[2026] NSWIRComm 1007
General information, not legal advice.
Industrial Relations Commission (NSW)
2026-02-10
Original judgment source is linked above.
"(1) make an order pursuant to section 174(a) of the Industrial Relations Act 1996 (NSW) (IR Act) dismissing the proceedings on the basis that a settlement was reached between the parties on Friday 5 September 2025 at 3:42pm; or
(2) make an order pursuant to section 174(b) of the IR Act on the agreed terms of settlement reached between the parties on Friday 5 September 2025 at 3:42pm; or
(3) in the alternative to the orders proposed at (1) or (2) above:
(i) make a determination pursuant to section 73(1)(a) of the Civil Procedure Act 2005 (NSW) (CP Act) that a settlement was reached between the parties, resolving the victimisation claim, and
(ii) an order pursuant to section 73(1)(b) of the CP Act, to dismiss or stay the proceedings based on the determination at Order (3)(i).
(4) [make] any other order considered by the Commission to be appropriate."
The legislative provisions and applicable legal principles
174 Powers when application settled by conciliation
If a matter that is the subject of an application to the Commission under this Act is settled by conciliation, the Commission may -
(a) dismiss the application, or
(b) make an order on the agreed terms for settlement.
73 Power of court to determine questions about compromises and settlements
(1) In any proceedings, the court -
(a) has and may exercise jurisdiction to determine any question in dispute between the parties to the proceedings as to whether, and on what terms, the proceedings have been compromised or settled between them, and
(b) may make such orders as it considers appropriate to give effect to any such determination.
(2) This section does not limit the jurisdiction that the court may otherwise have in relation to the determination of any such question.
"37 The initial focus of the inquiry will be the terms of the communications said to constitute the agreement, however regard may be had to the parties' communications and other conduct before and after the formation of an allegedly binding agreement in order to determine, objectively, whether they intended to form such an agreement: Australian Broadcasting Corporation v XIVth Commonwealth Games Ltd (1988) 18 NSWLR 540 at 547 - 548, (Gleeson CJ, with whom Hope and Mahoney JJA agreed); Geebung Investments Pty Ltd v Varga Group Investments (No 8) Pty Ltd (1995) 7 BPR 14,551 at [14,562] (Kirby P); Pavlovic v Universal Music Australia Pty Ltd [2015] NSWCA 313 at [15] (Bathurst CJ)."
"However, as his Honour's [McLelland J] review of the case law demonstrated, the Masters v Cameron classifications are no longer, if ever they were, applied as strict categories into which such cases must fall: see Ermogenous v Greek Orthodox Community of SA Inc [2002] HCA 8; 209 CLR 95 at 105. Rather, as McHugh JA stated in GR Securities v Baulkham Hills Private Hospital Pty Ltd (1986) 40 NSWLR 631 at 634-635:
'... the decisive issue is always the intention of the parties which must be objectively ascertained from the terms of the document when read in the light of the surrounding circumstances: Godecke v Kirwan [1973] HCA 38; (1973) 129 CLR 629 at 638; Air Great Lakes Pty Ltd v K S Easter (Holdings) Pty Ltd (1985) 2 NSWLR 309 at 332-334, 337.' "
"Masters v Cameron
25 Before turning to the application to extend time, it is convenient to summarise relevant principles underpinning the decision that is the subject of the application for leave to appeal and appeal.
26 During negotiations, parties may reach an agreement on the terms of a contract and, in addition, agree to record that agreement in a written contract. Whether that agreement is binding, prior to the finalisation of a written contract, turns on the intention of the parties, which is to be objectively ascertained from the terms of the agreement and the surrounding circumstances. [11]
27 In Masters v Cameron, the High Court identified three situations in which parties might make an agreement that the matter of their negotiation will be dealt with in a formal contract. The Supreme Court of NSW, in Baulkham Hills Private Hospital v GR Securities, [12] noted the existence of a "fourth class", citing the High Court's decision in _Sinclair, Scott & Co Ltd v Naught_on, [13] . Those situations, which are not exhaustive or prescriptive, [14] can be summarised as:
(1) the parties have finalised all the terms of the agreement and agree to be immediately bound by them, and also to record those terms in a formal document later; [15]
(2) the parties have finalised all the terms of the agreement but intend to make the performance conditional upon the execution of a formal document; [16]
(3) the parties do not intend to make a concluded bargain until the execution of the formal contract; and [17]
(4) the parties have agreed to be bound immediately and exclusively by initial terms, but they expect the terms of the formal contract to substitute the initial agreement's terms. [18]
