The claim for compensation - in the course of employment
6 Compensation is relevantly payable under the Safety, Rehabilitation and Compensation Act if an employee suffers an "injury": s 14.
7 Section 14 of the Safety, Rehabilitation and Compensation Act provides as follows:
Compensation for injuries
(1) Subject to this Part, Comcare is liable to pay compensation in accordance with this Act in respect of an injury suffered by an employee if the injury results in death, incapacity for work, or impairment.
(2) Compensation is not payable in respect of an injury that is intentionally self-inflicted.
(3) Compensation is not payable in respect of an injury that is caused by the serious and wilful misconduct of the employee but is not intentionally self-inflicted, unless the injury results in death, or serious and permanent impairment.
8 The requirement that the "injury" be suffered "in the course of" employment derives from the following definition of "injury" in s 5A of the Safety, Rehabilitation and Compensation Act, namely:
Definition of Injury
…
injury means:
…
(b) an injury … suffered by an employee, that is a physical … injury arising out of, or in the course of, the employee's employment; or
…
but does not include a disease, injury or aggravation suffered as a result of reasonable administrative action taken in a reasonable manner in respect of the employee's employment.
9 That which constitutes an injury "arising out of, or in the course of" employment has oft attracted judicial analysis.
10 Relevantly for present purposes it is sufficient to refer to three decisions: Hatzimanolis v ANI Corporation Ltd (1992) 173 CLR 473 ("Hatzimanolis"); Comcare v PVYW [2013] HCA 41 ("PVYW"), (2013) 250 CLR 246; and Westrupp v BIS Industries Limited [2015] FCAFC 173, (2015) 238 FCR 354 ("Westrupp").
11 In Hatzimanolis there was a claim for workers compensation. Mr Hatzimanolis worked for a period of about three months at a remote mining camp in Western Australia. The employer provided rent-free accommodation for workers in a camp and two vehicles for transport. During the course of a trip to Wittenoom Gorge, organised by a supervisor and some 400 kilometres from the camp, one of the vehicles overturned and Mr Hatzimanolis suffered serious injuries. Compensation was payable under the Workers Compensation Act 1987 (NSW) if the injury was one "arising out of or in the course of employment": s 4. On appeal to the High Court it was concluded that the injury was suffered in the course of his employment. Mason CJ, Deane, Dawson and McHugh JJ reviewed some of the earlier authorities and went on to observe (at 482) that:
… the rational development of this area of law requires a reformulation of the principles which determine whether an injury occurring between periods of actual work is within the course of the employment so that their application will accord with the current conception of the course of employment as demonstrated by the recent cases, particularly the decisions of this court in [The Commonwealth v Oliver (1962) 107 CLR 353] and [Danvers v Commissioner of Railways (NSW) (1969) 122 CLR 529].
Their Honours continued:
A striking feature of the recent cases which have held that an injury occurring in an interval between periods of actual work was within the course of employment is that in almost all of them the employer has authorised, encouraged or permitted the employee to spend his time during that interval at a particular place or in a particular way. However, it would be an unacceptable extension of the course of employment to hold that an employee was within the course of employment whenever the employer had authorised, encouraged or permitted the employee to spend the time during an interval between periods of actual work at a particular place or in a particular way ...
And their Honours observed (at 483 to 484):
… there are cases where an employee is required to embark upon some undertaking for the purpose of his or her work in circumstances where, notwithstanding that it extends over a number of daily periods of actual work, the whole period of the undertaking constitutes an overall period or episode of work. Where, for example, as in Danvers, an employee is required to go to a remote place and live in accommodation provided by his or her employer for the limited time until a particular undertaking is completed, the correct conclusion is likely to be that the time spent in the new locality constitutes one overall period or episode of work rather than a series of discrete periods or episodes of work. An injury occurring during the interval between periods of actual work in such a case is more readily perceived as being within the current conception of the course of employment than an injury occurring after ordinary working hours to an employee who performs his or her work at a permanent location or in a permanent locality.
