[2021] FWC 5303
General information, not legal advice.
Fair Work Commission
2021-08-26
Original judgment source is linked above.
s.394 - Unfair dismissal
Unfair dismissal - whether applicant was forced to resign because of conduct, or a course of conduct, engaged in by his employer - applicant not dismissed.
(a) the person's employment with his or his employer has been terminated on the employer's initiative; or
(b) the person has resigned from his or his employment, but was forced to do so because of conduct, or a course of conduct, engaged in by his or his employer."
Conduct which Mr Eccleston alleges forced him to resign
1. Multiple allegations of theft were made against Mr Eccleston in circumstances where he did not engage in any theft.
2. JBAM failed to maintain a safe workplace. In particular, JBAM's workshop at Gateshead had a rodent problem which caused wiring to become unsafe and the workshop was not tagged or tested as it should have been.
3. A lack of action taken by JBAM in relation to Mr Eccleston's well-being.
4. An excessive workload in the eight months preceding Mr Eccleston's resignation, which resulted in his health being compromised and no action being taken by JBAM.
5. A lack of record keeping and a failure to carry out correct procedures. In particular, Mr Eccleston contends that JBAM did not keep accurate records of meetings with him and Mr Eccleston was told that he did not need to have a support person present on 12 May 2021 during a meeting in which he believes he was demoted.
6. Hiring a new manager while Mr Eccleston was on leave and without him being given an opportunity to apply for the position.
(a) First, Ms Blanch, Mr Vandersteen and Ms Vandersteen all gave evidence that Mr Eccleston's appointment to the role of Acting Manager was announced to all JBAM managers at a meeting on 23 September 2020. Mr Eccleston attended that meeting by telephone, although he could not participate in parts of the meeting because he had to attend to business matters in the Gateshead store. Mr Eccleston gave evidence, which I accept, that he could not remember whether Mr Vandersteen said during the 23 September 2020 meeting that he was appointed to the role of Acting Manager or Manager.
(b) Secondly, JBAM's usual process is to appoint a person to the role of Acting Manager, rather than straight to the role of Manager. JBAM currently has three other Acting Managers in its Tyrepower stores. Employees in the position of Acting Manager are given training and an opportunity to prove themselves in the management role.
(c) Thirdly, although I accept Mr Eccleston's evidence that Mr Vandersteen told staff, a few customers and Ms Gray during after-work drinks at the Gateshead store that Mr Eccleston was the new manager in the Gateshead store, I accept Ms Blanch's explanation that staff and customers are not told of an individual employee's employment arrangements and, in that context, it was appropriate for them to be told that Mr Eccleston had responsibility for managing the Gateshead store (even though he was the Acting Manager).
1. It was appropriate for steps to be taken to investigate the stock discrepancies identified in the stock take process at the Gateshead store. However, a reasonable investigation should have been completed before Mr Vandersteen suggested or insinuated to any employees or customers of JBAM that Mr Eccleston may have stolen from the business. That did not happen. Further, allegations concerning the tyres provided to Mr Bryson at zero cost should not have been raised with Mr Eccleston in circumstances where it was Mr Vandersteen that had agreed to provide those tyres to Mr Bryson as part of the sponsorship of his buggy. The allegations made against Mr Eccleston and the manner in which the investigation was conducted caused Mr Eccleston distress. Notwithstanding the deficiencies in the process, the investigation was not completed before Mr Eccleston resigned and no action was taken against him, before or after his resignation, in relation to the missing items of stock or any cash paid to the business. JBAM has not contended in these proceedings that Mr Eccleston stole any stock or cash from the business. Having regard to all the circumstances, I do not consider that termination of Mr Eccleston's employment relationship with JBAM to have been the probable result of JBAM's conduct in relation to the stock issues, nor did it leave Mr Eccleston with no effective or real choice but to resign. Mr Eccleston had the option of waiting for the conclusion of the investigation process to see whether any allegations of theft would be put to him directly and whether any action would be taken by JBAM in relation to them. No such allegations were put directly to Mr Eccleston prior to his resignation.
2. The rodent problem identified by Mr Eccleston was fixed after he engaged the services of a pest control expert. The damage to wiring was rectified to the extent that it may have jeopardised the information technology system used by JBAM at the Gateshead store. I am not satisfied on the evidence that any other damage to the wiring caused by rodents presented a significant risk to the health or safety of employees working at the Gateshead store. I accept that the Gateshead store was not tagged or tested as it should have been. JBAM took steps to rectify this situation by having an employee trained to do the tagging and testing work, however that work was not done before the cessation of Mr Eccleston's employment with JBAM. The steps JBAM took in this regard were not sufficient. It is not acceptable to leave a store in a state where it has not been tagged and tested as required. However, I do not consider that termination of Mr Eccleston's employment relationship with JBAM to have been the probable result of JBAM's failure in this regard, nor did it leave Mr Eccleston with no effective or real choice but to resign. This issue played a very small part in Mr Eccleston's evidence before the Commission and he did not make any significant mention of it in his discussions with JBAM leading up to his resignation. Although I accept that Mr Eccleston was genuinely concerned about this issue, I do not consider that it played a significant part in his decision to resign from his employment with JBAM.
