logan J:
80 On 26 March 2007 the Respondent, Mr Robertson, suffered an injury while working for the Appellant, John Holland Group Pty Ltd (John Holland) at the RG Tanna Coal Terminal Project (the Project) in Central Queensland. John Holland is a licensed corporation for the purposes of the Safety, Rehabilitation and Compensation Act 1988 (Cth) (SRC Act). On 9 May 2007 it made a determination accepting liability to pay Mr Robertson compensation under that Act in respect of "aggravation of pre-existing prolapse at L5/S1" in his lower back.
81 Later, a controversy emerged as to the amount of the weekly compensation for incapacity John Holland was obliged to pay Mr Robertson in respect of the period from 16 September 2007 to 7 August 2008. The controversy related to the way in which John Holland had come to calculate Mr Robertson's "normal weekly earnings" for the purposes of determining the amount of its weekly incapacity liability under s 19 of the SRC Act. "Normal weekly earnings" is a term defined by s 8 of the SRC Act. It is an element of the formula specified in s 19(2) of the SRC Act by reference to which, subject to qualifications which are not presently material, the amount of weekly incapacity compensation falls to be determined.
82 In the result and following dissatisfaction on Mr Robertson's part with the outcome of reconsideration of the relevant primary determinations, the matter came before a presidential member of the Administrative Appeals Tribunal for review. The Tribunal decided to set aside the reviewable decisions and, materially, remitted those decisions to John Holland "for reconsideration in accordance with a direction that section 8(10) of the [SRC] Act has no application to [Mr Robertson's] circumstances". It is from that decision that John Holland appeals to the Court on questions of law pursuant to s 44 of the Administrative Appeals Tribunal Act 1975 (Cth) (AAT Act).
83 There was some initial controversy between the parties, evident from their respective written submissions, as to whether the questions formulated in the notice of appeal were indeed questions of law.
84 Insisting upon the identification and formulation of a question of law for the purposes of s 44 of the AAT Act is more than just a matter of pedantry regarding pleading. As Gummow J observed in TNT Skypack International (Aust) Pty Ltd v Commissioner of Taxation (1988) 19 ATR 1067 at 1070, when a member of this Court, and in contrasting the nature of an appeal under s 44 of the AAT Act with the position which once prevailed under the Income Tax Assessment Act 1936 (Cth) in relation to appeals from Taxation Boards of Review, "The existence of a question of law is not now merely a qualifying condition to ground the appeal, but also the subject matter of the appeal itself". Absent a question of law, the Court has no jurisdiction to entertain the proceeding.
85 We were relieved from exploring further the deficiencies, if any, of the questions as specified in the notice of appeal, as it was not disputed that the appeal at least involved the answering of the following questions of law, which John Holland had come to specify in its written submissions in reply:
(a) is s 8(10)(b) of the SRC ACT incapable of any application simply because, in accordance with the terms of employment, an employee's contract of employment comes to an end as a result of the completion of the employment for which that employee has been engaged; and
(b) in its application to an employee who is engaged under a contract of employment to perform particular work for the duration of a specified project, is the expression "employment in which he or she was engaged" in s 8(10)(b) of the SRC Act limited to employment on the specified project?
Each of these questions was predicated upon the facts as found by the Tribunal. In one way or another, these and the other questions specified in the notice of appeal sought the answering of the question as to whether the Tribunal's conclusion that s 8(10) of the SRC Act had no application to the facts so found was wrong in law? That, undoubtedly, does raise a question of law: Ergon Energy Corp Ltd v Commissioner of Taxation (2006) 153 FCR 551 at [46]. In these circumstances, it is not necessary further to consider the jurisprudence concerning s 44 of the AAT Act. The appeal is competent.
86 The Tribunal found as a fact that Mr Robertson's employment was governed by the terms set out in John Holland's offer of employment to him dated 13 July 2006 (the Employment Letter) and by a Federal certified industrial agreement, the RG Tanna Coal Terminal Expansion Project Certified Agreement 2005 (the Certified Agreement).
