[2024] FWC 489
General information, not legal advice.
Fair Work Commission
2024-05-17
Original judgment source is linked above.
s.394 - Unfair dismissal
(1) A person who has been dismissed may apply to the FWC for an order under Division 4 granting a remedy.
Note 1: Division 4 sets out when the FWC may order a remedy for unfair dismissal.
Note 2: For application fees, see section 395.
(a) within 21 days after the dismissal took effect; or
(b) within such further period as the FWC allows under subsection (3).
(3) The FWC may allow a further period for the application to be made by a person under subsection (1) if the FWC is satisfied that there are exceptional circumstances, taking into account:
(b) whether the person first became aware of the dismissal after it had taken effect; and
(c) any action taken by the person to dispute the dismissal; and
(d) prejudice to the employer (including prejudice caused by the delay); and
(f) fairness as between the person and other persons in a similar position."
A person has been unfairly dismissed if the FWC is satisfied that:
(b) the dismissal was harsh, unjust or unreasonable; and
(c) the dismissal was not consistent with the Small Business Fair Dismissal Code; and
(d) the dismissal was not a case of genuine redundancy.
Note: For the definition of consistent with the Small Business Fair Dismissal Code: see section 388."
In considering whether it is satisfied that a dismissal was harsh, unjust or unreasonable, the FWC must take into account:
(a) whether there was a valid reason for the dismissal related to the person's capacity or conduct (including its effect on the safety and welfare of other employees); and
(b) whether the person was notified of that reason; and
(c) whether the person was given an opportunity to respond to any reason related to the capacity or conduct of the person; and
(d) any unreasonable refusal by the employer to allow the person to have a support person present to assist at any discussions relating to dismissal; and
(e) if the dismissal related to unsatisfactory performance by the person - whether the person had been warned about that unsatisfactory performance before the dismissal; and
(f) the degree to which the size of the employer's enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(g) the degree to which the absence of dedicated human resource management specialists or expertise in the enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(h) any other matters that the FWC considers relevant."
(1) A person's dismissal was a case of genuine redundancy if:
(a) the person's employer no longer required the person's job to be performed by anyone because of changes in the operational requirements of the employer's enterprise; and
(b) the employer has complied with any obligation in a modern award or enterprise agreement that applied to the employment to consult about the redundancy.
(2) A person's dismissal was not a case of genuine redundancy if it would have been reasonable in all the circumstances for the person to be redeployed within:
(b) the enterprise of an associated entity of the employer."
As discussed, we are currently having one of our consultants reviewing business operations in light of current market trends and industry downturn.
The intension (sic) is to meet and consult staff to understand their role in the organisation.
For this reason, can you make yourself available at 12pm or 3pm this Wednesday at Zarraffa's Coffee near your residential.
Please confirm your time preference back via email and I will pass on.
"Look, you know, if you want to take a pay cut what would you consider a pay cut? What, five per cent? 10 per cent? 20 per cent? That's not much of a pay cut. You're a cost cutting exercise."
As discussed in today's meeting, please see attached.
Although you have agreed verbally today, if you still wish to proceed with the voluntary redundancy package kindly return the attached to me signed today and ensure the company items are handed over to me by Friday afternoon.
Note as an alternative to the above as relayed today, the company will consider your feedback and I will meet you at 12pm Friday 9 June 2023 at the same Café to discuss your possible options and the formal outcome in respect to possible redundancy of your role.
"6.1 The Employee acknowledges that before signing this Deed, he has been advised by the Company that he should seek independent legal advice in relation to the terms of this Deed."
"Hi Matt, I rung to discuss getting access to my laptop to remove all personal effects and applications - if you could give me a call to discuss that would be appreciated."
As discussed with you yesterday, the business is experiencing a downturn whilst also facing a troubling economy. As a result the business is forced to review operations.
The business is strongly considering a cost saving initiative involving the potential restructure of its operations. We are also exploring options pertaining to the breakdown of the various tasks performed and the redistribution of those tasks and duties amongst other existing roles within the team.
A preliminary decision has been reached by the business to action the cost saving initiative and therefore your employment with the business may be made redundant however a final decision has not yet been reached as the business has allowed for the consultation to take place yesterday, time to review your feedback before a final decision is made.
As discussed yesterday and further confirmed via email I will meet you tomorrow at 12pm (Friday 9 June 2023) at same Café. You are entitled to have a support person attend the meeting.
We take this opportunity to bring to your attention and remind you that the information which you have acquired, or to which you have had access during, or in the course of your employment is strictly confidential and must not be divulged in any manner whatsoever.
You have been privy to confidential and sensitive information whilst working in the Company, and the data that you have had access to should be treated with the highest confidentiality and not be breached in any manner whatsoever or used for personal gain outside of the Company without the explicit written permission of the Management.
Your employment sets out your employment obligations in relation to confidentiality, acknowledgements, inventions and non-competition.
Should your position be made redundant you must forthwith return to us any employer property in your possession including, office door pass, lift key [redacted], mobile phone & charger, laptop and dock [redacted], any local external hard drives or storage that contains information related to Companion Systems.
Considering our discussions to date I note you have indicated hesitation to return company property, specifically the laptop and mobile phone. Please note these are to be on your procession during the scheduled meeting tomorrow and ready to handover in the event your role is made redundant.
As discussed with you yesterday failure to handover these items if required by me tomorrow may warrant summary termination of employment. In the event you do not attend tomorrow's meeting the decision will be emailed to you.
Acting for and on behalf of Companion Systems Pty Ltd"
Mr Camenzuli: And I rung him and said, 'Mate, what's going on?' I said, 'Everything's just proceeding forward and like I only just received this yesterday afternoon.' I was running around. I've just purchased all the phone and everything like that as you've suggested and I've still got to set it up, cut it over and deal with cutting over to this new phone.'
......that was where a lot of my time was chewed up. I rung Gabriel to tell him as such and that I wanted to sign the voluntary redundancy. I made - I stressed that several times to him. But in the deed it specifically said for me to seek legal advice. And I said I still hadn't had a chance to ring around for any lawyers or anything like that. So I was basically - just sort of said, 'Look, that's the process. That's the process effectively.' So I ended up hanging up from that phone call. Kept setting up got the bulk of it, the phone set up and operational. You know enabling the SIM and all that sort of stuff. You know it's now just after lunch and then I sort of stopped cutting over and then I actually started ringing lawyers to find anyone available to have a chat with.
