[2025] FWC 1268
General information, not legal advice.
Fair Work Commission
2025-06-06
Original judgment source is linked above.
[2025] FWC 1268 [Note: An appeal pursuant to s.604 (C2025/5920) was lodged against this decision.]
s.739 - Application to deal with a dispute
Alleged dispute about any matters arising under the enterprise agreement and the NES;[s186(6)]
The dispute resolution procedure under the agreement
1.42 GRIEVANCE AND DISPUTE SETTLEMENT PROCEDURE
1.42.1 The grievance and dispute settlement procedures (Dispute Procedure) apply to employment grievances and disputes arising from the application of this Agreement and the relevant provisions of the NES.
1.42.2 The Dispute Procedure also applies to employment grievances and disputes that do not arise from the application of this Agreement or the relevant provisions of the NES with exception to referral to the FWC at clause 1.42.9.1(b) and 1.42.9.2.
1.42.3 Grievances and disputes regarding alleged non-compliance by the University with processes set out in the Agreement (including matters of procedural fairness) when coming to a decision may be brought under this Dispute Procedure but not grievances or disputes about the decision itself.
1.42.4 The following are not covered by the Dispute Procedure:
1.42.4.1 occupational health and safety matters not addressed in the Agreement; and
1.42.4.2 the formation, amendment or rescission of University Policy that accord with the terms of the Agreement.
1.42.5 An Employee may be assisted by a support person or nominated representative with the exception of a University Employee employed in the Employee's faculty or administrative business division where a conflict of interest exists. For the purpose of this clause 1.42.5, "be assisted by a support person or nominated representative" does not displace or interfere with direct interaction between the Employee and the University when attempting to resolve disputed matters.
1.42.6 The parties will genuinely attempt to resolve grievances and disputes at the workplace in good faith and in confidence. Where possible, grievances should, in the first instance, be dealt with locally, impartially, efficiently and informally.
1.42.7.1 Where a grievance or dispute (excluding disputed matters set out at clause 1.42.8) arises between an Employee and the University the matter will first be discussed between the Employee concerned and their immediate supervisor.
1.42.7.2 If the grievance or dispute is unable to be resolved within a reasonable timeframe, the matter may be referred to the next level of management.
1.42.7.3 If the grievance or dispute cannot be resolved within a reasonable timeframe at the next level of management, the matter may be referred in writing to the Chief People Officer (or delegate).
1.42.7.4 The Union may directly raise a dispute relating to the interpretation, implementation or application of the Agreement or applicable NES provisions which does not relate to a particular Employee in writing with the University through the Chief People Officer (or delegate).
1.42.7.5 For the purpose of this clause 1.42.7 reference to "a reasonable timeframe" means five working days unless an extension of time is agreed to facilitate resolution of the matter.
1.42.9.1 If the grievance or dispute is unable to be resolved in accordance with clause 1.42.7, and without limiting the FWC's power to deal with disputes about statutory flexible work arrangements under the NES, a party to the grievance or dispute may apply to the FWC:
(a) for assistance to resolve the grievance or dispute through conciliation;
(b) to have the matter arbitrated if conciliation is unsuccessful.
1.42.9.2 The decision of the FWC will bind the parties to the dispute, subject to either party exercising a right of appeal in accordance with the FW Act.
1.42.9.3 Disputed Matters dealt with by the Dispute Committee as set out at clause 1.42.8 may not be referred to the FWC.
1.15.9 Employees engaged in Casual or Fixed-Term employment will be provided prior opportunity to apply and be considered for vacant Continuing positions (where the Employee has the skills, experience, qualifications and expertise commensurate with the selection criteria) through the University's internal recruitment processes ahead of external recruitment. The University will apply all reasonable endeavours to select suitably qualified internal candidates who have been employed by the University over two or more semesters, over two consecutive calendar years, on a 0.5 FTE or more time fraction, and who satisfy the selection criteria determined by the University for the purpose of transferring existing Employees into secure work. Nothing in this clause inhibits the University from selecting the best candidate for the role.
1.15.10 In relation to managing Workload (as defined in clause 2.11 or 3.15 (as applicable)), the University will use reasonable endeavours to recruit for a vacant position in a timely fashion.
"When both limbs are read together, it is clear that both the obligations within those limbs must be discharged before external recruitment can be initiated. It follows as a logical corollary that vacant continuing positions can only be advertised externally if internal applicants have not met the selection criteria for the vacant continuing position or the internal recruitment process has otherwise been exhausted (i.e no internal applicants are able to be appointed for the position) first. Only after the internal recruitment process has been exhausted, does the Respondent have the option of initiating a second recruitment round for external applicants."[3]
"For the reasons canvassed in these submissions, clause 1.15.9 simply requires the University to apply "all reasonable endeavours" to select internal candidates who:
(b) "have been employed by the University over two or more semesters, over two consecutive calendar years, on a 0.5 FTE or more time fraction"; and
(c) "Satisfy the selection criteria [for a vacant position as] determined by the University".
However, those "reasonable endeavours" do not extend to require the University to conduct any process which excludes or deprives the University of the opportunity to advertise a vacant position to the external maker, or from otherwise recruiting external candidates for a vacant position ..."[4]
"Does clause 1.15.9 of the University of Melbourne Enterprise Agreement 2024 require the University to commence and complete the internal recruitment and selection process for vacant Continuing positions ahead of initiating any external recruitment and selection process?"
1. Does subclause 1.15.9 of the University of Melbourne Enterprise Agreement 2024 require the University to commence and complete an internal recruitment process (including application, interview and selection) for vacant Continuing positions ahead of initiating any external recruitment process?
