[2025] FCA 361
General information, not legal advice.
Federal Court of Australia
2025-04-14
Ms J, Mr J, Vandongen J
Original judgment source is linked above.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
(a) the respondent had contravened three sub-clauses of the Serco Enterprise Agreement and that it had thereby contravened s 50 of the Fair Work Act; and
(b) the respondent had not paid him the correct amount in full on a fortnightly basis, and that it had thereby contravened s 323(1)(a) of the Fair Work Act.
The respondent's reply to the applicant's claim
Serco CPSU Acacia General Enterprise Agreement 2017 and any successor Instrument
A probationary period will not apply to your employment
The Company will pay you a casual base hourly rate of pay of $25.03 gross per hour, plus a casual loading of 25% in accordance with the terms of the Instrument.
In Accordance with the provisions of the Superannuation Guarantee (Administration) Act 1992 or per the named instrument, whichever is greater.
A person must not contravene a term of an enterprise agreement.
Note 1: This section is a civil remedy provision (see Part 4‑1).
Note 2: A person does not contravene a term of an enterprise agreement unless the agreement applies to the person: see subsection 51(1).
(a) the agreement is in operation; and
(b) the agreement covers the employee, employer or organisation; and
(c) no other provision of this Act provides, or has the effect, that the agreement does not apply to the employee, employer or organisation.
(1) An employer must pay an employee amounts payable to the employee in relation to the performance of work:
(a) in full (except as provided by section 324); and
(b) in money by one, or a combination, of the methods referred to in subsection (2); and
(c) at least monthly.
(a) incentive‑based payments and bonuses;
(b) loadings;
(c) monetary allowances;
(d) overtime or penalty rates;
(e) leave payments.
(2) The methods are as follows:
(a) cash;
(b) cheque, money order, postal order or similar order, payable to the employee;
(c) the use of an electronic funds transfer system to credit an account held by the employee;
(d) a method authorised under a modern award or an enterprise agreement.
(3) Despite paragraph (1)(b), if a modern award or an enterprise agreement specifies a particular method by which the money must be paid, then the employer must pay the money by that method.
2.1 Except as mentioned within this clause, this Agreement applies to all persons employed by Serco Australia Pty. Ltd. at Acacia Prison in Western Australia, who are engaged in the job classifications set out in the attached schedules.
2.3 The parties to this Agreement are:
a) Serco Australia Pty. Limited ('the Employer');
b) Employees whose employment is within the scope and application of this Agreement as outlined in the schedules; and
c) CPSU, The Community and Public Sector Union State Public Sector Federation Group.
6.3 Trainee Custodial Officer - means an Employee undertaking the Initial Training Course and has yet to be assessed as successfully completing the Initial Training Course.
6.4 Custodial Officer - means an Employee performing custodial functions who is working towards completing or has successfully completed a Certificate III in Correctional Practice.
...
6.9 Employee - means an Employee of the company whose job classification is within the scope and application of this Agreement.
7. Types of Employment
7.1 Employment may be either full time, part time, specific term or casual.
7 .2 An Employee may be engaged on a probationary period of not more than six (6) months.
7.3 Employees engaged on a part time basis will be paid an hourly rate based on the actual hours worked and are entitled to all entitlements under this Agreement on a pro rata basis. A part time Employee is a person engaged for less than a full time equivalent.
7.4 Employees engaged on a casual basis will be employed by the hour and paid the hourly rate of pay in the attached relevant Schedule 2. Casual Employees are entitled to a 25% loading on their ordinary hourly rate for all hours worked. Casuals are not eligible to paid redundancy, public holidays that they are not working, annual leave, personal leave, maternity leave, paternity leave, bereavement leave or blood donor leave.
7.5 When a casual non-custodial Employee is engaged in work at times that attract penalty rates and/or overtime, the penalty or overtime will be calculated on their hourly rate which must include the 25% loading.
7.6 When a casual Custodial Officer is engaged in work at times that attract penalty rates and/or overtime, the penalty or overtime will be calculated on their hourly rate which include the 25% loading.
18. Payment of Wages
18.1 Wages are paid on a fortnightly basis within four (4) days after the completion of the fortnightly pay cycle, in arrears, by way of electronic funds transfer into a bank account(s) nominated by the Employee.
18.2 If the Employee identifies underpayment of their ordinary base wage, then this will be paid within three (3) working days of the advice being received.
18.3 In the event of an overpayment being identified and accepted by the Employee, the Employee must pay that overpayment back to Serco Australia Pty Ltd at a rate agreed between the parties but no less than 10% of the overpayment or $100 per fortnight, whichever is the lesser. Should the Employee dispute the alleged overpayment, then the Dispute Resolution Procedure of this Agreement will apply.
The magistrate's reasons for dismissing the applicant's claims
(a) the length of the delay;
(b) whether the applicant has demonstrated an acceptable explanation for the delay;
(c) whether the respondent would suffer prejudice if the extension of time were granted; and
(d) the merits of the substantive appeal, approached in a reasonably impressionist manner, if the extension of time was granted.
(a) 'Employees' who are engaged on a casual basis will be 'employed by the hour and paid the hourly rate of pay in the attached relevant Schedule 2';
(b) casual 'Employees' are entitled to a 25% loading on their ordinary hourly rate for all hours worked; and
(c) casuals are not eligible for certain benefits and allowances.
