[2026] FCA 28
General information, not legal advice.
Federal Court of Australia
2026-01-30
Jackson J
Original judgment source is linked above.
(a) whether any agreements between the parties were formed, if so, when and on what terms, and whether any such agreements were breached; and
(b) whether the FWA was breached.
(a) the agreement was to have a 'total minimum value of $1,220,000', broken down as follows:
(i) $419,186.93 inclusive of GST was to be paid to Jamrok (which Ms O'Brien identifies in the evidence as her company);
(ii) $73,134 was to be paid to Mr Chambers to cover his previous periods of employment;
(iii) $7,679.07 was to be paid to Mr Chambers' nominated superannuation fund as compulsory contributions for his previous periods of employment (this and the two previous amounts total $500,000); and
(iv) Delstrat Pty Ltd, a company in the Delstrat Group, would reinstate Mr Chambers 'within a new entity among its affiliated companies' on the terms described above (that is, a base salary of $180,000 per year for a minimum of four years plus 1% on all sales made by the new business, where $500,000 + 4 x $180,000 = $1,220,000); and
(b) Mr Chambers would cease all claims against the respondents in relation to his previous period of employment (and Ms O'Brien would provide a similar release).
Evidentiary ruling - without prejudice communications
(a) Annexure PC-13 to Mr Chambers' affidavit, which is an email chain dated 14 October 2022 (and headed 'Without Prejudice'), in which Mr Basso gave Mr Chambers some information, apparently relevant to the settlement discussions they were having;
(b) paragraphs 41-44 of Mr Chambers' affidavit, concerning things said at a conciliation conference at the FWC on 15 October 2022 (which preceded further settlement discussions later on);
(c) paragraphs 165-166 of Mr Chambers' affidavit, concerning things said at the further conciliation conference on 21 October 2022 which has already been mentioned;
(d) paragraphs 35-38 of Ms O'Brien's affidavit, in which she purports to summarise the outcome of the same conference; and
(e) Annexures PC-60 and PC-62 to Mr Chambers' affidavit, which both contain an email dated 30 May 2023 from Mr Chambers to the Delstrat Group's Chief Financial Officer, Tracy Joughin, in which Mr Chambers says things about the effect of the settlement discussions held the previous year and about the terms of his re-employment in 2023.
(a) a communication that is made between persons in dispute, or between one or more persons in dispute and a third party, in connection with an attempt to negotiate a settlement of the dispute; or
(b) a document (whether delivered or not) that has been prepared in connection with an attempt to negotiate a settlement of a dispute.
the proceeding in which it is sought to adduce the evidence is a proceeding to enforce an agreement between the persons in dispute to settle the dispute, or a proceeding in which the making of such an agreement is in issue ...
The initial 'employment arrangement' between Mr Chambers and Broadway Homes
Only when all relevant approvals have been received, Commission Claim Form completed and authorised by the Operations Manager, and the job has commenced to slab down on site on the prior month, will the Consultant be paid.
The initial Fair Work Commission and Federal Court proceedings
(a) settling the dispute was the main focus and topic for discussion;
(b) there was discussion that appeared to me to be directed at identifying settlement terms;
(c) there was no dispute that Broadway owed Mr Chambers and his mother some money for commissions;
(d) none of us were sure how much to pay and, given the Commission's finding that Mr Chambers had earned those commissions as an employee, how to pay both Mr Chambers and Ms O'Brien;
(e) there was a dispute about whether commissions should be paid on cancelled deals;
(f) Mr Chambers expressed a desire to get back into the industry; and
(g) Mr Chambers claimed that Broadway owed him and his mother about $1.2M.
I can't recall the exact words, but the discussion was held that I would come back and work. It was said that I couldn't work at Broadway because there were people at Broadway that I - I - was still there when I was terminated the first time. But he was - basically he was offering me a position to come back and work at Broadway as a part of our settlement.
So, again, my settlement figure was 750. Mr Basso was never going to come up to that and he stated he was never going to come up to that. He was discussing paying me only 426,000, which I told him we were never going to accept. He understood that I was a very good salesman. He knew the figures that I produced at Broadway Homes. He knew that I had saved all my homes previously.
The conversation of our settlement included a four-year term and a position of general manager.
You seem to be having difficulty understanding that what I'm looking for here is for you to tell me what Mr Basso said or did. I'm not asking you to quote him, but at least give us some basis for understanding how these four elements ended up in your affidavit?---Our discussions resulted in Mr Basso agreeing to employ me as a general manager for four years at 180,000 a year.
And you say that offer was made at that meeting?---It was discussed at that meeting.
Well, you say, in your words, this represented the reinstatement offer. Okay?---It was a - it - - -
So I'm asking you, how was this offer communicated to you?---Verbally, as a part of our settlement discussion.
So you're saying that at some point in the meeting Mr Basso-Brusa said to you, 'I would like you to be our general manager. I want to pay you $180,000 a year. And I want you to stay for four years. Will you take it?'?---Not in so - - -
Did he do anything like that?---Not in so many words.
Not in so many words. So are you implying that that's what the offer might be based on things that he that he said?---No.
