[2022] FWC 1115
General information, not legal advice.
Fair Work Commission
2022-05-27
Original judgment source is linked above.
The applicant also seeks the following interim order:
"The end-result sought is a finding that the direction to mandate vaccination is not a lawful and reasonable direction due to a failure to consult as required by clause 12, and for the arbitrator to liaise with the parties to ensure that proper consultation is carried out before the direction is re-made."
(a) particularise the failure to comply with the consultation provision of the Agreement;
(b) propose steps that needed to have occurred in consultation, and did not; and
(c) propose steps that should be required as a resolution.[11]
Is the dispute, properly characterised, one which may be dealt with under the dispute resolution clause in the Agreement?
"(i)n order to invoke the dispute settlement procedure, the dispute must be of a kind that is capable of being dealt with by the dispute settlement procedure"[12]
"A dispute cannot "arise ... regarding the interpretation, application or operation of any provision of this Agreement" within the meaning of clause 75.0 of the Enterprise Agreement unless the dispute has a relationship with the provisions of the Enterprise Agreement itself. The nature of the relationship which is necessary to meet the test may be in issue in particular cases.
As to the requirement that the dispute be linked in the requisite way to the "interpretation, application or operation of any provision of this Agreement":
(a) interpretation concerns the construction of a provision;
(b) application may involve considering whether past actions and conduct of parties to a dispute accords with the provision of the enterprise agreement. In other words, has the provision been applied according to its terms? Application may also mean to make use of, implement or apply a provision of an enterprise agreement, such as a dispute as to whether a particular employee should be classified under one or another category in an enterprise agreement; and
(c) operation concerns consideration of the process or manner of operating of a provision."[13]
"The Applicant does not identify any provision of the Agreement which is in dispute as to whether that provision has been applied according to its terms in relation to the reasonableness of the vaccination requirements under the Procedure. The Applicant only refers to clause 12 of the Agreement."[14]
"Clause 12 does not provide for a right to dispute any decisions which may follow consultation. The application of the Procedure to the Applicant's employment (on the assumption it constituted a significant change) would be an example of this."
"There is no provision in the Agreement from which there could be a dispute as to how the reasonableness of the Procedure requiring the Applicant to be sufficiently vaccinated accords with that provision. In fact, clause 7(a) of the Agreement explicitly excludes the Procedure from forming part of the Agreement:
'Other than as it (sic) outlined at clause 7(b) below, University policies, procedures and guidelines do not form part of this Agreement. This Agreement shall prevail to the extent of any inconsistency between a University policy, procedure or guideline and this Agreement (emphasis added).'"[15]
"A dispute over the terms of the Procedure or the reasonableness of the Procedure (including any direction under it), cannot be said to be a dispute over the application of the Agreement, whether or not the Procedure was subject to consultation under the Agreement.
... if the Commission accepts the above, it is not necessary to consider the matter any further as the Commission does not have jurisdiction to determine a dispute that does not fall within the ambit of the relevant dispute resolution procedure." [16]
Should the Commission exercise its discretion to determine the dispute?
'(t)he Commission's powers under s.739 to deal with disputes derive, in the case of an enterprise agreement, from the terms of the disputes resolution procedure contained in the enterprise agreement. The Commission may deal with a dispute only on application by a party to the dispute (s.739(6)), is prohibited from exercising any powers limited by the dispute resolution procedure (s.739(3)), may arbitrate only if the agreed disputes resolution procedure permits it to do so (s.739(4)), and must not make a decision that is inconsistent with the FW Act, the enterprise agreement and any other applicable fair work instrument (s.739(5))."[21]
"... (t)he complete range of relief is not available under s739, particularly reinstatement and back payment of wages".[25]
"(a) upheld the original decision that Deakin University did not comply with, among other things, consultation provisions;
(b) but quashed the order of $30,000 compensation and a written apology on the basis that such an order "... was not reasonably incidental to the application of the Agreement to which the disputes related."[26]
"The proscription is also a logical and balanced outcome to enable the public interest to be maintained and the intention of the requirement to consult preserved without placing undue hardship on employers by reinstating employees that have just been dismissed."
