[2025] FWC 2321
General information, not legal advice.
Fair Work Commission
2025-10-13
Original judgment source is linked above.
s.365 - General protections
Application to deal with contraventions involving dismissal
(a) That the Applicant was not dismissed within the meaning of s.386 of the Act because:
(a) The Applicant filed an Outline of Submissions and a Statutory Declaration of Christopher Donnellly dated 7 July 2025;
(b) The Respondent filed an Outline of Submissions dated 21 July 2025, with multiple Annexures, and;
(c) On 28 July 2025, the Applicant filed a Reply Submission.
The engagement of the Contractor by KWB will commence on the Commencement Date set out in Item 1 of Schedule 1 and will continue until the engagement is terminated in accordance with clause 11 of this Agreement (Term). The Contractor can provide KWB with a written request in respect of a period or periods not exceeding 4 weeks in one year, in which it will not provide the Services.
(b) Clause 2 "Provision of Services" defined "Services" as "Wardrobe Installation", and provided in part:
During the Term, the Contractor will provide the Services set out in Item 2 of Schedule 1 (Services) to KWB through the Nominated Representative (set out in Item 6 of Schedule 1) or any other person, subject to the prior written approval of KWB.
The Contractor and the Nominated Representative do not have authority to act on behalf of or bind KWB. The Contractor is solely responsible for providing the Services and controlling the manner in which the Nominated Representative performs the Services.
The Contractor will provide the Services at the location set out in Item 3 of Schedule 1 but also at such other locations as directed by KWB from time to time, including interstate locations. The Contractor procures that the Nominated Representative will report to the person set out in Item 4 of Schedule 1 [being the Queensland Logistics & Robes Manager], or such other person or persons as directed by KWB from time to time.
Although the Contractor may provide services to other persons or entities during the Term, the Contractor must not provide such services where there may be a conflict of interest with the interests of KWB or any Related Company (Group) or carry on or provide services to any business or activity which is in competition with, or of a similar nature to, any business carried on by the Group.
The Contractor must perform the Services in a proper and efficient manner in the best interests of KWB and must work such hours and at such times as may be necessary for the satisfactory provision of the Services. The Contractor must also comply with all lawful and reasonable directions given by KWB, all applicable legislation and any policies, practices and procedures of KWB so far as they relate to the provision of the Services by the Contractor.
(c) Clause 3 "Nature of Relationship and Warranty" defined "Services" provided:
The Contractor is engaged by KWB as an independent contractor to provide the Services and the Contractor warrants that its relationship with KWB is that of an independent contractor and principal in accordance with the guidance material provided by the Australian Taxation Office. The Contractor acknowledges and agrees that nothing in this Agreement constitutes the Contractor or any person engaged by the Contractor in any capacity, to be an employee, agent or partner of KWB.
Without limiting the generality of the matters set out in preceding paragraph, the Contractor shall be solely liable and shall have no claim upon KWB in respect of annual leave, public holidays, sick leave, long service leave, superannuation, severance payments on redundancy, all other entitlements and otherwise in respect of any claims by any contractor, agent, or person claiming through the Contractor under any applicable workers' compensation law or other law affecting or relating to the relationship between an employee and employer.
a) KWB will pay you for each Purchase Order you complete (Fees), in accordance with the terms of the Purchase Order. The Fees or the Purchase Order may be varied by agreement in writing between KWB and you.
b) The Fees are exclusive of any goods and services tax (GST). Where GST is payable on a supply made by you under this agreement, you may charge KWB an additional amount equal to the GST payable on that supply.
d) If the engagement is terminated pursuant to clause 11 of this Agreement, the Contractor is only eligible for the payment of any commissions earned up to and including the termination date.
KWB will provide the Contractor with two uniform shirts each financial year for use by the Nominated Representative. Should the Contractor require additional uniform shirts, it will be required to purchase these from KWB at its own expense.
A photograph of the uniform was in evidence. It had "Wardrobe Connection Contractor", with a logo, embroidered on it, though apparently the "Contractor" part was only inserted at some time during the Applicant's engagement.
(f) Clause 6 "Equipment to be provided by KWB" outlined that the Contractor agreed to accept responsibility for the loss or damage of any equipment provided to them by KWB and agreed to cover any replacement or repair costs. The Clause also provided:
Should you elect to use KWB's tools and equipment, the Purchase Order will reflect your hire cost for their use, which will be 20% of the Fees.
(g) Clause 7 "Insurances" provided that the Contractor must maintain public liability insurance, workers compensation insurance as required by law, and professional indemnity insurance.
The Contractor acknowledges and agrees that the Contractor is responsible for all taxes required by law in respect of the Contractor's engagement as a contractor under this Agreement. The Contractor must also pay all taxes required by law in respect of any employees or contractors of the Contractor (if any). If KWB becomes liable for any of these payments, the Contractor indemnifies KWB on a full indemnity basis for such payments and any other amounts including but not limited to any penalties, charges, fines, or legal costs relating to such payments. KWB is also entitled to make any deduction from the amounts payable to the Contractor in respect of tax that it considers by law it is required to deduct.