Mr Camenzuli: ......if that was to happen I would have expected that Rod and Matt would have - you know - come and told me since they were already up here on the Thursday anyway. They were visiting a client.
Commissioner: Where? Sorry. Tell me more about that. On Thursday 10th - sorry, Thursday 8 June?
Mr Camenzuli: Yes, which was my birthday. Rod and Matt had flown up to see a client. I believe it was GemLife who are located 15 minutes down the road from me. You know? And that's probably - you know - since they were already up here, rather than - you know - sending this third party person who we'd never used in this capacity before. We've only had one - I've only ever had one dealings with him just prior which was - let's just say a very bad experience - and, you know, I would have expected that - you know - they could have - you know, since Matt was or probably - I think Matt flew up the day before. You know?
Mr Camenzuli: I believe so. He normally tends to fly the day before so there's never any issues. Just to have the Sydney company - the company practise to say that he - you know - surprises with air lines and that sort of stuff. You know, then pulling me aside and telling me this. You know? So I could - you know - deal with them directly or hear it from them directly probably would have yielded much different results.
Mr Camenzuli: Yes. That would have been nice. But look, I am work from home. So, the options would have been at my house. You know? Or somewhere else public. Like I don't know where.
Commissioner: They could have hired a service office and met with you privately, couldn't they?
Mr Camenzuli: Look, they - honestly - yes, look they could have. I'm a very practical person. I probably wouldn't waste the money on something like that myself. Right? But, look, there are a lot of different ways that it could have gone about. Let's just put it down to that.
A Deed of Settlement and Release has been issued to my personal email at 4:15pm yesterday Wednesday 7 June 2023 following a meeting with Gabriel Alkan of Specialist recruitment yesterday at 12pm.
In the meeting Gabriel has advised me that he is authorised to act on behalf of Companion Systems.
In the meeting I was advised that my position with Companion Systems was at high risk of being made redundant and an offer was made for me to accept a voluntary redundancy package by COB or to meet on Friday 12pm to discuss the possibility of redeployment within the business. I was advised that this decision was made due to a downturn of business in the building industry and the current performance of the company. During the meeting no information was provided for the option of redeployment. Upon attempting to check my Calander during the meeting my access was already terminated and upon arriving home to log into my computer, my local computer access had already been terminated also.
After the meeting with Gabriel at 12pm. I have attempted to contact you both to request an extension of time to:
Given my 14 Year long tenure with this company, I am taken aback to receive a phone call from Gabriel advising that no extension of time will be considered, that any further attempts by me to request an extension will be deemed harassment and will put at risk the settlement.
Can you confirm that everything above is correct and that no extension will be granted?
If the company wants the return of the hardware (excluding the phone) in the interim, it can be picked up from my home address at a mutually arranged time on [redacted].
This letter is provided to you in addition to the redundancy consultation meeting held with you on the 7 June 2023 and subsequent consultation letter emailed to you on 8 June 2023.
As expressed previously, the business is experiencing a downturn. As a result the business is forced to review business operations and costs. Please note this decision is not a reflection of your performance.
The business notified you on 5 June 2023 that a meeting would take place on 7 June 2023.
On 7 June 2023 I made clear in our meeting that your position was at risk of being made redundant and that a final decision would take place on 9 June 2023.
I note that during our consultation process you did request the business create a new role for you, unfortunately this suggestion was not accepted by management. In addition a list of alternative roles could not be provided to you as the business was not recruiting given the circumstances stated above.
As per my letter to you on 8 June 2023 I wrote about your reluctance to return company items, specifically the laptop and mobile phone. I also stressed your employee obligations.
During the meeting held on 9 June 2023, you were advised that after consultation, consideration of your feedback and redeployment, unfortunately there were no alternative roles that we could offer you.
During our meeting today 9 June 2023 you refused to hand over the company mobile phone. I informed you to reconsider as the potential consequence could result in summary dismissal. After a short break you decided to not hand over your mobile phone.
Please note that due to your actions we now reserve the right to reclassify or relabel the separation of employment. After speaking with management we have decided to consider the following:
- assessing the employment separation terms/reclassification of termination
- provide you until COB 14 June 2023 to have the company mobile phone returned to the Parramatta Office (note if you decide to take up this offer kindly email me back the express post tracking number)
- refer this matter to the police in respect to company property theft
- readjust your payout amount in line with separation terms/classification
Moving forward I will now handover to management all the other company items you returned to me to ensure no misuse is identified.
To be clear, had all company items been returned and handed over to me, the intension (sic) of today's meeting was to continue with the redundancy process and classify the separation of employment and your role as redundant. This being said we now as mentioned above reserve our right to reclassify or relabel the separation of employment. We intend to inform you of the final label/classification no later than 16 June 2023.
If you have any question in regards to this letter you can contact me directly on my mobile.
Once again we remind you of your post-employment restrictions as made clear to you verbally and in writing.
Finally we thank you for your valuable contribution during your employment with us.
Acting for and on behalf of Companion Systems Pty Ltd"
I have met with Gabriel Alkan of Specialist Recruitment today at 12pm as instructed.
Following on from our meeting today, I have received the Separation of Employment letter via email this afternoon. The letter advises that the business had notified me on Monday 5th of June 2023 that a meeting would take place on Wednesday 7th June 2023. I would like to make it clear that I was not made aware of the real intention of the meeting until it took place on the 7th of June.
In the Separation of Employment letter, it is stated that I requested that the business create a new role for me, this is factually incorrect. I was informed that the business was considered how it could redeploy me (in line with the best practices) and I was asked for my thoughts and feedback.
The letter also states I was relucent to hand over company items and I refused to hand over my mobile phone. For sake of clarity, I expressed intentions to return all items to the company, I simply requested more than the 24hrs that was given to me. I note that the phone service has been terminated, this was brought to my attention this afternoon when I returned home and I was unable to enter through the gate of my complex.
My understanding of the Separation of Employment letter is that:
On the later point please advise by COB Monday 12th June if the company has considered and agreed to allow me to return the phone by COB 14th of June, so I can send this via registered post as requested on Tuesday morning. However, please note that this will be at your own risk, if you wish to arrange other more secure means of transport, please advise by COB Monday 12th June.
