Linfox Australia Pty Ltd v Fair Work Commission
[2013] FCAFC 157
At a glance
Source factsCourt
Federal Court of Australia (Full Court)
Decision date
2013-12-13
Before
Mr J, Griffiths JJ
Source
Original judgment source is linked above.
Judgment (11 paragraphs)
The application for a remedy and the appeal process 9 The decision-making process whereby the decisions of the Commissioner and the Full Bench were taken should briefly be set forth. 10 Statutory provisions with respect to "unfair dismissal" are contained within Part 3-2 of the Fair Work Act. Since the date when the facts giving rise to the cause of action occurred, amendments have been made to the Fair Work Act, including references to reflect the change in name from Fair Work Australia to the Fair Work Commission. All references to the statutory provisions below are those in force at the relevant time. 11 Within Part 3.2, s 394 provided that a person who had been "dismissed" may make an application for a remedy to Fair Work Australia. The phrase "unfair dismissal" was defined in s 385 as follows: What is an unfair dismissal A person has been unfairly dismissed if FWA is satisfied that: (a) the person has been dismissed; and (b) the dismissal was harsh, unjust or unreasonable; and (c) the dismissal was not consistent with the Small Business Fair Dismissal Code; and (d) the dismissal was not a case of genuine redundancy. Section 390 confers a discretionary power to order reinstatement. That section thus provided as follows: When FWA may order remedy for unfair dismissal (1) Subject to subsection (3), FWA may order a person's reinstatement, or the payment of compensation to a person, if: (a) FWA is satisfied that the person was protected from unfair dismissal (see Division 2) at the time of being dismissed; and (b) the person has been unfairly dismissed (see Division 3). (2) FWA may make the order only if the person has made an application under section 394. (3) FWA must not order the payment of compensation to the person unless: (a) FWA is satisfied that reinstatement of the person is inappropriate; and (b) FWA considers an order for payment of compensation is appropriate in all the circumstances of the case. Section 391 provides for the form of an order for reinstatement. The Commissioner's decision in the present case was that Mr Stutsel's dismissal had been "harsh, unjust and unreasonable" and he made orders pursuant to s 391. 12 Section 604 thereafter provides for the circumstances in which an appeal may be made. That section provided as follows: Appeal of decisions (1) A person who is aggrieved by a decision: (a) made by FWA (other than a decision of a Full Bench or the Minimum Wage Panel); or (b) made by the General Manager (including a delegate of the General Manager) under the Fair Work (Registered Organisations) Act 2009; may appeal the decision, with the permission of FWA. (2) Without limiting when FWA may grant permission, FWA must grant permission if FWA is satisfied that it is in the public interest to do so. (3) A person may appeal the decision by applying to FWA. Section 400 qualifies s 604. Section 400 provided as follows: Appeal rights (1) Despite subsection 604(2), FWA must not grant permission to appeal from a decision made by FWA under this Part unless FWA considers that it is in the public interest to do so. (2) Despite subsection 604(1), an appeal from a decision made by FWA in relation to a matter arising under this Part can only, to the extent that it is an appeal on a question of fact, be made on the ground that the decision involved a significant error of fact. 13 Section 607 is also relevant. It deals with the process for appealing a decision, as well as the powers of the Full Bench. It provided as follows: Process for appealing or reviewing decisions (1) An appeal from, or a review of, a decision of FWA or the General Manager may be heard or conducted without holding a hearing only if: (a) it appears to FWA that the appeal or review can be adequately determined without persons making oral submissions for consideration in the appeal or review; and (b) the persons who would otherwise, or who will, make submissions (whether oral or written) for consideration in the appeal or review consent to the appeal or review being heard or conducted without a hearing. (2) FWA may: (a) admit further evidence; and (b) take into account any other information or evidence. (3) FWA may do any of the following in relation to the appeal or review: (a) confirm, quash or vary the decision; (b) make a further decision in relation to the matter that is the subject of the appeal or review; (c) refer the matter that is the subject of the appeal or review to an FWA Member (other than a Minimum Wage Panel Member) and: (i) require FWA Member to deal with the subject matter of the decision; or (ii) require FWA Member to act in accordance with the directions of