28 The first two situations described above and the fourth result in agreements that are binding. The third does not.
29 Of course, all four categories assume that the parties have in fact reached an agreement of some kind. A negotiation where some terms are agreed, but there are key terms which the parties have identified as still needing to be discussed and agreed, will not usually constitute a binding agreement. That does not mean that there cannot be a binding agreement merely because the parties contemplate that their agreement will be formalised in a deed or written agreement that may contain additional terms: such an agreement can be binding in the manner contemplated by the first two categories of Masters v Cameron, and that position does not change because any later written document prepared by one party to formalise the agreement contains additional or even different proposed terms. Whether parties have reached a concluded, legally binding agreement, is ultimately to be ascertained by an objective assessment of their communications."
"42 In [Falconer] representatives of the parties had a telephone conversation during which "it was agreed that the matter would resolve". The Union representative for the claimant then send an email to the representative of the Employer in the following terms:
"Dear John
Unfair Dismissal of Ben Falconer
Thank you for talking with me today about this matter. I confirm that we have reached the following agreement in principle to settle the Unfair Dismissal of Benjamin Falconer:
- $10,000 gross along with other terms
- Termination changed to Resignation and this reflected in the In-Orders. Just to confirm if his termination has been published, a retraction and the publication of this resignation.
- A statement of service (including a transcript of his training).
This agreement is also subject to a satisfactory deed of release.
Regards,
Anastasia"
43 Thereafter further negotiations took place regarding the provisions of the deed of release, in particular in relation to the non-disparagement clause and to ensure that workers compensation claims were excluded from the . The claimant ultimately refused to sign the deed.
44 Commissioner Webster stated at [21]:
"The question before the Commission is whether a binding agreement was made between the parties on 24 January 2020 and, if so, whether there is any reason why the Commission should not give effect to it. The question turns ultimately upon the Commission's determination of the parties' objectively ascertained common intention."
45 Commissioner Webster found (at 24] that a binding agreement had been reached which fell into category two as recognised in Masters v Cameron. Commissioner Webster considered (at [26]) that the statement that the in-principle agreement was "also subject to a satisfactory deed of release" was "not a sufficient basis to find that the parties did not intend to be bound to the agreement they had struck. The conclusion that the parties did intent (sic) to be bound by the agreement is supported by the language used in the email that, "I confirm we have reached the following agreement in principle"."
46 Commissioner Webster ordered a permanent stay of the proceeding.
47 A similar outcome occurred in Liszt. Commissioner Sloan found at first instance (Liszt v Health Secretary in respect of Sydney Local Health District [2020] NSWIRComm 1030; 295 IR 285) that a binding settlement had been reached, but that no steps to implement the settlement would be taken until such time as the Respondent received a signed copy of the deed. He considered that the agreement fell within the second category identified in Masters v Cameron and that the appropriate order was for the proceedings to be permanently stayed. Leave to appeal from his decision was refused: Liszt v Health Secretary in respect of Sydney Local Health District (No 2) [2020] NSWIRComm 1078."
(1) courts have an overriding duty to ensure that a trial is fair, which entails ensuring that the trial is conducted fairly and in accordance with law. In the context of an unrepresented litigant, the duty requires that a person does not suffer a disadvantage from exercising the recognised right of a litigant to be self-represented;
(2) the court's duty is not solely to the unrepresented litigant. The obligation is to ensure a fair trial for all parties; and
(3) it is not the function of the court to give judicial advice to, or conduct the case on behalf of, the unrepresented litigant.
(1) an affidavit of Mahrous Nassif sworn on 2 October 2025 ("Nassif Affidavit"); and
(2) written submissions dated 2 October 2025 and 24 October 2025.
(1) a document headed "Notice of Motion" filed on 15 October 2025; and
(2) an affidavit sworn by her on 12 October 2025 ("Morcos Affidavit").
(1) Conciliation took place in person before me on 17 July 2025 and 7 August 2025: Nassif Affidavit at [16] and [24].