He didn't communicate this directly as an offer of employment?---Did he, as I said, I can't recall the exact words.
It sounds like you can't recall any of the words. You can't point to anything he said or did that can contains this offer?---Our discussion went for a number of hours. We discussed multiple points, not just the settlement, but we discussed a lot of things.
Well, this would have been a fairly important thing to nail down, wouldn't it?---In a document, yes, definitely.
Well, at all. But you can't recall him nailing it down?---We were actually in principle agreement.
In principle?---Yes.
The 4-year minimum employment term at a base salary of $180,000/pa, plus the $500,000 lump sum payment combined to resemble the initial offer of settlement made by Mr Chambers on 29 June 2021 (paragraph 2).
(a) I told Mr Chambers that I wanted to move forward, but he needed to understand that Broadway did not owe him anything beyond the undisputed commissions - there was no basis for his claim that Broadway owed him and his mother $1.22M;
(b) I agreed that the undisputed commissions amounted to approximately $400.0K (some of which belonged to Mr Chambers' mother);
(c) Mr Chambers requested that the amount be rounded up to $500.0K, including GST, to compensation [sic] him for his time;
(d) I said that, given Mr Chambers had been found to be an employee, it was necessary to pay some of that commission to Mr Chambers as salary;
(e) I suggested establishing a marketing business to sell homes that Broadway would build;
(f) Mr Chambers praised his sales expertise and indicated a willingness to be involved with a new venture;
(g) I told Mr Chambers that I'd be willing to give him a chance to sell houses and to earn the additional money ($1.22M-$500.0K=$720.0K) that he thought he was entitled to;
(h) I told Mr Chambers that Broadway didn't owe him anything except the $500.0K;
(i) Mr Chambers pointed out that we couldn't complete any discussions without involving his mother, because some of the money we were discussing was hers - I agreed.
(a) $1.22 million as an offer originally made to Broadway Homes shortly after Mr Chambers' earlier dismissal;
(b) the $500,000 compromise settlement figure 'we were agreeing to';
(c) four amounts of $180,000 representing the annual salary for four years totalling $720,000; and
(d) the total of the $720,000 and $500,000, being again $1.22 million.
Who suggested the four-year minimum term?---It was a mutual discussion.
So nobody suggested it?---Mark - when we were speaking about the four-year minimum term, he said, 'I don't start projects for four years. I don't just do something for four years; I do it for long term.'
I'm concerned about your recollection of these events because, when I asked you whether you said something or Mr Basso said something, you can't recall?---I've said words to the effect.
Well - - -?---They were along those lines.
Well, who said them? You or Mr Basso-Brusa?---Mr Basso.
Okay. So now, you remember that he was the one who, you say, presented the four‑year option?---Exactly as I said in 107. Mr Basso raised the point by saying words to the effect he 'starts projects for the long term, not just four years,' when referring to the four-year minimum term that was presented.
'The four-year minimum term was presented.' So I asked you who presented it, you said - you didn't answer my question, you simply said it came up in conversation?---Yes, possibly. It was a discussion between both of us. It may have come from me. For me, the four-year minimum term was important because it protected my - it gave me an opportunity to rebuild my career, and it also then gave me an opportunity to keep the settlement agreement that we - that we were basically working towards.
would be the general manager of a new start-up division within his organisation, that he would have just himself as an employee initially, that he would be paid $180,000 a year, and once the division got up and running, he would get a one per cent from the sales. It was all discussed.
Now, I just want to be clear with you there. You're saying that this was going to be guaranteed regardless of what you did, whether you achieved anything, whether you did any work, you're saying you become entitled to this anyway?---It was a discussion we had, yes.
I'm asking the question - - -?---Yes, I was entitled to it.
You were entitled to it because Mr Basso said that you couldn't be dismissed?---He told me I had a four-year minimum term. We discussed a four-year minimum term.
Did you understand from anything that he said or done that there was no way you could be dismissed?---Yes.
So what you're asking us to accept is that Mr Basso-Brusa, an experienced guy in the commercial field, offered you a job in which you didn't have to do anything, you would simply get paid $180,000 whether you turned up or not, without being required to be accountable in any way, shape or form for output?---Correct.
You're saying that that's the deal Mr Basso-Brusa made with you?---There were other considerations, but yes, that was the deal.
Well, what I'm going to put to you is that that summary of what Mr Basso had in mind for you and what he discussed with you is just pure fantasy and it didn't happen. He never agreed to that at all?---Then he would be incorrect.
So how does that protect Mr Basso-Brusa?---Because I intended on building Katura Homes into a profitable, financially beneficial business for Mr Basso-Brusa.
So, ultimately, what your evidence is, is that Mr Basso-Brusa was concerned about you not turning up, but you were able to deal with his reservations, simply by expressing your commitment to getting the job done?---He had already seen my past performances.
What I'm putting to you is that Mr Basso-Brusa had those concerns, and those concerns remained unresolved?---Incorrect.
These answers are also implausible, particularly in a context where, for whatever reason, Mr Chambers had already been dismissed once.