87 The Employment Letter provided, inter alia, that: Mr Robertson:
(a) was to be classified as a "Scaffolder/Rigger/Dogger";
(b) would initially be located at the Project; "however you may be required to travel to work at other locations from time to time";
(c) would commence employment on 13 July 2006 (or as otherwise agreed, a subject which was not necessary to explore below) and cease, "on the completion of the task assigned to you and agreed between you and [John Holland] associated with [the Project]";
(d) would have normal working hours between 6.30 am and 2:12 pm, Monday to Friday but that these hours might be varied within the range specified in the certified agreement;
(e) may be required to undertake overtime, shift work, work on weekends or public holidays to meet operational requirements;
(f) would be paid penalty rates and shift allowances in accordance with the certified agreement.
88 The Certified Agreement applied only to specified employees (of which Mr Robertson was one) working on construction work on the Project (cl 1.1). It was to remain in force until 31 October 2007 (cl 1.4). The Certified Agreement made provision for the payment of overtime and allowances. At its heart, the controversy between the parties was whether at all and, if so, to what extent Mr Robertson should have the benefit of having taken into account in the calculation of his "normal weekly earnings" the amounts of the weekly overtime and allowances which he had been receiving before he was injured.
89 The Tribunal considered that the effect of the provision for duration of employment in the Employment Letter, materially extracted in para 8(c) above, was that the contract of employment "was for an uncertain period contingent upon the completion of the Project. Once the Project was completed the contingency was met and the contract of employment was at an end." Each party to the appeal, correctly, proceeded on the basis that the Tribunal's view of the effect of this provision was accurate. The Tribunal also found as a fact that the Project had been completed on 15 September 2007. There being nothing to suggest that his employment had been earlier terminated, the Tribunal inferred and found as a fact that, as the Employment Letter contemplated, Mr Robertson's employment had been brought to an end by the occurrence of the terminating event i.e. the completion of the Project. He was therefore a person who had ceased to be employed by John Holland. This therefore directed attention to s 8(10)(b) of the SRC Act in the context of determining the amount of his weekly incapacity compensation for the period in question.
90 Before examining why the Tribunal considered that s 8(10) of the SRC Act had no application, the terms of s 8 should be set out in full:
Normal weekly earnings
(1) For the purposes of this Act, the normal weekly earnings of an employee (other than an employee referred to in subsection (2)) before an injury shall be calculated in relation to the relevant period under the formula:
where:
"NH" is the average number of hours worked in each week by the employee in his or her employment during the relevant period;
"RP" is the employee's average hourly ordinary time rate of pay during that period; and
"A" is the average amount of any allowance payable to the employee in each week in respect of his or her employment during the relevant period, other than an allowance payable in respect of special expenses incurred, or likely to be incurred, by the employee in respect of that employment.
(2) Where an employee is required to work overtime on a regular basis, the normal weekly earnings of the employee before an injury shall be the amount calculated in accordance with subsection (1) plus an additional amount calculated in relation to the relevant period under the formula:
where:
"NH" is the average number of hours of overtime worked in each week by the employee in his or her employment during the relevant period; and
"OR" is the employee's average hourly overtime rate of pay during that period.
(3) Where an employee was, at the date of the injury, employed by the Commonwealth or a licensed corporation in part‑time employment or unpaid employment, any earnings of the employee from any other employment shall, for the purposes of this section, be treated as earnings of the employee from his or her employment by the Commonwealth or the licensed corporation.
(4) Where, because of the shortness of the relevant period, it is impracticable to calculate the normal weekly earnings of an employee before an injury under subsection (1) or (2), the normal weekly earnings of the employee before the date of injury shall be taken to be the normal weekly earnings before that date of another employee performing comparable work, being normal weekly earnings from employment by the Commonwealth or a licensed corporation and calculated under subsection (1) or (2), as the case requires.
(5) Where, because of the shortness of the relevant period, the normal weekly earnings as calculated in relation to the relevant period under subsection (1) or (2) would not fairly represent the weekly rate at which the employee was being paid in respect of his or her employment before the injury, the normal weekly earnings before the date of the injury shall be calculated in relation to such other period as Comcare considers reasonable for the purpose of arriving at an amount that does fairly represent the weekly rate at which the employee was being so paid.
