[2024] FWC 2319
General information, not legal advice.
Fair Work Commission
2024-09-02
Original judgment source is linked above.
The respondent is prima facie entitled to have the matter determined as quickly as practicable. An adjournment should not be lightly entertained. The onus to make good the adjournment application lies with the applicant for the adjournment. The applicant is not entitled, of right, to an adjournment in light of the criminal proceedings. Each application for adjournment must be made on its own merits and balance the interests of the parties.[2]
It is clear that neither s 28 nor s 40K of the AFP Act abrogate the right to silence by compelling the employee to speak, such as is the case with, for example, ss 39_,_ 40 and 40A of the AFP Act and s 7(5) and (6) of the Complaints Act_. Put another way, neither of the applicants is obliged to incriminate himself by reason of the opportunity afforded to him. It is argued for the respondent that the dilemma in which the applicants find themselves is no worse in principle than that facing parties in concurrent criminal and civil litigation. There is a long line of authority which establishes that the granting of a stay of civil proceedings in those circumstances is discretionary in the civil court and that the choice of either fully pursuing a civil claim or a defence to a civil claim or not doing so to avoid the risk of self-incrimination is not sufficient in itself to warrant a stay. This line of authority, which is generally seen as commencing with McMahon v Gould_ (1982) 7 ACLR 202 and, in this Court, Cameron's Unit Services Pty Ltd v Kevin R Whelpton & Associates (Australia) Pty Ltd [1984] FCA 406; (1984) 4 FCR 428, has been applied in this Court as recently as the decisions in Chambers v Commissioner of Taxation [1999] FCA 163 and Golden City Car & Truck Centre Pty Ltd v Deputy Federal Commissioner of Taxation (1999) ATC 4779.[6]
"(a) prima facie a plaintiff is entitled to have his action tried in the ordinary course of the procedure and business of the court;
(b) it is a grave matter to interfere with this entitlement by a stay of proceedings, which requires justification on proper grounds;
(c) the burden is on the defendant in a civil action to show that it is just and convenient that the plaintiff's ordinary rights should be interfered with;
(d) neither an accused or the Crown are entitled as of right to have a civil proceeding stayed because of a pending or possible criminal proceeding;
(e) this court's task is one of the `balancing of justice between the parties', taking account of all relevant factors;
(f) each case must be judged on its own merits, and it would be wrong and undesirable to attempt to define in the abstract what are the relevant factors;
(g) one factor to take into account where there are pending or possible criminal proceedings is what is sometimes referred to as the accused's 'right of silence', and the reasons why that right, under the law as it stands, is a right of a defendant in a criminal proceeding;
(h) however, the so-called 'right of silence' does not extend to give such a defendant as a matter of right the same protection in contemporaneous civil proceedings. The plaintiff in a civil action is not debarred from pursuing action in accordance with the normal rules merely because to do so would, or might, result in the defendant, if he wished to defend the action, having to disclose, in resisting an application for summary judgment, in the pleading of his defence, or by way of discovery or otherwise, what his defence is likely to be in the criminal proceeding;
(i) the court should consider whether there is a real and not merely notional danger of injustice in the criminal proceedings;
(j) in this regard factors which may be relevant include:
(i) the possibility of publicity that might reach and influence jurors in the civil proceedings;
(iii) the possibility of miscarriage of justice eg by disclosure of a defence enabling the fabrication of evidence by prosecution witnesses, or interference with defence witnesses;
(iv) the burden on the defendant of preparing for both sets of proceedings concurrently;
(v) whether the defendant has already disclosed his defence to the allegations.
(k) the effect on the plaintiff must also be considered and weighed against the effect on the defendant; and
(l) in an appropriate case the proceedings may be allowed to proceed to a certain stage, eg, setting down for trial, and then stayed."[9]
Injustice to a defendant in the criminal proceedings is a relevant consideration in considering competing interests of the parties, but it must be a real and not merely a notional danger.[11]
[43] In McMahon v Gould Wootten J had to decide whether a civil proceeding brought by a liquidator against the defendant in respect of acts done by him as a director should be stayed until the determination of criminal proceedings involving the same subject matter pending against the director. Wootten J identified as 'guidelines' a series of matters to consider in determining the exercise of the discretion to stay the civil proceeding. The circumstances in the present matter are quite different - it is the applicants who are seeking the 'stay' and the discretion being exercised is a statutory, not an inherent power. In any event it appears to be common ground that the McMahon v Gould 'guidelines' do not purport to establish a rigid code and that the consideration that bear upon a decision to stay a proceeding will vary according to the individual case (see Websyte at [115]).