What was it that he said or did that indicated his agreement to that?---Well, he didn't accept my offer of doing a bonus percentage on - on profit margin.
So his refusal to accept that proposal, for you, amounted to agreement to the other proposal?---Our discussions went that way. Yes.
But he didn't actually say, 'I agree,' did he?---He did on the email on 18 October.
Okay. I'm talking about at the meeting?---Yes, he did.
You're saying he did say that he agreed?---On the 18th, we all stood up, shook hands, and walked our separate ways.
That's not quite the same thing as him saying, 'I agreed,' is it?---We agreed.
Okay. I will go back to my question. What did he say to indicate that he agreed?---I can't recall the exact words, but in his reply email to me, he said, 'I agree with your summary.'
So - - -?---Exact words.
So you don't recall him actually saying anything to that effect in the meeting, do you?---Well, no, wasn't clarified exactly like that.
(a) Broadway offered to pay $500.0K including GST to resolve the dispute about unpaid commissions.
(b) I suggested that a portion of that money had to be allocated to paying Mr Chambers' unpaid wages for the Original Employment, directly to him. Mr Chambers disagreed and insisted that he be paid only the minimum wage so that the balance to paid to Jamrok.
(c) I told Mr Chambers how the remuneration structure in the new venture would work - specifically:
- Broadway would guarantee Mr Chambers remuneration of $180.0K per annum (pro rata) for the first 3 months, so that he had a window of paid time to set things up;
- Broadway would guarantee Mr Chambers $1.1K per week (including superannuation contributions) and top that amount up with commissions on sales; and
- Mr Chambers' remuneration would be capped at $180.0K per annum (including superannuation).
(d) There was a discussion about the duration of the employment. Mr Chambers appeared to want a guarantee of 4 years of employment. I told him that I wanted a productive, mutually beneficial working relationship that went on forever provided that it was a win/win situation and we were making money.
(e) There was no discussion about giving Mr Chambers an unqualified guaranteed right to 4 years of employment with a salary of $180.0K per annum. Such an arrangement would have been commercial lunacy, and I would never consider employing anyone on that basis.
(f) It seemed to me that:
- Mr Chambers was looking for a route to a payment of $720.0K; and
- he hadn't accepted that Broadway didn't owe him any money (beyond the unpaid commissions described above).
(g) I told him clearly that, if he wanted money from Broadway, he'd have to earn it. I think my words were along the lines of 'we don't have a colour copier printing money - how it work is, you get money when clients pays us - ultimately, the clients pay you'.
(The references to 'Original Employment' in Mr Basso's evidence means the period from September 2019 to 11 June 2021, in which Mr Chambers was engaged as a sales representative at Broadway Homes.)
So basically, that agreement was, okay, how do we move forward, and that's when you pitched - and I pitched the idea of, okay, let's create a separate sales arm, and you have to work. You have to work to earn the 720,000, and so you need to sell houses, obtain commission. That was a discussion we had, and that's how it became this marketing arm as a - as a means because you said you wanted to re-establish yourself in the market. So the 500 was a settlement of everything which you cleaned off. This thing was something you weren't owed, but I said, 'Okay. I'm in business. I'm here for sales'. You kept preaching me to be the best sales guy in Perth. I said, 'Okay. Let's turn this into a win-win scenario'. That's how it evolved.
So you will say, 'But I'm owed this 720,000'. I say you're not owed a dollar. Let's get this straight. In order for you to get that money, we have to come up with a scenario where you could earn and work for it, mate. So you said okay. I said let's - that's where we came up with the marketing idea. So I said there is no free gift. I said to you there's no photocopier around the corner, printing $100 bills - was the discussion I had with you. We actually - I said, 'This is not actually owed, however', and you kept saying, 'Mark, I'm the best sales guy in Perth. I will generate you so much business you won't know what to do with it'. I said, 'Okay, fine. Let's establish a sales and marketing arm. Let's have the three months set up period', etcetera, etcetera, and that's what we're talking about as a way of moving forward. That's what it was all about because - - -
The cap was your suggestion because you said, 'I want to get my name back into the industry, and to show how good I am, I'm prepared to cap it for four years.' That was your recommendation.
Hi Mark,
As per our conversation this afternoon we are please[d] to make an in principle agreement of the following:
Broadway pays Jamrok Pty Ltd the sum of $500,000 including GST upon signing of Deed between all parties
Chambers removes all current claims to employee entitlements from Broadway.
Delstrat agrees to employ Chambers for a minimum of 4 years as General Manager of West End by Broadway.
The details of this in principle agreement are to be worked out in the coming weeks and potentially with the assistance of Deputy President Binet, of the Fair Work Commission, through the scheduling of a conciliation conference.
I will approach the Fair Work Commission to request assistance in this matter and communicate the outcome to all parties.
If I have left anything off that we spoke about please let me know.
Cheers
Peter Chambers
Hi Peter
I agree with your summary
The only point to note is that we need to get clear direction from the government departments involved to date that we can pay the agreed sum to Jamrock or whether we need to have a different split of the 500K incl GST given that you have been classed as an employee. We need a clear understanding of what can now be done so that there is no come back on Broadway Homes or you or Jamrock. This is something we'll need to work through and resolve as fast as we can so that payment(s) can be made.