(6) Subject to this section, if the minimum amount per week payable to an employee in respect of his or her employment by the Commonwealth or a licensed corporation at the date of the injury is increased, or would have been increased if the employee had continued in that employment, because of:
(a) the attainment by the employee of a particular age;
(b) the completion by the employee of a particular period of service; or
(c) the receipt by the employee of an increase in salary, wages or pay by way of an increment in a range of salary, wages or pay applicable to the employee or to his or her office, position or appointment;
the normal weekly earnings of the employee before the injury, as calculated under the preceding subsections, shall be increased by the same percentage as the percentage by which that minimum amount per week is increased, or would have been increased, as the case may be.
(7) Subject to this section, if:
(a) an employee continues to be employed by the Commonwealth or a licensed corporation after the date of an injury; and
(b) the minimum amount per week payable to the employee in respect of that employment is increased because of the promotion of the employee;
the normal weekly earnings of the employee before the injury, as calculated under the preceding subsections, shall be increased by the same percentage as the percentage by which that minimum amount per week is increased.
(8) Subject to this section, where:
(a) the employment of an employee is of a kind referred to in subsection 5(4) or (6) or subsection (3) of this section; and
(b) the employee is not receiving earnings from any other employment at the date of the injury;
the normal weekly earnings of the employee before the injury shall be an amount determined by Comcare to be the amount per week that the employee would have been able to earn at the date of the injury (including any amount in respect of overtime worked on a regular basis) if he or she had engaged in suitable paid employment.
(9) The normal weekly earnings of an employee before the date of the employee's injury, as calculated under the preceding subsections, must, while the employee continues to be employed by the Commonwealth or a licensed corporation, be increased or reduced by the relevant percentage.
(9A) For the purposes of subsection (9), relevant percentage means the same percentage as the percentage of increase or reduction in the minimum amount per week payable in respect of employees included in a class of employees of which the employee was a member at the date of the injury as a result of:
(a) the operation of a law of the Commonwealth or of a State or Territory; or
(b) the making, alteration or operation of an award, order, determination or industrial agreement or the doing of any other act or thing, under such a law.
(9B) The normal weekly earnings of an employee before injury, as calculated under subsections (1) to (8) and as increased or reduced under subsection (9) must, if the employee has ceased, or ceases, to be employed by the Commonwealth or a licensed corporation, be further increased, with effect from each indexation date in relation to that cessation, by reference to the percentage of increase (if any) of an index that is prescribed for the purposes of this subsection over the year ending on the 31 December preceding each such indexation date.
(9C) For the purpose of subsection (9B), the indexation date , in relation to a cessation of employment, is:
(a) the 1 July next following:
(i) the date on which this Act receives the Royal Assent; or
(ii) the date of that cessation of employment;
whichever last occurs; and
(b) each subsequent 1 July.
(9D) For the purpose of subsection (9B), the regulations may specify the manner of calculating the further increase referred to in that subsection by reference to the movement of the index that is prescribed for the purposes of that subsection.
(9E) The normal weekly earnings of an employee before an injury, as calculated under the preceding subsections, must, with effect from 1 July in each year, be further increased by the amount under subsection (9F) if, in the 12 months immediately preceding that 1 July:
(a) there was no increase in those earnings under subsection (6), (7) or (9); and
(b) there was no reduction in those earnings under subsection (9).
(9F) If the normal weekly earnings of an employee before an injury must be increased because of subsection (9E), the amount by which they are increased is the percentage of increase (if any) in the index prescribed by the regulations for the purposes of this subsection over the period of 12 months ending on the 31 December immediately before the relevant 1 July.
(9G) For the purposes of subsection (9F), the regulations may specify the manner of calculating the further increase mentioned in that subsection by reference to the movement of the index that is prescribed for the purposes of that subsection.
