[2023] FWC 3039
General information, not legal advice.
Fair Work Commission
2023-11-20
Commissioner P
Original judgment source is linked above.
The attached document replaces the document previously issued with the above code on 20 November 2023.
Formatting amendments made throughout the document and a minor typographical error in [152] removed.
s.739 - Dispute resolution
Alleged dispute about any matters arising under the enterprise agreement and the NES;[s186(6)]
Witness Statement of Kimberley Pearn dated 14 June 2023
Witness Statement of Katherine Zahrooni dated 14 June 2023
Letter from Independent Education Union (IEU) to Respondent dated 30 August 2022
Letter from IEU to Respondent dated 6 September 2022
Letter from Catholic Employment Relations (CER) to IEU dated 8 November 2022
The Union notes that, if Ms Pearn had taken up employment with another NSW Catholic School employer, she would have been entitled to have continuous service recognised by operation of Annexures L and M of the NSW and ACT Catholic Systemic Schools Enterprise Agreement 2020. This is because she had completed the relevant qualifying period with CEDP, and no more than two full-school terms would have elapsed between the cessation of that employment and commencing employment with a new catholic employer.
Indeed, it is arguable that CEDP could be identified as both the "Former Employer" and the "New Employer" for the purposes of applying Annexure M and "Participating Employer" for the purposes of applying Annexure L, in which case a valid claim for continuous service could be advanced.[24]
The Union notes that, if Ms Zahrooni had taken up employment with another NSW Catholic School employer, she would have been entitled to have continuous service recognised by operation of Annexures L and M of the NSW and ACT Catholic Systemic Schools Enterprise Agreement 2020. This is because she had completed the relevant qualifying period with CEDP, and no more than two full-school terms would have elapsed between the cessation of that employment and commencing employment with a new Catholic employer.
Indeed, it is arguable that CEDP could be identified as both the "Former Employer" and the "New Employer" for the purposes of applying Annexure M and "Participating Employer" for the purposes of applying Annexure L, in which case a valid claim for continuous service could be advanced.[26]
Portability of Long Service Leave and Personal Leave Provisions of the Agreement
Your letters reference Annexures L and M of the Agreement.
We refer your attention to 2(a) under the heading "Operation" of Annexure L and Clause 2 under the heading "Objective" of Annexure M.
We take the view that the inclusion of the word "another" is synonymous with "different". Meaning that the portability of leave in both annexures is subject to the employee obtaining employment with a different employer.
Since the Agreement does not contemplate the return of an employee in circumstances where the employee has terminated their own employment, or a maximum term contract is not renewed, we cannot accept your premise that "in a very real and material sense" continuous service occurred for either employee.[28]
The Union has clearly outlined the employment history of both members, Ms Kimberley Pearn and Ms Katherine Zahrooni, in our letters dated 30 August 2022 and 6 September 2022 respectively. We do not intend to repeat their employment history with CEDP in this letter. However, we do note the following essential facts:
Having regard to the circumstances outlined above, the failure to recognise these members' continuous service is disappointing and contrary to the spirit and intention of the portability of leave provisions. It leads to a ludicrous outcome whereby their decision to return to the same employer results in a diminution of their leave entitlements.
Moreover, the Union is deeply concerned by the discriminatory implications of CEDP's decision not to recognise their continous [sic] service. We believe that these members have been treated less favourably due to their parental responsiblities [sic], which is an attribute appertaining to their sex.
In light of the above concerns, the Union strongly urges CEDP to review these members' leave entitlements with recognition for the continuity of service. We ask that their leave balances are corrected by no later than 10 January 2023.
Please be advised that if the issues remain unresolved, the Union reserves its rights to commence appropriate action in the Fair Work Commission and/or Australian Human Rights Commission without further notice.[30]
Your members left employment with CSPD at the conclusion of their maximum term contracts. Despite your attempts, it remains irrelevant the reason why further employment was not pursued by your members at the time. CSPD's position remains that where a maximum term contract ends and the employee is offered a position sometime in the future, that this holds the same interpretation as an employee resigning to pursue a different career and returning to work with CSPD at a time in the future, which breaks continuous service.
CSPD appreciates the reasons your members did not pursue another contract and the resulting outcome is unfortunate, but there is no obligation on CSPD to honour continuation of service. Your request on behalf of your members, Ms Pearn and Ms Zahrooni, is again rejected.
CSPD does not consider this decision to be discriminatory or a breach of the Agreement. Therefore, should the IEU pursue any discrimination or dispute claim in any forum as threatened, this will be strenuously defended. Where appropriate, CSPD reserves its right to seek costs against the IEU.[32]
11.1 A Teacher will be employed as a full-time or part-time Teacher (including as a
temporary full-time or part-time Teacher) or as a casual Teacher.
