[2025] FWC 1112
General information, not legal advice.
Fair Work Commission
2025-04-22
Original judgment source is linked above.
s.394 - Unfair dismissal
Unfair dismissal applications - jurisdictional objection - wrong employer named as respondent - "true employer" test - applicants have named the wrong employer - applications to amend name of the employer - amendments made - applications to proceed.
Arrangements within a group of companies, or between or amongst associated companies present different issues. The matters I am about to discuss have no real significance for the arrangements with Tempus. It would not matter if they did. The Tempus arrangements did not pass the tests I will identify and discuss. Those tests may have been relevant to a consideration of the arrangements with the earlier Ramsey "employing" companies but that is not the issue for present attention.
There may be many reasons why companies, businesses or enterprises associated with each other might wish to organise their affairs in a way where one legal personality employs labour for the ultimate use and benefit of other legal personalities. Such arrangements will often not be characterised or accompanied by the apparent profitability or identified reward which might be necessary in order to regard an arms-length arrangement as a genuine one.
In such intra-group arrangements there may be overlapping, or even common, directorships, interlocking shareholdings (either cross-ownership or through ultimate ownership) and there is frequently a system of cross-guarantees in place. Little of this may be apparent to outsiders. The details may not be discoverable through the public records system. Arrangements between or amongst companies related in this way where one company (or more) operates to engage labour while others are concerned with management, operations, marketing or sales are by no means unusual. They are certainly not illegal. Arrangements along these lines may even be indispensible for some forms of business activity e.g. joint ventures. Although more than mere lip service must be paid to the separation of legal personality provided by individual incorporation, the tests applied to other labour hire arrangements, of independence and separate business, are either not relevant or are much less readily applied in such a circumstance.
Nevertheless, it must be possible to identify a rational explanation for the arrangement and the explanation must be satisfactorily related to an intelligible business objective. That is so because otherwise, doctrines of agency, at least, may operate to defeat a bare claim of independence and isolated liability, supported only by a bare reference to separate incorporation. That is particularly likely to be the case when: the separate employing company is completely reliant upon a company to which it purportedly supplies labour; it has no assets and no management structure of its own; and it exists only as a corporate shell to protect another company, which does have assets, from liability to employees. In such a case a court might not hesitate long before pronouncing the arrangement ineffective or, in a more serious case, a sham.
In Textile Footwear & Clothing Union of Australia v Bellechic Pty Ltd [1998] FCA 1465 ("Bellechic") Ryan J said, of restructured arrangements in a group of companies:
In ... circumstances, in which the employees were engaged to work in a business in which a number of separate corporate entities participated otherwise than as partners, it was open to those controlling the business to select which company should be the employer provided that the selection was consistent with the financial and administrative organisation of the business and was not otherwise a sham.
On the facts of that case his Honour found that the attempted re-arrangement of employment obligations was ineffective and that changes to the appearance of employment relationships were done for the "administrative convenience" of the real employer.
Similarly, in Romero v Auty [2000] VSC 462; (2001) 19 ACLC 206; [2000] VSC 462, Warren J found that an attempt to change employment obligations from one company to another was ineffective to do so. Her Honour recorded matters similar to some of the arrangements in the present case, saying (at [25]):
It appeared to be agreed between the parties that Westbury Joinery Services [the new "employer"] was the corporate vehicle whereby the company paid moneys to it for the payment of payroll and related matters. Funds to meet the weekly payroll were credited on a weekly basis to the Westbury Joinery Services account from the company [the "previous" employer Westbury Joinery Company Pty Ltd] accounts. The company provided only sufficient funds to cover the payroll and to maintain a modest account balance. Other payments made from the Westbury Joinery Services account, for example, bonus payments, superannuation payments and employee entitlements were covered by the transfer of funds from the company. Westbury Joinery Services paid the labour and associated costs of the company. It did not have significant assets and made no provision in its accounts for accrued employee entitlements. Such entitlements were uniformly met by the transfer of funds from the company for that purpose.