(10) If the amount of the normal weekly earnings of an employee before an injury, as calculated under the preceding subsections, would exceed:
(a) where the employee continues to be employed by the Commonwealth or a licensed corporation--the amount per week of the earnings that the employee would receive if he or she were not incapacitated for work; or
(b) where the employee has ceased to be employed by the Commonwealth or a licensed corporation--whichever is the greater of the following amounts:
(i) the amount per week of the earnings that the employee would receive if he or she had continued to be employed by the Commonwealth or the licensed corporation in the employment in which he or she was engaged at the date of the injury;
(ii) the amount per week of the earnings that the employee would receive if he or she had continued to be employed by the Commonwealth or the licensed corporation in the employment in which he or she was engaged at the date on which the employment by the Commonwealth or the licensed corporation ceased;
the amount so calculated shall be reduced by the amount of the excess.
[Emphasis added to s 8(10)]
91 The Tribunal commenced its analysis of s 8(10) of the SRC Act by referring to the statement made by Heerey J in Bortolazzo v Comcare (1997) 75 FCR 385 at 388 concerning the provision made by s 19 of the SRC Act for the payment of incapacity compensation that, "The underlying policy is that an injured employee should not be worse off during the period of incapacity as a result of work-related injury. However, it follows conversely that the injured employee should not be better off."
92 The Tribunal considered that it was "preferable to construe s 8(10) of the [SRC Act] as being confined to situations where it is possible to say that an injured employee could have continued to be employed by the Commonwealth or a licensed corporation" (Reasons para 33). The Tribunal added (Ibid), "Viewed that way the subsection operates to reduce the entitlement to compensation in line with the reality of the fact of continued employment". Reference was then made to earlier decisions of the Tribunal where s 8(10) of the SRC Act had been applied so as to make adjustments where shift allowances were no longer being paid or a work re-structure had brought about a substantial alteration to entitlements. The Tribunal observed (Ibid) of those decisions that they were "ones where it is possible to undertake a calculation of the earnings that the employee would receive if not incapacitated or would have received had the employment at the time of injury continued. But the subsection has no application to a situation where it was not contemplated that the employment at the time of injury would continue nor possible for that employment to continue" (Emphasis added).
93 On this construction of s 8(10) of the SRC Act, its irrelevance to Mr Robertson's circumstances followed as a matter of course from the Tribunal's finding as to the limited duration of Mr Robertson's employment and the occurrence of the terminating event..
94 The Tribunal considered that its preferred construction was supported by an approach to the construction of s 8(10(a) of the SRC Act adopted by Greenwood J in Comcare v Burgess (2007) 164 FCR 66 at [26]. His Honour there concluded that the continuity of employment contemplated by s 8(10)(a) of the SRC Act was a "continuity of service and receipt of earnings not simply a subsisting employer/employee relationship". The Tribunal opined (Reasons, para 33), "Similarly, … s 8(10)(b) of the Act contemplates the possibility of the continuity of service and receipt of earnings in the employment in which the employee had been engaged at the time of the injury."
95 The Tribunal made the additional observation that, "no different result would flow had Mr Robertson continued to be employed by [John Holland] during the period in issue here" (Reasons, para 34).
96 In its submissions on the appeal John Holland drew attention to some further general observations concerning s 8(10) made by Jacobson J in Comcare Australia v Pires (2005) 143 FCR 104. Having referred to the view expressed by Heerey J in Bortolazzo v Comcare, supra, concerning the purpose of s 8(10), Jacobson J observed (at [54]):
Although Bortolazzo was concerned with s 8(10)(a), it illustrates the way in which both ss 8(10)(a) and (b) are intended to have effect. They are concerned with a comparison of normal weekly earnings pre-injury and the amount the employee would have received after the injury if he or she were not incapacitated or had continued to work for the employer under the changed work conditions.
97 Against these general statements as to the purpose of s 8(10) of the SRC Act and with particular reference to s 8(10)(b), John Holland submitted that the language of that paragraph was such as to include within the reach of the preamble to the paragraph a person whose employment had, after the date of the compensable injury, ceased because of effluction of time or, as in the present case, the occurrence of a terminating event. To regard s 8(10)(b) of the SRC Act as inapplicable to the latter type of person was, it was submitted, impermissibly to introduce a gloss on the language of the paragraph. It was, it was submitted, in effect to supply words of limitation such as "other than employment that will not cease either because of the effluction of time or the occurrence of a contractually defined event" in the text of s 8(10)(b) of the SRC Act which met none of the three conditions for such an approach to statutory construction set out by Lord Diplock in Wentworth Securities Ltd v Jones [1980] AC 74 at 105-107.