"Had I decided that the Commission did have jurisdiction I would have decided against exercising my discretion to deal with the dispute because it lacks utility. This is because even if Ensign should have provided Mr Markham with Field Service Leave whilst he was engaged in the Adelaide office, the issue would need to have been determined whilst he was an employee. This is because the issue could only be resolved in his favour by providing him with paid time off work. There is no provision in the Agreement for payment in lieu in relation to Field Service Leave."[29]
Does the Commission have jurisdiction given the Applicant is a former employee?
(a) the relevant employee in North Goonyella had not attempted to engage the procedures contained in clause 41 prior to the termination of his employment;
(b) the clause itself referred to 'employees', which was interpreted to be restrictive to current employees;
(c) the enterprise agreement was expressed to only bind current, not former, employees; and
(d) the disputes clause provided for work to continue while the dispute was determined, which could only occur if the person was a current employee.[33]
"An application for the Commission to deal with a dispute in accordance with a dispute settlement procedure of an Enterprise Agreement pursuant to s739 of the Act can only be heard when the applicants are employed. This is an uncontroversial jurisdictional point supported by manifold authorities and the express provisions of the Act." [34]
"Even if we had considered that the Deputy President had reached the wrong conclusion, we would not have quashed the decision, because there would be no utility in doing so. As we have mentioned, Ms Vendrig is no longer employed by Ausgrid, and the 2018 Agreement no longer applies to her (see s 52 of the Act). An enterprise agreement does not give a person an entitlement unless the agreement applies to the person (see s 51(2)). Ms Vendrig is no longer able to invoke or use the dispute resolution procedure in the 2018 Agreement. By parity of reasoning with the decision of the Full Bench in Simplot v AMWU, 5 we consider that we would have no power to rehear Ms Vendrig's application under s 739. Moreover, there cannot be a dispute over the application of the 2018 Agreement in respect of a person who is not an employee covered by the agreement. This is not a case where, for example, a union has brought an application on behalf of an employee who has since been dismissed, but the issue in question remains in dispute between the union and the company. The matter concerns the claim of a former employee of the company concerning her own particular circumstances during a period when she used to be employed. Accordingly, there could be no utility in quashing the decision, because there would be no proper basis for the Full Bench to rehear Ms Vendrig's application or to remit it to another member for redetermination."[35]
"...the use of 'parties to the dispute' in the current matter is a collective term used to avoid having to repeat the definition of those parties outlined within clause 15.1, being the University, Employees and the Unions.
Thus, 'parties to the dispute' should be interpreted to mean those three parties, which, therefore, precludes a former employee from referring the matter to the Commission for arbitration.
This is supported by a wider analysis of the dispute resolution procedure, which only uses the phrase 'the University, Employees and the Unions' once at the beginning and uses those terms individually where necessary but, otherwise, uses the collective phrase 'parties to the dispute', including when describing the internal procedures. This is distinguishable from North Goonyella and Jajoo above, which use specific terms which change throughout the steps of the procedure.
Therefore, the Respondent submits that 'parties to the dispute' within clause 15.1 of the Agreement should be interpreted to be a collective noun referring to the University, Employees and the Unions which, relevantly, precludes the Commission from determining the Applicant's dispute, given it did not 'survive' the termination of his employment."[41]
"We agree with ACCI that a range of factors will bear on whether a direction is reasonable. As we have mentioned, the reasonableness of a direction is a question of fact having regard to all the circumstances, which may include whether or not the employer has complied with any relevant consultation obligations.".[48]
"Whether a particular direction is reasonable is not to be determined in a vacuum, it requires consideration of all the circumstances, including the nature of the particular employment, the established usages affecting the employment, the common practices that exist and the general provisions of any instrument governing the relationship.[51] In NSW, this would include consideration of obligations in the WHS Act, which governs employment relationships in that jurisdiction. The assessment of reasonableness and proportionality is essentially one of fact and balance and needs to be assessed on a case-by-case basis.[52] The assessment will include, but not be determined by, whether there is a logical and understandable basis for the direction."[53]
"Absent a public health order or an express term in a contract of employment or industrial instrument, the basis for an employee to be vaccinated as a condition of entry to work premises must derive from the implied contractual term that employees obey the lawful and reasonable directions of their employer."[54]
"On the facts in the Mt Arthur case, the full bench found that the direction to mandate 100% vaccination at the work site was prima facie lawful and reasonable, however the finding that the respondent had not adequately complied with consultation requirements under the WHS Act rendered it unreasonable, and could not stand.
