[2025] FWC 779
General information, not legal advice.
Fair Work Commission
2025-03-19
Original judgment source is linked above.
s.306E - Application for a regulated labour hire arrangement order
Application for a regulated labour hire arrangement order - recusal application - apprehended bias - attempted reliance on parliamentary debates - parliamentary privilege -Secure Australian Jobs Plan - whether a fair-minded lay observer might reasonably apprehend that the Member might not bring an impartial mind to the resolution of the question the judge is required to decide - whether apprehension reasonable - application dismissed
16 Parliamentary privilege in court proceedings
(1) For the avoidance of doubt, it is hereby declared and enacted that the provisions of article 9 of the Bill of Rights, 1688 apply in relation to the Parliament of the Commonwealth and, as so applying, are to be taken to have, in addition to any other operation, the effect of the subsequent provisions of this section.
(3) In proceedings in any court or tribunal, it is not lawful for evidence to be tendered or received, questions asked or statements, submissions or comments made, concerning proceedings in Parliament, by way of, or for the purpose of:
(a) questioning or relying on the truth, motive, intention or good faith of anything forming part of those proceedings in Parliament;
(b) otherwise questioning or establishing the credibility, motive, intention or good faith of any person; or
(c) drawing, or inviting the drawing of, inferences or conclusions wholly or partly from anything forming part of those proceedings in Parliament.
(1) In this Act, unless the contrary intention appears:
tribunal means any person or body (other than a House, a committee or a court) having power to examine witnesses on oath, including a Royal Commission or other commission of inquiry of the Commonwealth or of a State or Territory having that power.
At a minimum, a fair-minded lay observer might reasonably apprehend that the Deputy President might not bring an impartial mind to the resolution of the question the Deputy President is required to decide.
"... Although it is important that justice must be seen to be done, it is equally important that judicial officers discharge their duty to sit and do not, by acceding too readily to suggestions of appearance of bias, encourage parties to believe that by seeking the disqualification of a judge, they will have their case tried by someone thought to be more likely to decide the case in their favour."
[12] The principles applicable to an application for recusal based upon a reasonable apprehension of bias were comprehensively stated in the judgment of Gleeson CJ and McHugh, Gummow and Hayne JJ in the High Court decision in Ebner. In summary, as relevant to the CFMMEU's recusal application:
• the governing principle is that a decision-maker is disqualified if a fair-minded lay observer might reasonably apprehend that the decision-maker might not bring an impartial mind to the resolution of the question the decision-maker is required to decide;
• deciding whether a decision-maker might not bring an impartial mind to the resolution of a question that had not yet been determined is a question of possibility (real and not remote), not one of probability or prediction;
• the application of the apprehension of bias principle requires two steps: (1) identification of what it is said might lead the decision-maker to decide a case other than on its legal and factual merits; and (2) an articulation of the logical connection between the matter and the feared deviation from the course of deciding the case on its merits;
• only once these two steps are undertaken can the reasonableness of the asserted apprehension of bias be assessed; and
• it is not possible to state in a categorical form the circumstances in which a decision-maker may properly decline to sit, since relevant circumstances will vary.
The principles respecting disqualification for apprehended bias represent a balance between two competing policy considerations, namely the maintenance of public confidence in the judicial system, by ensuring that the public perceive that cases are decided only by reference to the evidence before the court, and the need for judges to discharge their duties unless good reason is shown.
These principles must be carefully applied. It has been said that: "... disqualification flows from a reasonable apprehension that the judge might not decide the case impartially, rather than that he will decide the case adversely to a party": Cabcharge at [32]; Re JRL; Ex parte CJL [1986] HCA 39; (1986) 161 CLR 342 at 352 (Mason J).
Needless to say, disqualification of a judge by reason of prejudgment must be "firmly established": Cabcharge at [25]; Re JRL at 352. Judges should not accede too readily to recusal by reason of apprehended bias.
To apply these principles in any given case is a matter of judgment and evaluation depending on the exact circumstances. Undoubtedly, the question of an apprehension of bias requires one to focus on the issues that the judge is called upon to decide - see eg British American Tobacco Australia Ltd v Gordon (2007) NSWSC 109 at [97] per Brereton J. No strict approach should be taken in identifying the legal and factual issues ..."