During this whole process I have offered the desire to negotiate and to request a short extension to handing over the phone. I offered to make myself available to the business, though these claimed difficult times to further assist the business, as required and at no additional/reoccurring cost. Understand that a lot of intellectual property is tied up inside me due to my longevity of employment, the variety of roles and projects that I had held / been involved with. Gabriel again advised me he is acting on direct orders from the business and claimed that there was no negotiation and no extension allowed.
Please be advised all requested company items have been returned to Gabriel in working order. Gabriel has confirmed in our meeting today that he was satisfied with what has been provided to him today with the exception of the mobile phone.
On a final note, it is disappointing that Companion Systems would treat a valuable and performing employee in such a distressing way as this. Where this employee has not only been there from such an early moment in the company's history but who has gone above and beyond for the business time and time again. After 14 years of loyal and valued service, I am not afforded any opportunity of a farewell, not offered any thanks or gratitude from the business and no opportunity to say my farewells.
"Hi Terry, let me know when is a good time to give you a buzz on messenger?"
"I know that when an employee's leaves, you are required to look through the device ... When you log into the device, you will have unrestricted access to my Google Drive's which contains all my personal and sensitive information as well as my logged in browser account which contains all my passwords."
*Personal Development (has all the notes and things we went through)
* Agile (I believe this has my notes on Agile processes0
*Please delete "zHome Backup" (this is my home nas that I had backed up to OneDrive - 175gb)
"I can't action this yet. I am under strict instructions not to do anything without Matt's approval. You need to request anything like this through Matt or Gabriel."
I never heard back about anything stated in my below correspondence, including about if you wanted to arrange any other more secure means of transporting the mobile back to the office.
I have posted the mobile phone via registered post today. Please find attached a copy of the Australia Post receipt with the tracking number.
I wrote to you on the 9 June 2023 detailing the separation of employment.
As per my letter to you on 8 June 2023 I wrote about your reluctance to return company items, specifically the laptop and mobile phone. I also stressed your employee obligations.
During our meeting today 9 June 2023 you refused to hand over the company mobile phone. I informed you to reconsider as the potential consequence could result in summary dismissal. After a short break you decided to not hand over your mobile phone.
In my letter to you on 9 June 2023 I explained that the company reserves it's the right to reclassify or relabel the separation of employment. I also listed the four considerations management would be making as per the below:
- assessing the employment separation terms/reclassification of termination
- provide you until COB 14 June 2023 to have the company mobile phone returned to the Parramatta Office (note if you decide to take up this offer kindly email me back the express post tracking number)
- refer this matter to the police in respect to company property theft
- readjust your payout amount in line with separation terms/classification
Unfortunately we did not receive the company mobile phone back at the Parramatta office by COB 14 June 2023, in addition you did not provide a tracking number as requested. I note you have emailed Rod and Matt after COB 14 June 2023 indicating a tracking number attached however that has come up as malware.
Please note on 14 June 2023 I handed over all company items to management. Upon a desktop assessment it was identified that you have reset the laptop and erased all company intellectual property. In addition management was informed by Terry that you contacted him on 12 June 2023 explaining that you have reset the laptop. You also wrote to Terry via Facebook requesting certain material.
I now write to you informing you of management decision to label the separation of employment conducted on 9 June 2023 as summary dismissal based on your serious misconduct highlighted above.
You will be paid out all statutory entitlements which includes annual leave and long service leave.
As I have made clear to you management have requested that I manage all correspondence with you in respect to this matter, as such if you have any questions in regards to this letter or previous letters you can contact me directly on my mobile.
Considering you have breached your employment and post-employment restrictions we reserve our right to have this matter referred to our legal team for further action and if necessary the police.
Acting for and on behalf of Companion Systems Pty Ltd"
"Specialist HR represent my previous employer in a Fair Work matter.
I did not give them any permission to involve my new job in any of this. I have been very intentional in keeping my new life completely separate (even avoiding providing my new number) from anything to do with this matter."
I write on behalf of Specialist HR, based in Sydney, and I am seeking to confirm some details for James Camenzuli who has given his permission for us to contact you.
Specifically, would you please confirm the following:
Thank you so much and I appreciate your prompt response."
I would like position, start date with company and current salary confirmed through their HR department."
Not a problem. Yes just a basic reference for this one."
Just updating you. The HR department is proving tricky to get through to. After leaving several messages, I have been given an email address to send the request to. I am hoping to receive a response today."
They want James' approval in writing to disclose confidential information. Do you have that please?"
It appears they aren't making it easy, let's just leave it for now.
"...the Applicant's actions in relation to the company laptop and smartphone is self-evidently a wilful and deliberate theft which posed a serious threat to the reputation, viability or profitability of the Respondent's business, and indeed to continuation of the employment".
"...sound, defensible or well founded. A reason which is capricious, fanciful, spiteful or prejudiced could never be a valid reason for the purposes of 170DE(1) [now 387(a)]."[7]
"... The purpose of a warning about unsatisfactory performance must be to identify the performance that is of concern and must make it clear that a failure to heed the warning places the Applicant's employment at risk. Such a warning gives an employee an opportunity to improve in those areas identified as requiring improvement. An integral part of such a warning must be to clearly identify the areas of deficiency, the assistance or training that might be provided, the standards required and a reasonable timeframe within which the employee is required to meet such standards."[9]
"WA Shed Commercial bears the onus of providing on the balance of probabilities that the redundancy was due to changes in operational requirements. If it is wrong to describe there being an onus of proof on WA Shed Commercial, which I do not consider to be the case, it remains that there must, in any event, be material before me which satisfies me that there were genuine operational reasons for WA Shed Commercial no longer requiring Mr Harby's job to be performed by anyone.
While the redundancy letter of 1 July 2019 speaks of the '[C]ompany's decision to restructure its operations' to 'ensure the future success of the business,' there is no other evidence before me apart from the assertion in the letter.
It is unnecessary to labour the point further. WA Shed Commercial has not presented any documentary or other evidence to this Commission in response to Mr Harby's application. In these circumstances, the only conclusion open to me is that Mr Harby's dismissal was not a case of genuine redundancy. Therefore, I turn to consider whether his dismissal was unfair."
"...There must be an appropriate evidentiary basis for the Commission's findings and the relevant facts are usually peculiarly within the knowledge of the employer respondent rather than the dismissed employee..."