Having so found, the full bench did not consider it necessary to reach a concluded decision on whether the respondent had also failed to comply with its obligations under the clause in the relevant EA. It opined that it probably would not have so concluded due to the EA consultation clause being in different terms to the WHS obligation (and different to the EA clause in this case) as it permitted consultation after the final decision had been made. Nevertheless, the point still stands that this is a matter for the arbitrator to consider at a hearing and make findings of fact as to whether the particular consultation obligation has been complied with or adequately complied with."[55]
The dispute settlement procedure and the discretion to arbitrate
"(a) Should the dispute not be resolved by the processes referred to in clause 15.4 (Internal dispute resolution) above, or if any party to the dispute refuses to engage in the processes referred to in those clauses, the dispute may be referred to the FWC by any party to the dispute.
(b) The FWC may resolve the dispute by conciliation in the first instance, and by arbitration if conciliation fails to resolve the dispute. The parties to the dispute will implement any arbitrated decision of the FWC."
"A full bench of the Australian Industrial Relations Commission held in Jajoo that the Commission continues to have jurisdiction to resolve a dispute, despite the applicant no longer being employed, so long as the Applicant was employed at the time he initiated the dispute. If this view prevails, then it does not matter when the Applicant's employment was terminated, since on any view it occurred at least a month after he initiated the dispute by raising it.
A series of later full bench decisions of the AIRC, Fair Work Australia and the Fair Work Commission have approved and followed Jajoo."[63]
"Such an interpretation runs directly counter to decisions of the full bench in Broadspectrum at [54] and in Jajoo, also at [54]. The Respondent cites no authorities in support of this interpretation, nor do any of those cited in the Respondent's previous paragraphs support it."[64]
Submissions on application for interim orders
(a) the Respondent to reinstate the Applicant's employment; and
(b) the Applicant to restore to the Applicant all benefits to which it would have been entitled if it had continued to be employed in the intervening period.[65]
"...an order for reinstatement is an appropriate incidental order to be made in the particular circumstances of this case, if the arbitrator at the final hearing finds that the Respondent did not engage in adequate consultation before making the Direction. The reason for this is that the dismissal of the Applicant was based upon failure to obey the Direction itself, which will have been found to be not lawful and reasonable."[69]
"(a) The full bench in King approved a decision by the Commissioner that the Commission retains jurisdiction to resolve a dispute involving a former employee, so long as he was an employee at the time he lodged the application.
(b) The statement of the full bench in Ausgrid is inconsistent with decisions of full benches in Jajoo, Telstra, Deakin University, Kentz, Broadspectrum and Goonyella, nor does it appear that those decisions were cited to the bench in Ausgrid. The Applicant respectfully submits that it should not be followed."
"...on the facts of that case, reinstatement would not have been available in the s739 application, because (unlike in the instant case) the basis for termination was not at issue in that application.
The Applicant's position in the instant case is that reinstatement is an appropriate incidental order to make at the final hearing, because if the Applicant is successful there, the lawfulness and reasonableness of the direction which was the only basis for termination will have been overturned."[72]
"...if the arbitrator finds that the Respondent did not adequately consult as required by clause 12, then two findings must follow: (a) that the direction was therefore not lawful and reasonable, and (b) that any actions based solely on the lawfulness and reasonableness of the direction must be void. Therefore, the appropriate incidental orders to make are to reinstate the Applicant's employment (as his dismissal had no basis) and to order that proper consultation be carried out."[73]
"the Commission does not have the power to order interim reinstatement under s589 of the Act, as that section is not 'unlimited' but, rather, is a procedural section and is not an "independent source of power" There is no serious question to be tried and the balance of convenience does not favour the Applicant such that the Commission should decline to exercise its discretion (if such power is found) to order interim reinstatement."[74]
"There are, however, serious questions as to whether (a) Mt Arthur complied with its consultation obligations before implementing the Site Access Requirement and (b) the Site Access Requirement is tailored to, and was formulated having regard to, the particular circumstances of the Mine and the Employees who work on it. These questions involve disputed facts. It is not appropriate in this interlocutory application to either decide or forecast the likely decision on those issues. In light of these considerations, I am satisfied that the applicants have established a prima facie case on the question of whether the Site Access Requirement was a reasonable direction."[75]
"The fact that the Respondent has terminated the Applicant's employment in an attempt to invalidate the Commission's jurisdiction only supports the Applicant's application for an interim order requiring the Respondent to reinstate his employment in order to preserve the status quo pending hearing of the dispute.