Where, as here, a question arises as to the independence or impartiality of a judge, the applicable principles are well established, and they were not in dispute. The apprehension of bias principle is that "a judge is disqualified if a fair‑minded lay observer might reasonably apprehend that the judge might not bring an impartial mind to the resolution of the question the judge is required to decide". The principle gives effect to the requirement that justice should both be done and be seen to be done, reflecting a requirement fundamental to the common law system of adversarial trial - that it is conducted by an independent and impartial tribunal. Its application requires two steps: first, "it requires the identification of what it is said might lead a judge ... to decide a case other than on its legal and factual merits"; and, second, there must be articulated a "logical connection" between that matter and the feared departure from the judge deciding the case on its merits. Once those two steps are taken, the reasonableness of the asserted apprehension of bias can then ultimately be assessed.
In Sengupta v Holmes [2002] EWCA Civ 1104; [2002] TLR 351, at [35]-[37], Laws LJ (Jonathan Parker LJ agreeing) stated that the fair-minded observer would recognise that a professional judge would be capable of departing from an earlier expressed opinion.
"... The aspect of the apprehended bias rule in issue in this case is prejudgment. It is important to note that it is prejudgment, not predisposition, which engages the rule.
As Gleeson CJ and Gummow J said in Minister for Immigration and Multicultural Affairs v Jia Legeng:[25]
... All that was necessary to constitute bias, it was said, was an inclination or predisposition of mind. Under pressure of argument, this was qualified by the addition of adjectives such as "wrongful" or "improper". The precise content of those adjectives, in the context, is not clear. Decision-makers, including judicial decision-makers, some‑times approach their task with a tendency of mind, or predisposition, sometimes one that has been publicly expressed, without being accused or suspected of bias. The question is not whether a decision‑maker's mind is blank; it is whether it is open to persuasion. The fact that, in the case of judges, it may be easier to persuade one judge of a proposition than it is to persuade another does not mean that either of them is affected by bias."
Again, the test in Livesey cannot be pressed too far when the qualifications for membership of the tribunal are such that the members are likely to have some prior knowledge of the circumstances which give rise to the issues for determination or to have formed an attitude about the way in which such issues should be determined or the tribunal's powers exercised. Qualification for membership cannot disqualify a member from sitting. The qualifications for appointment as a Deputy President of the Commission are prescribed by s. 10(2) of the Act. Appointments are made by the Governor-General of judges or legal practitioners (par. (a)) or persons possessing the qualifications prescribed by par. (b) or par. (c). The relevant parts of s. 10(2) read as follows:
The Governor-General may only appoint a person as a Deputy President if:
(b) the person has had experience at a high level in industry or commerce or in the service of:
(i) a peak council or another association representing the interests of employers or employees; or
(ii) a government or an authority of a government; or
(c) the person has, at least 5 years previously, obtained a degree of a university or an educational qualification of a similar standard after studies in the field of law, economics or industrial relations, or some other field of study considered by the Governor-General to have substantial relevance to the duties of a Deputy President;
and, in the opinion of the Governor-General, the person is, because of skills and experience in the field of industrial relations, a suitable person to be appointed as a Deputy President.
The prior involvement of a Deputy President with associations or with governments who are frequently parties to proceedings before the Commission cannot be sufficient by itself to amount to a disqualification from sitting in a particular case; nor can the prior acquisition of "skills and experience" amount to such a disqualification. Deputy Presidents who are appointed on account of their industrial background are not disqualified merely because persons with that background have a measure of knowledge or are likely to have a particular attitude to the exercise of the Commission's powers. To adopt the words of the Privy Council in Labour Relations Board of Saskatchewan v. John East Iron Works Ltd.,[28] their background will not necessarily lead them "to act otherwise than judicially, so far as that word connotes a standard of conduct", even though the background which carries experience and knowledge acquired extra-judicially "assuredly means that the subject-matter is such as profoundly to distinguish such a tribunal from the courts... "
Unlawfulness of tendering evidence about, or making statements, submissions or comments about, parliamentary proceedings
The purpose of the tender is not to litigate personally, nor otherwise impugn, the Deputy President in respect of matters transacted in parliament, for which the privilege is designed to protect against. The purpose of the tender is to establish, as a matter of fact, that the statements in Hansard were made. Upon the tender of that fact, the question becomes what a fair-minded lay observer might reasonably apprehend about the Hansard statements.
Importantly, s 16(3)(c), in the way in which it is expressed, reflects that the Parliament was concerned to prohibit the use of something that formed part of proceedings in Parliament to draw, or invite the drawing of, inferences or conclusions from that thing.