"To be satisfied the dismissal was a case of genuine redundancy, the Commission must be satisfied the role was no longer required to be performed by anyone in the business because of operational requirements.
The Act does not define the term 'operational requirements'. It is a broad term that permits consideration of many matters including the state of the market in which the business operates and the application of good management to the business. Further examples include a downturn in trade that reduces the number of employees required, and the employer restructuring the business to improve efficiency, including the redistribution of tasks done by a particular person between several other employees resulting in the person's job no longer existing."
"...The test is not however whether the duties survive. Paragraph 1548 of the Explanatory Memorandum makes clear that it can still be a 'genuine redundancy' where the duties of the previous job persist but are redistributed to other positions. The test is whether the job performed by the applicant still exists".
"...possible examples of a change in the operational requirements of an enterprise:
"• manage personal work priorities and professional development;
"29. Consultation about major workplace change
29.1 If an employer makes a definite decision to make major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees, the employer must:
(a) give notice of the changes to all employees who may be affected by them and their representatives (if any); and
(b) discuss with affected employees and their representatives (if any):
(iii) measures to avoid or reduce the adverse effects of the changes on employees; and
(c) commence discussions as soon as practicable after a definite decision has been made.
29.2 For the purposes of the discussion under clause 29.1(b), the employer must give in writing to the affected employees and their representatives (if any) all relevant information about the changes including:
(c) any other matters likely to affect employees.
29.3 Clause 29.2 does not require an employer to disclose any confidential information if its disclosure would be contrary to the employer's interests.
29.4 The employer must promptly consider any matters raised by the employees or their representatives about the changes in the course of the discussion under clause 29.1(b).
29.5 In clause 29 significant effects, on employees, includes any of the following:
(b) major changes in the composition, operation or size of the employer's workforce or in the skills required; or
(c) loss of, or reduction in, job or promotion opportunities; or
(f) the need for employees to be retrained or transferred to other work or locations; or
29.6 Where this award makes provision for alteration of any of the matters defined at clause 29.5, such alteration is taken not to have significant effect."
"• providing specialised advice and information on the organisation's products and services;
(ii) maintain computer based records management systems;
(iii) identify and extract information from internal and external sources; or
(iv) use advanced word processing or keyboard functions;
"38. Consultation about major workplace change
38.1 If an employer makes a definite decision to make major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees, the employer must:
(a) give notice of the changes to all employees who may be affected by them and their representatives (if any); and
(b) discuss with affected employees and their representatives (if any):
(iii) measures to avoid or reduce the adverse effects of the changes on employees; and
(c) commence discussions as soon as practicable after a definite decision has been made.
38.2 For the purposes of the discussion under clause 38.1(b) , the employer must give in writing to the affected employees and their representatives (if any) all relevant information about the changes including:
(c) any other matters likely to affect employees.
38.3 Clause 38.2 does not require an employer to disclose any confidential information if its disclosure would be contrary to the employer's interests.
38.4 The employer must promptly consider any matters raised by the employees or their representatives about the changes in the course of the discussion under clause 38.1(b).
38.5 In clause 38 significant effects, on employees, includes any of the following:
(b) major changes in the composition, operation or size of the employer's workforce or in the skills required; or
(c) loss of, or reduction in, job or promotion opportunities; or
(f) the need for employees to be retrained or transferred to other work or locations; or
38.6 Where this award makes provision for alteration of any of the matters defined at clause 38.5, such alteration is taken not to have significant effect."
"It was not sufficient for an employer to simply inform an employee of its decision; there must be a genuine discussion directly with the employee, with particular reference to the nature of the changes, its expected effects and how any adverse impacts on an employee, could be mitigated."
"Consultation is not perfunctory advice on what is about to happen, consultation is providing the individual, or other relevant persons, with a bona fide opportunity to influence the decision marker."
"The word 'consult' means more than the mere exchange of information. As Young J said in Dixon v Roy: 'the word "consult" means more than one party telling another party what it is that he or she is going to do. The word involves at the very least the giving of information by one party, the response to that information by the other party, and the consideration by the first party of that response."
(a) business structure;
(b) the number of employees in senior leadership positions;
(c) roles required;
(d) tasks to be undertaken;
(e) client books for the next 5 months; and
(f) forecast revenue over the next 5 months."
"...the employee spent all of the 8th trying to break into his laptop that had been suspended, suspended his access, why he would spend all the 8th clearing the laptop rather than genuinely work on trying to transfer contacts and any (indistinct) authentications from his company mobile phone to another mobile phone."
Commissioner: Mr Killick, your evidence, earlier, was that you also said to him, on that night, 'I'm happy to discuss with you later'?
Mr Killick: Yes, well, James is wanting to go into all sorts of other events, right, that are possibly outside this matter, right, that I'm not in a position for him to make - what was coming out of his mouth was not a matter for me to be discussing at that particular time. I had to be able to close that phone call off.
Commissioner: When could he discuss with you later, he's dismissed by Friday, isn't he, and you won't answer his emails?
Mr Killick: No, I clearly said to him we would answer through Mr Alkan.
Commissioner: This is your evidence that you gave earlier, I wrote it down, you said, 'I'm happy to discuss with you later'?
Mr Killick: Yes, not - there was a lot in that - there was a lot in that phone - - -
Commissioner: Okay. Was it meant to mean only through a third party but not through you again?
Mr Killick: He was wanting to - look, James was very upset at the time of - - -
Commissioner: I'm just interested in your statement to him?
Mr Killick: Yes, my statement to him was, could we please communicate through Mr Alkan, and I will communicate - - -
Commissioner: But you also said, 'I'm happy to discuss with you later'. Were you?
Mr Killick: If he wanted to discuss something personal with me later, that was that - that's what that was about.
Commissioner: What's more personal that, 'I've lost my job. I'm about to lose my job'?
Mr Killick: He may want to be able to speak to me in relation to a reference. Many times I've had staff, people that are made redundant, that I've been a reference for.
Commissioner: Okay, so after he's dismissed, is that what he is meant to conclude from that statement? So you weren't happy to - - -?
Mr Killick: No, through this process, through this process. Through this process.
Commissioner: But you were saying that he's harassing Mr Matthew Camenzuli, because he's calling him. So he's not allowed to call you, is he?
Mr Killick: - - - to help - yes, I answered his call and asked, if it's in relation to this matter could it go through Mr Alkan.
