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[2005] HCA 22
High Court of Australia
2005-04-27
Madgwick J, Heydon JJ, Hugh J
Original judgment source is linked above.
b. order 3 of the orders of Madgwick J in the Federal Court of Australia dated 21 May 2002 be varied by deleting therefrom the words "and for a period of 14 days thereafter";
S C Rothman SC with C T Magee for the appellant (instructed by MRM Solicitors)
G J Hatcher SC with B K B Cross for the respondent (instructed by Hannigans Solicitors)
Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.
Industrial law - Reinstatement - Employer ordered to reinstate dismissed employee to the position in which he was employed prior to being dismissed - Employer reinstated employee subject to conditions - Employee paid wage but not provided with work - Whether reinstatement order made under s 170CH of the Workplace Relations Act 1996 (Cth) requires employer to provide employee with work - Whether employee was reinstated to the position in which he was employed prior to being dismissed.
Federal Court - Jurisdiction - Power - Whether Federal Court may make an order for enforcement of reinstatement order.
Words and phrases - "position", "reappoint", "reinstate".
Workplace Relations Act 1996 (Cth), ss 178, 170CH, 170JC(3).
. gives the employee the title of his former position;
. pays the employee the amount earned for ordinary time by persons in that position together with the average of the tally or bonus payments paid to employees in that position; but
. refuses to provide the employee with any duties until he undergoes a medical examination and satisfies the employer that he has the physical capacity to carry out his pre‑termination duties.
"1. The [employee] shall be reinstated to the position in which he was employed prior to the termination of his employment without loss of continuity of service or entitlements within 21 days from the date of this decision.
"1. Effective on and from 20 April, 2000 you have been reinstated in the position of Boner in the employ of Ramsey Butchering Services Pty Ltd.
Our reason for excusing you from physical work until further notice is that arising from the proceedings before the Commission, and the tendering of the Medical Certificate from Dr Bacon, doubts exist as to your physical capacity to perform the duties of a boner not only in relation to the duties associated with Hot Necking on the Slaughterhouse Floor but more importantly your ability to bone in the Boning Rooms given the Osteoarthritis in your right elbow. As you are aware, an absolute duty is imposed upon the Company as to your health, safety and welfare at work. Until such time as we are able to ascertain your physical condition to bone we do not wish to expose you to any risk.
Prior to your recommencing duties we require you to attend for medical assessment by our nominated doctor. We will advise you by letter of the date and time of the appointment. This appointment will be scheduled during normal working hours."
"(3) If the Commission considers it appropriate, the Commission may make an order requiring the employer to reinstate the employee by:
(a) reappointing the employee to the position in which the employee was employed immediately before the termination.
(b) appointing the employee to another position on terms and conditions no less favourable than those on which the employee was employed immediately before the termination."
. the employee had a pre-existing medical condition;
. the condition prevented the employee from doing hot neck boning;
. the employee had not been appropriately trained to perform that work;
. the operational requirements of the employer's business did not require the employee to do the work; and
. the employer's direction was unreasonable and unsafe and directly resulted in the termination of the employment.
"1. To work 5 days a week when required without the imposition of any bans or limitations and without stoppages.
The appellant also agreed that "[his] continued employment may be contingent upon satisfactorily passing a physical examination at any time to establish [his] capability to properly or safely perform [his] duties." The appellant said that he had not suffered any disabilities of his wrist, elbow or shoulder but disclosed that he had previously dislocated his right elbow. Before his engagement, the appellant was examined by a doctor who declared him fit for heavy manual work subject to this slight qualification:
"Slight (20%) limitation of (R) shoulder rotation because of old (R) elbow dislocation - fibrosis here. Shoulder would be classified as normal."
"22.1 Any employee, including a juvenile, called upon to perform work of any classification for which a higher rate of pay is provided by this AWA, shall be paid the higher rate of pay whilst so employed with a minimum of three hours at such rate of pay.
22.3 Any employee who is required to perform on any day or shift, work for which a lower rate than that of his ordinary classification is prescribed, shall suffer no reduction in consequence thereof.
22.4 Where any employee is transferred for the greater part of the day under the provisions of this clause, he/she shall be entitled to the conditions normally associated with the particular position he/she was transferred to."
"35.1 An employee shall be engaged either as a weekly hand or as a daily hand or as a part-time employee and each employee shall be notified at the beginning of employment and before commencing work whether the employee is a weekly or daily hand or part-time employee.
35.8 A labourer shall be required to perform slaughtering tasks and shall be required to contribute to tally provided the said labourer is suitably qualified to perform the slaughtering task or tasks required and is paid the appropriate slaughtermen's rate of pay for such time as the labourer is performing that slaughtering task or tasks.