98 John Holland submitted that an understanding of the purpose of s 8(10)(b) of the SRC Act was assisted by recalling that its language was formulated at a time when the reach of that Act was narrower being in the main directed to persons employed under the then Public Service Act 1922 (Cth) (Public Service Act 1922). It was submitted that, while such persons enjoyed a degree of permanency and continuity of employment (to which s 10(2)(a) of the SRC Act was directed), termination as a result of redundancy and termination by effluction of time for those on short term or fixed term appointments was not unknown in the public service. Thus, it was submitted, it was unlikely that Parliament had intended to omit from the two hypothetical comparatives posited by s 8(10)(b) these other types of employment found in the public service.
99 Attention was drawn on behalf of John Holland to a series of earlier cases in the Tribunal - Richards v Commission for the Safety, Rehabilitation and Compensation of Commonwealth Employees [1993] AATA 164; Re Spurr and Comcare (1999) 28 AAR 424 (Spurr), Griffiths and Comcare (2003) 77 ALD 500; Thompson and Comcare (2002) 69 ALD 762 and Knudsen and Australian Postal Corporation [2006] AATA 1038 and Warnock and Comcare [2008] AATA 567. Of these, it is apparent that the reasons of Deputy President Blow (as his Honour then was) in Spurr have proved enduringly influential. John Holland cited the following passage (at [428]) from his reasons and submitted it encapsulated how s 8(10) of the SRC Act operated:
The clear purpose of s 8(10) is to prevent an injured employee from being better off as a result of being incapacitated. As Parliament sought to achieve that purpose by enacting a provision requiring only a comparison with hypothetical earnings as an employee of the Commonwealth, and not requiring the actual or estimated earnings that an employee who would have moved to the private sector would have received, Parliament adopted a regime that was less than perfect, but perhaps had the advantage of administrative simplicity. Given underlying purpose of the relevant provisions as explained by Heerey J, I believe that s 8(10)(b) requires a decision-maker, in assuming that an employee would have continued to be employed by the Commonwealth in the employment in which that employee was engaged, first to assume that the employee would have continued in the same occupation and at the same level, and then consider what circumstances resulting in the payment of allowances, overtime or the like would have existed from time to time. As this case well illustrates, making the additional assumption that an employee's duties would have remained unchanged could have an absurd and obviously unintended result.
[Emphasis added by John Holland in submissions]
100 John Holland also highlighted in its submissions an additional observation by Deputy President Forgie in Thompson and Comcare (2002) 69 ALD 762 at [23]) that s 8(10)(b) of the SRC Act was "equally applicable where the Commonwealth has terminated the employment because the employment because the position or the department or agency no longer exists".
101 From this it was submitted that s 8(10) of the SRC Act contemplated that account had to be taken of changed conditions of employment which would have applied had the injured worker continued in the same kind of classification of employment on other projects.
102 Mr Robertson's submissions also acknowledged that s 8(10)(b) of the SRC Act posited two hypothetical questions predicated upon the injured worker having ceased employment. He cast those hypotheticals in the following way. They were that, though he was no longer employed by John Holland, s 8(10)(b) required it to be assumed that he continued to be employed by that company in:
(a) the employment in which he was engaged at the time of his injury - s 8(10)(b)(i); or
(b) the employment in which he was engaged at the date when his employment by John Holland ceased - s 8(10)(b)(ii).
103 It was submitted on behalf of Mr Robertson that, on the facts as found in this particular case, there was no difference between the two hypothetical situations. That was because his employment was the same both at the date of his compensable injury and the date when it ceased. Thus, it was submitted that the two hypotheticals might permissibly be conflated to the answering of the following:
If Mr Robertson had continued to be employed in the employment evidenced by the employment letter, would the amount per week of earnings that he would have received in that continued employment be less than the amount of "net weekly earnings calculated under s 8(10 and 8(2) of the SRC Act?