The Applicant therefore submits that the Respondent's arguments provide no reason why the FWC lacks jurisdiction in this matter."[77]
"The first is, logically, the respondent's contention that the Commission has no jurisdiction, or no longer any jurisdiction, to hear the matter. Only if that is found against the respondent will it then fall to deal with the second matter, which is the applicant's seeking an interim order in the nature of an injunction to reinstate his employment in order to restore the status quo pending the final hearing of the matter by arbitration."[78]
"The framework of the Act, and in particular the machinery provisions relating to enterprise agreements found in Part 2-1, recognise coverage, application and operation of enterprise agreements. It also recognises that obligations are not imposed on a person and entitlements are not given to a person by an enterprise agreement unless the agreement applies to the person."[80]
"The role of the Commission in determining a dispute pursuant to a dispute settlement procedure in an enterprise agreement is one of private arbitration and the Commission's powers depend on the agreement of the parties.[82] If the source of that agreement is an inoperative enterprise agreement which can no longer impose obligations or confer rights on the parties to a dispute, a party cannot rely on its inoperative dispute settlement term as conferring jurisdiction on the Commission to arbitrate the dispute. It follows that if the enterprise agreement has ceased to operate the source of the Commission's powers as private arbitrator cease to exist."[83]
"It is not necessary for us to consider the extent to which our decision in this appeal has implications for the Commission's case law that has recognised the authority of the Commission to continue to deal with an application of an employee under s 739 after their employment under the agreement has ceased. The Commission's jurisdiction in such cases will depend on the terms of the enterprise agreement. In many cases, there may be an enduring interpretative dispute about the operation of a provision in the agreement which will survive the dismissal of individual employees, particularly where the application is brought by a union and the agreement confers rights on the union to raise a dispute and have it arbitrated by the Commission."[85]
The University, Employees and the Unions have an interest in the proper application of this Agreement. These procedures shall apply to any dispute raised by an Employee, Union or the University regarding:
(a) The application of the terms of this Agreement; or
(b) The National Employment Standards (other than a dispute about whether the University had reasonable business grounds under Section 65(5) or 76(4) of the Act).
Any Employee involved in a dispute raised in accordance with this clause (clause 15 -
Dispute Resolution Procedure) is entitled to be represented by their Union or by another representative at any or all stages of this procedure.
Until the procedures described in clauses 15.4 (Internal dispute resolution) have been completed:
(b) Management shall not change work, staffing or the organisation of work if that is the subject of a dispute, nor will any party to the dispute take any other action likely to exacerbate the dispute;
(c) The dispute shall not be referred to the FWC by any party to the dispute until the internal dispute resolution process (clause 15.4) has been completed; and
(d) The Parties will make every attempt to avoid disruption to the University's normal business operations and work processes.
(a) In the first instance, the parties to the dispute shall discuss the dispute and attempt, in good faith, to reach agreement or otherwise resolve the dispute. A dispute in relation to an individual Employee will, in the first instance, involve a discussion between the Employee and/or their representative and the Employee's Supervisor, or where this is not appropriate, with Human Resources. This internal dispute resolution step must be completed within 10 working days of the party initiating the dispute advising the other party / parties of the dispute.
(b) Where a discussion has occurred in accordance with clause 15.4(a) above and the dispute is not resolved, the dispute will be referred to the Executive Director, Human Resources. This internal dispute resolution step must be completed within 10 working days of referral to the Executive Director, Human Resources. The following requirements shall apply:
(i) The Executive Director, Human Resources (or nominee) will convene a meeting with the Employee(s) concerned and relevant managers of the University to discuss and seek resolution of the dispute.
(ii) Any resolution may be in the form of a written agreement, subject, if necessary, to ratification by the parties to the dispute.