35.9 An employer may direct an employee to carry out such duties as are within the limits of an employee's skill, competence and training: the employee will follow such direction."
"37.20 Employees shall perform such tasks or combination of tasks as the employer may require."
"Until the events constituting termination of his employment, the [appellant] worked in what was referred to as the big boning room at the Grafton meatworks and principally performed hindquarter boning work. That work is performed on pre-chilled pieces of beef carcases. On 28 September 1999 the [appellant] arrived at work and was directed to leave that boning room and go to the slaughter floor to perform hot neck boning, a task he had not previously undertaken. This was the first time the respondent had directed him to undertake such work, and he had not been trained in it. Hot neck boning involves 'freeing' the meat from the bones from the neck to the ribs. The [appellant's] unchallenged evidence was that this requires greater rotational force and effort of both the wrist and elbow than general boning.
The [appellant] refused to perform the task and left the premises shortly thereafter. The [appellant's] reasons for refusing to undertake the work included that he had no prior experience or training in hot neck boning and that he was concerned about his right arm. As indicated above, the [appellant] has some restriction in his right shoulder due to earlier dislocations of his right elbow, such dislocations pre-dating his employment with the respondent. The [appellant] also believed he was being victimised for giving evidence, adverse to the respondent's interests, to the AIRC on the previous day, 27 September 1999, in respect of another unlawful termination case concerning another employee of the respondent."
"The [appellant] was instructed at approximately 6.30 am on 28 September 1999 to perform hot neck boning. The [appellant] said that he had no experience in hot neck boning and thought that it would be a danger to the employees on the slaughterhouse floor if he tried to perform the work. Also, the [appellant] had a disability that restricted movement in one arm. The company knew of the [appellant's] disability. The disability added to his safety concerns. The [appellant] firmly believed that he could do damage to himself and to other employees. He felt he was being victimised by the company.
The evidence of Mr Paul David Marshall, the company's personnel officer and payroll manager, concerned the circumstances which arose after the [appellant] had left the workplace and the functions that he assumed employees should carry out according to their classifications. In his sworn statement Mr Marshall referred to other matters he thought relevant to the case. During cross-examination by [counsel for the appellant] it became clear that the [appellant] had been employed by the respondent with a pre-existing elbow injury which was noted in the Doctor's Certificate and which would have caused some restriction when performing hot neck boning. Furthermore the witness expressed his concern regarding training and whether people were being fully trained.
In determining the various issues before me it was necessary to make some preliminary findings of fact. I have set out these findings below.
"1. The [appellant] shall be reinstated to the position in which he was employed prior to the termination of his employment without loss of continuity of service or entitlements within 21 days from the date of this decision.
"We refer to the Orders made by Mr Commissioner Redmond on 29 March, 2000.
Under Order 1 we were ordered to reinstate you to the position in which you were employed prior to the termination of your employment without loss of continuity or entitlement within 21 days from the date of decision (ie 29 March, 2000). ...
For the purpose of compliance with the order your employment status is to be as set below:
Effective on and from 20 April, 2000 you have been reinstated in the position of Boner in the employ of Ramsey Butchering Services Pty Ltd.
Your employment date will be 30 April, 2000 with full continuity from that date for all purposes.
Until further notice you will not be required to report for work or otherwise perform work in order to be entitled to your wages and other remuneration.
You will be required to undergo a medical assessment by a Company nominated medical practitioner prior to resuming any physical work. Our reason for instituting this requirement is more fully explained below.
In terms of the payment of wages from 20 April, 2000 you will receive a payment representing back pay on the next usual pay day and will receive payment weekly thereafter. The payments made to you will be your weekly wage as a Boner in terms of ordinary pay plus the average of the tally paid to all other Boners in any given week. In addition, your superannuation will be paid as normal.
The position will continue until the results of the medical assessment is known and considered by the Company at which time you will be advised of the Company's position.
Our reason for excusing you from physical work until further notice is that arising from the proceedings before the Commission, and the tendering of the Medical Certificate from Dr Bacon, doubts exist as to your physical capacity to perform the duties of a boner not only in relation to the duties associated with Hot Necking on the Slaughterhouse Floor but more importantly your ability to bone in the Boning Rooms given the Osteoarthritis in your right elbow. As you are aware, an absolute duty is imposed upon the Company as to your health, safety and welfare at work. Until such time as we are able to ascertain your physical condition to bone we do not wish to expose you to any risk.
Prior to your recommencing duties we require you to attend for medical assessment by our nominated doctor. We will advise you by letter of the date and time of the appointment. This appointment will be scheduled during normal working hours."