The section does not proscribe the use of what occurred in Parliament to prove the fact of that very occurrence. The making of a statement or the doing of an act in Parliament are facts in themselves, in the same way as Bowen LJ once explained that "the state of a man's mind is as much a fact as the state of his digestion": Edgington v Fitzmaurice [1885] UKLawRpCh 83; (1885) 29 Ch D 459 at 483.
Ebner, step 1: identification of what it is said might lead the decision-maker to decide a case other than on its legal and factual merits
(b) The Deputy President is now sitting in judgment as to the application of Part 2-7A of the FW Act.
(c) The Deputy President's (and her Cabinet's) [sic] Secure Australian Jobs Plan policy singled out coal mine workers as a particular type of worker that is to be subject of the proposed policy.
(d) Coal mine workers are the subject of this proceeding.
(f) The MEU contends in this proceeding that such a situation exists, and has led uncontested evidence to the effect that there are mineworkers performing the same job, but being paid different rates of pay by employers.
"1. I am a Partner of Kington Reid, and the lawyer representing Programmed Skilled Workforce Limited, TESA Group Pty Ltd and HVA Technical Services Pty Ltd above proceedings (Programmed Entities).
2. I refer to the Form F1 application filed by the Programmed Entities on 14 March 2024, and to the documents extracted therein. I now produce those documents.
Now produced and shown to me, and marked BP-1, is a copy of the Secure Australian Jobs Plan.
A Labor government will uphold the principle that if you work the same job, you should get the same pay.
Labor will ensure that workers employed through labour hire companies receive no less than workers employed directly.
We have seen too many examples of companies across a variety of industries deliberately using labour hire and to undercut the negotiated pay and conditions of workers who are employed directly.
For example, coal mine workers employed through labour hire being given full time 12-month rosters fixed in advance but employed as casuals on a fixed, all-inclusive hourly rate. They work side by side with directly employed permanent full-time workers, doing the same work for the same hours, on the same roster with the same skills - but being paid around 30-40 percent less.
Step 2: an articulation of the logical connection between the matter and the feared deviation from the course of deciding the case on its merits
11. The Australian Labour [sic] Party campaigned for its Secure Australian Jobs Plan subsequent to its promulgation. It formed a government following an election in May 2022.
12. The Secure Australian Jobs Plan was substantively made law by the passage of the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Cth).
13. Deputy President Butler was appointed to the Fair Work Commission in August 2024.
"As to the second step, a fair-minded reasonable observer might conclude that, in the above premises, the Deputy President might not bring a fair or impartial mind to deciding what is "fair and reasonable in all of the circumstances" for the purposes of s 306E(2) and (8). This is because:
(b) In this policy development she and her cabinet [sic] have singled out the coal mining industry as one that is to be subject to the desired policy change.
(a) an employer supplies or will supply, either directly or indirectly, one or more employees of the employer to perform work for a regulated host; and
(b) a covered employment instrument that applies to the regulated host would apply to the employees if the regulated host were to employ the employees to perform work of that kind; and
(c) the regulated host is not a small business employer.
(a) the pay arrangements that apply to employees of the regulated host (or related bodies corporate of the regulated host) and the regulated employees, including in relation to:
(i) whether the host employment instrument applies only to a particular class or group of employees; and
(ii) whether, in practice, the host employment instrument has ever applied to an employee at a classification, job level or grade that would be applicable to the regulated employees; and
(iii) the rate of pay that would be payable to the regulated employees if the order were made;
(c) the history of industrial arrangements applying to the regulated host and the employer;
(d) the relationship between the regulated host and the employer, including whether they are related bodies corporate or engaged in a joint venture or common enterprise;
(da) if the performance of the work is or will be wholly or principally for the benefit of a joint venture or common enterprise engaged in by the regulated host and one or more other persons:
(i) the nature of the regulated host's interests in the joint venture or common enterprise; and
(ii) the pay arrangements that apply to employees of any of the other persons engaged in the joint venture or common enterprise (or related bodies corporate of those other persons);
(e) the terms and nature of the arrangement under which the work will be performed, including:
(i) the period for which the arrangement operates or will operate; and
(ii) the location of the work being performed or to be performed under the arrangement; and
(iii) the industry in which the regulated host and the employer operate; and
(iv) the number of employees of the employer performing work, or who are to perform work, for the regulated host under the arrangement;
I do solemnly and sincerely promise and declare that I will bear true allegiance to His Majesty King Charles the Third, His Heirs and Successors according to law, that I will well and truly serve Him in the office of Deputy President of the Fair Work Commission and that I will faithfully and impartially perform the duties of the office.