Commissioner: Yes. But if your evidence to the Commission earlier is, 'I'm happy to discuss with you later', you didn't want to have any oral discussions with him later, did you?
Mr Killick: In relation to this matter, I wanted it to all go through Mr Alkan.
Commissioner: Just on that, I notice the evidence you gave earlier, Mr Killick, I wrote it down, it's on transcript, he wanted to keep his personal devices. Is that what you think - do you mean forever?
Mr Killick: At that time, when this was all happening?
Commissioner: You've now given evidence twice that he wanted to keep his phone?
Mr Killick: Yes. At the day of Wednesday, when this is happening, I understand that he wanted to keep his phone.
Commissioner: What does that mean? What did you understand it to mean?
Mr Killick: That he wanted - for James to keep the device and the phone number.
Mr Killick: As to further consultation and/or communication went on.
Commissioner: Well, when and what did you then believe? If you believe that he wanted to keep the actual phone unit and the phone number, at what point did you think otherwise?
Mr Killick: Probably in one of the emails that I got that very next day, where James was saying, 'Look, I want to be able to keep my phone, I want to be able to transfer the data', and then I knew, okay, he doesn't want the phone, he doesn't want the phone number, he wants time to be able to get the data.
Commissioner: So by 8 June, by the evening of 8 June you know that he doesn't want to keep the phone forever, is that right?
Commissioner: It's just disturbing that you have twice now said that he wants to keep the phone. So you've now said by the evening of 8 June you know that it's just for a little bit longer, is that right?
Mr Killick: Yes. So in my mind I've, when this is happening on the Wednesday, I understood that he wanted to keep, physically, the phone forever, and that phone number, of which I understand that we communicated to him, 'No, we need the device' and it was - I said to Mr Alkan, 'Didn't you communicate this to him at the lunchtime thing?', and he said, 'Yes, right, I put it in writing to him, right, that we wanted the device back'. I said, 'Yes, it's the phone number and the contacts and the information that's not recorded in our backup systems that could be on that device that we need'.
Mr Killick: I believe I'm corrected in - on probably, still in the process, probably the next day that the email comes through and I'm saying to Gabriel, 'Look, please communicate and work this out. We want the device back for our intellectual property. He can have his personal data'. Personal data is not relevant. Get him to download the data, download any of his personal stuff, delete that off, we're interested in the phone calls from customers and the communication that's had with customers that may not be in our systems.
Commissioner: Right. So is it by 8 June, in your evidence, that you now understand he doesn't want to keep his phone forever?
Mr Killick: Yes, I think when James sent through one of the emails that I forwarded on to Gabriel.
Commissioner: This is the one that you skimmed over?
Commissioner: Well, my question to you is when did you understand that he didn't want to keep the phone unit forever?
Mr Killick: I'm unsure, somewhere within those three days. I can't give you a particular time, but I was aware, by the consultation process, on the morning of Friday, right, that he was intending to give the phone back, just at a later date.
Commissioner: Okay. So you knew that, on the morning of Friday the 9th?
Mr Killick: That's why we gave him the extension of the time, in relation to the phone.
"On the evening of 14 June 2023, the Applicant emailed me and Matthew Camenzuli with an email purporting to contain an AusPost tracking receipt. However, our SAAS email security system blocked the attachment on the basis that it detected malware. I forwarded this to Mr Alkan for his attention and consideration."
Mr Watters: Well, I suggest to you, sir, that it didn't tell you it was malware at all?
Mr Watters: I suggest that your system raised an alarm and put the item in quarantine. What do you say to that?
Mr Killick: It was on my email. I opened up the email, read the email. I went to open the attachment and I got a warning.
Mr Watters: Yes. That warning said the item had been placed in quarantine?
Mr Killick: I just got the warning. I didn't go into where it was.
Mr Watters: I suggest to you that that warning did not use the word or tell you that it was malware?
Mr Watters: No, where is it in your evidence? Surely you will have that in your evidence. It's something critical that you rely on, that James Camenzuli was sending his former employer malware. That's a serious allegation, sir, you must know that?
Mr Killick: What I'm saying is that's one part of my evidence. I'm trying to give all the detail of the whole process, and in receiving that, right, it's popped up with that of which I forwarded it straight on to Gary Bruil(?) and forwarded it straight on to Terry Nay, right, saying, 'Look, this is what's popped up. I haven't opened it.'
Commissioner: Mr Killick, by the time that you write your witness statement Mr Camenzuli's written his witness statement some weeks earlier, and he's provided evidence of the email that he sent to you and Mr Matthew Camenzuli, and the Australia Post attachment. Did you read that when you created your witness statement?
Mr Killick: I've read - I have read James's. I don't know the timing around it, but I read it.
Commissioner: Well, let's be very clear. He makes his statement on 11 September. You make your statement on 27 September?
Mr Killick: Yes, so I would have read - I would have read James's for sure.
Commissioner: At 66 he says that he sent you and Mr Matthew Camenzuli an email. At 30, five days later he follows it up and he says, 'I've posted the mobile phone.' This is on 14 June. And he attaches the Australia Post receipt. Now, did you read any of that before you made your statement?
Commissioner: I will leave that to you then. Thank you.
Mr Watters: No. Please answer the question. Did you skim read it?
Mr Watters: Yes, that statement of evidence, did you skim read it? You've told us earlier that you skim read the 8 June email?
Mr Watters: So did you skim read this, that's my question. There's no harm in skim reading something if that's your evidence. Just tell me?
Mr Killick: Look, I read it - I read it. I read the email. I'm not disputing that he didn't try to send me a receipt, if that's the question you're asking.
Mr Watters: Well, let's go back to page 260 of the court book as identified by the learned Commissioner. You show me in that document where it tells you there was malware?
Mr Killick: We've got my email address, separation (indistinct) letter to Gabriel, 'Is there a problem?' (Indistinct). And then it has mobile grey 32, whatever that is. And then a quarantine alert SAS Defence text.
Mr Watters: That's what I put to you in cross-examination, sir. I told you that the communication you got was that the item had been put in quarantine. The item did not say to you, 'This contains malware'?
Mr Killick: Okay. Now I'm clearly understanding where you're going with this. So I understand it.
Mr Watters: So that's agreed. Contrary to your statement the email alert you got didn't say it contained malware. It said - - -?