Cheers
Mark
The Fair Work conciliation conference of 21 October 2022
(a) That the $500,000 upfront payment would be split as follows:
Payment of roughly $420,000 to Jamrok Pty Ltd
Payment of backpay to me for roughly $73,000 with the super guarantee payments bringing the total amount to roughly $80,000
(b) That Ms O'Brien and I would discontinue all our actions against Broadway
(c) That I would be re-employed within their group of companies on a 4‑year minimum term
(d) That my salary would be $180,000 per annum with 1% bonus on all sales from the new building division being created
(e) That Broadway undertook the preparation of the Deed of Settlement and Employment contracts. I can recall that we specifically discussed that the Deed of settlement needed to reference the employment contract.
- Probation was never considered or discussed during this conference, or at any time prior.
We had finalised our agreement and I was encouraged to sign a discontinuance form with the Fair Work Commission because I was assured that even though the agreement had not been committed to paper yet, it was still binding on the parties.
The agreement was for Peter Chambers to be reinstated for a minimum four-year term within the Delstrat Group, with a base salary of $180,000 plus superannuation. Jamrok would receive $420,000 inclusive of GST, and Peter Chambers would receive $80,000 as wages for the previous period of employment.
The agreement we finally made contained the following terms:
(a) Broadway pays Mr Chambers the minimum wage from the date on which he commenced on 30 September 2019 to the date on which his first period of employment ended (90 weeks at $812.60 per week);
(b) Broadway pays Mr Chambers 10.5% superannuation contributions;
(c) Broadway pays almost $400,000 to Jamrock (I don't recall the exact amount);
(d) Broadway re-employs Mr Chambers for up to 4 years during which he could earn up to $180,000.00 per annum;
(e) Mr Chambers discontinues his legal proceedings against Broadway; and
(f) Mr Chambers releases Broadway for any employment-related claims for the Original Employment.
The meeting of 25 October 2022 and subsequent correspondence
I just wanted to touch base on a couple of items regarding our settlement.
All Jennifer's and my actions have been discontinued except for the Federal Court Judicial Review. To complete this we need your lawyers to sign the discontinuance form. They have had this form since Monday afternoon.
Jennfier and I have completed our discontinuances in good faith.
We are still waiting on Don to provide a timeframe for the documentation to be prepared.
Can you please provide an idea when the invoice provided on Tuesday will be processed?
I hope you have a great weekend and I look forward to catching up sometime later next week to run through the business plan I am working on for Katura Homes.
Either way let's gear up for an official start on the 9/1/23 when we recommence work in 2023 as nothing much can be achieved before we finish on the 16/12/22
You can also invoice the balance of what's outstanding for Jamrok which only leaves the smaller wage component to pay to you once the docs are signed off
As the agreed total settlement was 500K Including GST this equates to $454,545.45 excluding GST
Total settlement amount payable excluding GST to Peter Chambers & Jamrok
Deduct salary amount allocated to Peter Chambers ( Wage + Super)
Total settlemet [sic] amount due to Jamrok excluding GST
Total settlemet [sic] amount due to Jamrok including GST
Peter Chambers came into the office once the above figures were presented to him and argued that he wanted Jamrok to be paid 10% GST on the amount allocated to his salary. This made nil accounting sense to me however in order to keep the peace I agreed to add the GST component of $80,813.07 x 10% = $8,081.30
Therefore the Total Settlement Sum due to Jamrok is $411,105.62 + $8,081.30 inclusive of GST ( This figure excludes the $73,134 wages + $7,679.07 super payable directly to Peter Chambers)
January 2023 - Mr Chambers starts work for Broadway Homes
Your salary will be 180Kpa incl super. Probation period 6 months. As we discussed around Oct/Nov last year to allow you time to setup Katura and gain leads 45K incl super (ie full salary/4) will be paid over 3 months from 9/1/23. Thereafter your base wage will reduce to 52Kpa plus super. This amount will then be progressively topped up from your sales to reach the 180K agreed capped amount per annum. The cap will apply for 4 years min. As per our calcs late last year you will need approx. 1 deal per month ( subject to job value ) to cover your salary.
EMPLOYMENT AND 6 MONTH PROBATIONARY AGREEMENT BETWEEN THE DELSTRAT GROUP AND
(EMPLOYEE NAME)
As a probationary employee of the above companies, you are welcomed into the company on the following conditions:
You are required at all times to wear appropriate protective clothing (e.g. steel capped safety boots).
Please refer to your Manager for your hours of employment and lunch time duration.
If there are any questions regarding your work related duties you are to report directly to your Manager.
All confidentiality of information in relation The Delstrat Group will not be discussed with any persons out of the office hours and will be treated with the highest respect.
All tools and machinery remain the property of The Delstrat Group and are to be used for the purpose that they are intended for and use only when appropriately trained and approved by the Manager.
Courtesy and commonsense will be adhered to at all times.
