[2025] FWC 2219
General information, not legal advice.
Fair Work Commission
2025-08-01
Original judgment source is linked above.
The attached document replaces the document previously issued with the above code on 1 August 2025.
This document corrects typographical errors and administrative omissions.
[2025] FWC 2219 [Note: An appeal pursuant to s.604 (C2025/8169) was lodged against this decision.]
s.394 - Application for unfair dismissal remedy
Application for an unfair dismissal remedy - jurisdictional objections - foreign corporation national system employer - Respondent a national system employer
Contractor relationship - s15AA - real substance, practical reality and true nature of the relationship - Applicant an employee
Dismissal unfair - no valid reason - reinstatement ordered.
(a) The services to be performed were game testing, assisting the Testing Team Manager, and submitting detailed reports.
(b) Payment was based on hours worked, with agreed rates set as follows:
(at least 40 hours a week), or
(At least 20 hours a week), or
(c) Ms Dickerson was responsible for all expenses incurred while performing the services, including travel, meals, and other costs including expenses associated with any personnel that Ms Dickerson hired to complete the work under the Agreement.
(d) The services were further described as game testing involving identifying bugs, typos, and grammatical errors, and reporting them to staff of Kagura via Google Docs or similar services as directed by a Team Manager.
(e) Ms Dickerson was required to comply with all applicable laws.
(f) Kagura was not to withhold taxes or make contributions on behalf of Ms Dickerson. Various taxes applicable to work performed in the United States of America were referenced. Ms Dickerson was responsible for her own taxes.
(g) Ms Dickerson was not eligible for employee benefits like pensions, health insurance, or vacation pay, unemployment benefits, workers' compensation insurance, or any other kind of insurance.
(h) Ms Dickerson indemnified Kagura against any loss or liability arising from the services.
(i) The agreement was effective for 30 days after signing and automatically renewed unless terminated with 30 days' written notice.
(j) Either party could terminate the agreement immediately for reasonable cause or with 14 days' written notice.
(k) Modifications must be in writing and signed by both parties.
(l) Disputes were to be first mediated, and if unresolved, submitted to arbitration in Santa Clara County, California.
(m) Ms Dickerson could not disclose or misuse Kagura proprietary or confidential information.
(n) All work products created by Ms Dickerson were the sole property of Kagura including intellectual property rights.
(o) The agreement did not create a partnership or authorise Ms Dickerson to enter contracts on behalf of Kagura.
(p) Ms Dickerson could not assign or subcontract rights or delegate duties without Kagura's written approval.
RE: Termination of Independent Contractor Agreement
I am writing to inform you of the termination of our Independent Contractor Agreement. This
decision has been in accordance with the Independent Contractor Agreement. As an independent contractor, you have provided valuable services to our organization, and we appreciate your efforts and contributions during your tenure. Effective February 14, 2025, this termination notice will serve as the official end of our Independent Contractor Agreement.
Please be advised that you are no longer authorized to represent our organization, undertake any projects on our behalf, or access or disclose our confidential information. In accordance with the terms outlined in the Independent Contractor Agreement, we will settle any outstanding invoices or payments due to you for services rendered up to the termination date. We will process the payment on February 1, 2025.
We understand that the termination of our working relationship may raise questions or concerns. If you would like to discuss any aspects of the termination, or require additional information, please do not hesitate to contact Ivan Dela Cruz via email at ivan@kaguragames.com. We are committed to addressing any concerns you may have and facilitating a smooth transition.
We appreciate your cooperation throughout this process.
(1) A reference in this Act to an employee with its ordinary meaning:
(a) includes a reference to a person who is usually such an employee; and
(b) does not include a person on a vocational placement.
Note: Subsections 30E(1) and 30P(1) extend the meaning of employee in relation to a referring State.
(2) A reference in this Act to an employer with its ordinary meaning includes a reference to a person who is usually such an employer.
Note: Subsections 30E(2) and 30P(2) extend the meaning of employer in relation to a referring State.
15AA Determining the ordinary meanings of employee and employer
(1) For the purposes of this Act, whether an individual is an employee of a person within the ordinary meaning of that expression, or whether a person is an employer of an individual within the ordinary meaning of that expression, is to be determined by ascertaining the real substance, practical reality and true nature of the relationship between the individual and the person.
