependency was known only to the employer, and not to employees.
There was no evidence of industry practices outside the Spotless Group (such as the practices of the other facility service providers referred to by Mr Potter) to support a finding that the termination of affected employees fell within the ordinary and customary turnover of labour in the industry, or to inform consideration of what was the "ordinary and customary turnover of labour" in businesses of the kind in question.
In the circumstances of the case, the appellant had had minimal turnover of labour because of its long-standing contract with Lend Lease and a stable workforce, which in turn fed into the reasonable expectations of employees of ongoing employment.
257 It follows that the evidence on which the appellant relied before the primary Judge was insufficient to discharge its onus that the Exception applied.
258 In our view the appeal should be dismissed.