No employee will be intoxicated at any time during work hours as this will result in instant dismissal without pay.
No employee will sell or have in their possession any mood altering drugs as this will result in instant dismissal without pay, other than prescribed medication.
Wages shall commence in the next fortnightly payroll cycle and will be paid on a fortnightly basis. During the 6 month probationary period your employment is full time but may be terminated with 1 week's notice. On successful completion of the probationary period, the position will become permanent full time.
The use of personal mobile phones during work hours is prohibited.
I give permission to the Payroll office to deduct any personal usage charges of my 'Company Mobile Phone' from my wages.
In signing this document you/we hereby agree to the conditions above and understand them fully.
General Manager must sell 11 houses in 12 month period at an average of $550,000 to cover base salary and 12% super
The minimum term of this employment contract is 4 years from the commencement date referred to in Clause 2a, KATURA HOMES makes no guarantee of ongoing employment beyond that date.
decided not to engage with this latest piece of fantasy.
To my mind, our employment terms was clear, and they had been articulated and explained clearly. There was no need to engage.
In relation to all claims Mr Chambers and Ms O'Brien had against Broadway Homes Pty Ltd for their previous employment and termination the following letter outlines a full and final settlement of all matters.
Broadway Homes Pty Ltd has paid the amount of $419,186.93 to Jamrok Pty Ltd to cover all outstanding commission payments due to both Mr Chambers and Ms O'Brien.
The Delstrat group has agreed to employ Mr Chambers for a period no less than 4 years on terms outlined in his employment contract.
Further Broadway Homes Pty Ltd has agreed to pay Mr Chambers the following:
1. $73,134 for his employment period from September 2019 until June 2021; and
2. $7,679.07 into Mr Chambers nominated superannuation fund.
Once these payments have been completed, they will constitute full and final settlement of all claims against either party.
Mr Chambers and Ms O'Brien have withdrawn all their actions against Broadway Homes Pty Ltd in the Fair Work Commission, Federal Full Court, Fair Work Ombudsman and the ATO.
The agreed salary package is 180K inclusive of Super. ( Calculate the tax based on this figure per annum ) This runs for three months from 9 Jan 2023 and then he'll sign an agreement Don is preparing for the next period.
the 180K is a salary package and as we move forward will be adjusted in alignment with sales achieved. If poor sales this figure will go down - if heaps of sales it will peak at 180K for 4 year term.
Hi Tracy
Peter Chambers has been harassing me daily for his final payment as he has a settlement due and needs the funds. We need to get him sorted today so please extract funds from wherever you can so that he stops standing outside my office every hour. He keeps reminding me that the agreement from last year was to have everything squared up by the end of Jan 2023 which is today.
The final amount due to him in wages (as per the attached sheet ) is $73.134 + Super $7,679.07
The $73,134 can be split as follows:
Gross Wage $73,134
Tax $19,894 (His accountant contracted [sic] the ATO and they advised him that this is a Category E payment and hence the tax is $19,894)
Net Wage $53,240 to be paid 31/1/23
Then later on super = $7,679.07
Thanks
Mark
With Peter Chambers I made a 3 month arrangement to pay 180K pa (super inclusive) prorata to set up Katura Homes [sic] The start date was 9/1/23. This amount is not recoverable as it was an agreed amount to set things up. So from 10/4/23, or the start of next fortnight pay period, this figure no longer applies as inorder [sic] to receive up to 180K pa ( capped total ) incl super from the 10/4/23 it needs to [be earned] via sales commissions.
Therefore his pay rate can change to $1000/week plus super as there are no deals in the system so we don't want to expose ourselves. Every 3 months please monitor what deals he has in the system to ensure payments are being covered. Once there are sufficient contracted jobs with deposits paid we can increase the fortnightly payments with a goal to work towards a capped amount of 180K pa incl super.
I'll discuss this with Peter tomorrow.
Hi Peter
I was hoping to catch up with you in the office today to discuss the query you have raised with Tracy.
From the outset we agreed to a 3 month period for the setup of a new two storey marketing arm ( The name Katura Homes was eventually selected )
The three month period commenced on 9/1/2023. The wage payments (super inclusive) for this period were based on $180K pa as agreed.
The three month set up period ended on 8/4/2023. After the 3 month set up period it was agreed that you would transition to payments based on performance up to a cap of $180k pa inclusive of super for a 4 year period. Earnings in excess of 180K would be retained by Broadway Homes Pty Ltd t/as Katura Homes to help cover business expenses.
We have now transitioned to a non recoverable base salary of $1000 plus super per week and will top up these base wage payments on a monthly basis to a total cap of 180K pa super inclusive (i.e Capped at 15K per month including super-This figure comprises base salary plus the top up) based on deals you have contract signed for Katura Homes ( or Broadway Homes ). For a deal to be included in the monthly top up calculation a 6.5% deposit must have been paid by the client in the prior month. Also, only 50% of the deals, where a 6.5% deposit has been paid, will be included in the calculation in order to allow for possible cancellations)
...
As your recent leave crossed between the two different periods it may be difficult to understand the pay amount. I can get Tracy to explain the calc in more detail.