104 In the answering of that question Mr Robertson embraced and advanced the conclusion reached below by the Tribunal. It was said to be a feature of Mr Robertson's "employment" for the purposes of s 8(10)(b) that it would come to an end when the Project was completed. That being so, it was submitted that s 8(10)(b) could have no application. It was submitted that the reference in each of s 8(10)(b)(i) and s 8(10)(b)(ii) of the SRC Act to "the employment in which he or she was engaged [at the date of the injury or, as the case may be at the date on which the employment by the licensed corporation ceased]" was a reference in the circumstances of this case to employment for a closed period not, as had been submitted on behalf of John Holland, to "the general kind or classification of employment at the relevant times".
105 Recognising that to construe s 8(10)(b) as having no application because it was a feature of the hypothetical employment that it would be terminated upon the completion of the Project might be regarded as inconsistent with the very basis upon which the hypotheticals in s 8(10)(b) of the SRC Act were cast, Mr Robertson alternatively submitted that all that excluding this feature would mean was the making of an assumption for the purposes of either alternative hypothetical that Mr Robertson had continued to be engaged at the Project by John Holland as a rigger under the terms of the Certified Agreement. It was, it was submitted, to just such an alternative approach to which the Tribunal was adverting in the additional observation in para 34 of its reasons, quoted above.
106 Neither party came to make anything of Comcare v Burgess (2007) 164 FCR 66 on the basis that it was concerned with the construction of s 8(10)(a) of the SRC Act, not s 8(10)(b), and was for this reason alone distinguishable.
107 The observations made by Heerey J in Bortolazzo and by Jacobson J in Pires concerning s 8(10) of the SRC Act are, with respect, unexceptional in their general accuracy. The task though remains one of construing s 8(10)(b) "so that it is consistent with the language and purpose of all of the provisions of the statute" and by reference to the language of the statute as a whole: Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 at [69].
108 Approaching the task in this way, it is instructive to recall the place of the definition of "net weekly earnings" in the formula set out in s 19 of the SRC Act for the ascertainment of the amount of the liability to pay incapacity compensation. Materially, s 19(2) provides:
(2) Subject to this Part, Comcare is liable to pay to the employee in respect of the injury, for each week that is a maximum rate compensation week during which the employee is incapacitated, an amount of compensation worked out using the formula:
where:
"AE" is the greater of the following amounts:
(a) the amount per week (if any) that the employee is able to earn in suitable employment;
(b) the amount per week (if any) that the employee earns from any employment (including self‑employment) that is undertaken by the employee during that week.
"NWE" is the amount of the employee's normal weekly earnings.
109 In turn, s 4 of the SRC Act defines "suitable employment" as follows:
"suitable employment" , in relation to an employee who has suffered an injury in respect of which compensation is payable under this Act, means:
(a) in the case of an employee who was a permanent employee of the Commonwealth or a licensee on the day on which he or she was injured and who continues to be so employed--employment by the Commonwealth or the licensed corporation, as the case may be in work for which the employee is suited having regard to:
(i) the employee's age, experience, training, language and other skills;
(ii) the employee's suitability for rehabilitation or vocational retraining;
(iii) where employment is available in a place that would require the employee to change his or her place of residence--whether it is reasonable to expect the employee to change his or her place of residence; and
(iv) any other relevant matter; and
(b) in any other case--any employment (including self‑employment), having regard to the matters specified in subparagraphs (a)(i), (ii), (iii) and (iv).
110 Recalling that s 8(10)(b) forms part of a definition that gives meaning to one side of the equation set out in s 19(2) in circumstances where the subtracter side of the equation requires the positing, inter alia, of what the employee is able to earn in "suitable employment" as defined makes it inherently unlikely that any notion of "suitable employment" attends the "employment" that one is directed by s 8(10)(b) of the SRC Act to consider on a hypothetical basis. Thus, and in the context of the present case, the hypothetical "employment" cannot just be considered at a level of abstraction which is nothing more than "employment as a rigger". In each of s 8(10)(b)(i) and s 8(10)(b)(ii) of the SRC Act the hypothetical scenario posed requires more than a consideration of the generic calling of the injured worker at one or the other of the times posited. Mr Robertson's submissions acknowledged such a requirement. So, too, did those of John Holland, although the acknowledged qualification on the generic calling was put as "employment by that employer", relevantly John Holland.