"... I would agree that reinstatement under s 170CH of the Act does implicitly involve a return of the employee to the workplace. The Act contemplates that it is only in circumstances where reinstatement is inappropriate that the suitable alternative is to award payment in lieu of reinstatement (s 170CH(6)). Thus, the apparent statutory purpose of the relief is to treat the dismissal as ineffective and restore the employment situation to its pre-termination status. If a direction to reinstate an employee required no more than that the employee be put back on the payroll, it is difficult to see why reinstatement would even be 'inappropriate'. Further, as Wilcox CJ observed in Perkins v Grace when considering the meaning of 'reinstated' for the purposes of s 170EE, the predecessor of s 170CH, such meaning should be considered in light of its usage in industrial parlance. Such parlance would understand reinstatement to include reinstatement in the sense just mentioned, including all the usual incidents of the employment, such as attendance at the workplace and there being furnished with one's usual productive work.
In finding that the orders did require that the [appellant] be returned to work, it is important to clarify what the reinstatement order required in a practical and concrete sense. Counsel for the respondent was, in my opinion, correct in saying that reinstatement does not mean that an employee acquires new legal rights but simply restores the employment relationship with all, but only, the rights and entitlements to treatment in good faith which existed between the parties prior to the termination. It is to be remembered also that such obligations of good faith are owed by both parties. Part of the background matrix of facts in this matter showed a need for reasonable flexibility, recognised in the AWA, for the deployment of employees.
What the 'position' was to which the [appellant] was to be reinstated by reappointment (cf s 170CH(3)(a)) is a question of fact and, as a matter of fact, a person may hold a position under which certain work is or is not required, whether or not such position has an express classification or description (such as 'boner'): see State Rail Authority (NSW) v Bauer J[53]. Commissioner Redmond was plainly of the view that the [appellant's] s 170CH(3)(a) position was that of a boner required to do chilled boning work in the big boning room. Of particular significance are the Commissioner's findings that:
Taking these findings into account, the order to reinstate the [appellant] plainly intended that he would not only receive his wages and other entitlements but, in the first instance, at least, return to his former position of employment, namely to a position undertaking boning in the big boning room.
The evidence before me indicates that the [appellant] would concede that his position requires that occasionally, for bona fide operational purposes of the employer, he should relieve on the hot neck boning work.
As I have indicated, the [appellant's] rights are as before. If he then had a legal liability to be transferred to hot neck boning, upon reinstatement he would again have such liability. If he did not, or did not until he was trained, then again he would not be so liable. If he had a liability to undergo medical examinations from time to time, on the existence of a reasonable need for them and on reasonable terms, such liability would continue. Finally, whatever mutual rights and liabilities as to transfer, removal from active work or termination of employment pre-existed his termination, they will exist again after reinstatement. Some of these matters may involve difficult questions and their resolution should await full argument, if, as I hope will not be the case, it should become necessary."
The decision of the Full Court of the Federal Court
"We consider the emphasis on appointing the employee to a 'position' demonstrates that it is the contractual position which is either to be restored in its earlier terms or in equivalent terms. By using the terminology of 'appointing' as opposed to 're-employing' for example, there is indicated a legislative intention to re-establish rights or equivalent rights which were destroyed by the wrongful termination. The language does not indicate a legislative intention to provide more than that to which the employee was entitled prior to the wrongful termination.
In our opinion, where a person is reinstated by appointment to a position in which he or she was acting at the time of dismissal pursuant to s 170CH(3)(a), then that provision requires that the person should be restored to all the contractual entitlements which applied in respect of that position at the time of the wrongful dismissal so far as possible, but should not be given any additional entitlement which the person did not previously have under the relevant terms of the person's employment."
"Many of the cases concerning what an order for reinstatement comprehends, at least in the context of New South Wales industrial laws, were considered by the Industrial Commission of New South Wales in Court Session in Retail Traders Association (NSW) v Shop, Distributive and Allied Employees Association (NSW)[56]. In those authorities it is comparatively clear, to repeat some of the language used, that an order for reinstatement is not to achieve a notional or academic reinstatement but a practical one. It requires a re-establishment of the pre-existing employment relationship as a matter of reality and not in some notional or fictional way. The purpose of such an order is to place the dismissed employee in a position that he or she was in before the dismissal. It is to restore the status quo ante.
In my opinion, the power to make an order under s 170CH(3)(a) or (b) extends to making an order requiring the employer to permit the employee to take up the position formerly occupied by the employee, or another position, including performing the duties of that position and receiving the benefits from doing so."
(1) Subject to this section, the Commission may, on completion of the arbitration, make an order that provides for a remedy of a kind referred to in subsection (3), (4) or (6) if it has determined that the termination was harsh, unjust or unreasonable.