Moreover, Oliver and the cases which follow it show that an interval or interlude in an overall period or episode of work will ordinarily be seen as being part of the course of employment if the employer, expressly or impliedly, has induced or encouraged the employee to spend the interval or interlude at a particular place or in a particular way. Indeed, the modern cases show that, absent gross misconduct on the part of the employee, an injury occurring during such an interval or interlude will invariably result in a finding that the injury occurred in the course of employment. Accordingly, it should now be accepted that an interval or interlude within an overall period or episode of work occurs within the course of employment if, expressly or impliedly, the employer has induced or encouraged the employee to spend that interval or interlude at a particular place or in a particular way. Furthermore, an injury sustained in such an interval will be within the course of employment if it occurred at that place or while the employee was engaged in that activity unless the employee was guilty of gross misconduct taking him or her outside the course of employment. In determining whether the injury occurred in the course of employment, regard must always be had to the general nature, terms and circumstances of the employment "and not merely to the circumstances of the particular occasion out of which the injury to the employee has arisen".
(footnote omitted)
12 Next, in PVYW the appellant had been required by her employer to travel to a country town and had stayed at a motel booked by her employer. During the course of one evening she had sexual intercourse with an acquaintance. During that encounter a glass light fitting above the bed was pulled from its mount and struck her on the nose and mouth. She suffered facial and psychological injuries. A decision refusing compensation was affirmed by the Tribunal. An appeal was allowed and a further appeal to the Full Court was dismissed. This Court, both at first instance and on appeal, concluded that the injury had been suffered during the course of her employment. A further appeal to the High Court prevailed and the claim for compensation was rejected. In introducing the ambit of the submissions being advanced, French CJ, Hayne, Crennan and Kiefel JJ observed (at 254 to 255):
[8] The respondent may be taken to draw the following from what was said in Hatzimanolis. The employer had directed her to be at a location away from her permanent place of work and her residence. While at that location, she is therefore seen as carrying out an overall period of work. Her presence at a particular place - the motel - creates an interval in that period whilst she is at that place. An injury occurring in that interval is in the course of employment.
[9] If this is what Hatzimanolis conveys, it means that, absent gross misconduct on the part of an employee, an employer who requires an employee to be present at a particular place away from their usual place of work will be liable for any injury which the employee suffers whilst present there. It means that the employer has become the insurer for the employee during the time that the employee is at the place. That would be so even though the injury was suffered in the course of an activity which was clearly unrelated to the employment.
[10] These are odd results, yet results which the respondent says must follow because Hatzimanolis makes liability for an injury depend upon it simply occurring within a period of time - that is, the interval. If this is the natural consequence of what was said in Hatzimanolis, that decision would need to be reconsidered. It would need to be reconsidered because it would otherwise effect an undue extension of an employer's liability to pay compensation under the SR&C Act.
(footnote omitted)
In further emphasising the need for there to be "a connection between the injury, the circumstances in which it occurred and the employment itself", their Honours stated (at 261 to 262):
[34] It is important to identify how Hatzimanolis sought to define the circumstances for, and the extent of, an employer's liability for compensation. Hatzimanolis sought to provide a legal justification for an injury, which occurred between periods of actual work, being regarded as occurring in the course of the employee's employment. It did so by characterising the interval by reference to the employer's inducement or encouragement. The employer's liability in such circumstances depends upon what the employer induced or encouraged the employee to do. Hatzimanolis did not seek to extend the employer's liability beyond that.
[35] Because the employer's inducement or encouragement of an employee, to be present at a particular place or to engage in a particular activity, is effectively the source of the employer's liability, the circumstances of the injury must correspond with what the employer induced or encouraged the employee to do. It is to be inferred from the factual conditions stated in Hatzimanolis that for an injury to be in the course of employment, the employee must be doing the very thing that the employer encouraged the employee to do, when the injury occurs.
[36] Moreover, it is an unstated but obvious purpose of Hatzimanolis to create a connection between the injury, the circumstances in which it occurred and the employment itself. It achieves that connection by the fact of the employer's inducement or encouragement. Thus, where the circumstances of the injury involve the employee engaging in an activity, the question will be whether the employer induced or encouraged the employee to do so.
[37] That this must be so is confirmed by a consideration of the legal reasoning involved in applying the principle stated in Hatzimanolis to the facts of a case. That process of reasoning does not commence with the fact of the employer's inducement or encouragement. The joint reasons sought to direct attention to the new principle and therefore stated it out of the order in which the enquiries inherent in applying the principle would arise for consideration.