A Teacher may be employed as a temporary Teacher in the following circumstances:
(a) where a Teacher is employed to replace a Teacher on leave or secondment;
(b) where a school's staffing is to be reduced in the following year overall or in a department (in a secondary school). This may include but is not limited to circumstances such as declining enrolments or school amalgamations;
(c) where a Teacher is employed on a specific programme not funded by the Employer, or a new programme or initiative funded by the Employer which is not of an ongoing nature;
(d) where a Teacher resigns during a school year and the usual Employer practice is that such positions are filled on a temporary basis; or
(e) where an ongoing position has not been able to be filled using normal selection criteria and the Teacher has been informed of this in writing prior to the appointment.
Applicants must be advised in writing prior to accepting a position that it is temporary, the expected length of the appointment and the reason why it is temporary, with such reason being one of the reasons specified above.
In the case of paragraph 11.6(a), the appointment may be for the whole of the period of leave or secondment of the Teacher.
In the case of paragraphs 11.6(b) and (c), the appointment may be for a period of up to two full school years. The Employer, the Union and the Teacher may agree to extend the temporary period of appointment beyond two years. The Union will not withhold its consent unreasonably.
In the case of paragraph 11.6(d) the appointment may be for not longer than the end of the school year in which the appointment occurs.
In the case of paragraph 11.6(e) the appointment may be for a period of up to one full school year.
The parties recognise that a temporary Teacher may be appointed to a series of different temporary positions either within the school or at another school of the Employer immediately following the cessation of a prior temporary appointment.
36.1 ENTITLEMENT TO PAID PERSONAL/CARER'S LEAVE - TEACHERS
(a) A Teacher will receive a one-off entitlement to 15 days' paid Personal/Carer's Leave upfront (pro rata for a part-time Teacher) on commencement of their first temporary block or permanent appointment in addition to Personal / Carer's Leave provided in paragraphs 36.1(b) and 36.1 (c). This one-off entitlement will not apply where the Teacher has transferred their accrued Personal/Carer's Leave from a participating employer as provided in Annexure L - Personal/Carer's Leave Portability (NSW/ACT Catholic Systemic Schools and Participating NSW/ACT Catholic Independent Schools).
An Employee who was previously employed with another Employer named in this Agreement, or with a participating Catholic Independent School listed in Annexure L - Personal/Carer's Leave Portability (NSW/ACT Catholic Systemic Schools and Participating NSW/ACT Catholic Independent Schools), may be eligible for portability of Personal/Carer's Leave. Arrangements for portability of Personal/Carer's Leave are set out in that Annexure.
38.1 APPLICABILITY OF LONG SERVICE LEAVE ACT 1955 (NSW) AND LONG
The provisions of the Long Service Leave Act 1955 (NSW) and of the Long Service Leave Act 1976 (ACT), as applicable, will apply except to the extent that this Agreement provides for a more favourable outcome in a particular respect.
(a) An Employee who takes approved leave without pay (including unpaid parental leave) will be deemed to have had continuous service, notwithstanding the fact that the service was interrupted by such leave. However, the period of the unpaid leave must not be taken into account in calculating the period of service for the purpose of long service leave accrual. This provision does not apply to an Employee who takes unpaid community service leave under the Act; an Employee who takes a period of unpaid community service leave under the Act will accrue long service leave during such period.
(b) An Employee whose employment terminates with an Employer within one week of
the end of any school term, and is reappointed by the same Employer before the expiration of two weeks after the commencement of the next school term will be deemed to have had continuous service for the purposes of long service leave.
Eligible Employees are entitled to Portability of Long Service Leave as outlined in Annexure M - Catholic Schools Intrastate Long Service Leave Portability Arrangement.
PERSONAL/CARER'S LEAVE PORTABILITY (NSW/ACT CATHOLIC SYSTEMIC SCHOOLS AND PARTICIPATING NSW/ ACT CATHOLIC INDEPENDENT SCHOOLS)
This Annexure sets out Personal/Carer's Leave portability for Employees who were previously employed by a Participating Employer.
Note: This Annexure establishes obligations on the Employers covered by this Agreement to recognise Personal/Carer's Leave portability for Employees.
Employees who intend on terminating their employment and obtaining employment with a new Employer should always refer to their proposed new Employer's industrial instruments for information about whether leave entitlements can be transferred.
An Employer listed in subclause 2.1 of this Agreement for both Teachers and General Employees; and
The NSW Catholic Independent Schools Employers listed below for Teachers only:
The ACT Catholic Independent Schools Employers listed below for Teachers only:
(a) An Employee, who was previously employed with another Participating Employer on a full-time, part-time or temporary basis, will be entitled to portability of Personal/Carer's Leave as follows.