... if the correctness or appropriateness of advice given to the client is a live issue for determination by the tribunal (or court), the erstwhile legal adviser should not sit. A fortiori, if the advice has gone beyond an exposition of the law and advises the adoption of a course of conduct to advance the client's interests, the erstwhile legal adviser should not sit in a proceeding in which it is necessary to decide whether the course of conduct taken by the client was legally effective or was wise, reasonable or appropriate. If the erstwhile legal adviser were to sit in a proceeding in which the quality of his or her advice is in issue, there would be reasonable grounds for apprehending that he or she might not bring an impartial and unprejudiced mind to the resolution of the issue. Much depends on the nature of his or her relationship with the client, the ambit of the advice given and the issues falling for determination.
In my former capacity as Solicitor General of the Commonwealth I provided signed legal advice to the Attorney General of the Commonwealth in response to a request for advice which touched on the validity of provisions of the Election Funding, Expenditure and Disclosures Act (NSW), the validity of which is now challenged in these proceedings. ...
[1] Affidavit of Mr Popple affirmed 14 March 2025, [1], though in that paragraph it was spelt "Kington Reid."
[2] Australian National Industries Ltd v Spedley Securities Ltd (in liq) (1992) 26 NSWLR 411, 436
[3] R v Tozer [2025] NSWSC 50, [22], citing Re JRL; ex parte CJL [1986] HCA 39; (1986) 161 CLR 342, 352, and Re Polites; ex parte Hoyts (1991) 173 CLR 78 at 85-86.
[4] [1986] HCA 39; (1986) 161 CLR 342, 352.
[5] [1983] HCA 17; (1983) 151 C.L.R. 288, at pp. 293-294.
[7] [2019] FWCFB 214; 283 IR 415.
[9] Construction, Forestry, Maritime, Mining and Energy Union v Watpac Construction Pty Ltd T/A Watpac Construction [2019] FWCFB 3855; 287 IR 30.
[13] [2021] HCA 29; 393 ALR 389 at [11] (Kiefel CJ, Gageler, Keane, Gordon and Gleeson JJ).
[14] "Reply" submissions filed 18 March, [15].
[15] (2021) 306 IR 174, [57]
[16] Johnson v Johnson [2000] HCA 48; (2000) 201 CLR 488, 493; [2000] HCA 48, [12].
[17] Johnson v Johnson [2000] HCA 48; (2000) 201 CLR 488, 493; [2000] HCA 48, [17].
[18] Regional Express Holdings v Hanson (2021) 306 IR 174, 201; [2021] FWCFB 2755, [60].
[19] Tang v Curtin University [2022] FWC 2865, [43]; Fair Work Act 2009 (Cth) s 577.
[21] [2019] FWCFB 3855; 287 IR 30.
[24] Ibid, [32]. See also Daniel Brewer v Benchmark OT Pty Ltd [2023] FWC 1568, [46].
[25] [2001] HCA 17; (2001) 205 CLR 507, [71].
[26] [1991] HCA 25; 173 CLR 78.
[28] [1948] UKPC 75; [1949] A.C. 134, 151.
[30] Ibid, [36], citing Minister for Immigration and Multicultural Affairs v Jia Legeng [2001] HCA 17; (2001) 205 CLR 507, [69].
[31] [2021] FCAFC 22; (2021) 282 FCR 341 at [44]- [47] (Rares J), [248] (Wigney J), and [364] (Abraham J).
[32] [2024] FCA 225 at [21] (Stewart J).
[36] Application filed 14 March, [17](b).
[38] Fair Work Act 2009 (Cth) subs 306E(1).
[39] Fair Work Act 2009 (Cth) subs 306E(1A).
[40] Fair Work Act 2009 (Cth) subs 306E(2).
[41] Fair Work Act 2009 (Cth) subs 306E(8).
Printed by authority of the Commonwealth Government Printer
(1992) 26 NSWLR 411
(2000) 205 CLR 337
(2019) 272 FCR 343
(1986) 161 CLR 342
(1991) 173 CLR 78
(2011) 202 FCR 439
(2021) 306 IR 174
(2000) 201 CLR 488
(2001) 205 CLR 507
(2021) 282 FCR 341