15.5 Reference to the Fair Work Commission ("FWC") for external dispute resolution
(a) Should the dispute not be resolved by the processes referred to in clause 15.4 (Internal dispute resolution) above, or if any party to the dispute refuses to engage in the processes referred to in those clauses, the dispute may be referred to the FWC by any party to the dispute.
(b) The FWC may resolve the dispute by conciliation in the first instance, and by arbitration if conciliation fails to resolve the dispute. The parties to the dispute will implement any arbitrated decision of the FWC.
Nothing in this clause prevents the parties to a dispute from agreeing to refer an unresolved dispute to a person or body other than the FWC for resolution, in which case the parties agree to be bound by any recommendation to resolve the dispute made by the agreed person or body."
(b) Employees employed by the University of Tasmania, with the exception of:
(i) Employees employed as Farm Operatives or Trainee Farm Operatives at the University's research farms; and
(ii) Employees appointed to management positions graded higher than the relevant Salary scale contained in the Schedules to this Agreement.
(c) The NTEU, CPSU and HACSU are Parties to this Agreement
"A dispute cannot "arise ... regarding the interpretation, application or operation of any provision of this Agreement" within the meaning of clause 75.0 of the Enterprise Agreement unless the dispute has a relationship with the provisions of the Enterprise Agreement itself.[86].The nature of the relationship which is necessary to meet the test may be in issue in particular cases.[87]
As to the requirement that the dispute be linked in the requisite way to the "interpretation, application or operation of any provision of this Agreement":
(a) interpretation concerns the construction of a provision;[88]
(b) application may involve considering whether past actions and conduct of parties to a dispute accords with the provision of the enterprise agreement.[89] In other words, has the provision been applied according to its terms? Application may also mean to make use of, implement or apply a provision of an enterprise agreement, such as a dispute as to whether a particular employee should be classified under one or another category in an enterprise agreement;[90] and
Is it appropriate to exercise discretion to determine the dispute about the consultation provision?
"...we are not persuaded that s.589 should be characterised as a remedial or beneficial provision, such that it should be construed in a manner which gives the fullest relief to an intended beneficiary - in this case, Ms Wills. Section 589 is in subdivision B of Division 3 of Part 5-1 of the FW Act which deals with the conduct of matters before the Commission. These provisions are procedural in nature in the sense that they facilitate the effective and efficient exercise of the Commission's substantive powers. They are not remedial or beneficial provisions in the sense contended by the Appellant."[97]
"[T]he question of whether a private arbitration provision in a commercial contract continues to apply after the termination of the contract depends on whether the parties have, by the language of their contract, manifested an intention for the right to private arbitration to survive the termination of the contract. In contrast and regardless of the intention of the makers of an enterprise agreement, the Act does not permit a person to continue to exercise rights under a dispute settlement procedure (or any other rights) under an enterprise agreement after the agreement has ceased to operate. The cessation of operation of the agreement means those rights no longer exist.[98]

[2] Applicant's Witness Statement at [34]-[37].
[4] Respondent's Outline of Submissions at [1].
[6] Respondent's Outline of Submissions at [4]; David Markham v Ensign Drilling Australia T/A Ensign Energy Services [2017] FWC 4058 at [20] (Ensign).
[7] Respondent's Outline of Submissions at [5]; Leanne Mayson v Mylan Health Pty Ltd and others [2020] FWC 1404 at [17] (Mayson), quoted with approval by the Full Bench in Ms Virginia Wills v Grant, Marley & The Government of New South Wales, Sydney Trains and Another [2020] FWCFB 4514 at [34] (Wills).
[8] Respondent's Outline of Submissions at [25]-[26]; Kim Davis; David Cantrick-Brooks; Michael Turner v The University of Newcastle [2019] FWC 2282 at [13] - [14] (The University of Newcastle).
[9] Respondent's Outline of Submissions at [27]-[28].
[13] The University of Newcastle at [19]-[20].
[14] Respondent's Outline of Submissions at [40]-[41].
[18] Respondent's Outline of Submissions at [47]-[50].
[19] Ibid at [51]; See Ensign, particularly at [20].
[20] C_onstruction, Forestry, Mining and Energy Union v North Goonyella Coal Mines Pty Ltd_ [2016] FWC 8360 at [23] (North Goonyella 2016).