(b) Untaken paid personal/carer's that has accumulated with the previous participating Employer will be credited to the Employee as accumulated personal/carer's leave on the commencement of their employment with the Employer. The maximum personal/carer's leave portable from a Participating Employer will be 150 days.
(c) For an Employee to be eligible for portability of personal/carer's leave under this clause, the Employee must satisfy the following criteria:
(i) The Employee has commenced employment with the Employer within six months or two terms, whichever is the greater, of the termination of the Employee's employment with the other Participating Employer.
(ii) The former Participating Employer will provide to each Employee, on the termination of the Employee's employment, a completed version of the form set below and the Employee will provide the original completed form to the new Employer within four school weeks of the commencement of employment with the new Employer.
CATHOLIC SCHOOLS INTRASTATE LONG SERVICE LEAVE PORTABILITY ARRANGEMENT
(b) Any person employed in a Catholic school listed in clause 6 or in a Catholic school, Catholic Education Office or Catholic Schools Office operated by an Employer listed in clause 6:
(i) whose employment is terminated with an employer; and
(ii) who is subsequently employed by a new employer after 28 January 2005; and
(iii) who qualifies to transfer his/her long service leave entitlement from one employer to another employer under this Arrangement or the former industrial instrument the Catholic Schools Long Service Leave Portability (State) Agreement as made by NSW Industrial Relations Commission on 17 December 2004 and gazette in NSW Industrial Gazette Vol 350. Pg.1140.
The principal object of this Annexure is to provide for the portability of Long Service Leave to employees engaged in Catholic Education Offices, Catholic Schools Offices, together with employees employed in schools of the organisations listed in clause 6 under defined employment circumstances, ("continuous" service). Service will be deemed to be continuous when an employee terminates employment with a participating employer and shortly thereafter commences employment with another participating Employer.
(a) 'Employer' means any Catholic Systemic School or Catholic Independent School listed in clause 6 to this Annexure.
(b) 'Former Employer' means any Employer listed in clause 6 to this Annexure on the day of an employee's last termination of employment.
(c) 'New Employer' means any Employer listed in clause 6 to this Annexure immediately following an employee's last termination of employment.
(d) 'Service' means service as an adult within the terms of the Long Service Leave Act 1955 (NSW), as applicable as at the date of this Agreement
(e) 'Employee' means any person employed in a Catholic school listed in clause 6 or in a Catholic school, Catholic Education Office or Catholic Schools Office operated by an Employer listed in clause 6 of this Annexure and who is eligible to be enrolled as a member of the Union.
(f) 'Union' means the Independent Education Union of Australia.
4.1 Entitlement to Long Service Leave will be in accordance with the provisions of the Act, the Long Service Leave Act 1955 (NSW), and any applicable enterprise agreement and any enterprise agreement (including any amendments or replacements of the legislation or industrial instruments) that applies to any Employer.
4.2 Continuous service with an Employer as at the operative date of this Agreement, will be recognised by another Employer for the purpose of this Annexure provided that:
(a) The Employee has completed an initial qualifying period (the "Initial Qualifying Period") of:
(i) at least one year of continuous service with a participating employer listed in
(ii) at least five years of continuous service with a participating employer listed in
(b) An Employee will only be entitled to the portability of his or her long service leave where he or she commences employment with a new employer and no more than the equivalent of two full school terms have elapsed between ceasing employment with the Former Employer and commencing employment with a New Employer.
(c) Service prior to the Initial Qualifying Period will not be counted for the purpose of calculating long service leave entitlements in accordance with paragraph 4.2(a).
4.3 Notwithstanding an Employee may have taken all or part of their accrued long service leave with their Former Employer or may have been paid out on termination all or part of their long service leave by their Former Employer, the Employee's period of continuous service with the Former Employer will be recognised by the New Employer for the purposes of calculating any entitlement to long service leave.
4.4 Prior service will be recognised by the New Employer on the understanding that the Employee is not entitled to take or be paid long service leave which they have already taken or been paid by their Former Employer.
4.5 Notwithstanding the provisions of subclause 4.2, where the Former Employer has a different rate of accumulation of long service leave to the New Employer, the following will occur:
(a) Service with the Former Employer will be recognised as service with the New Employer; and
(b) The accrued entitlement to long service leave recognised by the New Employer will be that which the Employee had accrued at the date of ceasing employment with the Former Employer.
"another": "adjective 2. a different; a distinct; of a different kind: at another time; another man. pronoun 4. a different one; something different: going from one house to another."
"new" as "10. other than the former or the old: a new era."
(i) For those employees who have accrued balances from another eligible employer, those balances are ported in accordance with Annexure L; and
(ii) For those employees who do not fall within the scope of Annexure L, they are credited with 15 days of personal/carers' leave upon commencement of their employment.