We can run through this in more detail on Monday.
Cheers
Mark
Following on from yesterday's conversation about the pay structures for Katura, I double checked my latest pay slip last night and I have noticed that I am now only getting paid $52k/pa and also from day one I was only getting paid $162,896/pa plus super.
As per all of our previous conversations, mutual agreement and the spreadsheets I gave you yesterday my salary should have been $180k/pa plus super.
Please rectify these as soon as possible.
Let's discuss in detail when you are in the office as I can't find any correspondence or recall any discussions saying plus super. Discussions & spreadsheets have always shown a total amount. If you have received anything from me which shows plus super please forward it to me for review.
I have woken up this morning to find that Delstrat has varied my pay again.
Last night's pay was only $1676 nett for the fortnight.
I previously raised concerns about not being paid as per our agreement, and in good faith I was prepared to ignore the oversight if all future payments were in line with our agreement.
Given our conversations about the Katura pay structures I thought that this issue would have already been sorted out.
In light of these continuing issues with my salary, I expect full back pay, from the 9th January, as per our agreement to rectify the situation, immediately. The amount currently stands at approximately $11,313.44 of salary that you have not met.
Mark, to be clear, neither Jennifer nor I would have accepted an offer to work with Delstrat as a part of our settlement negotiation if we thought that you would not honour the arrangement that was put forward, and agreed, in front of the Fair Work Commission.
We entered this agreement hoping to work towards something positive, however the inefficiencies of design and estimating are making this journey extremely challenging.
Morning Mark,
I have had confirmation from Tracy this morning that my salary has been altered to only $50k/pa. This was not our agreement and I am extremely disappointed that we took you for a man of your word.
Hi Peter. I believe that I have made things very clear to you on multiple occasions from the outset. I am someone who sticks to exactly what I say. The agreed salary was 180k pa (inclusive of super) for the 3 month period to set up Katura. The 3 months commenced on 9/1/23 and all payments were made fortnightly as discussed. Thereafter in order to achieve the 180K salary sales need to come into the system. I distinctly remember telling you that we don't PRINT money we effectively use clients money to pay all the bills. The $1000 per week wage plus super was introduced after the 3 month set up period. The goal is for you to achieve sufficient sales over the 12 month period so that you earn 180k including super. As you believe that you are one of the best sales people in Perth there shouldn't be any problems achieving this goal. I have also asked BH to send you leads while you get the Katura Web site up and running. This will assist you in achieving the sales target. The purpose of the spreadsheet you have been working on is to determine the number of sales you need in order to cover the 180K. The fortnightly payments are effectively non refundable advances. I'm more than happy to go through all of this again with you [when] I get back to work in approx 4 weeks. Cheers Mark
June 2023 - Mr Chambers commences a Fair Work proceeding and is dismissed
Is it likely that you didn't perform a cost-benefit analysis while you were on holidays and without access to all the relevant information?---It's purely based on sales. So no sales is a problem for me. That's the analysis that I do.
How did you get that information?---Well, I was - I was obviously working with yourself since the 1st of - 9 January until I went on holiday, so until the end of May, assessing it progressively all the way, and - and that's where I got the information.
Why were those - were you provided that information via email?---I'm running it. I know exactly what's going on.
Termination of your employment by reason of redundancy
The purpose of this letter is to confirm the outcome of a recent review by Broadway Homes (the employer) of its operational requirements, and what this means for you.
As a result of economic factors outside our control, your position as Manger[sic]/Sales Manager with the employer is no longer needed. Your position will be absorbed into the Operations Managers role at Broadway Homes. Regrettably this means your employment will terminate.
Your employment will end immediately. Based on your length of service, your notice period is 2 weeks. Instead of receiving that notice, you will be paid the sum of $2,000.
As no sales have been generated by yourself since 09th January 2023 no top up wages are applicable.
We wish you every success in the next chapter of your career.
Mr Basso's evidence about the reasons for the dismissal
Probation
Mr Chambers commence[d] employment on 09 January 2023 and his probationary period expired on 08 July 2023.
In mid-May, as the end of Mr Chambers' probationary period approached, I turned my mind to whether or not our difficult relationship was salvageable, and whether it was likely to achieve what I'd hoped it would achieve, and whether he was helping the business.
At that time, I believed that I had to make a decision about Mr Chambers' employment before the end of the probationary period. I subsequently (recently) found out that that wasn't the case.
Decision to dismiss
By mid-May, I'd pretty much made up my mind that Mr Chambers wasn't going to get past his probation.
My inquiries of my administration team confirmed that Mr Chambers hadn't sold anything during his employment thus far, and that Katura Homes hadn't even so much as commissioned a design drawing. As far as I could see, Mr Chambers, the super salesman, had failed to get even the beginnings of a sniff of a potential deal for Katura Homes.
I didn't see evidence of effort, I didn't see evidence of sales-related activity, and I didn't see evidence of any sales.