[44] It may be noted that in De Simone the Victorian Court of Appeal observed (at [7]):
'The McMahon v Gould guidelines have been applied in Australian courts many times... Often the case will be determined without express reference to the guidelines but by reference to the justice of the situation, and in that sense such cases follow the McMahon v Gould line of authority.'
[45] It is important to bear in mind that the Commissioner at first instance was exercising a general discretion. In Coal & Allied Operations Pty Ltd v Australian Industrial Relations Commission the High Court made the following observations about the nature of 'discretion':
'"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.' [Emphasis added]
[46] The discretion exercised in the present case was only confined by the subject matter and objects of the FW Act and, as such, the decision maker had considerable latitude as to the decision to be made.
[47] In such circumstances the McMahon v Gould principles may be of some assistance, by way of broad guidance, but each case must be determined having regard to its particular circumstances and to the statutory framework within which the discretion is to be exercised. The discretion was required to be exercised having regard to the Commission's central obligation to provide a fair hearing to parties in proceedings before it. Such an obligation arises directly from s.577(a) of the FW Act, which directs the Commission to perform its functions and exercise its powers in a manner that 'is fair and just', and from the implied obligation to act judicially. One aspect of the duty to act judicially is the obligation to afford a party a reasonable opportunity to allow his or her case to be put.
[48] In our view the rigid application of the McMahon v Gould guidelines in the present context may also operate to inappropriately confine the exercise of the Commission's discretion. As Bowan LJ observed in Gardner v Jay:
'When a tribunal is invested by Act of Parliament or by Rules with a discretion, without any indication in the Act or rules of the grounds upon which the discretion is to be exercised, it is a mistake to lay down any rules with a view to indicating the particular grooves in which the discretion should run, for if the act or the Rules do not fetter the discretion of the Judge why should the court so do.'
[49] Elevating any of the McMahon v Gould guidelines into a 'test' to be satisfied as a condition precedent to the exercise of the Commission's discretion - as the Appellant appears to contend - also serves to obfuscate the Commission's primary obligation, to ensure that the parties are afforded a fair hearing. Ultimately the relevant question is: what does justice require in the circumstances? (footnotes omitted)
(a) to establish a framework for dealing with unfair dismissal that balances:
(i) the needs of business (including small business); and
(b) to establish procedures for dealing with unfair dismissal that:
(ii) address the needs of employers and employees; and
(c) to provide remedies if a dismissal is found to be unfair, with an emphasis on reinstatement.
(2) The procedures and remedies referred to in paragraphs (1)(b) and (c), and the manner of deciding on and working out such remedies, are intended to ensure that a "fair go all round" is accorded to both the employer and employee concerned.
(1) The FWC must perform its functions and exercise its powers in a manner that:
(b) is quick, informal and avoids unnecessary technicalities; and
(d) promotes harmonious and cooperative workplace relations.
[3] Savet v. Rosebank College [2023] NSWSC 1015 per Wright J at [111].
[8] See for example Kvackaj v. Monash University 3 June 2005, PR 958598, French v. The Good Guys Discount Warehouse (Australia) Pty Ltd t/a Good Guys O'Connor [2017] FWC 3545 and Poposki v. Warrigal Care t/a Coniston Nursing Home [2018] FWC 4553.
[16] Esso Australia Pty Ltd; Esso Offshore Enterprise Agreement 2011 [2018] FWC 6244 at [19].
[17] Kvackaj v. Monash University 3 June 2005, PR 958598.
[23] See Construction, Forestry, Mining and Energy Union v. BHP Coal Pty Ltd [2014] FWC 9205.
Printed by authority of the Commonwealth Government Printer
Mr Jamie Richards
All Saints Greek Orthodox Grammar [2024] FWC 2319
(1984) 4 FCR 428