111 That the word "employment" as it appears in s 8(10)(b) is fraught with nuances may be accepted. A clue as to the degree of precision the reference to "employment" dictates when hypothesizing as required is supplied by recalling the premise on which the application of the s 8(10)(b) is cast. This paragraph of s 8(10) falls for consideration when an employee has in fact ceased to be employed by, materially, the licensed corporation. It is thus, for example, the very employment in which that employee was engaged at the moment of cessation with which the hypothetical construct posited by s 8(10)(b)(ii) of the SRC Act is concerned. In context, that is employment by John Holland as a rigger on the Project, which itself is of finite duration. However and necessarily, given the premise upon which the application of the paragraph is cast, one must hypothesise as to circumstances where the employment as a rigger will not end with the completion of the Project.
112 Section 8(10)(b) of the SRC Act applies when the employee has ceased to be employed. It is not rendered inapplicable because the contractual conditions of the hypothetical employment one is then directed to consider happen to include a term which provides for cessation of employment because of the effluction of time or the happening of an event and either that time has expired or that event has occurred. The very language of each of s 8(10)(b)(i) and s 8(10)(b)(ii) of the SRC Act directs one to assume that, notwithstanding the fulfilment of such a limiting condition as to the duration of the employment, the employment is in fact continuing. Thus is revealed the flaw in the Tribunal's conclusion that s 8(10) of the SRC Act is inapplicable in the circumstances of this case.
113 That the conclusion as to the inapplicability of s 8(10) is in error is confirmed by reflecting on the role played by that subsection in s 8. In the case of an employee required to work regular overtime and by the time that s 8(10) falls for consideration, because that employee's employment has ceased, a calculation will already have been made in accordance with s 8(1) and 8(2) of the prima facie amount of "net weekly earnings". The focus of that calculation is on the position of the employee during the "relevant period", as defined. Section 9 of the SRC Act supplies the definition for this purpose of "relevant period". Subject to exceptions and qualifications that it is not presently necessary to consider, s 9 makes the "relevant period" for the purposes of s 8(1) and s 8(2) "the latest period of 2 weeks before the date of the injury during which the employee was continuously employed by … the licensed corporation" (emphasis added). In contrast and necessarily s 8(10) looks to hypothetical later periods. It does so to the end of determining whether these yield an excess over the prima facie amount. This is why the observations made by Heerey J in Bortolazzo and by Jacobson J in Pires concerning s 8(10) of the SRC Act are unexceptional.
114 Assuming, hypothetically, for the purposes of s 8(10)(b), that the employment continues does not require the ignoring of the then terms and circumstances of that employment. To the contrary these must be taken into account. In this case so doing reveals that the Certified Agreement was to end on 31 October 2007 and was confined in its application to a class of workers employed on the Project. Further, the employment circumstances materially included the completion of the Project on 15 September 2007. In the hypothetical scenarios posited by s 8(10)(b) a consideration of "the employment in which the employee was engaged" requires such matters to be taken into account but also that the employment by the employer will nonetheless continue after the completion of the Project. Necessarily, because of the features of the Certified Agreement just noted and of the completion of the Project, that hypothetical continuing employment cannot be at the Project and under the terms of the Certified Agreement.
115 Thus are revealed the flaws in the Tribunal's alternative observation (Reasons, para 34), embraced by Mr Robertson, that no different result would flow had he continued to be employed by John Holland during the period in issue. That could only necessarily be so if either continuing employment hypothesis could permissibly be made on the assumption that the Certified Agreement continued to apply in that period, that the Project was continuing and, for that matter, that Mr Robertson's work schedule on the Project continued with the same intensity. The first two of these were contrary to known facts concerning the nature and circumstances of "the employment in which the employee was engaged".