By mid-June 2023, I was completely satisfied that Mr Chambers:
(a) wasn't going to deliver the sales effort and commitment that was required to get Katura Homes off the ground commercially; and
(b) he was just going to occupy a seat, collect a salary without adding any value to our efforts to launch a new brand.
- Since it was very clear to me that Katura Homes was not going to be financially viable I decided to close it.
- In those circumstances, I couldn't see any point in persevering with Mr Chambers' employment and I decided (finally) to terminate his employment.
Okay. So who managed the complaints and his termination while you were on holidays?---I phoned Tracy when I was overseas on the 20th and advised her to issue a termination letter and asked for Lee Tucker to sign it.
That was on the 20th?--- That was on the -20 June. Yes.
Tasks. What did you actually get done in five months?---I had meetings with suppliers. I negotiated space at one of our tile shops for a pre-start room. I negotiated with Seima, which is another supplier. I gained a lot of quotes for specific details about homes. We had drawn approximately 10 concept plans, and I believe three of them were fully drafted.
Do you do the drawing?---I do not, but I do the design. We had those priced, and I went through that pricing and was putting that into a - basically an Excel spreadsheet, which was an automated system. So when you first input a client's details at the very start of that system, it pre-populates all the documents. So, instead of providing a massive amount of administration staff within the business, I was trying to streamline the business and create a system that minimised overheads ...
... So when you were working there and nothing was happening in terms of sales, we sort of got to a point, you know, down the line, I said, 'Okay. Pete, this is - there's no sales coming in.' So I decided to put you on that roster we talked about the other day to say let's - I will try to generate you - I will give you some leads to work on while you're - while you're still mucking around with what you're doing because it's just taking forever, as - as a means of you to try and get something. And during the whole period of time you were there - and I've written in my affidavit - there was not even a sniff of a deal.
It would appear that this is referring to mid-May 2023, when Mr Basso gave Mr Chambers access to leads in the Broadway Homes sales database.
The terms of the agreement(s) between the parties
if it can be stated with confidence that by a certain point the parties mutually assented to a sufficiently clear regime which must, in the circumstances, have been intended to be binding, the court will recognise the existence of a contract.
Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; (2001) 117 FCR 424 at [369] (Allsop J).
... The essential question in such cases is whether the parties' conduct, including what was said and not said and including the evident commercial aims and expectations of the parties, reveals an understanding or agreement or, as sometimes expressed, a manifestation of mutual assent, which bespeaks an intention to be legally bound to the essential elements of a contract. ...
Where the conduct is the speaking of words in the course of a conversation, it is necessary that the words spoken be proved with a degree of precision sufficient to enable the court to be reasonably satisfied that they were in fact misleading in the proved circumstances. In many cases (but not all) the question whether spoken words were misleading may depend upon what, if examined at the time, may have been seen to be relatively subtle nuances flowing from the use of one word, phrase or grammatical construction rather than another, or the presence or absence of some qualifying word or phrase, or condition. Furthermore, human memory of what was said in a conversation is fallible for a variety of reasons, and ordinarily the degree of fallibility increases with the passage of time, particularly where disputes or litigation intervene, and the processes of memory are overlaid, often subconsciously, by perceptions or self-interest as well as conscious consideration of what should have been said or could have been said. All too often what is actually remembered is little more than an impression from which plausible details are then, again often subconsciously, constructed. All this is a matter of ordinary human experience.
So in all sales, we always put an incentive to people to perform. Otherwise, people are going to sit around doing nothing. So the whole structure for - since I've ever been business is always incentivised to make people basically perform.
We went through a number of different figures. So I outlined Mr Basso had 4 per cent built into all the sales of his homes. So that 4 per cent was to cover his sales and marketing portion of the business. Obviously, there was other parts of his business that he needed to account for in his margins.
Whether Broadway Homes breached s 323 of the FWA
Whether Mr Chambers was dismissed because he exercised workplace rights
(a) in an application in relation to a contravention of this Part, it is alleged that a person took, or is taking, action for a particular reason or with a particular intent; and
(b) taking that action for that reason or with that intent would constitute a contravention of this Part;
it is presumed that the action was, or is being, taken for that reason or with that intent, unless the person proves otherwise.
As the trial judge recognised the leading authority on the operation of ss 360 and 361 of the Fair Work Act in the context of Part 3-1 of that Act (which includes s 351) is Board of Bendigo Regional Institute of Technical and Further Education v Barclay [2012] HCA 32; (2012) 248 CLR 500. The principles which informed this decision were recently reaffirmed by a majority of the High Court in Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd [2014] HCA 41. Relevantly, these authorities establish that:
- The central question to be determined is one of fact. It is: 'Why was the adverse action taken?'
- That question is to be answered having regard to all the facts established in the proceeding.
- The Court is concerned to determine the actual reason or reasons which motivated the decision-maker. The Court is not required to determine whether some proscribed reason had subconsciously influenced the decision-maker. Nor should such an enquiry be made.
- It will be 'extremely difficult to displace the statutory presumption in s 361 if no direct testimony is given by the decision-maker acting on behalf of the employer.'
- Even if the decision-maker gives evidence that he or she acted solely for non‑proscribed reasons other evidence (including contradictory evidence given by the decision-maker) may render such assertions unreliable.
