First ground - whether the whole period of casual employment counted
25 By its first ground of review, Bronze claims that the Full Bench directed itself to the wrong questions when seeking to determine whether the whole period of Ms Hansson's casual employment was on a regular and systematic basis with a reasonable expectation of continuing employment.
26 Bronze submits that in the case of both the question of whether Ms Hansson's employment as a casual employee was on a regular and systematic basis, and the question of whether she had a reasonable expectation of continuing employment on a regular and systematic basis, what the Full Bench did was to answer both of those questions in the affirmative, and thus conclude that the whole period of casual employment could be counted towards her period of employment. Bronze claims that the Full Bench failed to have regard to the question of the point in time at which her employment met both of those two criteria. Only that date, if any, would be the start of the period of employment for the purposes of s 384(1).
27 I do not accept that the Full Bench made that error. It is clear from its reasons that the Full Bench did not overlook the importance of determining the point in time at which both of the criteria in s 384(2)(a)(i) and s 384(2)(a)(ii) were met. Before considering Bronze's arguments, the Full Bench made the following observations about the phrase 'during the period of service' in s 384(2)(a)(ii) (at [29], emphasis in original, footnotes omitted):
First, 'during' can mean either 'throughout the course of' or 'at a point in the course of'. In our view, the first of these meanings is intended. The sub-provision is an exception to an exception; a period of casual service does not count, unless two requirements are met. Both of these requirements concern states of affairs that can develop over time. This context points to the word 'during' connoting a continuous period, rather than a point in time. Further, the alternative construction would mean that a casual employee need only have a reasonable expectation of continuing employment for any fleeting period in the course of the casual employment. There is no apparent rationale that would support this being the intended meaning. Finally, we note that the explanatory memorandum to the Fair Work Bill states simply that 'service as a casual employee does not count towards the period of employment unless it was on a regular and systematic basis and the employee had a reasonable expectation of continuing engagement on a regular and systematic basis.' This wording is consistent with the interpretation we favour, and inconsistent with a 'point in time' meaning. The effect of this is that a paiticular [sic] period of service as a casual employee only 'counts' in respect of periods when the casual employment was regular and systematic and the employee had a reasonable expectation of continuing employment.
28 That is inconsistent with Bronze's submission that the Full Bench overlooked the question of when the relevant criteria were first fulfilled. The Full Bench said expressly that a finding that, at a particular point in time, the employee had a reasonable expectation of continuing employment on a regular and systematic basis, would not be enough. The expectation had to subsist for a period, and it was that period that was capable of being counted towards the period of employment. While these observations were made about the requirement in s 384(2)(a)(ii), the Full Bench mentioned that both that requirement, and the one in s 384(2)(a)(i), 'concern states of affairs that can develop over time'. The rest of the passage confirms that the Full Bench considered that what had to be found was a period during which both of the requirements were fulfilled. The last sentence of the passage quoted says as much.
29 The Full Bench's approach to the evidence, as summarised above, is consistent with that view of how s 384(2)(a) should be applied. Paragraph 33 of the reasons, which I have quoted, shows that the Full Bench was conscious that the period during which the two requirements were met may not start until some time after the casual employment commenced. When the Full Bench turned to the question of whether Ms Hansson's employment as a casual was regular and systematic, it referred (at [36]) to what the time sheets showed about the frequency and regularity of her work 'over the period of her casual employment' and held (at [37]) that 'there was an ample basis in the evidence for the Commissioner to conclude that Ms Hansson's period of employment was on a regular and systematic basis over this period'. So the conclusion was that the regular and systematic basis of her casual employment held for the entire period.
30 Similarly, when it came to the question of whether Ms Hansson had a reasonable expectation of continuing employment on a regular and systematic basis, the Full Bench focussed on when that expectation arose. It found that the possibility of ongoing permanent employment only arose towards the end of December 2017. But it relied on other evidence which indicated that Ms Hansson did have the necessary expectation from the beginning of her employment. Paragraphs 42-43 of the Full Bench's reasons, which I have also quoted, shows that it paid close attention to exactly when the expectation arose. It found that 'it was evidently at the commencement of her employment ("from the moment I was there")'.
31 The Full Bench's reasons show that it was aware that it had to make a finding as to the period, if any, during which both of the requirements in s 384(2)(a)(i) and s 384(2)(a)(ii) were satisfied, and that it went on to make that finding (at [44]). There is no basis for Bronze's submission in this court that the Full Bench failed to direct itself to the question of the point in time at which Ms Hansson's employment became regular and systematic, and the point in time at which she had a reasonable expectation of continued employment.