Principles of construction of enterprise agreements
"The starting point for interpretation of an enterprise agreement is the ordinary meaning of the words, read as a whole and in context. The interpretation "...turns on the language of the particular agreement, understood in the light of its industrial context and purpose ...". The words are not to be interpreted in a vacuum divorced from industrial realities; rather, industrial agreements are made for various industries in the light of the customs and working conditions of each, and they are frequently couched in terms intelligible to the parties but without the careful attention to form and draftsmanship that one expects to find in an Act of Parliament. To similar effect, it has been said that the framers of such documents were likely of a "practical bent of mind" and may well have been more concerned with expressing an intention in a way likely to be understood in the relevant industry rather than with legal niceties and jargon, so that a purposive approach to interpretation is appropriate and a narrow or pedantic approach is misplaced."[43]
(i) The Employee has commenced employment with the Employer within six months or two terms, whichever is the greater, of the termination of the Employee's employment with the other Participating Employer.
(ii) The former Participating Employer will provide to each Employee, on the termination of the Employee's employment, a completed version of the form set below and the Employee will provide the original completed form to the new Employer within four school weeks of the commencement of employment with the new Employer."
"another" as "adjective 2. a different; a distinct; of a different kind: at another time; another man. pronoun 4. a different one; something different: going from one house to another."
"new" as "adjective 10. other than the former or the old: a new era."
"other" as "adjective 1. additional or further: he and one other person. 2. different or distinct from the one or ones mentioned or implied: in some other city. 4. (with plural nouns) being the remaining ones of a number: the other men. 8. another person or thing".[46]
Does the Commission have jurisdiction to determine question 3?
[20] The Commission may deal with a dispute if the dispute settlement procedure "requires or allows" it to do so. The terms of the dispute settlement procedure must be considered, understood in light of its industrial context and purpose. The scope of the dispute settlement procedure should not be narrowly construed as "to do so would be contrary to the notion that certified agreements are intended to facilitate the harmonious working relationship of the parties during the operation of the agreement.
[21] In the assessment of the Commission's power, there is a need to characterise the dispute and determine whether that characterisation has a nexus or sufficient nexus to the provisions of the Agreement. In doing so, the Commission is not confined to the terms of the dispute application. The entire factual background is relevant and may be ascertained from the submissions advanced by the parties on the question of jurisdiction. Further, an industrial dispute is not necessarily fixed and definite, and it may evolve during proceedings in the Commission.
[22] In dealing with a dispute under s 739 of the Act, the Commission must not exercise any powers limited by the Agreement's dispute settlement term. Further, the Commission must not make a decision that is inconsistent with either the Act or the Agreement.
43.2 In the first instance the parties should attempt to resolve the matter at the workplace by discussions between the Employee or Employees concerned and the relevant supervisor, where appropriate. If such discussions do not resolve the dispute, the parties will endeavour to resolve the dispute in a timely manner through discussions between the Employee or Employees concerned and senior management (which may include senior CEO/CSO staff) as appropriate.
Moreover, the Union is deeply concerned by the discriminatory implications of CEDP's decision not to recognise their continous [sic] service. We believe that these members have been treated less favourably due to their parental responsiblities [sic], which is an attribute appertaining to their sex.
In light of the above concerns, the Union strongly urges CEDP to review these members' leave entitlements with recognition for the continuity of service. We ask that their leave balances are corrected by no later than 10 January 2023.
Please be advised that if the issues remain unresolved, the Union reserves its rights to commence appropriate action in the Fair Work Commission and/or Australian Human Rights Commission without further notice.[58]
CSPD does not consider this decision to be discriminatory or a breach of the Agreement. Therefore, should the IEU pursue any discrimination or dispute claim in any forum as threatened, this will be strenuously defended. Where appropriate, CSPD reserves its right to seek costs against the IEU.[59]
"Notwithstanding a more generally expressed conclusion that the relevant clauses are to be construed with some degree of informality and flexibility, the submission advanced on behalf of Qantas and Jetstar that there needed to be some minimum content to these provisions is accepted. That minimum content, it is concluded, is that there needed to be an occasion on which those participating in the meetings had to know that there were opposing views being expressed and that those opposing views needed to be resolved. It is not necessary, with respect, for those participating in the meeting or discussion to know that they were participating in a meeting which formed part of a dispute resolution procedure. To fall within cl 6 of the Qantas Agreement or cl 20 of the Jetstar Agreement, there needed to be the raising by an employee or a group of employees of an "opposing view" to that of their employer and that view had to be raised at a meeting (however flexibly that term is to be construed) at which it was known or could reasonably be inferred that each of the "opposing" sides knew that there was a dispute in need of resolution."[60]
Are the criteria for defining portability of employment entitlements in Annexures L and M discriminatory within the meaning of s.195 of the FW Act?