(2) The Council authorised Mr Nassif to go up to 21 weeks' pay to settle the proceedings during the conciliation hearing on 7 August 2025 and this was communicated to Ms Morcos: Nassif Affidavit at [31] and [32].
(3) A "without prejudice" offer to settle the proceedings was made by Ms Morcos's legal representative on Thursday 14 August 2025: Nassif Affidavit at [38].
(4) Conciliation took place via an audio visual link on 19 August 2025, and the focus of the proceedings on that day was about how the proposed settlement (which was an agreed amount being 21 weeks' pay) would be paid. At this time, Ms Morcos sought an adjournment to seek additional legal and financial advice in relation to the settlement: Nassif Affidavit at [42].
(5) On Wednesday 20 August 2025, the Council outlined its response to the deed of settlement provided by Ms Morcos's representative on 14 August 2025: Nassif Affidavit at [44].
(6) Further amendments to the deed were provided to the Council by Ms Morcos's representative on Wednesday 3 September 2025: Nassif Affidavit at [45] and [46].
(7) At 3:42pm on Friday 5 September 2025, Mr Nassif, on behalf of the Council, confirmed in writing the acceptance of the settlement terms that had been articulated in the correspondence of 3 September 2025: Nassif Affidavit at [48] and [49]. The email which is RN012 included the following:
"I am instructed by Bayside Council to advise you that without admission of liability the Respondent accepts the without prejudice offer contained in the email correspondence of 3 September 2025 and in the accompanying draft Deed. In terms of the next steps, I propose the following:
1. Attached is a copy of the deed with all of the Applicant's further amendments accepted. I understand that you will incorporate into the deed a further amendment to account for the execution of the document by way of electronic signatures.
2. The Respondent Council seek to have the matter brought back on before the Senior Commissioner for the specific purpose of having a recommendation put on record to the effect that:
a) Following extensive negotiations and conciliation proceedings that were overseen by the Commission, the parties have agreed to settle the proceedings by way of a settlement amount and agreed terms;
b) The agreed settlement amount is made up of two components one of which is a payment of the Applicant's legal costs;
c) The payment of an Applicant's legal costs is not an uncommon feature of such settlements and in this case it constitutes an appropriate approach to the settlement of this matter;
d) As such the Commission commends the parties at arriving at a settlement and recommends the proposed resolution of the proceedings.
3. The Respondent Council would welcome the opportunity to have the matter brought on before the Senior Commissioner prior to the scheduled report back on 18 September 2025. However, if this presents difficulties because your client is not able to be at any earlier proceedings then the Respondent will be happy to have the matter concluded (consistent with the terms outlined in your email on 3 September 2025 and consistent with the proposed way forward outlined in this email) at the proceedings scheduled for 18 September 2025."
(8) At 3:21pm on Monday 8 September 2025 Ms Wolfenden sent an email to Mr Nassif stating that she was awaiting instructions from her client. Although this is not explicitly set out in the text of Ms Wolfenden's email, Mr Nassif deposes that the instructions were in relation to having the matter brought on before the Commission prior to 18 September 2025. Ms Wolfenden also attached a proposed statement of service which she claimed satisfied clause 4 of the deed. The email which is RN013 stated the following:
"Dear Ross,
I am awaiting instructions from my client regarding the below. As discussed, however please find attached a statement of service our client is requesting be issued to her under the deed. The contents do not appear controversial, and we would request confirmation that your client agrees to provide the same to our client on letterhead to satisfy clause 4 of the deed.
Once I have instructions from my client regarding the below, and an update from you regarding the attached, I propose to make an amendment to the deed to reflect the attached (if agreed) and also clarify that the deed takes effect from exchange."
(9) It was not until 10:04pm on Thursday 18 September 2025 that the Council learnt that Ms Morcos was of the view that an agreement had not been reached between the parties: Nassif Affidavit at [62] and [63].