There was evidence that group certificates were issued by the new "employer" which dealt, in its own name, with the Australian Taxation Office, and that the new "employer" was the insured party for workers compensation purposes, rather than the "previous" employer. Notwithstanding those matters, her Honour found that the altered arrangements were ineffective to alter the true position about employment.
Conversely, in the case upon which the respondents placed most weight in the present proceedings, Golden Plains Fodder Australia Pty Ltd v Millard [2007] SASC 391 ("Golden Plains"), a Full Court of the Supreme Court of South Australia upheld a finding of a trial judge that a change of employer from one company in a group to another was not a sham, but legally effective."
"As I have noted above in addressing the parties' submissions, a structure by which Holdings was the employing entity, where it had no assets or revenue from which it could meet employees' entitlements, and did not charge for its services, would have had no intelligible business purpose, or at least no proper purpose. The documentation of the relationship is consistent with Holdings being an "employer of record" and is less significant in identifying the true employer than the fact that BNM incurred the costs of paying employees for entities across the group and on-charged other subsidiaries in respect of those costs. The question of direction or control is, at best, neutral where the issue arises in respect of a corporate group; and those said to have exercised that control were either employed by BNM (in the case of Mr Smith) or otherwise had involvements with both Holdings and BNM in different capacities. For these reasons, and adopting substantially the same reasoning as was adopted in Gothard, it seems to me that BNM rather than Holdings was the true employer of the Specified Employees."[14]
Application to amend the name of the employer

Ms Orchiston from United Workers' Union representing the Applicants.
A1 Margaret Attard witness statement dated 21 March 2025 and annexures.
A2 Cam Sayers witness statement dated 24 March 2025 and annexures.
A3 Susan Azzi witness statement dated 21 March 2025 and annexures.
A4 Julieanne Dossantos witness statement dated 21 March 2025 and annexures.
A5 Fair Work Information statement showing 1 July 2020 national minimum wage rates.
A6 Fair Work Information statement showing 1 July 2019 national minimum wage rates.
A8 Screenshot from the website https://insightfundraising.com.au which relevantly states: "Insight Charity Fundraising Services is a business name of Insight Holdings Consolidated Pty Ltd (ABN 55 111 803 475) an Insight group company."
A9 Insight Fundraising Grievance Handling Procedure dated 1 March 2024 which relevantly states: "This policy applies to everyone who works at InsightCFS including the owner, sales agents, administrative support staff, managers, temporary workers, and anyone applying for a position with us..."
R1 Benjamin Taber witness statement dated 7 March 2025 and annexures.
R2 Benjamin Taber witness statement dated 1 April 2025 and annexures.
R3 Simon Quinn witness statement dated 10 March 2025 and annexures.
R4 Simon Quinn witness statement dated 1 April 2025 and annexures.
Applicants' outline of submissions dated 24 March 2025.
Loughlin's outline of submissions dated 1 April 2025.
[6] (2021) 271 CLR 456; [2021] HCA 23.
[9] Resilient Investment Group Pty Ltd v Barnet and Hodgkinson (2023) 111 NSWLR 446; [2023] NSWCA 118, Gleeson JA at [165].
[12] Insight FTS Pty Ltd and National Union of Workers Enterprise Agreement 2016 or the Professional Fundraising Agreement [2017] FWCA 979: AE423376.
[15] Clause 5 of the Enterprise Agreement.
[16] Djula v Centurion Transport Co. Pty Ltd [2015] FWCFB 2371.
[17] Fair Work Act 2009 (Cth) s 577.
Printed by authority of the Commonwealth Government Printer
Margaret Attard
Loughlin Pty Ltd [2025] FWC 1112
(2011) 198 FCR 174
(2023) 111 NSWLR 446
(2022) 96 ALJR 89
(2022) 96 ALJR 144
(2021) 271 CLR 456
(1991) 23 NSWLR 142