(footnote omitted)
13 In thereafter addressing an injury suffered at a place of employment, their Honours reasoned (in part) as follows (at 262 to 264):
Injury and place
[40] There is a further reason for rejecting the respondent's contention. She was not injured whilst present at a place in the sense in which that expression is to be understood in the joint reasons in Hatzimanolis. An injury occurs at a place when the circumstance of the injury is referable to the place. The circumstances of Danvers, which was the basis of this criterion of liability, make this plain. They explain why the mere presence of an employee at a place in circumstances where an injury is associated with that place may be sufficient to bring that injury within the course of the employee's employment.
…
[43] ... The principle in Hatzimanolis focuses instead upon what the employer might be taken to have induced or encouraged the employee to do. That question is to be determined by reference to the matters identified in Danvers and restated in Hatzimanolis as relevant: the general nature, terms and circumstances of the employment.
…
[45] An injury occurring to an employee by reference to or associated with a place where the employee is present may involve something occurring to the premises or some defect in the premises. For example, if the light fitting in this case had been insecurely fastened into place and simply fell upon the respondent, the injury suffered by her would have arisen by reference to the motel. The employer would be responsible for injury because the employer had put the respondent in a position where injury occurred because of something to do with the place. Liability in those circumstances is justifiable. Liability for everything that occurs whilst the employee is present at that place is not.
(footnote omitted)
In returning to the need for there to be a "connection between the circumstances in which the employee sustains injury and the employment", their Honours further stated at (265 to 268):
Association between circumstances of injury and employment
[50] It has earlier been observed that the Hatzimanolis principle, when it is appropriate to be applied, effects a connection between the circumstances in which the employee sustains injury and the employment. The principle may create a temporal element, in the notion of an interval, but it also creates a factual association or connection with the employee's employment. It does so by the fact of the employer's inducement or encouragement.
[51] The need for there to be a factual connection or association between the circumstances of the injury and the employment is implied by the definition of injury, as one suffered in the course of the employee's employment. ...
[52] The relevant connection or association created by the Hatzimanolis principle is between that activity and the employer's encouragement to engage in it. Likewise, when an injury is sustained by an employee at a place and by reference to that place, in the sense earlier discussed, the connection between that circumstance and the employment is provided by the fact that the employer induced or encouraged the employee to be present at that place.
[53] The connection or association spoken of is not the causal connection which is attributed to the expression "arising out of … the employee's employment" in the definition of "injury" in the SR&C Act. It is accepted that compensation may be payable in respect of an injury which is suffered "in the course of" the employee's employment notwithstanding that there is no such causal connection. The connection presently spoken of is by way of an association with the employment. In Kavanagh v Commonwealth [(1960) 103 CLR 547 at 557], Dixon CJ said that "no direct … causal connexion … is proposed as an element necessary to satisfy the conception of an injury by accident arising in the course of the employment but only an association" with the employment.
…
[56] Another case referred to in Hatzimanolis which involved a rejection of the injury being in the course of employment was Humphrey Earl Ltd v Speechley [(1951) 84 CLR 126]. The employee was injured in his lunch break. His work involved servicing machines at shops at various locations. He had commenced such a task at one shop and stopped for lunch. He desired a particular food which was not available nearby. To obtain it necessitated a journey to somewhere further away. He was injured in a road accident on the return journey.
[57] Dixon J said that the employee being at the shop for the purpose of his duties and having lunch would be in the course of his duties "provided that it was reasonably related to the exigency occasioned by his duties". However, his Honour said, "it should be reasonably connected with the particular situation which the performance of his duty to his employer had created." Whilst the eating of lunch itself was not for the purpose of his duties, the conditions of the employment may make it incidental - but it "cannot be stretched to make everything he chooses to do during the interval … incidental to his employment." If he "so far deviates" on a purpose of his own, that purpose cannot be considered to be in the course of employment. McTiernan J considered that the facts were insufficient in law to establish the connection between the injury and the employment connoted by the words "in the course of the employment".
[58] Nothing said in Hatzimanolis suggests that an association between the circumstances in which injury is suffered by an employee and the employment is not necessary. In stating the purpose of earlier tests as being, properly, to limit compensation for injury which is work-related, the joint reasons in Hatzimanolis may be taken to acknowledge the need for that association or connection with the employment.
