Adverse action
22 Section 340 (1) of the Act provides:
A person must not take adverse action against another person:
(a) because the other person:
(i) has a workplace right; or
…
(iii) proposes … to…exercise a workplace right; or
(b) to prevent the exercise of a workplace right by the other person.
Note: This subsection is a civil remedy provision (see Part 4-1).
23 Section 341(1) provides:
A person has a workplace right if the person:
(a) is entitled to the benefit of…a workplace law, workplace instrument or order made by an industrial body …
(Original emphasis)
24 The workplace law in this case is Bill's entitlement to paid personal leave due to personal illness by virtue of ss 96, 97 and 99 of the Act.
25 Under s 342(1), Item 1, adverse action is taken by an employer against an employee if the employer:
(a) dismisses the employee; or
…
(c) alters the position of the employee to the employee's prejudice…
26 "Dismissed" is defined in s 386(1) of the Act as follows:
A person has been dismissed if:
(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.
(Emphasis added)
27 The applicant's case is that Bill was dismissed within the meaning of Item 1(a) of s 342(1).
28 The Explanatory Memorandum to the Fair Work Bill 2008 (Cth) states that what is now s 386:
… is intended to capture case law relating to the meaning of 'termination at the initiative of the employer' (see, e.g., Mohazab v Dick Smith Electronic Pty Ltd (1995) 62 IR 200).
29 In Mohazab v Dick Smith Electronic Pty Ltd (1995) 62 IR 200, the appellant was told that if he did not resign the respondent would call the police. Unlike Bill, the appellant had signed a letter of resignation that had been drafted by the respondent. The Full Court of the then Industrial Relations Court of Australia considered the meaning of the terms "termination" and "termination of employment" as it appeared in s 170EA(1) of the Industrial Relations Act 1988 (Cth) (IR Act), observing at 203, that these terms were to be given the same meaning as they were given in the Convention concerning Termination of Employment at the Initiative of the Employer. The terms "termination" and "termination of employment" were defined in the Convention as meaning "termination at the initiative of the employer". Their Honours found that the relevant question then was not whether the appellant had resigned, or had his employment terminated by the respondent, but rather, to determine whether there had been a "termination at the initiative of the employer".
30 At 205-206, the Full Court observed:
In these proceedings it is unnecessary and undesirable to endeavour to formulate an exhaustive description of what is termination at the initiative of the employer but plainly an important feature is that the act of the employer results directly or consequentially in the termination of the employment and employment relationship is not voluntarily left by the employee. That is, had the employer not taken the action it did, the employee would have remained in the employment relationship.
31 The Full Court concluded at 207 that:
The termination of the appellant's employment was not at his initiative. It was a resignation obtained by the respondent by an ultimatum designed to achieve that objective. That conclusion is reinforced by the peremptory conduct of the respondent in escorting the appellant out of the respondent's premises, leaving him to stand in the car park to await a letter of resignation to be prepared by the respondent and brought to him to sign. That conduct by the respondent suggested summary termination of the appellant's services by the respondent rather than a voluntary resignation by the appellant.
(Emphasis added.)
32 The applicant contends that, arising from Bill's illness, his employment with AJR Nominees was terminated at the initiative of Minniti on 3 February 2011 because Bill had a workplace right, namely, considerable accrued personal leave, and his dismissal was aimed at preventing his exercise of that right.
33 Sections 360 and 361 of the Act provide as follows:
360 For the purposes of this Part, a person takes action for a particular reason if the reasons for the action include that reason.
…
361(1) If:
(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, in proceedings arising from the application, that the action was, or is being, taken for that reason or with that intent, unless the person proves otherwise.
34 Section 361(1) casts the "burden of proof on an employer to show that it did not take action for a prohibited reason": Board of Bendigo Regional Institute of Technical and Further Education v Barclay (2012) 290 ALR 647 (Barclay) at [21].
