background facts
22 The appellant became an officer in the Commonwealth Police (as the AFP was then known) on 27 March 1978. On 20 August 1990, her position was converted to a fixed term appointment, expiring on 25 August 2000.
23 Prior to December 1997, the appellant had an excellent record with the AFP. In that month, an incident occurred which involved a very sharp disagreement between the appellant and more senior officers at the Adelaide office of the AFP. The appellant disagreed strongly with an operational decision, left the office and, at the direction of her doctor, did not return to work. In fact, she did not return to work after 17 December 1997.
24 In consequence of a formal grievance submitted by the appellant on 12 January 1998, an internal investigation was undertaken into allegations made by her. The investigation concluded on 30 April 1998 that the allegations had no foundation. The appellant then wrote a letter to Senator Vanstone seeking further review of the grievances the subject of the internal investigation report. This prompted a further investigation by AFP internal security and audit, which concluded on 14 July 2000 that her allegations were unsubstantiated.
25 Shortly after the first internal investigation report was completed, on 10 May 1998, the appellant claimed compensation under the Safety Rehabilitation Compensation Act 1988 (Cth) ('SRC Act') for a 'major depressive disorder'. That claim was rejected on 20 November 1998. Following internal reconsideration, Comcare affirmed the decision to refuse compensation on 16 April 1999. The appellant challenged that decision in the Administrative Appeals Tribunal ('AAT'). On 13 June 2001, the AAT set aside the decision and decided that Comcare was liable to pay compensation to the appellant from 17 December 1997 until 6 October 1999. The latter date was selected because the AAT found that any depressive symptoms, which the appellant may have had on and after that date, could not be attributed to the particular work difficulty she had experienced in 1997. Rather, the symptoms, as at October 1999, related to the stress and anxiety of the various legal proceedings and the appellant's concerns about her alienation from her colleagues.
26 In the meantime, on 25 June 1999, the appellant applied to take three months leave without pay. This request was refused. On 29 September 1999, the AFP coordinator for the southern region directed the appellant to present herself for duty at the AFP Adelaide office. The letter stated that failure to attend would be interpreted as an intention to resign from the AFP. It appears that this direction was subsequently withdrawn.
27 Following some attempts at mediation, the General Manager, Professional Development, wrote to the appellant on 3 March 2000. He advised the appellant as follows:
'I have considered all aspects of your AFP employment and hold concerns that there has occurred a fundamental and irrevocable breakdown in the employment relationship, such that I have lost confidence in your continued suitability to remain a member of the AFP.'
The letter invited the appellant, should she seek reappointment, to provide written submissions in relation to the concerns expressed in the letter.
28 After some further correspondence, the General Manager, Finance and People Management, wrote to the appellant's solicitors on 19 July 2000, providing particulars of what was said to have been the fundamental and irrevocable breakdown in the employer relationship. By letter dated 29 July 2000, the appellant made detailed written submissions responding to the particulars of concern provided by the AFP. These were supplemented by further submissions on 6 August 2000.
29 On 22 August 2000, a delegate of the Commissioner wrote to the appellant advising that it had been decided not to reemploy her at the completion of her current contract, which was due to end on 25 August 2000.
30 On 3 September 2000, the appellant requested a review of this decision by the Panel. The Panel was established pursuant to an agreement between the AFP and the Australian Federal Police Association. Its functions were to consider matters referred to it by the Commissioner or by the National Secretary of the Association and to make recommendations to the Commissioner in respect of those matters. In this instance, the members were an independent Chairman, a Deputy Commissioner of the AFP and a representative of the Association.
31 On 19 October 2000, the appellant made written submissions to the Panel. The Panel had the documents that had been before the primary decision-maker. The appellant, her professional reporting confidante and two other AFP officers gave oral evidence to the Panel.
32 On 30 October 2000, the Panel made a written recommendation to the Commissioner. The report of the panel noted that there were:
'a number of features of this matter which might perhaps have been handled better. It is possible that a better solution to this matter might have been achieved. We point to the fact that in 1998 [the appellant] sought to leave the AFP and her offer to do so was declined. Her complaints about the alleged incompetence of the Management of the Adelaide Office at the time were considered but her identity was disclosed…. [I]t would appear that such disclosure represents a breach of normal procedures for which there is no explanation available to the panel….
It is trite to observe that this is a difficult matter to decide. What we have attempted to do is to consider the matter on balance and to attempt to reach a conclusion which is consistent with the best interests of all concerned. If the panel were to recommend [that the appellant] should be reemployed at this stage and if such a recommendation were to be adopted, we are far from satisfied that it would be in the best interests of the AFP or [the appellant].'
On balance, the Panel concluded that it was impossible to make a recommendation for the appellant's reemployment 'particularly at this time'. It added, however, that the AFP had some responsibility to her and suggested that further counselling should be made available to her by a professionally competent body in order to assist her future employment prospects.
33 The Panel concluded its report as follows:
'We wish to make it clear that our reason for not recommending [the appellant's] re-employment relates to our view that it would be impossible for her to resume her normal employment and to resume a contract of employment on a basis which would be satisfactory to all concerned. In other words, the conclusion we have reached is that there has been not only a breakdown in the employment relationship, but a breakdown of such magnitude that it is highly unlikely that the damage can be repaired.'
34 On 1 November 2000, the Acting Commissioner of the AFP accepted the recommendation of the Panel.
35 On 26 October 2001, prior to the Panel making its written recommendation, the appellant lodged a complaint with the Human Rights and Equal Opportunity Commission ('HREOC') in relation to alleged discriminatory conduct by the AFP. That complaint was augmented on 11 February 2002. The President of HREOC terminated the complaint on 28 February 2002, pursuant to s 46PH(1)(f) of the HREOC Act, on the ground that she was satisfied that the subject matter of the complaint had been adequately dealt with by another statutory body. The President had regard, in particular, to the decision of the AAT and to the decision of the Panel.
36 On 22 March 2002, the appellant filed the application in the Federal Magistrates Court under the HREOC Act seeking compensation and other relief against the Commonwealth. The judgment of the Court was delivered on 26 June 2003. A separate judgment on costs was delivered on 16 July 2003.