(i) The Termination provision at Clause 11 provided:
Either the Contractor or KWB may terminate this Agreement at any time by giving the other party the amount of notice set out in Item 5 of Schedule 1, or in the case of KWB by making a payment in lieu of notice (calculated on the average monthly commissions that have been payable to the Contractor during the Term of this Agreement). KWB may require the Contractor not to perform some or all of the Services during that notice period. KWB may also terminate the engagement immediately and without notice if the Contractor engages in any conduct that warrants immediate termination, including but not limited to serious misconduct, refusing or failing to comply with any lawful or reasonable direction, engaging in conduct that would bring KWB into disrepute, materially failing to perform the Services and/or committing any serious or persistent breach of this Agreement.
If on the termination of this Agreement, the Contractor owes KWB an amount, KWB may off-set that amount against any amount that KWB owes to the Contractor under this Agreement.
(j) The Agreement also included provisions for protection of KWB's Confidential Information, Intellectual Property and Goodwill, as well as providing an indemnity from the Contractor to KWB and an entire agreement clause. The Applicant additionally signed a "Confidentiality and Intellectual Property Deed Poll".
(a) Unchallenged Evidence Regarding the Nature of the Engagement
supervisor details along with dates and times to be at worksites.
no control over which jobs he received, when they were scheduled, or how they were to be completed. The Applicant followed detailed job sheets and plans provided by KWB for each installation. All customer contact, job management, and invoicing flowed through KWB's internal systems. Prices, discounts, and terms of sale were all set by KWB.
Connection" and to represent himself accordingly while on-site.
We wish to confirm that Chris Donnelly director CMI Joinery Pty Ltd, has been a Sub-Contract Wardrobe installer with KWB Group Pty Ltd on a permanent booking basis since November 2021.
KWB Group supply bespoke wardrobe solutions to the retail market under the brand Wardrobe Connection through our 13 Kitchen Connection showrooms in Southeast Queensland.
Our sales order book is regularly booked out between 6-8 weeks with our clients.
Chris's installation booking calendar is regularly booked out at a minimum of 90% of his available capacity in any given month.
Please find attached screen shots of Chris' diary from our internal booking system
We note that Chris is unavailable from mid-August 2023 through until mid-September 2023 as he is returning to England to attend his brothers wedding and visit family.
We have already begun booking installations for Chris for the remainder of September 2023 and early October 2023. By the time Chris returns from leave we expect that he will be booked out to the end of October 2023 as we ramp up installations for the usual Christmas rush.
We ask that this information is accepted to support Chris' current application for travel with his children to England as he has significant work to return to for KWB Group.
After some correspondence KWB responded to confirm that all outstanding invoices would be paid in the next payment cycle and that the Applicant's engagement would be considered terminated on 12 May 2025.
(a) Control - Clause 2 of the Agreement provides that the Applicant was to work at locations determined by KWB, report to a KWB manager, comply with KWB policies, and work such hours as deemed necessary. In practice, KWB exercised full control over daily schedules, allocated jobs directly, required attendance at briefings and monthly installer meetings.
(b) Personal Service - The Applicant was the designated "Nominated Representative" and could not subcontract or delegate work without prior written consent (Clause 2). This reflected
a non-delegable personal obligation, a characteristic of employment.
(c) Integration into the Business - The Applicant was supplied with KWB uniforms, used KWB check measure forms, installation reports, and invoiced KWB according to KWB's instructions and allocated pricing. He was provided with a contract for each job between KWB and their customers, along with detailed installation plans that he was expected to follow precisely. The Applicant introduced himself in messages and conversations as "Chris from Kitchen Connection" and was presented to customers as a representative of KWB. He was fully integrated into KWB's operations and did not represent or promote himself as an independent business.
(d) Economic Dependence - The Applicant's income was derived exclusively from KWB. He did not maintain a client base, advertise, or perform work for other companies. KWB was his sole source of income, reinforcing his economic dependency and lack of autonomy.
(e) Leave and Working Hours - Clause 1 of the Agreement limited leave to four weeks per year and required prior written approval. This mirrored the typical approach to leave in employee contracts.
(f) Termination Provisions - Clause 11 provides for termination by either party on 4 weeks notice, or immediate termination for misconduct or failure to follow instructions - further reflecting traditional employment structures. In practice, the Applicant's engagement came to
an end shortly after he raised concerns about pricing.
KWB Coordinated dates with CMI Joinery to set installation schedules. However, CMI Joinery chose when and how jobs were completed without KWB's control. CMI Joinery regularly adjusted jobs independently.
CMI Joinery indicated they engaged labourers from time to time independently to perform tasks, reinforcing contractor status.
CMI Joinery independently determined pricing, evidenced by price negotiations and adjustments.