(2) The Commission must not make an order under subsection (1) unless the Commission is satisfied, having regard to all the circumstances of the case including:
(a) the effect of the order on the viability of the employer's undertaking, establishment or service; and
(b) the length of the employee's service with the employer; and
(c) the remuneration that the employee would have received, or would have been likely to receive, if the employee's employment had not been terminated; and
(d) the efforts of the employee (if any) to mitigate the loss suffered by the employee as a result of the termination; and
(e) any other matter that the Commission considers relevant;
(3) If the Commission considers it appropriate, the Commission may make an order requiring the employer to reinstate the employee by:
(a) reappointing the employee to the position in which the employee was employed immediately before the termination.
(b) appointing the employee to another position on terms and conditions no less favourable than those on which the employee was employed immediately before the termination.
(4) If the Commission makes an order under subsection (3) and considers it appropriate to do so, the Commission may also make:
(a) any order that the Commission thinks appropriate to maintain the continuity of the employee's employment; and
(b) subject to subsection (5) - any order that the Commission thinks appropriate to cause the employer to pay to the employee an amount in respect of the remuneration lost, or likely to have been lost, by the employee because of the termination."
"That is not to say, however, that the employer would be precluded, thereafter, from lawfully altering the position of the employee by requiring the employee to perform other duties, standing down the employee or even dismissing the employee. An employer can. However, if these steps were taken capriciously or unreasonably it may be that they could be viewed as steps designed to nullify the effect of the reinstatement order. The order is intended to have the effect earlier described and, to that extent but only to that extent, overrides any contractual or other rights the employer may have."
The first recorded reinstatement order in Australia was made by the Industrial Commission of New South Wales in Newcastle Wharf Labourers' Union v Newcastle & Hunter River Steamship Co Ltd [1902] AR (NSW) 1. See Ramsey (2003) 127 FCR 381 at 406 [44] per Moore J. ↑
See, for example, O'Donovan, "Reinstatement of Dismissed Employees by the Australian Conciliation and Arbitration Commission: Jurisdiction and Practice", (1976) 50 Australian Law Journal 636; Davidson, "Reinstatement of Employees by State Industrial Tribunals", (1980) 54 Australian Law Journal 706. ↑
Byrne v Australian Airlines Ltd (1995) 185 CLR 410. ↑
The Act, s 170CH. The power to order reinstatement has been described as "drastic": Slonim v Fellows (1984) 154 CLR 505 at 515. ↑
See Re Ranger Uranium Mines Pty Ltd; Ex parte Federated Miscellaneous Workers' Union of Australia (1987) 163 CLR 656; Re Federated Storemen and Packers Union of Australia; Ex parte Wooldumpers (Vic) Ltd (1989) 166 CLR 311. Part VIA Div 3 of the Act now draws for its validity, additionally, on the external affairs power in the Constitution, s 51(xxix), in fulfilment of ILO Convention (No 158) concerning Termination of Employment at the Initiative of the Employer done at Geneva on 22 June 1982, [1994] Australian Treaty Series No 4; and on the corporations power (the Constitution, s 51(xx)). See the Act, ss 170CA(1)(e), 170CB. ↑
The Act, s 170CA(2). The note to this sub-section refers to the use of that expression by Sheldon J in Re Loty and Holloway v Australian Workers' Union [1971] AR (NSW) 95, also a reinstatement case. ↑
Ramsey Butchering Services Pty Ltd v Blackadder (2003) 127 FCR 381. ↑
Ramsey Butchery Services Pty Ltd (Grafton Meatworks) Australian Workplace Agreement 1998, cll 22.1, 35 and 37.20. ↑
Blackadder v Ramsey Butchering Services Pty Ltd (2002) 118 FCR 395 at 398 [12]-[13]. ↑
"(3) In addition to any other right that an employee covered by an order under this Part may have under Part VIII (as it applies in accordance with this section):
(a) the employee may apply to the Court to enforce the order by injunction or otherwise as the Court thinks fit; and
(b) if the order is an order under Subdivision B of Division 3 - the employee may apply to a court of competent jurisdiction as defined in section 177A to enforce the order by injunction."
Section 4 of the Act defined "Court" as the "Federal Court of Australia". ↑
Blackadder v Ramsey Butchering Services Pty Ltd (2002) 118 FCR 395 at 406-408 [49], [53]-[57]. ↑
The Court has power, in relation to matters in which it has jurisdiction, to make orders of such kinds, including interlocutory orders, and to issue, or direct the issue of, writs of such kinds, as the Court thinks appropriate." ↑
Blackadder
Ramsey Butchering Services Pty Ltd
(2003) 127 FCR 381
(2002) 118 FCR 395
(1995) 185 CLR 410
(1984) 154 CLR 505
(1987) 163 CLR 656
(1989) 166 CLR 311
(1994) 55 IR 263
(1990) 36 IR 38