Mr Killick: No, I'm assuming that it was malware because of the quarantine alert. Now I understand.
Mr Killick: I assumed that the quarantine alert surfaced said that there's an issue with it.
Mr Watters: Do you now accept that what Mr Camenzuli did was to send you an Australia Post receipt, a tracking notice for the return of the phone; do you accept that?
Mr Killick: I accept that's exactly what he was trying to send me.
Mr Watters: Well, hang on, not what he was trying to send you, I'm putting it to you that that's what he did. He got - - -?
Mr Killick; By the evidence I saw on Monday that's exactly right. He said that's what he sent.
Mr Watters: And in fact that's what he was told to do, wasn't it?
Mr Killick: No, he was told to have it back in our possession here, and he didn't. He sent this receipt. It didn't come back to us by the time it was meant to come back. It came back days later.
Commissioner: When did you become aware of his 14 June text message attaching the Australia Post receipt?
Mr Killick: I opened the email on the morning that I came to work after it was sent.
Mr Killick: I found - and then I forwarded it - I forwarded it on to Mr Alkan.
Commissioner: You could read the email part of it, could you? So go to page 47?
Mr Killick: Yes, here's an email from James. Opened up the email, and then I went to open the attachment because (indistinct) expecting - - -
Commissioner: Go to page 47. Could you read that email, could you, where it says, 'Matt, Rod, I never heard back about anything.' It concludes with - - -?
Commissioner: Because he's emailed you on the night of 9 June saying, 'Can you get back to me by 12 June about how you want this phone returned.' He does that at page 48. And you don't get back to him, and then - - -?
Commissioner: I know you sent it to Mr Alkan, but he's asking you a question and you don't get back to him. Tell me, page 47, were you in receipt of this email, were you able to read it where he says that he's posted it by registered post today?
Commissioner: No. Did you receive that? That wasn't quarantined, was it?
Commissioner: And you still sent the letter of 15 June, the next day?
Mr Killick: When was the mobile phone due to be back in our office? The mobile phone wasn't back. He's saying, 'I sent a receipt.'
Commissioner: He sent you an email the night of 14 June saying, 'I have posted the mobile phone by registered post today, and here's the receipt.' And you still sent him the 15 June - I didn't appreciate you had received and been able to open this email. That's your evidence, you read that, and you still sent the 15 June letter. Is that right?
Mr Watters: As any dismissal. When do you say he was terminated? Do you know when he was terminated?
Mr Killick: Yes. So my understanding of our events was a meeting on the Wednesday to be able to consult with him; on the Friday being made redundant, and there we learnt that he didn't come back with - he came back with the laptop, he didn't come back with the phone. So further then our instructions were to write to him to give him an extension of time to get it back all undamaged. But what we found when both items come back that they'd both been completely wiped of all our company data. So there was a meeting then carried out once we received the laptop and then the phone. The decision then - was given advice from Mr Alkan what our options were, and that through that group then - through this continued process it was decided then to take away the redundancy and take it into a dismissal.
Mr Killick: The Wednesday morning after reviewing the laptop, after reviewing - our meetings after reviewing the laptop.
Mr Watters: Just so I've got this right, you say he was made redundant on Friday the 9th. Is that your evidence?
Mr Killick: On Friday's meeting back at Zarraffa's - - -
Mr Killick: We were working with him to - we made him redundant, yes.
Mr Killick: No longer a staff member. Yes, no longer a staff member.
Mr Watters: That was changed and went to a summary dismissal the following week. Is that your evidence?
Mr Watters: Would it interest you to know that Mr Alkan has given evidence to this tribunal that he was summarily dismissed on the Friday 9 June? Have you got any comment on that?
Mr Killick: He was made redundant on the Friday, right, of which all of his entitlements in relation to redundancy were to be forwarded to him. Unfortunately James didn't bring back his laptop and his phone. An instruction was to give him further time to be able to do that, right, and due to it coming back being completely wiped and/or - and the phone being blocked and/or (indistinct), we could only understand - we couldn't understand why he would damage our property like that.
an impasse. Mr Alkan advised him that official separation of employment would now take place, that he was no longer an employee of the Respondent, and that he would receive communication via email.
It has come to my attention that you may have questions regarding my most recent correspondence to you.
As I've made clear to you verbally and in writing, if you have any questions feel free to call me on [number] and I will be happy to answer."
Mr Watters: With respect, witness, had he been granted the extension of time that he sought to seek legal advice and transfer the data from his phone and laptop, we wouldn't be here today, would we?
Mr Alkan: No, that's incorrect. We provided that extra week extension. I made that clear in my letter on the 9th that the company has decided to offer him an extension of one week.
Mr Alkan: My letter on the 15th specifies that. And I made sure that I didn't draft this letter on the 14th. I made sure it was drafted on the 15th because I thought, just in case, even though he didn't send it by the close of business 14th, and I was there. I made sure. I said I won't set the letter today, the close of business 14th, I'll send it on the 15th, there was - - -
Mr Watters: The 12th was a public holiday, have I got that right?
Mr Watters: So, on the 14th he sends the telephone by registered post, that's correct, isn't it?
Mr Alkan: No, it's very clear, sir, that he sent this malware on the 14th. We received no phone. I was there the close of business on the 14th. We'd received no phone to the company.
Mr Watters: That's not my question. I said to you it's true, isn't it, that on the 14th he sent the phone via registered post?
Commissioner: That's not the question you were asked?
Commissioner: You were asked if he sent it on the 14th?
Mr Alkan: No, Commissioner, he did not send it on the 14th. We received - - -
Mr Alkan: He sent an email to the company with malware, a virus.
Mr Watters: Let me take you to page 49 of the court book?
Mr Watters: You'll see there an Australia post tracking device, tracking notice and receipt which is dated the 14th and it was sent to your client, that is the respondents, on that date, the 14th, then after which he was accused of trying to transmit malware?
Mr Alkan: I can't see - I can't see a - is there somewhere that it's addressed to the company just confirming that this is the phone being sent to the company?
Mr Watters: Well, it's a tracking receipt. Do you think he sent a tracking receipt from something else to the company when he's been asked to return the phone?
Mr Alkan: No. What I'm saying is, there's nothing to - because we were there and no phone had been received on the 14th. It is showing this, and I'm just asking whether it's addressed to Companion Systems, the company.
Commissioner: Well, that's the applicant's evidence?