21. A distinction is often drawn between two forms of discrimination, namely "direct" or "disparate treatment" discrimination and "indirect" or "adverse impact" discrimination. Broadly speaking, direct discrimination occurs where one person is treated in a different manner (in a less favourable sense) from the manner in which another is or would be treated in comparable circumstances on the ground of some unacceptable consideration (such as sex or race). On the other hand, indirect discrimination occurs where one person appears to be treated just as another is or would be treated but the impact of such "equal" treatment is that the former is in fact treated less favourably than the latter. The concept of indirect discrimination was first developed in the United States in relation to practices which had a disproportionate impact upon black workers as opposed to white workers: Griggs v. Duke Power Co. [1971] USSC 46; (1971) 401 US 424. Both direct and indirect discrimination therefore entail one person being treated less favourably than another person. The major difference is that in the case of direct discrimination the treatment is on its face less favourable, whereas in the case of indirect discrimination the treatment is on its face neutral but the impact of the treatment on one person when compared with another is less favourable.[63]
30.8 The amount of retrenchment payment due to an employee is not to be more than the employee would have received had the employee remained in employment with the Company until the age of sixty (60) years.
(1) A term of an enterprise agreement is a discriminatory term to the extent that it discriminates against an employee covered by the agreement because of, or for reasons including, the employee's race, colour, sex, sexual orientation, breastfeeding, gender identity, intersex status, age, physical or mental disability, marital status, family or carer's responsibilities, pregnancy, religion, political opinion, national extraction or social origin.
(2) A term of an enterprise agreement does not discriminate against an employee:
(a) if the reason for the discrimination is the inherent requirements of the particular position concerned; or
(b) merely because it discriminates, in relation to employment of the employee as a member of the staff of an institution that is conducted in accordance with the doctrines, tenets, beliefs or teachings of a particular religion or creed:
(ii) to avoid injury to the religious susceptibilities of adherents of that religion or creed; or
(c) if the term is a special measure to achieve equality - to the extent that action that may be taken because of the term is not unlawful under any anti‑discrimination law in force in a place where the action may occur.
(3) A term of an enterprise agreement does not discriminate against an employee merely because it provides for wages for:
(a) all junior employees, or a class of junior employees; or
(b) all employees with a disability, or a class of employees with a disability; or
(c) all employees to whom training arrangements apply, or a class of employees to whom training arrangements apply.
(4) A term of an enterprise agreement is a special measure to achieve equality if:
(a) the term has the purpose of achieving substantive equality for employees or prospective employees who have a particular attribute or a particular kind of attribute (as the case may be) mentioned in subsection (1), or a particular combination of these; and
Note: For example, a term that has the purpose of achieving substantive equality for employees who are female and have a physical or mental disability.
(b) a reasonable person would consider that the term is necessary in order to achieve substantive equality.
(5) A term of an enterprise agreement is to be treated as having the purpose referred to in paragraph (4)(a) if it is:
(b) for that purpose as well as other purposes, whether or not that purpose is the dominant or substantial one.
(6) However, a term of an enterprise agreement ceases to be a special measure to achieve equality after substantive equality for the employees referred to in paragraph (4)(a) has been achieved.
A tern of an enterprise agreement is an unlawful term if it is:
253 Terms of an enterprise agreement that are of no effect
(1) A term of an enterprise agreement has no effect to the extent that:
(a) it is not a term about a permitted matter; or
Note 1: A term of an enterprise agreement has no effect to the extent that it contravenes section 55 (see section 56).
Note 2: Certain terms of enterprise agreements relating to deductions, or requiring employees to spend or pay amounts, have no effect (see section 326).
(2) However, if an enterprise agreement includes a term that has no effect because of subsection (1), or section 56 or 326, the inclusion of the term does not prevent the agreement from being an enterprise agreement.
(1) A modern award must not include terms that discriminate against an employee because of, or for reasons including, the employee's race, colour, sex, sexual orientation, breastfeeding, gender identity, intersex status, age, physical or mental disability, marital status, family or carer's responsibilities, pregnancy, religion, political opinion, national extraction or social origin.
(2) A term of a modern award does not discriminate against an employee:
(a) if the reason for the discrimination is the inherent requirements of the particular position held by the employee; or
(b) merely because it discriminates, in relation to employment of the employee as a member of the staff of an institution that is conducted in accordance with the doctrines, tenets, beliefs or teachings of a particular religion or creed:
(ii) to avoid injury to the religious susceptibilities of adherents of that religion or creed.
(3) A term of a modern award does not discriminate against an employee merely because it provides for minimum wages for:
(a) all junior employees, or a class of junior employees; or
(b) all employees with a disability, or a class of employees with a disability; or
(c) all employees to whom training arrangements apply, or a class of employees to whom training arrangements apply.