35 In Jones v Queensland Tertiary Admissions Centre Ltd (No 2) (2010) 186 FCR 22 at [127], Collier J, looking at s 361, observed:
In other words, [the employer] is required to prove, on the balance of probabilities, that the reason for the adverse action was not one which would constitute a contravention of the Act. The prohibited reason need only be one of multiple reasons for the adverse action taken by the employer against the employee.
(Original emphasis.)
36 In Barclay at [44]-[45], French CJ and Crennan J, with whom Gummow and Hayne JJ generally agreed, observed as follows:
[44] There is no warrant to be derived from the text of the relevant provisions of the Fair Work Act for treating the statutory provision "because" in s 346, or the statutory presumption in s 361, as requiring only an objective inquiry into the defendant employer's reason, including any unconscious reason, for taking adverse action. The imposition of the statutory presumption in s 361, and the correlative onus on employers, naturally and ordinarily mean that direct evidence of a decision-maker as to the state of mind, intent or purpose will bear upon the question of why adverse action was taken, although the central question remains "why was the adverse action taken?"….
[45] This question is one of fact, which must be answered in the light of all the facts established in the proceeding. Generally, 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. Direct evidence of the reason why the decision maker took adverse action, which may include positive evidence that the action was not taken for a prohibited reason, may be unreliable because of other contradictory evidence given by the decision-maker or because other objective facts are proven which contradict the decision-maker's evidence. However, direct testimony from the decision-maker which is accepted as reliable is capable of discharging the burden upon an employer even though an employee may be an officer or member of an industrial association and engaging in industrial activity.
(Emphasis added.)
37 Gummow and Hayne JJ further observed at [86], citing Mason J in General Motors-Holden Pty Ltd v Bowling (1976) 12 ALR 605 at 617, that:
Section 5(4) [of the Conciliation and Arbitration Act 1904-1976 (Cth)] imposed the onus on the [employer] of establishing affirmatively that it was not actuated by the reason alleged in the charge. The consequence was that the [employee], in order to succeed, was not bound to adduce evidence that the [employer] was actuated by that reason, a matter peculiarly within the knowledge of the [employer]. The [employee] was entitled to succeed if the evidence was consistent with the hypothesis that the [employer] was so actuated and that the hypothesis was not displaced by the [employer]. To hold that, despite the subsection, there is some requirement that the prosecutor brings evidence of this fact is to make an implication which, in my view, is unwarranted and which is at variance with the plain purpose of the provision in throwing on the [employer] the onus of proving that which lies peculiarly within his own knowledge.
(Emphasis added.)
38 Gummow and Hayne JJ concluded at [104] that "the reasoning of Mason J in Bowling [was] to be applied to s 346 [of the Act]", and that an "employer contravenes s 346 if it can be said that the engagement by the employee in an industrial activity comprised 'a substantial and operative' reason, or reasons including the reason, for the employer's action…".
39 The test to be applied in this case is to look at the evidence advanced on behalf of AJR Nominees as to why it dismissed Bill together with the evidence as a whole in order to ascertain whether AJR Nominees has, on the balance of probabilities, satisfied the Court that the adverse action was not a "substantial and operative" reason for the action taken.
40 In Stevenson v Murdoch Community Services Inc (2010) 202 IR 266 at [100], Gordon J, discussing s 659 of the Workplace Relations Act 1996 (Cth), a reverse onus provision, observed that:
[N]otwithstanding that presumption [of adverse action], an applicant must prove the existence of objective facts which the applicant contends provide a basis for the respondent's contravening conduct: see Construction, Forestry, Mining and Energy Union v Coal & Allied Operations Pty Ltd (1999) 140 IR 131 at [161]-[162]. The presumption "simply … alleviate[s] the evidentiary difficulty facing the applicant of providing proof of the intent or reason which motivated, or formed part of the motivation for, the respondent's conduct following the absence of the employee from work" ...
[I]f an applicant proves those facts and alleges that the conduct was carried out for a prohibited reason, then the onus shifts to the respondent to prove, on the balance of probabilities, that it was not motivated by a proscribed reason: Geraldton Port Authority 93 FCR 34 at 68 ...
(Emphasis added)