Mr Alkan: That's the applicant's evidence, okay. I can't confirm if that is - that's correct or not because we had not received that on the 14th. And I wouldn't - I wouldn't understand why he would wait till the very last day at 12.56 on the 14th after being provided one week, when you've just mentioned that he wanted just a further 24 hours. So, he's been given one week and you said he just wanted 24 hours, so I'm a little bit perplexed by that.
Mr Watters: Wait on. The additional request was made on the 9th. That's the day he was terminated according to you. The 10th is a Saturday. The 11th is a Sunday. The 12th is a public holiday. The 13th is - on his evidence he's still completing the transfer of his data and setting his new phone, and then he sends - - -
"...In my opinion the computer was reset on the 8/06/23. There are two ways in which this can be done. A person can reset their settings through Windows, or the user can reset the computer from initial boot up and pressing a function key."
Mr Watters: I'm instructed that you're known as a stickler for the rules around the company, would you agree with that?
Mr Watters: I'm told that you're someone that plays with a straight bat, if you'll forgive the colloquialism. Do you know what that means?
Mr Watters: Well, you're a straight up, honest guy and you'll always follow the policy and the procedure and do what's right. That's what I'm suggesting to you?
Mr Watters: And it's your practice, do you agree with that?
Mr Watters: Okay. So if someone was going to try and get around the rules they probably wouldn't come to Terry Nay, would they?
Mr Watters: If someone had been with the company 14 years and knew Terry Nay and his reputation, they wouldn't come to Terry Nay and say, 'Can I get around the side door to do A or B', that's not - that's not what someone would do, right?
Mr Watters: No. If someone came to you they'd know that you would always do the right thing, that's right, isn't it?
Mr Watters: And that if management had to be contacted or it needed management approval, that's where you'd go, that's right, isn't it?
Mr Watters: Okay. Now, at paragraph 9, it's on page 2 of your statement, page 277 of the court book, you tell us there's a phone call from the applicant, James Camenzuli, to yourself and that during that phone call you noted that he was aggrieved and agitated regarding the circumstances, you see that?
Mr Watters: And you say 'understandably', don't you?
Mr Watters: Because - well, you tell us why, why was it understandably?
Mr Nay: Because he'd just been dismissed and that's a pretty tough thing to hear, to have happen.
Mr Watters: Right. Especially in the case of someone that's been 14 years with the company, right?
Mr Watters: Okay. At paragraph 10 you say, 'He confessed to having reset the devices', you see that?
Mr Watters: What actually happened was he told you, 'Well, I've reset the laptop to factory settings', that's what he told you, wasn't it?
Mr Watters: Okay. And you say that, 'He didn't justify that to me, nor did I challenge it', see that in your evidence?
Mr Watters: Well, could I suggest to you, while he might not have justified it, he told you that he had a range of personal data on that laptop, bank accounts, photos, family issues, information about debts and that he wanted to remove that before the laptop went back to the company, he told you that, didn't he?
Mr Nay: He might have. As soon as he said he wiped it, my mind went into that's - what are the consequences of that and I was thinking about that.
Mr Watters: Okay. And tell me, what were the consequences?
Mr Nay: I passed that information back to management.
Mr Watters: Okay. But, ultimately, his action in returning the laptop to factory settings and removing his own personal data, that didn't damage the laptop, did it?
Mr Watters: Okay. He asked you, didn't he, you confirm this in your affidavit, at paragraph 11, he wanted to get some material off the One Drive, he said it was material of a personal nature, you recall that?
Mr Watters: And you said to him, 'Mate, I'll need management', or words to this effect, 'I'll need management approval, put that to me in writing and I'll see what I can do', words to that effect?
Mr Watters: And, indeed, you went to management, didn't you?
Mr Watters: And you told them, 'I've had confirmation from James, the laptop has been returned to factory settings, he's cleaned it', or words to that effect, right?
Mr Watters: Right. Now, when you said to him, 'Well, put it to me in writing what you want', he, in fact, did put it in writing, didn't he? The following day he sent you an email which set out, 'I want this, this and this', right?
Mr Watters: And the things he wanted were, essentially, personal items, you agree with that?
Mr Watters: There was stuff about his personal development, stuff about his photography, do you agree with that?
Mr Watters: You didn't look at it, but you identified that it was there?
Mr Watters: Okay. At paragraph 19 you tell us, in respect of the laptop device, that:
Data had been lost, including, vitally, the various technical and access configurations which are complex in nature and otherwise time consuming to set them back up.
Mr Watters: Okay. So you sat down and worked with someone, or you put down some instructions and the statement was prepared and sent back to you, or just talk me through that?
Mr Nay: The statement was sent to me and I did modify some of it, but that one was whatever was on there, I don't know now.
Mr Watters: For example, can I just confirm this, where you assisted me earlier, at paragraph 9, telling us that the applicant seemed notably aggrieved and agitated regarding his circumstances, did you modify that to identify that, let's say, 'notably aggrieved', that is that you understood what was going on?
Mr Watters: Right. And this one, where we just were, I'm sorry to jump around, paragraph 19, tell me if I've got this wrong, but the position is this, isn't it? Mr James Camenzuli returned the laptop to the factory settings. You may or may not know how the laptop was returned to the company, but it was handed, as it turns out, to Mr Alkan. And, as you've told us, subject to the backup on the system, on the corporate systems, the laptop can be reconfigured and put back into operation as needed. That's right, isn't it?
Mr Nay: Whatever was on the laptop isn't in a backup somewhere else, it was only on that laptop.
Mr Watters: Okay. So can I confirm this, that there are things then on the One Drive that weren't on the laptop, that is, personal things belonging to Mr Camenzuli, is that correct?
Mr Watters: Okay. You tell us, at paragraph 20, that subject to the applicant's resetting or wiping or cleaning, whatever we might call it, it would take time to reset and reconfigure the device, you agree with that, don't you?
Mr Nay: To set it back to something usable, you need about half a day to try and put it back in any application settings that may have existed on there that we had for clients, I don't know because I don't know what they were.