3. Mr Eccleston feels aggrieved at what he considers to be a lack of action taken by JBAM in relation to his well-being. There is no doubt that Mr Eccleston's mental health suffered in the period leading up to his dismissal. I accept that Ms Blanch and Mr Vandersteen were genuinely concerned for Mr Eccleston's well-being, but they also had a business to run. Ms Blanch did ask Mr Eccleston how he felt about counselling, and suggested that he access a mental health care plan from his general practitioner. Ms Blanch also agreed for Mr Eccleston to take time off work when he was struggling. Although Ms Blanch did not take active steps to assist Mr Eccleston to make a workers' compensation claim, that is somewhat understandable in circumstances where Ms Blanch is the Human Resources Manager for JBAM and it is not in JBAM's interests for a workers' compensation claim to be made against it. Further, Mr Eccleston has been able to make a successful workers' compensation claim in relation to his employment with JBAM. The evidence did not reveal whether Mr Eccleston obtained assistance from a solicitor or other third party to make such a claim. In all the circumstances, I do not consider that a lack of action on the part of JBAM in relation to Mr Eccleston's well-being left him with no effective or real choice but to resign, nor was termination of his employment relationship with JBAM the probable result of any such lack of action. These conclusions are reinforced by the fact that Mr Eccleston remains aggrieved that he was not given the opportunity to apply for the position of Manager of the Gateshead store. Had Mr Eccleston been offered that position, I am confident that he would have accepted it.
4. Mr Eccleston contends that he had an excessive workload in the eight months preceding his resignation, which resulted in his health being compromised and no action being taken by JBAM. I accept that Mr Eccleston did work exceptionally hard in the eight months preceding his resignation in an attempt to prove himself in a managerial role. His workload was high. He suffered poor mental health during this period. However, on 12 May 2021, Mr Eccleston was told that a new Manager and a new Mechanic were being recruited for the Gateshead store. I accept that JBAM genuinely intended to recruit those additional employees for the Gateshead store. It follows that although Mr Eccleston had a high workload in the eight months preceding his dismissal, he could not reasonably have thought that his workload would remain at that level into the future after the engagement of a new Manager and a new Mechanic. It follows that Mr Eccleston's past high workload did not leave him with no effective or real choice but to resign, nor was termination of his employment relationship with JBAM the probable result of JBAM's past conduct in that regard.
5. Mr Eccleston points to a lack of record keeping and a failure to carry out correct procedures. In particular, Mr Eccleston contends that JBAM did not keep accurate records of meetings with him and he was told that he did not need to have a support person present on 12 May 2021 during a meeting in which he believes he was demoted. The inaccurate records on which Mr Eccleston relies are notes made by employees of JBAM of their discussions with Mr Eccleston. Copies of those notes were not shared with Mr Eccleston during his employment with JBAM. They were relied on by JBAM in the hearing of this matter. Because Mr Eccleston did not know about the notes and any alleged inaccuracies in them before he resigned, they cannot have been part of the conduct which forced him to resign. Further, although Mr Eccleston's recollection of the conversations differ from the notes taken by employees of JBAM, I do not consider the differences to be malicious or any deliberate act on the part of the employees to criticise or undermine Mr Eccleston. The differences reflect different recollections of past conversations. I am satisfied that there are no other inaccurate records, apart from the records of meetings, which could have realistically caused Mr Eccleston to form the view that he had no option but to resign. As to the failure to tell Mr Eccleston that he needed to have a support person present at the meeting on 12 May 2021, I agree that it would have been preferable for Mr Eccleston to have been given the opportunity to have a support person present at a meeting in which Mr Vandersteen and Ms Blanch knew that they were going to inform Mr Eccleston that he was to revert from his Acting Manager role to his contracted role of Technician/Mechanic. It was reasonably obvious that such news would be disappointing to Mr Eccleston, particularly in his fragile state at that time. However, I do not consider that termination of the employment relationship was the probable result of the failure to inform Mr Eccleston that he could bring a support person to the meeting. Mr Eccleston could have refused to participate in the meeting without a support person present. If he had done so, I am confident that the meeting would have been postponed. In any event, the presence of a support person at the meeting on 12 May 2021 would not have altered the fact that JBAM had made a decision to recruit a new Manager for the Gateshead store and Mr Eccleston would be required to revert to his contracted position of Technician/Mechanic.
6. JBAM made a decision, having tried Mr Eccleston out in the role of Acting Manager for almost eight months, that he was not ready for the role of Manager and that it was in the best interests of the business to recruit a new Manager and not to invite Mr Eccleston to apply for the position of Manager. That was a reasonable decision for JBAM to make in the circumstances. Mr Eccleston was disappointed, but he was in an acting role and had no right to be appointed to the position of Manager. The fact that Mr Eccleston contends that he should have been given an opportunity to apply for the position of Manager suggests that his relationship with Mr Vandersteen and Ms Blanch had not become untenable and his disappointment in not being given, or considered further for, the role of Manager was the principal reason for his resignation.
[1] Bupa Aged Care Australia Pty Ltd v Tavassoli [2017] FWCFB 3941 at [47]
[2] Doumit v ABB Engineering Construction Pty Ltd Print N6999 (AIRCFB, Munro J, Duncan DP, Merriman C, 9 December 1996)
Printed by authority of the Commonwealth Government Printer
David Eccleston
JBAM Holdings Pty Ltd T/A Tyrepower Gateshead [2021] FWC 5303