[21] Respondent's Outline of Submissions at [54]; Construction, Forestry, Mining and Energy Union-Mining and Energy Division Queensland District Branch v North Goonyella Coal Mines Pty Ltd [2015] FWCFB 5619 at [34] (North Goonyella).
[22] Respondent's Outline of Submissions at [55]-[60].
[23] Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd [2014] FWC 2062 at [52].
[24] Respondent's Outline of Submissions at [61]-[65].
[25] Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) v Simplot Australia Pty Limited [2016] FWC 991 at [32] (Simplot 2016).
[26] Respondent's Outline of Submissions at [67]; Deakin University v Rametta [2010] FWAFB 4387 at [43]- [46] (Deakin University).
[27] Respondent's Outline of Submissions at [68]-[70].
[28] Fair Work Act 2009 (Cth) s.253(1)(a); see also Glen Eden Thoroughbreds Pty Ltd t/as Ray White Shailer Park re Ray White Shailer Park Enterprise Agreement 2009 [2010] FWA 7217 at [40]- [41].
[33] Respondent's Outline of Submissions at [76]-[81].
[35] [2021] FWCFB 370 at [40].
[36] Michael Pearce v Aurizon Operations Limited [2017] FWC 4734 (Aurizon).
[37] Respondent's Outline of Submissions at [85]-[91].
[39] Respondent's Outline of Submissions at [95]-[99].
[40] Respondent's Outline of Submissions at [100]-[101].
[42] Mayson at [17], quoted with approval by the Full Bench in Wills at [34].
[44] Applicant's Submissions in Reply at [2.1]-[2.3].
[49] Applicant's Submissions in Reply at [2.5(b)].
[50] Applicant's Outline of Submissions at [6]-[8].
[51] R v Darling Island Stevedoring and Lighterage Co Ltd; Ex parte Halliday & Sullivan [1938] HCA 44; (1938) 60 CLR 601 at [622] (Dixon J).
[52] McManus v Scott-Charlson [1996] FCA 1820; (1996) 70 FCR 16 at 30 (Finn J).
[55] Applicant's Outline of Submissions at [10].
[56] Applicant's Outline of Submissions at [12].
[57] Applicant's Submissions in Reply at [2.5(g)].
[58] Applicant's Outline of Submissions at [13]-[14].
[60] Applicant's Outline of Submissions at [31]-[34]; [2021] FWC 6341.
[61] Applicant's Outline of Submissions at [35].
[63] Applicant's Submissions in Reply at [3.1]-[3.5].
[64] Applicant's Submissions in Reply at [6.3].
[65] Applicant's Outline of Submissions at [21]-[22].
[66] [2006] HCA 46 at [65].
[68] Applicant's Outline of Submissions at [23]-[30].
[69] Applicant's Submissions in Reply at [4.3].
[77] Applicant's Outline of Submissions at [42]-[43].
[79] Simplot Australia Pty Ltd v "Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union" known as the Australian Manufacturing Workers' Union (AMWU) [2020] FWCFB 5054 (Simplot).
[82] AMWU v ALS Industrial Australia Pty Ltd [2015] FCAFC 123 at [32] and [35]
[86] Australian Municipal, Administrative, Clerical and Services Union v Automated Meter Reading Services PR922053 at [73]-[74]; Seven Network (Operations) Ltd v CPSU (2003) 122 IR 97 at [29]-[31]
[87] Alcoa of Australia Pty Ltd v Amalgamated Engineering Union (1965) 7 FLR 180 at 183.
[88] University of Western Sydney v Fletcher [2009] AIRCFB 368 (UWS v Fletcher) at [23].
[92] The University of Newcastle at [19]-[20].
[94] Applicant's Outline of Submissions at [4].
[95] The University of Newcastle at [14]-[15].
[96] Respondent's Outline of Submissions at [40]-[41].
[97] Ms Virginia Wills v Grant, Marley & The Government of New South Wales, Sydney Trains and Another [2020] FWCFB 4514 at [53].
[100] University of Tasmania Staff Agreement 2017 - 2021 at clause 15.3.
Printed by authority of the Commonwealth Government Printer
Jonathan Dugald Mitchell
University of Tasmania [2022] FWC 1115
(1938) 60 CLR 601
(1996) 70 FCR 16
(2003) 122 IR 97
(1965) 7 FLR 180