116 In the hypothetical scenarios of which s 8(10)(b) required consideration, a rigger in the ongoing employment of John Holland may have immediately moved to another John Holland project governed by similar terms and conditions under a site specific certified agreement and with similar working hours. Possibly also though that hypothetical rigger may have been held on staff by John Holland without working shifts or overtime awaiting such deployment and paid for a time under the terms of an industrial award of general application to his calling. Such matters were not explored by the Tribunal because of its erroneous conception that s 8(10) of the SRC Act had no application.
117 These are but theoretical possibilities. They require the making of findings of fact, which is not a task for this Court on an appeal of this nature. It will be for the Tribunal on remission to undertake the required hypothesizing in respect of the period in question. The period in question having closed, evidence as to the experience of John Holland and riggers engaged by it as to terms and conditions of employment over that period would be relevant to that consideration. If it was John Holland's practice serially to engage riggers on a project specific basis the assumption of continuity of employment which attends the hypothetical task may require the making of an assumption that such riggers were not engaged only on a project specific basis but instead remained employed and were then rotated from project to project being governed by site specific certified agreements during a project's duration and by underlying awards during intervals. Proof to demonstration would not be required. All that is required is an hypothesis which is reasonably open on the material before the Tribunal.
118 The Antarctic cases, Richards and Spurr, offer helpful examples of how s 8(10)(b) of the SRC Act, correctly understood, operates. In those cases there was evidence of a practice of rotational deployment to Antarctica. Deployment there carried with it an entitlement to particular, additional allowances which work at home base in Australia did not. Thus, though the workplace injuries occurred in Antarctica, consideration of a hypothetical continuum necessarily required allowance being made for the phenomenon of rotation with its reduced pay and entitlements for a given period when service would have been in Australia and thus without any entitlement to additional Antarctic allowances. In such situations it is possible in theory to envisage, in the case of those on long term incapacity compensation, periods when a s 8(10)(b) hypothesis would yield an excess and periods when it would not, if the predicted continuum in that employment would necessarily involve periods of fluctuating entitlement to particular additional allowances or overtime.
119 For completeness, it should be recorded that there is no need to reflect on the origins of the SRC Act in the regulation of workers' compensation for those in Commonwealth employment to reach these conclusions as to the flaws in the Tribunal's reasons. Even at the time of its enactment in 1988 the SRC Act extended in its reach well beyond those employed under the Public Service Act 1922. The Act extended to those in military service and to federal police officers, the members of neither class of which were, at common law, employees of the Commonwealth at all. That common law position explains the need for the deeming found in s 5(2) of the SRC Act (a provision to which along with other subsections of s 5 there was passing but ultimately unhelpful reference by John Holland in the course of its oral submissions). Were it to matter, I do not think the construction of s 8(10)(b) is assisted by recalling the origins of the SRC Act. The language has been retained even though the reach of that Act extends beyond those employed or deemed to be employed by the Commonwealth or even Commonwealth public authorities to those employed by licensed corporations.
120 Neither, like the parties do we consider that there is any assistance to be gained from a consideration of Comcare v Burgess. That case concerned the construction of s 8(10)(a) of the SRC Act, not s 8(10)(b).
121 In the result then, the underlying question as to whether the Tribunal was obliged, on the facts as found, to have regard to s 8(10)(b) of the SRC Act must be answered in the affirmative. There is no reason arising from the hearing below or the issues on appeal why the Tribunal as previously constituted ought not to hear the matter on its remission. Whether or not that occurs is a matter though for the Tribunal's President and his delegates in their administration of the Tribunal.
122 Costs should follow the event. It was common ground between the parties that the present was a test case. Unlike Mr Robertson, John Holland as a licensed corporation had interests beyond those of Mr Robertson which were served by an examination of the questions of law posed. The case is one where it would be appropriate for Mr Robertson to have a certificate under s 6 of the Federal Proceedings (Costs) Act 1981 (Cth).
123 There should be orders accordingly.
- I certify that the preceding forty-four (44) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Logan.