32 Bronze's submissions raised other questions as to the proper construction of s 384(2)(a).
33 One of those questions may be put this way: if the Commission finds that there was a pattern of work indicating for the purposes of the requirement in s 384(2)(a)(i) that the employment was on a regular and systematic basis then, accepting that the pattern could not have emerged until some time after the commencement of the employment, is that requirement fulfilled over the entire period over which the pattern can be observed, or is it only fulfilled from the time when the pattern first emerges?
34 The question may be illustrated with a hypothetical example. Suppose that a person is employed as a casual employee by a small business employer for six months leading up to their dismissal. Suppose it turns out that they work the morning shift, every third day, consistently throughout that period. That may be regular and systematic employment. But without more, it would not be possible at the commencement of the period to say that was so. There would have to be some repetition of the pattern of morning shifts every three days before one could conclude from that pattern that the employment was regular and systematic.
35 If, say, three shifts were enough, the pattern would not emerge until seven days into the period of employment (assuming the first shift was on the first day). Is that day seven the start of the period of regular and systematic employment, meaning, on this example, that the employee does not have the necessary six months of employment? Or are the first three shifts all part of the period of employment on a regular and systematic basis?
36 In my view, illustrating the question this way points to the correct answer, which is that the entire period is to be counted, not just the period commencing at the first time at which it can be observed that the employment is on a regular and systematic basis. It is inherently contradictory to say that the first three shifts are evidence establishing that the employment was on a regular and systematic basis, but they cannot be part of the period during which the person was employed on that basis.
37 Section 384(2)(a)(i) calls for an evaluation of whether the employment as a casual employee was on a regular and systematic basis. So it is the relationship of employment that must be characterised, one way or the other. It is true that the basis of the relationship can change over time, so it is necessary to determine when it became employment on a regular and systematic basis. But if, looking back after the end of the relationship (as is of course inevitable in an unfair dismissal case) the evidence as a whole supports a characterisation of its basis as regular and systematic from the beginning, it does not matter that looking forward from the beginning, one would not have yet seen all that evidence. The basis of the employment was, in fact, regular and systematic from the start, even if sufficient evidence of that fact did not accumulate until later.
38 Another question about the proper construction of s 384(2)(a) arises from a submission by Bronze that if Ms Hansson 'objectively formed' the necessary reasonable expectation only after nine days, then the requirement that there be employment of the necessary character for the minimum six months would not be met. Bronze submitted that working the majority of days for the first week and a half, without more, would not be an objective basis to conclude that the work will continue on a regular and systematic basis.
39 The first of these points is correct. If the employee's expectation was based, not on anything the employer said, but solely on her own observation of the regularity of her work shifts, it would be wrong to look back and say that, as it turned out, there was a reasonable expectation from the very beginning. An expectation could not be reasonable until the time at which the pattern necessary to make it so has emerged.
40 But I do not accept that as a matter of construction of s 384(2)(a)(ii), a week and a half of regular employment cannot establish that pattern. The ordinary meaning of the words of s 384(2)(a)(ii) requires that the employee has subjectively formed an expectation of continuing employment by the employer on a regular and systematic basis. If that expectation has been formed, it is necessary to assess whether it is a reasonable one. It is true that the word 'reasonable' is generally used in the law to import an objective standard: Adams v Bracknell Forest Borough Council [2004] UKHL 29; [2005] 1 AC 76 at [33] (Lord Hoffmann). But the FWA does not limit the matters that may be taken into account in determining whether the expectation is reasonable. Certainly, the shorter the period of employment, generally the harder it will be for the employee to establish that he or she reasonably relied on a pattern of work, if that is the basis of his or her reasonable expectation. But the reasonableness of the expectation depends on all the circumstances, and there is no minimum period in the legislation that makes a week and half insufficient in every case.
41 It may be that, as Bronze submitted, the context of Ms Hansson's employment in the hospitality industry was relevant. That context may mean that frequent work does not point to a regular and systematic basis of employment as clearly as it might in other industries. But if the Commission did not give adequate weight to that context, that was an error within jurisdiction.