FWA. 14 Where "permission" has been granted, an appeal is in the nature of a rehearing. The nature of the jurisdiction being exercised was explained by Gleeson CJ, Gaudron and Hayne JJ in respect to the former Full Bench of the Industrial Commission in Coal and Allied Operations Pty Limited v Australian Industrial Relations Commission [2000] HCA 47, 203 CLR 194 as follows: [18] The Full Court was in error in thinking that the nature of an appeal under s 45 differs according to the nature of the decision under appeal. However, it was correct to hold that, in the case of a discretionary decision, the exercise by a Full Bench of the Commission of its powers under s 45(7) depends on the decision at first instance being attended by appealable error. … [19] "Discretion" is a notion that "signifies a number of different legal concepts". In general terms, it refers to a decision-making process in which "no one [consideration] and no combination of [considerations] is necessarily determinative of the result". Rather, the decision-maker is allowed some latitude as to the choice of the decision to be made. The latitude may be considerable as, for example, where the relevant considerations are confined only by the subject matter and object of the legislation which confers the discretion. On the other hand, it may be quite narrow where, for example, the decision-maker is required to make a particular decision if he or she forms a particular opinion or value judgment. … [21] Because a decision-maker charged with the making of a discretionary decision has some latitude as to the decision to be made, the correctness of the decision can only be challenged by showing error in the decision-making process. And unless the relevant statute directs otherwise, it is only if there is error in that process that a discretionary decision can be set aside by an appellate tribunal. The errors that might be made in the decision-making process were identified, in relation to judicial discretions, in House v The King [(1936) 55 CLR 499 at 505 per Dixon, Evatt and McTiernan JJ] in these terms: "If the judge acts upon a wrong principle, if he allows extraneous or irrelevant matters to guide or affect him, if he mistakes the facts, if he does not take into account some material consideration, then his determination should be reviewed and the appellate court may exercise its own discretion in substitution for his if it has the materials for doing so." In thereafter seeking to distinguish between errors within jurisdiction and jurisdictional errors, their Honours went on to observe: [32] In his reasons for decision, Giudice J proceeded on the basis that the Full Bench could intervene only if there was error on the part of Boulton J [the Commissioner at first instance]. In this his Honour was correct. Giudice J held that there was error on the part of Boulton J. If he was wrong in that view (a matter upon which it is unnecessary to express an opinion), that was an error within jurisdiction not an error as to the nature of the jurisdiction which the Full Bench was required to exercise under s 45 of the Act. Accordingly, it was not an error in respect of which relief could be granted by way of prohibition or mandamus under s 75(v) of the Constitution. In explaining the nature of an appeal to the Full Bench, Kirby J there likewise observed: [75] The appeal to the Full Bench under the present Act is by way of rehearing. However, it is not a hearing de novo. Absent a demonstration of error on the part of the member of the Commission whose decision or act is the subject of an appeal, it is not open to the Full Bench to quash or vary the decision or act concerned. … See also: Lambley v DP World Sydney Ltd [2013] FCA 4 at [14] per Katzmann J. 15 No further statutory right of appeal is conferred from a decision of the Full Bench of Fair Work Australia to this Court. Section 562 of the Fair Work Act, however, provides that "[j]urisdiction is conferred on the Federal Court in relation to any matter (whether civil or criminal) arising under this Act". Section 563 provides that jurisdiction is to be exercised "in the Fair Work Division of the Federal Court" in the circumstances there specified, including where "a writ of mandamus or prohibition or an injunction is sought … against a person holding office under this Act". In common with both the initial Originating Application and the Amended Originating Application, the Further Amended Originating Application filed in Court on the first day of the appeal invoked the jurisdiction of this Court pursuant to s 39B of the Judiciary Act 1903 (Cth), ss 562 and 563 of the Fair Work Act and ss 21, 22 and 23 of the Federal Court of Australia Act 1976 (Federal Court of Australia Act). 16 It is convenient to outline the reasons for decision by both the Commissioner and, on appeal, by the Full Bench of Fair Work Australia.