[118] In considering whether to apply National Retail Association (No 2), it is to be observed that the Commission is an administrative tribunal and does not exercise the judicial power of the Commonwealth under s.71 of the Constitution. It lacks the power to make determinative findings of law, and its decisions are subject to scrutiny through judicial review by relevantly, the Federal Court of Australia. The decision-making powers of the Commission are drawn from, and cannot exceed, those contained in the Act. In performing its functions and powers, the Commission may interpret law, and in particular, provisions of the Act incidentally and as necessary in the course of a proceeding, but these interpretations are not a binding exposition as to the meaning of a particular provision nor are its interpretations binding on the parties as a declaration of rights and obligations. An interpretive decision of the Federal Court on the meaning of a particular provision of the Act which has a bearing on a proceeding or on the exercise of a particular function or power cannot simply be ignored.
[119] Ultimately, I agree with the contentions of the MFB and the UFU that I should follow and apply National Retail Association (No 2) with the consequence that "discriminates" in ss.195 and 153 of the Act has the same meaning, which does not include indirect discrimination. I do so for the reasons already identified above and for the reasons which follow.
[120] Absent the judgment in National Retail Association (No 2), for the reasons I shortly will discuss, I would come to a different view as to the meaning of "discriminates" in s.195 than Tracey J did in respect of that word in s.153. I am also mindful of the comments about judicial comity of the Full Court in Saeed v Minister for Immigration and Citizenship which were as follows:
"Contestable questions of statutory construction raise issues of particular difficulty. The course of events in relation to the provisions here under consideration is a sufficient illustration of the fact that firmly held views for both sides of an argument about a point of statutory construction may exist. French J, in Nezovic v Minister for Immigration and Multicultural and Indigenous Affairs [2003] FCA 1263; (2003) 133 FCR 190 (Nezovic) said (at [52]):
[52] ... Judicial comity does not merely advance mutual politeness between judges of the same or co-ordinate jurisdictions. It supports the authority of the courts and confidence in the law by the value it places upon consistency in judicial decision-making and mutual respect between judges. Where questions of law and in particular statutory construction are concerned, the view that a judge who has taken one view of the law or a statute is "clearly wrong" is not likely to be adopted having regard to the choices that so often confront the courts particularly in the area of statutory construction ...
In similar vein Weinberg J (with whom Allsop J agreed on this point) said in SZEEU v Minister for Immigration and Multicultural and Indigenous Affairs [2006] FCAFC 2; (2006) 150 FCR 214 (SZEEU) at [148]-[149]:
[148] The word "plainly" does more than simply add emphasis. It suggests that the error must be manifest or, if it does not rise to that level, at least capable of being easily demonstrated. In a sense, the error must be so clear as to enable a later court to say that the point is not reasonably arguable.
[149] An example of plain error would be that discussed in Bristol Aeroplane, namely that the earlier judgment was given "per incuriam". However, an earlier decision may be "plainly wrong", within the meaning of that expression, for other reasons as well. It goes without saying that such a finding will not be lightly made. As Allsop J correctly observes, there is a need to be "convinced or persuaded" of the earlier Full Court's error, and that can not be achieved in a case in which minds might reasonably differ as to the proper construction of a particular statutory provision.
In the same case Moore J (with whom Allsop J agreed also) said at [8]:
[8] However formulated, the duty of any later Full Court to follow an earlier Full Court is founded on public policy considerations and, in particular, the need for consistency in the application of federal laws in this Court, subject always to correction of any error by the High Court or the amendment of the law by Parliament.
There is generally little scope, at the same level in a court's hierarchy (at least this Court's hierarchy), for the adoption of personal views about an issue of statutory construction at the expense of considerations of comity..."
[121] There is even greater need to conform with this approach so far as an administrative tribunal is concerned. As an administrative tribunal the consideration is not one of judicial comity but rather whether I am bound to apply a judgment of the Federal Court. I consider that I am bound to apply National Retail Association (No 2) as it is on point, not plainly wrong, and has not been overruled. Although the judgment in National Retail Association (No 2) was concerned with a different provision of the Act, both provisions are concerned with the non-permissible discriminatory content in industrial instruments. In Klein, Gordon J did not conclude that National Retail Association (No 2) in its construction of s.153 of the Act was plainly wrong. Indeed, her Honour distinguished it as not binding her Honour in the construction of s.342. No one suggested that the provisions of ss.153 and 195 are materially different either in terms or in context so as to allow me to distinguish National Retail Association (No 2). Moreover, National Retail Association (No 2) has not been overruled.