CMI Joinery provided all tools and vehicles required to perform the contracted work, with no reliance on KWB tools.
Invoices were issued by CMI Joinery, reflecting business-to-business transactions.
CMI Joinery held its own Public Liability and Product Indemnity insurance, assuming full commercial risk independently.
Applicant wore uniform explicitly marked as "Contractor", publicly presenting as an independent business, not KWB staff.
Applicant explicitly acknowledged operating through a separate legal entity, never as a direct employee of KWB.
times, and locations without input. The Applicant was pre-booked up to two months in advance.
Application for the FWC to deal with a dismissal dispute
(b) the person, or an industrial association that is entitled to represent the industrial interests of the person, alleges that the person was dismissed in contravention of this Part; the person, or the industrial association_, may apply to the FWC for the FWC to deal with the dispute._
(a) the person's employment with his or her employer has been terminated on the employer_'s initiative; or_
(b) the person has resigned from his or her employment, but was forced to do so because of conduct_, or a course of_ conduct_, engaged in by his or her_ employer_._
In Commonwealth Bank of Australia v Barker, French CJ, Bell and Keane JJ said:
"The employment relationship, in Australia, operates within a legal framework defined by statute and by common law principles, informing the construction and content of the contract of employment."
An employment relationship will not always be defined exclusively by a contract between the parties. Historically, the employment relationship was recognised and regulated by the law before the law of contract came to govern the relationship. An employment relationship, though principally based in contract, may be affected by statutory provisions and by awards made under statutes.
15AA Determining the ordinary meanings of employee and employer
(1) For the purposes of this Act, whether an individual is an employee of a person within
the ordinary meaning of that expression, or whether a person is an employer of an
individual within the ordinary meaning of that expression, is to be determined by
ascertaining the real substance, practical reality and true nature of the relationship
(2) For the purposes of ascertaining the real substance, practical reality and true nature
of the relationship between the individual and the person:
(a) the totality of the relationship between the individual and the person must be
(b) in considering the totality of the relationship between the individual and the
person, regard must be had not only to the terms of the contract governing the
relationship, but also to other factors relating to the totality of the relationship
including, but not limited to, how the contract is performed in practice.
Note: This section was enacted as a response to the decisions of the High Court of
Australia in CFMMEU v Personnel Contracting Pty Ltd [2022] HCA 1 and ZG
Operations Australia Pty Ltd v Jamsek [2022] HCA 2.
is an employee or independent contractor, the Commission is required to ascertain the real
substance, practical reality and true nature of the relationship between the parties. This adopts
It should be added that the relationship between the parties, for the purposes of this litigation, is to be found not merely from these contractual terms. The system which was operated thereunder and the work practices imposed by Vabu go to establishing "the totality of the relationship" between the parties; it is this which is to be considered.
the parties it still had regard to the control and business tests. In Personnel Contracting the
In this Court, the appellants submitted that the question whether a labourer is conducting his or her own independent business, as distinct from serving in the business of the employer, provides a more meaningful framework to guide the characterisation of the parties' relationship. There is force in that submission.
Wilson and Dawson JJ in Stevens v Brodribb at [9] as whether the contractual arrangement
"subjects the person engaged to the command of the person engaging" not just as to what shall
Consideration: whether the applicant was an employee
(a) The requirement that the Applicant provide KWB with a written request in respect of a period or periods not exceeding 4 weeks in one year, in which it will not provide the Services, akin to an employee's annual leave (Clause 1).
(b) Provision of wardrobe installation services by the Applicant to KWB through the Applicant, or any other person, subject to the prior written approval of KWB (Clause 2).
The Contractor must also comply with all lawful and reasonable directions given by KWB, all applicable legislation and any policies, practices and procedures of KWB so far as they relate to the provision of the Services by the Contractor.
(d) Clause 4 "Payment" provided for the provision of purchase orders by KWB for work to be performed, that could only be varied by agreement in writing by KWB and the Applicant.
(e) KWB provided the Applicant with Uniforms pursuant to Clause 5, with "Wardrobe Connection Contractor", and a logo, embroidered on it. I accept that the "Contractor" part of the embroidery was only inserted at some time during the Applicant's engagement.
(f) The Applicant agreed to accept responsibility for the loss or damage of any equipment provided to him by KWB and agreed to cover any replacement or repair costs (Clause 6).
Consideration: whether the applicant was dismissed
[1] Coles Supply Chain Pty Ltd v. Milford [2020] FCAFC 152; (2020) 279 FCR 591 and see Lipa Pharmaceuticals v Jarouche [2023] FWCFB 101.
[3] At [40] and [41] per Kiefel CJ, Keane and Edelman JJ, footnotes omitted.
[11] Personnel Contracting at [35].
Printed by authority of the Commonwealth Government Printer
Christopher Donnelly
KWB Group Pty Ltd [2025] FWC 2321
(2020) 279 FCR 591
(1986) 160 CLR 16
(1978) 52 ALJR 407