(1) on 5 September 2025, by email which is Annexure RN012 to the Nassif Affidavit, the Council accepted Ms Morcos's offer of settlement contained in the email from Ms Wolfenden to Mr Nassif sent on 3 September 2025 which is RN011. The Council accepted all of the amendments to the deed proposed by Ms Morcos's representative. This deed formally reflected the terms of the agreement with respect to the agreed settlement amount, the provision of a statement of service, the filing of a notice of discontinuance, the obligations with respect to confidentiality and non-disparagement and the obligation placed on the Council in relation to the security of Ms Morcos's personal information;
(2) by way of an email sent on 8 September 2025 which is RN013, Ms Wolfenden provided Mr Nassif with a statement of service that was said to be consistent with the terms of the deed. This action by Ms Wolfenden was consistent with the proposition that there was an agreement in place. Ms Wolfenden also proposed making an amendment to the deed to reflect that the deed would take effect from exchange. The proposal by Ms Wolfenden further points to the understanding that there was an agreement in place; and
(3) it was not until late on 18 September 2025 that Mr Nassif was informed that Ms Morcos did not wish to sign or accept the deed: Nassif Affidavit at Annexure RN018. This was almost two weeks after Ms Morcos's representative had been advised that the Council had accepted the without prejudice offer to settle the victimisation claim.
"...a proposed deed [which] contain[ed] 3 sections of payment, in which it was the only preliminary accepted by me (annexure LM001)."
"8. On 15th September 2025 10:37 am I received an email from Ms Wolfenden advising that in case of the commissioner doesn't provide observation regard that "c- The payment of an applicant legal cost is not an uncommon feature of such settlements and in this case it constitutes an appropriate to the settlement of this matter" there will not be a settlement unless the council chose to move forward, which wasn't a convenient answer to me (annexure LM006)."
(1) that the deed sent to the Council on 2 September included provisions for the Council to pay Ms Morcos's costs directly and to provide a statement of service;
(2) that she confirmed to Ms Morcos on 5 September that the Council had agreed to the changes proposed;
(3) that Ms Morcos later sought to propose wording for the statement of service that made it read more like a reference;
(4) that the Council required me to make observations on the record that "it is not unusual for settlements to involve payment of legal costs"'
(5) that I had already made such observations "off the record," and that it was intended these observations be made on the record at the upcoming directions hearing, and
(6) that if I did not make the observations, "there will not be a settlement (unless the Council elects to move forward notwithstanding this)."
(1) the attached proposed statement of service complies with cl 4 of the deed, which required the Council to confirm the period of employment and role at termination,
(2) Ms Morcos's agreement to the contents of that document was not a term negotiated in the deed nor raised before the amended deed was sent to the Council, and
(3) because a reference had not been a condition of settlement, "it is therefore more difficult to try and push for a reference now."
"20. I did not authorise my solicitor to accept or sign the final version of the deed. My instruction was limited to further negotiation on clauses 2 and 3, which concern legal cost payment and statement of service. The Council's attempt to finalise without resolving these matters undermines procedural fairness."
(1) on 2 September 2025, Ms Morcos instructed Ms Wolfenden to provide the deed to the Council, which included provisions for payment of her legal costs and for a statement of service;
(2) on 5 September 2025, Ms Wolfenden informed Ms Morcos that the Council had agreed to the changes she had proposed;
(3) on 8 September 2025:
(a) Ms Morcos indicated she wished to suggest wording for the statement of service, prompting Ms Wolfenden to note:
"The effect of your proposed wording was to make it more of a reference than a statement of service. Previous to this your instructions were that you did not want a reference from Council ... We nevertheless send the proposed wording to Ross."
(b) Ms Wolfenden advised that payment of legal costs was not in dispute and that the "on record" observations sought from me were a formality discussed during conciliation;
(4) a draft statement of service was provided by the Council for Ms Morcos's review. Ms Wolfenden explained that it "accorded" with clause 4 of the deed and that a requirement for Ms Morcos to agree to its contents "was not negotiated as part of the deed, and not raised before you instructed me to send the amended deed to the Council, which was accepted by the Council. It is therefore more difficult to try and push for a reference now when it was not previously a condition of settlement...".
(5) as to the apportionment of the settlement payment, Ms Wolfenden explained:
"...Council is not trying to re-negotiate the payment clause of the deed, they are seeking confirmation from the Commissioner that the settlement payment being partly paid directly in respect of costs is 'above board' from a governance and compliance perspective."
13 February 2026 - Paragraph [14] - corrected quote.
Morcos
Bayside Council [2026] NSWIRComm 1007
(1988) 18 NSWLR 540
(1986) 40 NSWLR 622
(2020) 295 IR 285
(1954) 91 CLR 353
(1973) 129 CLR 629
(1985) 2 NSWLR 309
(1986) 40 NSWLR 631