[122] There can be little doubt that so far as the Commission is concerned, National Retail Association (No 2) in its interpretation of s.153 is currently a binding statement of the law as to the meaning of "discriminates" in that section. It follows that terms may be included in Modern Awards which indirectly discriminate. Whether such terms should be included will be determined by other considerations including the Modern Award's objective. It is to be noted that ss.195 and 153 are related, not only because they concern the content of industrial instruments made or approved by the Commission, or because they are expressed in substantially the same language. The provisions are also related because they are capable of interacting in a very practical way. If different interpretations were to be adopted of the word "discriminates", this may lead to an absurd result.
[68] Although it is not necessary for us to do so, we observe in any event that the Minister's proposed construction of s 195 seems to us to suffer from at least three fundamental difficulties. First, s 195 serves the function of defining what constitutes a "discriminatory term" for the purpose of the approval requirement for agreements in s 186(4) concerning unlawful terms. It must be construed in that context. The Commission's assessment as to whether s 186(4) is satisfied is necessarily undertaken at a time prior to the agreement under consideration taking effect. In respect of s 195, the assessment required is whether a particular term "discriminates" against an employee covered by the agreement for a proscribed reason. This task presents no particular difficulty in terms of the identification of directly discriminatory terms, since the text of such a term will disclose whether it discriminates or not.
[69] However, the position is different with respect to indirect discrimination, which is concerned with the impact or effect upon persons of facially neutral requirements. As stated by Dawson and Toohey JJ in Waters v Public Transport Corporation, "indirect discrimination occurs where one person appears to be treated just as another is or would be treated but the impact of such 'equal' treatment is that the former is in fact treated less favourably than the latter". Given that indirect discrimination is concerned with actual impacts and effects, it is not clear to us how it could be relevant to s 195, which exists for the purpose of an assessment which must be made before an agreement commences operation and has any effect on anybody. In this sense s 195 is entirely distinguishable from s 342 (the provision considered in Klein), which is concerned with "adverse action" - that is, actual conduct which has adversely affected a relevant person.
[70] Second, the Minister was unable to provide any sensible explanation as to how, in a practical sense, the assessment required to be made pursuant to s 186(4) in respect of discriminatory terms could be conducted if s 195 was construed to include indirect discrimination. Clearly, an examination of the text of the relevant agreement would not suffice, since it would be necessary to explore the impact of facially neutral terms upon employees covered by the agreement. This would appear to require the Commission, with respect to each operative term of the agreement, to conduct an inquiry as to the potential impact it might have on each employee that might be covered by the agreement once it came into operation. Such an inquiry would in most cases have to involve the Commission acting on its own initiative, since the overwhelming majority of enterprise agreement approval applications do not have a contradictor. Because the actual effects of terms would not be known (unless perhaps "rolled over" from a previous agreement), the Commission would need to speculate as to what effects might occur in the future. In order for this to occur, the Commission would presumably need to receive evidence as to the composition of the workforce in terms of the attributes listed in s 195(1) - that is, the racial composition, gender balance, sexual orientation, age distribution etcetera of the workforce. That could conceivably be done in the case of an employer with an established and stable workforce. However in the case of a start-up business with only a few employees that intends to expand, or a business with a high labour turnover, or a greenfields agreement where there is as yet no workforce at all, we cannot conceive how the task could practically be undertaken. The reasonableness exception which the Minister contends is incorporated into s 195 would require further inquiry as to whether any future discriminatory impact of a term of the agreement which might be hypothesised is justifiable having regard to the business operations and commercial interests of the employer.
[71] We consider it implausible that the legislature intended that the Commission undertake such a task pursuant to s 186(4). The Explanatory Memorandum for the Fair Work Bill 2009 stated an intention that the approval process for enterprise agreements be a "simple, point in time assessment", and the Minister's proposed construction of s 195 necessarily has consequences utterly at odds with this intention. We consider it more likely that s 218 of the FW Act constitutes the mechanism by which facially neutral terms in enterprise agreements which have actual discriminatory effects upon employees in their operation may be rectified.
[72] Third, the Minister's contention that "discriminates" in s 195(1) includes indirect discrimination carries with it the proposition that a reasonableness exception is incorporated. However, no persuasive basis for this proposition was advanced. Section 195(2) and (3) set out in express terms the exceptions to the operation of s 195(1), and none of the prescribed exceptions operates as a general reasonableness exception. In this respect, s 195 is to be distinguished from s 351. Section 351(1) prohibits adverse action on identified proscribed grounds, but s 351(2)(a) provides that s 351(1) does not apply to action that is not unlawful under any anti-discrimination law that is applicable. This effectively incorporates the reasonableness exception for indirect discrimination invariably found in such legislation. The Minister's contention that the word "discriminates" in s 351(1) by itself necessarily connotes indirect as well direct discrimination relies on passages in the High Court decisions in Street v Queensland Bar Association and Waters v Public Transport Corporation, but those passages do not demonstrate that the general concept of indirect discrimination necessarily carries with it a reasonableness exception absent legislative prescription to that effect.