(2) For the purposes of ascertaining the real substance, practical reality and true nature of the relationship between the individual and the person:
(a) the totality of the relationship between the individual and the person must be considered; and
(b) in considering the totality of the relationship between the individual and the person, regard must be had not only to the terms of the contract governing the relationship, but also to other factors relating to the totality of the relationship including, but not limited to, how the contract is performed in practice.
Note: This section was enacted as a response to the decisions of the High Court of Australia in CFMMEU v Personnel Contracting Pty Ltd [2022] HCA 1 and ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2.
It should be added that the relationship between the parties, for the purposes of this litigation, is to be found not merely from these contractual terms. The system which was operated thereunder and the work practices imposed by Vabu go to establishing "the totality of the relationship" between the parties; it is this which is to be considered.[2]
In this Court, the appellants submitted that the question whether a labourer is conducting his or her own independent business, as distinct from serving in the business of the employer, provides a more meaningful framework to guide the characterisation of the parties' relationship. There is force in that submission.
A national system employee is an individual so far as he or she is employed, or usually employed, as described in the definition of national system employer in section 14, by a national system employer, except on a vocational placement.
(a) a constitutional corporation, so far as it employs, or usually employs, an individual; or ..."
"constitutional corporation" means a corporation to which paragraph 51(xx) of the Constitution applies.
(xx) foreign corporations, and trading or financial corporations formed within the limits of the Commonwealth;
7. The power conferred by s.51(xx) is not expressed as a power with respect to a function of government, a field of activity or a class of relationships but as a power with respect to persons, namely, corporations of the classes therein specified: Actors and Announcers Equity Association v. Fontana Films Pty. Ltd. (1982) 150 CLR 169 at pp 181, 216, and The Commonwealth v. Tasmania (The Tasmanian Dam Case) [1983] HCA 21; (1983) 158 CLR 1 at pp 157, 202, 240, 269, 314. The Commonwealth contention is that the words "formed within the limits of the Commonwealth" serve merely to distinguish local trading or financial corporations from foreign corporations. No doubt the words do serve that function but their plain meaning goes beyond the mere drawing of that distinction. The expressions "trading or financial" and "formed within the limits of the Commonwealth" serve to restrict the classes of domestic corporation which can be the subject of Commonwealth power. To fall within one limb of the power, a corporation must satisfy two conditions: it must be formed within the limits of the Commonwealth and it must be a trading or financial corporation. To fall within the other limb, a corporation must be a foreign corporation, that is, a corporation formed outside the limits of the Commonwealth. The distinction based on the place of formation is obvious, but the basis of the distinction is formation.
The one thing that is clear about it is that the provision assumes the existence of corporations either under foreign law or under some law which is in force in the Commonwealth.
I guess for me it's a little, maybe it's a bit different. In terms of culture between Australia and the United States, so. You know, I, to be honest with you, I wish the United States was as diligent as you guys were are on these unfair dismissals_._

[1] Personnel Contracting at [45] -[57])
[2] At [24] quoted in Hollis at [24]
[3] See Stevens v Brodribb at [35]; ACE Insurance Ltd v Trifunovski and Others [2013] FCAFC 3l at [9] and [102]; Roy Morgan Research Pty Ltd v Federal Commissioner of Taxation [2010] FCAFC 52 at [32]. Fair Work Ombudsman v Quest South Perth Holdings Pty Ltd [2015] FCAFC 37; 228 FCR 346 at [176]; Eastern Van Services Pty Ltd v Victorian WorkCover Authority [2020] VSCA 154 [36]; Dental Corporation Pty Ltd v Moffet [2020] FCAFC 118 at [29].
[5] See also JMC Pty Ltd v. Commissioner of Taxation [2023] FCAFC 76 at [91].
Printed by authority of the Commonwealth Government Printer
Ms Tabitha Dickerson
Kagura Games Llc [2025] FWC 2219
(1986) 160 CLR 16
(2001) 207 CLR 21
(1990) 169 CLR 482
(1982) 150 CLR 169
(1983) 158 CLR 1
(1948) 76 CLR 1