[59] This is not to suggest that there should be added to the application of the principle in Hatzimanolis a separate test of connection or association. That would run counter to what Hatzimanolis sought to achieve and the method by which it did so. Whilst the decision did not doubt the correctness of the object of earlier tests, it was able to effect the necessary connection by other means. Instead of testing for connection, as by the enquiry whether something done was incidental to employment, it inquired whether the employer had induced or encouraged that which was done. The connection or association it achieves with the employment is a by-product of the principle, but it is not itself a test.
…
Conclusion
[61] It may be accepted that the purpose and the effect of the principle stated in Hatzimanolis was to create an interval between periods of actual work, to better explain the connection that an injury suffered by an employee in certain circumstances has to the employment. It did so by reference to the fact that the employer induced or encouraged the employee to do something or be somewhere in particular and the fact that the employee did so and was injured. The two circumstances identified by Hatzimanolis were where an injury was suffered by an employee whilst engaged in an activity in which the employer had induced or encouraged the employee to engage; or where an injury was suffered at and by reference to a place where the employer had induced or encouraged the employee to be. An injury sustained in these circumstances may be regarded as sustained in the course of the employee's employment. Properly understood, whilst the inducement or encouragement by the employer may give rise to liability to compensation, it also operates as a limit on liability for injury sustained in an overall period of work.
(footnotes omitted)
14 Finally, in the third of the cases to which reference should presently be made, Westrupp, Mr Edward Westrupp had been employed as a silo operator at a remote outback mining town in the Goldfields region, north of Kalgoorlie in Western Australia. He worked on a two-week roster followed by one week off and whilst working he resided in a mining camp. The Tribunal had there affirmed a decision refusing compensation for a shoulder injury. The injury had been suffered whilst Mr Westrupp "was at the tavern for the purposes of meeting a friend and having a beer with him, not for any purposes related to his employment": [2015] FCAFC 173 at [37], (2015) 238 FCR 354 at 362. He was "between two ordinary discrete periods of employment". An appeal to the Full Court of this Court was successful, with the Full Court allowing the appeal and setting aside the decision of the Tribunal. The Judges who constituted the Court, Buchanan, McKerracher and Katzmann JJ, observed that the appeal "again requires consideration of Hatzimanolis, as now explained in PVYW": at [1]. In the course of their reasons, their Honours set forth ([2015] FCAFC 173 at [52], (2015) 238 FCR at 365) para [61] of the reasons provided by the High Court in Hatzimanolis and continued:
[53] It is important, in our respectful view, to recognise that those concluding remarks affirm the existence of two streams of analysis having their origins in two different circumstances - activity and place. Despite the obvious possibility for overlap on the facts of particular cases, we do not understand the majority judgment in PVYW to say that satisfaction of both tests is required as a condition for liability. Such a combined or composite test could not have been satisfied in Danvers.
Their Honours concluded (at 367 to 368):
[67] If Mr Westrupp had been injured by a fire at his quarters while sleeping (Danvers) or whilst showering (Comcare v McCallum (1994) 49 FCR 199 (McCallum)) or had been struck by a car while returning to his accommodation (Mather; see also Watson v Qantas Airways Ltd (2009) 75 NSWLR 539 (Watson)) or had been assaulted by strangers while returning to his quarters after a meal and a few beers (Kennedy v Telstra Corporation (1995) 61 FCR 160 (Kennedy)), then, on the authority of Danvers, and cases in this Court and in other courts which have applied Hatzimanolis, he would have been entitled to compensation. We do not understand those authorities to have been overruled, expressly or by implication, by PVYW. The circumstances of the present case, in our view, are not materially different.
[68] In our view, the AAT's approach was too narrow. It paid insufficient attention to the general nature, terms and circumstances of the employment. It gave too much prominence "to the circumstances of the particular occasion" (Hatzimanolis at 484) and "focused just upon the occasion giving rise to the injury" (PVYW at [33]). When it is recognised that Mr Westrupp was only in Leinster, and at the camp, as an incident of his employment, that he was under the control of the first respondent throughout his time in Leinster, and that he was or would be expected to use facilities put in place by BHP Billiton, for which the first respondent took the benefit for its own employees as incidents of their engagement, then it seems to us, with respect, that the AAT misapplied the legal principles which govern the proper statutory construction to be given to s 5A of the SRC Act.
15 Particular paragraphs of one or other of these three decisions were the focus of attention by Senior Counsel for the opposing parties in the present proceeding.