The starting point for interpretation of an enterprise agreement is the ordinary meaning of the words, read as a whole and in context: City of Wanneroo v Holmes [1989] FCA 369; (1989) 30 IR 362 (Holmes) at 378 (French J). The interpretation 'turns on the language of the particular agreement, understood in the light of its industrial context and purpose': Amcor Ltd v Construction, Forestry, Mining and Energy Union [2005] HCA 10; (2005) 222 CLR 241 (Amcor) at [2] (Gleeson CJ and McHugh J). The words are not to be interpreted in a vacuum divorced from industrial realities (Holmes at 378); rather, industrial agreements are made for various industries in the light of the customs and working conditions of each, and they are frequently couched in terms intelligible to the parties but without the careful attention to form and draftsmanship that one expects to find in an Act of Parliament (Holmes at 378-379, citing George A Bond & Company Ltd (in liq) v McKenzie [1929] AR (NSW) 498 at 503 (Street J)). To similar effect, it has been said that the framers of such documents were likely of a 'practical bent of mind' and may well have been more concerned with expressing an intention in a way likely to be understood in the relevant industry rather than with legal niceties and jargon, so that a purposive approach to interpretation is appropriate and a narrow or pedantic approach is misplaced: see Kucks v CSR Ltd (1996) 66 IR 182 at 184 (Madgwick J); Shop, Distributive and Allied Employees' Association v Woolworths SA Pty Ltd [2011] FCAFC 67 at [16] (Marshall, Tracey and Flick JJ); Amcor at [96] (Kirby J).
Employees engaged on a casual basis will be employed by the hour and paid the hourly rate of pay in the attached relevant schedule.
Two conditions are necessary in order to correct the contractual language in this manner: (a) that the literal meaning of the contractual words is an absurdity and (b) that it is self-evident what the objective intention is to be taken to have been: see Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; [2014] NSWCA 184 at [117]- [119], approving National Australia Bank Ltd v Clowes (2013) 8 BFRA 600; [2013] NSWCA 179, where it was stated at [34]:
'[34] ... Where both those elements are present ... ordinary processes of contractual construction displace an absurd literal meaning by a meaningful legal meaning.'
Likewise, in the United Kingdom, the court must be satisfied both as to the mistake and the nature of the correction: Pink Floyd Music Ltd v EMI Records Ltd [2010] EWCA Civ 1429 at [21] (Lord Neuberger); Arnold v Britton [2015] AC 1619; [2015] UKSC 36 at [78] (Lord Hodge).
The court must be satisfied of those matters to a high level of conviction. To use the language of Dixon CJ and Fullagar J in Fitzgerald v Masters at 426-427, it must be 'clearly necessary in order to avoid absurdity or inconsistency'. As this Court said in Miwa Pty Ltd v Siantan Properties Pte Ltd [2011] NSWCA 297 at [18], the test of absurdity is not easily satisfied. Any question of absurdity or inconsistency must be identified according to established principles, by reference to the text of the agreement as understood in its factual and legal context: Wyllie v Tarrison Pty Ltd [2007] NSWCA 184 at [46]; Newey v Westpac Banking Corporation [2014] NSWCA 319 at [85]. Courts which are asked to delete, insert or rewrite part of a contract because of what is said to be an obvious error should bear steadily in mind that imperfections and infelicities and ambiguities in contractual language commonly reflect the give and take of negotiations, or the parties' appreciation that some obscurities are incapable of resolution. As Lord Hoffmann explained, the court does 'not readily accept that people have made mistakes in formal documents': Chartbrook Ltd v Persimmon Homes Ltd [2009] AC 1101; [2009] UKHL 38 at [23].
17.1 Upon approval of this Agreement by the Fair Work Commission, all positions outlined in Schedules 1, 2 and 3 shall receive the following increases:
a) 1.5% effective from the first full pay period to commence on or after date of approval from the FWC.
b) 1.5% effective from the first full pay period to commence on or after 1 July 2018.
c) The percentage increases referred to in a) and b) above apply directly to the overtime rate, annualised rate and annualised salary used in Schedule 1 of the table of rates attached to the Agreement.
d) The percentage increases referred to in a) and b) above apply directly to the overtime rate, the base hourly rate and annual salary rate used in Schedule 3 of the table of rates attached to the Agreement.
e) The percentage increases refer[red] to in a) and b) above apply to the Casual Custodial Officer classification, according to the following formula:
(ii) determined [sic] the unloaded rate by deducting the 25% casual loading from the Case Management Custodial Officer Year 5 hourly rate;
(iii) then apply the relevant wage increase (of either a) and b) above) to the unloaded hourly rate. Then apply the 25% Casual loading. (emphasis added)
Industrial agreements (such as enterprise agreements) will commonly differentiate between groups of employees covered by the agreement because some terms and conditions provided for by the agreement will be applicable to some groups but not others or, if applicable to all, may provide that different rates or conditions apply to different groups. In those circumstances, an enterprise agreement must assign the employees covered by it into different categories and provide a definition, or identify some other mechanism, for allocating employees into those categories.
That, for instance, is commonly done in relation to rates of pay. For this purpose an agreement will commonly provide for the categorisation of employees into different competency based classifications.
Custodial Officers performing overtime are eligible to be paid overtime at the overtime rate outlined in the attached schedule, plus overtime penalties applicable to the day in which the overtime was performed.
I certify that the preceding one hundred and seventeen (117) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Vandongen.
Cacciola
Serco Australia Pty Ltd [2025] FCA 361
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WorkPac Pty Ltd v Skene [2018] FCAFC 131; (2018) 264 FCR 536
(2019) 99 NSWLR 317
(2018) 264 FCR 536
(1989) 30 IR 362
(1996) 66 IR 182
(2014) 89 NSWLR 633
(2005) 222 CLR 241