- If, however, the decision-maker's testimony is accepted as reliable it will be capable of discharging the burden imposed on the employer by s 361.
(1) There is no clear evidence that Mr Basso or anyone else raised concerns with Mr Chambers about his performance before his employment was terminated - Mr Basso's brief oral evidence on the topic is broad and I give I little weight ([247] above).
(2) Mr Basso had given Mr Chambers access to Broadway Homes' sales leads as recently as mid-May 2023, and he confirmed this in his text message of 31 May 2023 (which acknowledged that it was necessary for Mr Chambers to 'get the Katura Web site up and running', see [227] above), in circumstances where I accept Mr Chambers' evidence that Mr Basso knew that it would take more than one month to convert those leads into sales. This is inconsistent with the idea that Mr Basso had decided to dismiss Mr Chambers before the commencement of the 2023 Fair Work Proceeding.
(3) Mr Basso prevaricated in his evidence as to the date on which he instructed Ms Joughin to prepare the letter of termination, meaning that I do not find his evidence that it was given on 16 June 2023 persuasive.
(4) That is especially so since, as Mr Chambers pointed out in his cross‑examination of Mr Basso, it was likely that Mr Basso had a record of what he said was his WhatsApp call to Ms Joughin on this occasion, but this was never produced to confirm the date of that call.
(5) In any event, the letter was sent the day after Broadway Homes became aware that Mr Chambers had commenced the 2023 Fair Work Proceeding, so it can be comfortably inferred that the proceeding was in the respondents' mind when they took the adverse action complained of.
(6) For all that Mr Basso was prepared to deal calmly with Mr Chambers' previous complaints about underpayment, commencing a legal proceeding represented a significant escalation and meant that the relationship had become openly adversarial.
(7) Mr Basso was on holidays in Italy, and his evidence in cross‑examination (see [228] above) as well as correspondence that he sent both at that time ([234] above) and on other occasions when he was on holiday confirmed that he was not inclined to deal with work matters during such periods unless it was absolutely necessary.
(8) Although I accept Mr Basso's evidence that he believed that Mr Chambers' employment was subject to a six month probationary period, that period expired on 9 July 2023, when Mr Basso confirmed that his trip ended at the end of June, meaning there would have been sufficient time to act after he got back.
(9) The bland explanation in the dismissal letter that it was a redundancy due to 'economic factors outside our control' is inconsistent with the reason given by Mr Basso in evidence, which was that it was due very specifically to Mr Chambers' failure to perform - this undermines the credibility of both explanations.
I certify that the preceding three hundred and seventy (370) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Jackson.
Chambers
Broadway Homes Pty Ltd
Australian Securities and Investments Commission v Union Standard International Group Pty (Trial Ruling No 1) [2023] FCA 169
Board of Bendigo Regional Institute of Technical and Further Education v Barclay [2012] HCA 32; (2012) 248 CLR 500
Branir Pty Ltd v Owston Nominees (No 2) Pty Ltd [2001] FCA 1833; (2001) 117 FCR 424
Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd [2014] HCA 41; (2014) 253 CLR 243
Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; (2002) 209 CLR 95
Fazio v Fazio [2012] WASCA 72
Feldman v GNM Australia Ltd [2017] NSWCA 107
Hebei Jikai Industrial Group Co Ltd v Martin [2015] FCA 228
John Holland Pty Ltd v Kellogg Brown & Root Pty Ltd [2015] NSWSC 451
Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298
Kramer v Stone [2024] HCA 48; (2024) 281 CLR 484
Ligon 158 Pty Ltd (in liq) v Shield Holdings Australia Pty Limited (de-registered) [2024] FCA 144
Muscat v Haider (No 2) [2015] ACTSC 349
Pavlovic v Universal Music Australia Pty Ltd [2015] NSWCA 313; (2015) 90 NSWLR 605
Rankin v Marine Power International Pty Ltd [2001] VSC 150
Richards v Han [2022] FCA 1539
Rose v Manno Kingsway Pty Ltd [2025] NSWCA 23; (2025) 116 NSWLR 598
Sheather v Staples Waste Removals Pty Ltd (No 2) [2014] FCA 84
State of Victoria (Office of Public Prosecutions) v Grant [2014] FCAFC 184
Tattsbet Ltd v Morrow [2015] FCAFC 62; (2015) 233 FCR 46
Watson v Foxman [1995] NSWCA 497; (1995) 49 NSWLR 315
Westpac Banking Corporation v Wittenberg [2016] FCAFC 33; (2016) 242 FCR 505
(2012) 248 CLR 500
(2001) 117 FCR 424
(1995) 185 CLR 410
(1988) 14 NSWLR 523
(2002) 209 CLR 95
(1959) 101 CLR 298
(2024) 281 CLR 484
(1954) 91 CLR 353
(2025) 116 NSWLR 598
(2015) 233 FCR 46
(1995) 49 NSWLR 315
(2014) 253 CLR 243
(2015) 90 NSWLR 605
(2016) 242 FCR 505