42 In any event, the submission that a week and half of regular employment was not enough to found a reasonable expectation does not take account of the evidence about what Bronze said to Ms Hansson at the beginning of her employment. In WorkPac Pty Ltd v Skene [2018] FCAFC 131; (2018) 362 ALR 311 at [178] the Full Court observed that what is agreed to at the commencement of the employment is relevant to the characterisation process. While their Honours were referring to the objective characterisation of whether employment was casual, part-time or full-time, the same must go for the question of whether an employee has objectively reasonable grounds for an expectation of continuing employment on a regular and systematic basis.
43 What the employer tells the employee must be relevant. Counsel for Bronze accepted this. If the employee in fact has the necessary expectation, and if what the employer said at the beginning of the employment was sufficient to make the expectation reasonable, and nothing in the circumstances indicated that what the employer said was unreliable, implausible or was otherwise to be disbelieved, then the criterion may be satisfied from that time. If nothing happens subsequently to show that the expectation will not be fulfilled, then it may subsist, as a reasonable expectation, throughout the entire period of service as a casual employee. There is nothing in the legislation which indicates that the employee's expectation cannot be reasonable until a pattern of regular and systematic employment, such as regular shifts, has in fact emerged.
44 Bronze sought to illustrate its point with a hypothetical example in which, at the start of the employment relationship, an employee only receives a few sporadic shifts, and at some later time the employer starts to engage the employee more regularly. The assessment, looking back, would be that during the period of sporadic engagements the employment was not on a regular and systematic basis, but from the start of the period when the engagements become more regular, it was.
45 But this example does not shed much light on the present case, because it does not factor in any discussions that the employer and employee may have had. It is also inapt because the hypothetical employee only receives sporadic shifts at the beginning, while the time sheets show that Ms Hansson received work frequently and regularly throughout the first 10 (or nine) days.
46 Here, the Full Bench did not rely solely on the time sheets. In the passages quoted above, the Full Bench based its findings on what Ms Hansson was told at the start of her employment, as well as on the subsequent course of events. There is a ground of review challenging the Full Bench's findings based on that evidence, which I address below. But those findings do not demonstrate any misunderstanding of s 384(2)(a)(ii) on the part of the Full Bench.
47 I find that the Full Bench did not commit any error of the kind alleged in the first ground of review.
48 In case I am wrong about that, I should briefly express my conclusion on whether that error would have been a jurisdictional error. That depends on the proper construction of the legislation as a whole, in order to determine whether the legislature intended that a decision affected by an error of that kind lacks the characteristics necessary for it to be given force and effect by the statute: Khalil v Minister for Home Affairs [2019] FCAFC 151 at [43].
49 In my view, that intention can be discerned here. The Full Bench was considering an appeal from the Commission under s 604 of the FWA. The statutory power under which the decision appealed from was made was conferred by s 390(1) of the FWA. It is an express precondition of the exercise of that power that the Commission be satisfied that the person was protected from unfair dismissal at the time of being dismissed: s 390(1)(a). That this is so is emphasised by s 396, which provides that the Commission must decide whether the person was protected from unfair dismissal (among other things) 'before considering the merits of the application': see s 396(b). This distinction between the question of whether the person was protected from unfair dismissal, and 'the merits', is a strong indication that an error in answering the first question, based on a misunderstanding of the question, would be a jurisdictional error. Likewise, that distinction indicates why it does not necessarily follow that an error made in determining the other precondition in s 390(1), that 'the person has been unfairly dismissed' (s 390(1)(b)) is a jurisdictional error.
50 The nature of the jurisdiction granted to the Full Bench was to conduct an appeal by way of rehearing where it could determine whether the decision the subject of appeal was an incorrect decision: ALDI Foods Pty Ltd v Shop, Distributive & Allied Employees Association [2017] HCA 53; (2017) 262 CLR 593 at [100]. If a misunderstanding of s 384(2)(a) leading to a misunderstanding of the test in s 390(1)(a) on the part of the Commission would be a jurisdictional error, the same misunderstanding would equally be a jurisdictional error on appeal.
51 While it was decided under different legislation, that view tends to be confirmed by Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission [2000] HCA 47; (2000) 203 CLR 194 at [31], where Gleeson CJ, Gaudron and Hayne JJ (applying Jordan CJ in in Ex parte Hebburn Ltd; Re Kearsley Shire Council (1947) 47 SR (NSW) 416 at 420) indicated (among other things) that it would be a jurisdictional error for the Full Bench of the Australian Industrial Relations Commission to misunderstand the nature of the opinion which it was to form.