[193] Although, for reasons stated below, s 153(1) is not determinative of the outcome of this matter, the text and context of s 153(1) and the authorities concerning or relevant to the provision indicate that it should be construed as follows. First, s 153(1) is concerned with award terms which discriminate against an employee on proscribed grounds, and its function is to prohibit the Commission from including such terms in a modern award. This indicates that the provision is concerned with potential award terms which textually or as a matter of legal effect discriminate in the proscribed way. It is not concerned with the conduct of any person nor the practical effects of facially or legally neutral terms in their operation (since such terms are not permitted to take operation). It is also not subject to any reasonableness exception. Therefore, s 153(1) does not appear to encompass the concept of indirect discrimination to which anti-discrimination statutes in other contexts have given effect.
"Discrimination" in s 7 of the Equal Opportunity Act is defined to mean "direct or indirect discrimination on the basis of an attribute" and discrimination in contravention of certain provisions of the Act. This is the context in which the discussion in Waters took place. The reasoning in Waters is applicable to that context. There is no sound basis to import it into an analysis of discrimination in the different context of the BCII Act where there is no statutory definition.[88]
"So far as employees of the applicant are concerned, from the time they were permitted to continue working after 60 years of age a provision which subjected them to disadvantage by reference to attaining that age was directly discriminatory against them on the ground of their age within the meaning of s 195 of the FW Act."[92]

[1] [2021] FWCA 173 at [4].
[2] Ibid; Clause 3.1(a) of the Agreement.
[4] See clause 2.1(a)(viii) of the Agreement.
[6] Respondent's Outline of Submissions at [21].
[20] Exhibit A6; Exhibit A8; Transcript at PN182.
[34] Citing Project Blue Sky v ABA [1998] HCA 28; R v Young [1999] NSWCCA 166 at [12].
[35] Citing Carroll v Secretary to the Department of Justice [2015] VSCA 156 at [22].
[36] [2018] FCAFC 131 (Workpac).
[37] Workpac at [197]; Transcript at PN218-PN224.
[38] Applicants' Submissions at [30].
[40] Applicants' Submissions at [33].
[42] 2017 FWCFB 3005 at [114].
[45] Macquarie Dictionary Online (http://www.macquariedictionary.com.au).
[47] See clause 3 of Annexure M of the Agreement.
[49] Applicants' Submissions at [35].
[51] Applicants' Submissions at [41].
[52] Respondent's Jurisdictional Objection Submissions at [6]; Transcript at PN68; Exhibit A8.
[53] Citing the decision in Odyssey Marine Pty Ltd v Construction, Forestry, Maritime, Mining and Energy Union [2020] FWC 3020 at [144].
[54] Construction Forestry Mining and Energy Union v Australian Industrial Relations Commission [2001] HCA 16 at [31]- [34]; Endeavour Energy v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2016] FCAFC 82 at [30]- [31].
[56] [2020] FCA 951 (Qantas v ALAEA) at [53]-[56].
[61] Captain Anthony Lucas v Qantas Airways Ltd [2023] FWCFB 77 at [9]- [11].
[64] Citing Shop Distributive and Allied Employees' Association v National Retail Association (No 2) [2012] FCA 480 as per Tracey J.
[65] Citing Centennial Northern Mining Services Pty Ltd v Construction, Forestry, Mining and Energy Union (No 2) [2015] FCA 136 (Centennial Mining); Australian Maritime Officers' Union v ASP Ship Management Pty Ltd [2020] FWCFB 1469 (AMOU v ASP) at [27]; Qantas Airways Limited [2013] FWCA 8454 at [7]; Application by Commissioner for Public Employment [2010] FWAA 9372; Application by Australian Catholic University [2011] FWA 3693 at [14]; University of Melbourne Enterprise Agreement 2013 [2014] FWCA 1133 at [51]- [54]; Klein v Metropolitan Fire and Emergency Services Board [2012] FCA 402 (Klein) at [102]; and Taylor v Department of Health [2020] FCA 1364 (Taylor) at [22].
[73] Metropolitan Fire Appeal at [68]-[72].
[77] [2023] FWC 55 at [134].
[80] Application by Commissioner for Public Employment [2010] FWAA 9372; Application by Australian Catholic University [2011] FWA 3693 at [14]; Qantas Airways Limited [2013] FWCA 8454 at [7].
[81] University of Melbourne Enterprise Agreement 2013 [2014] FWCA 1133 at [51]- [54].
[85] National Retail Association No 2 at [52]-[56].
[93] Metropolitan Fire Appeal at [71].
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Catholic Schools Parramatta Diocese Ltd [2023] FWC 3039
(2006) 150 FCR 214
(2006) 149 FCR 291
(2010) 193 FCR 213
(1991) 173 CLR 349
(2003) 133 FCR 190