Mr Camenzuli's use and failure to return the company devices
Reasonableness of the delegation of the HR duties to Mr Alkan
"It may be that the termination is harsh but not unjust or unreasonable, unjust but not harsh or unreasonable, or unreasonable but not harsh or unjust. In many cases the concepts will overlap. Thus, the one termination of employment may be unjust because the employee was not guilty of the misconduct on which the employer act, may be unreasonable because it was decided upon inferences which could not reasonably have been drawn from the material before the employer, and may be harsh in its consequences for the personal and economic situation of the employee or because it is disproportionate to the gravity of the misconduct in respect of which the employer acted."
s.387(a) - whether there was a valid reason for the dismissal related to the person's capacity or conduct (including its effect on the safety and welfare of other employees)
"In its context in s.170DE(1), the adjective 'valid' should be given the meaning of sound, defensible or well founded. A reason which is capricious, fanciful, spiteful or prejudiced could never be a valid reason for the purposes of s.170DE(1) At the same time the reasons must be valid in the context of the employee's capacity or conduct or based on upon the operational requirements of the employer's business. Further, in consideration whether a reason is valid, it must be remembered that the requirement applies in the practical sphere of the relationship between an employer and an employee where each has rights and privileges and duties and obligations conferred and imposed on them. The provisions must 'be applied in a practical, common-sense way to ensure that the employer and employee are treated fairly'."
"As discussed, we are currently having one of our consultants reviewing business operations in light of current market trends and industry downturn.
The intension (sic) is to meet and consult staff to understand their role in the organisation."
s.387(b) - whether the person was notified of that reason
s.387(c) - whether there was an opportunity to respond to any reason related to the capacity or conduct of the person
s.387(d) - any unreasonable refusal by the employer to allow the person to have a support person present to assist at any discussions relating to the dismissal
"This factor will only be a relevant consideration when an employee asks to have a support person present in a discussion relating to dismissal and the employer unreasonably refuses. It does not impose a positive obligation on employers to offer an employee the opportunity to have a support person present when they are considering dismissing them."
s.387(e) - was there a warning of unsatisfactory work performance before dismissal
s.387(f) - whether the respondent's size impacted on the procedures followed and s.387(g) - whether the absence of a dedicated human resource management specialist impacted on the procedures followed
"No, it's very clear, sir, that he sent this malware on the 14th......"
"He sent an email to the company with malware, a virus."
"390 When the FWC may order remedy for unfair dismissal
(1) Subject to subsection (3), the FWC may order a person's reinstatement, or the payment of compensation to a person, if:
(a) the FWC is satisfied that the person was protected from unfair dismissal (see Division 2) at the time of being dismissed; and
(b) the person has been unfairly dismissed (see Division 3).
(2) The FWC may make the order only if the person has made an application under section 394.
(3) The FWC must not order the payment of compensation to the person unless:
(a) the FWC is satisfied that reinstatement of the person is inappropriate; and
(b) the FWC considers an order for payment of compensation is appropriate in all the circumstances of the case.
Note: Division 5 deals with procedural matters such as applications for remedies."
(1) An order for the payment of compensation to a person must be an order that the person's employer at the time of the dismissal pay compensation to the person in lieu of reinstatement.
(2) In determining an amount for the purposes of an order under subsection (1), the FWC must take into account all the circumstances of the case including:
(a) the effect of the order on the viability of the employer's enterprise; and
(b) the length of the person's service with the employer; and
(c) the remuneration that the person would have received, or would have been likely to receive, if the person had not been dismissed; and
(d) the efforts of the person (if any) to mitigate the loss suffered by the person because of the dismissal; and
(e) the amount of any remuneration earned by the person from employment or other work during the period between the dismissal and the making of the order for compensation; and
(f) the amount of any income reasonably likely to be so earned by the person during the period between the making of the order for compensation and the actual compensation; and
(g) any other matter that the FWC considers relevant.
(3) If the FWC is satisfied that misconduct of a person contributed to the employer's decision to dismiss the person, the FWC must reduce the amount it would otherwise order under subsection (1) by an appropriate amount on account of the misconduct.
(4) The amount ordered by the FWC to be paid to a person under subsection (1) must not include a component by way of compensation for shock, distress or humiliation, or other analogous hurt, caused to the person by the manner of the person's dismissal.
(5) The amount ordered by the FWC to be paid to a person under subsection (1) must not exceed the lesser of:
(a) the amount worked out under subsection (6); and
(b) half the amount of the high income threshold immediately before the dismissal.
(6) The amount is the total of the following amounts:
(whichever is higher) for any period of employment with the employer during the 26 weeks immediately before the dismissal; and
(b) if the employee was on leave without pay or without full pay while so employed during any part of that period - the amount of remuneration taken to have been received by the employee for the period of leave in accordance with the regulations."
The effect of the order on the viability of the respondent
The remuneration that Mr Camenzuli would have received, or would have been likely to receive, if he had not been dismissed
The efforts of Mr Camenzuli (if any) to mitigate the loss suffered because of the dismissal
The amount of any remuneration earned by the person from employment or other work during the period between the dismissal and the making of the order for compensation
The amount of any income reasonably likely to be so earned by Mr Camenzuli during the period between the making of the order for compensation or the actual compensation
(b) $3,775.97 into Mr Camenzuli's superannuation account.
C Watters, Counsel, with permission, instructed by R Davenport of Affinity Lawyers for the Applicant.
G Adams of GLR Law, with permission, along with R Killick, General Manager for the Respondent.
[7] Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (1995) IR 371, 373.
[8] Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336.
[9] James McCarron v Commercial Facilities Management Pty Ltd T/A CFM Air Conditioning Pty Ltd [2013] FWC 3034 at [32].
[19] Transcript, at PN2129-2130 & PN2427-2428.
[20] [2023] FWC 121 at [88]; citing Shepherd v Felt & Textiles of Australia Ltd [1931] HCA 21.
[21] [2018] FWCFB 3989 at [69]- [71]; citing earlier cases such as Lane v Arrowcrest Group P/L (1990) 43 IR 210 at 237-238.
[23] Sayer v Melsteel [2011] FWAFB 7498 at [20].
[24] Walton v Mermaid Dry Cleaners Pty Ltd [1996] IRCA 267; (1996) 142 ALR 681, 685.
Printed by authority of the Commonwealth Government Printer
James Francis Camenzuli
Companion Systems Pty Limited [2024] FWC 489
(1995) 62 IR 371
(1938) 60 CLR 336
(1990) 43 IR 210
(1995) 185 CLR 410
(1996) 142 ALR 681
(1998) 88 IR 21
(1931) 45 CLR 359