2. If the answer to Question 1 is "yes", would the University have acted inconsistently with subclause 1.15.9 by implementing a single recruitment round for both internal and external applications, wherein both internal and external applicants are shortlisted and interviewed together?
3. Is there a separate and additional obligation in subclause 1.15.9 obliging the University to:
"apply all reasonable endeavours to select suitably qualified internal candidates who have been employed by the University over two or more semesters, over two consecutive calendar years, on a 0.5 FTE or more time fraction, and who satisfy the selection criteria determined by the University for the purpose of transferring existing Employees into secure work?"
4. Is the process (or processes) which the University has implemented to operationalise subclause 1.15.9 consistent with its obligations under this subclause?
5. What remedies, if any, does the Commission order to resolve the dispute?
"The starting point for interpretation of an enterprise agreement is the ordinary meaning of the words, read as a whole and in context. The interpretation "...turns on the language of the particular agreement understood in light of its industrial context and purpose...." The words are not to be interpreted in a vacuum divorced from industrial realities, rather, industrial agreements are made for various industries in the light of the customs and working conditions of each, and they are frequently couched in terms intelligible to the parties but without the careful attention to form and draftsmanship that one expects to find in an Act of Parliament. To similar effect, it has been said that the framers of such documents were likely of a "practical bent of mind" and may well have been more concerned with expressing an intention in a way likely to be understood in the relevant industry rather than with legal niceties and jargon, so that a purposive approach to interpretation is appropriate and a narrow or pedantic approach is misplaced."
The submissions about principles of construction made by the NTEU
The submissions about principles of construction made by the University
"Counsel for the applicant contended that the past conduct of the parties could be relied upon as an aid in the construction of the Certified Agreement. There is authority that, if a provision has appeared in a series of agreements between the same parties, and if they can be shown to have conducted themselves according to a common understanding of the meaning of that provision, then it can be taken that they have agreed that the term should continue to have the commonly understood meaning in the current agreement. ... . It is necessary to take great care in the application of this limited principle, to avoid infringing the general principle that the conduct of parties to an agreement cannot be taken into account in construing the agreement. For the limited principle to operate, there must be clear evidence that the parties have acted upon a common understanding as to the meaning of the relevant provision and not for other reasons, such as common inadvertence as to its true meaning."
"Therefore, peculiar contextual matters that may have been commonly known to representatives of Thiess and the Union when negotiating the terms of the Agreement are not matters to be brought to account. The Agreement is within the category of instruments where it is intended to apply to parties who were not participants in the process by which the terms of the instrument were formulated. In such cases it may not be appropriate for surrounding circumstances to be brought to account unless they rise to the level of mattes that would be notorious or known to those intended to be bund by the instrument who did not participate in the negotiations or dealings by which the terms were formulated."
"The reasons for caution before regard may be had to a suggested common understanding commence from the premise that it is the instrument itself that is to be construed, and any recourse to industrial practices said to amount to a common understanding are no more than part of the context in which the text of the instrument is to be construed. Industrial practices do not take the place of the terms of the instrument. There is also the need to maintain coherence with other principles, including that: (1) usually, recourse to extrinsic matters cannot displace the clear meaning of text; (2) the subjective understanding of individuals is rarely relevant to objective meaning; (3) this is also the case in relation to collective agreements where surrounding circumstances might have to rise to the level of being notorious or known by those intended to be bound by the instrument (Sheehan v Thiess Pty Ltd at [22] (Colvin J)); and (4) parties cannot by words or conduct contract out of, or waive the terms of an enterprise agreement, which has statutory force ...".
"There are several difficulties in accepting evidence of conduct after the Agreement was made in construing the meaning and effect of the disputed provisions. First, the evidence is limited because it is evidence of the experience of one casual employee and says nothing about Jetstar's practice more generally. Second, as Gray J explained in Shop Distributive and Allied Employees' Association v Woolworths Limited a difficulty in relying on evidence about the conduct of an employer to establish a common understanding is the absence of any explanation for the conduct. The reason for the conduct might have been 'inadvertence on the part of those responsible for making the payments', or an 'act of generosity on the part of the respondent, from which it has now resiled.' The mere fact that something was done in the past is not "evidence of a settled interpretation, of which the parties had a common understanding".
The principles I will adopt to construe the clause
Consideration of the ordinary meaning of the clause and the question of ambiguity.
"... My team had a briefing from Talent Acquisition this week (who look after recruitment) about the new process for priority internal candidates. It's pretty worrying. They have advised that the changes are:
"The previous process was built based on a misunderstanding of the primary obligations created by 1.15.9. This includes an artificial "priority applicant" construct, and a belief that to "consider" internal applicants requires a full selection process for those internal applicants, as opposed to a high-level vetting process, as was intended".
"The new process provides an opportunity for internal employees who apply for continuing positions to have their application reviewed prior to external advertisement ...
Based on feedback from staff, supervisors and Human Resources team, the new process will provide genuine prior consideration of all casual and fixed term applicants before external candidates. The previous process was complex and has resulted in an administrative burden".
"nothing stops - there is nothing in this clause that impacts in any way at all the University determining who is the best candidate for the role. Full stop. End of story."[108]
A. Does clause 1.15.9 of the Agreement require the University to commence the internal recruitment and selection process for vacant Continuing positions before it initiates any external recruitment and selection process (including before advertising the vacant Continuing position(s) externally)?
The answer is yes. I note for completeness this is apparently what the University already does, by advertising vacant continuing positions internally only, for a period of at least 5 days_._
B. Does clause 1.15.9 of the Agreement require the University to complete the internal recruitment and selection process for vacant Continuing positions before it initiates any external recruitment and selection process (including by advertising the vacant Continuing position(s) externally) if a casual or fixed term employee who has the skills, experience, qualifications and expertise commensurate with the selection criteria applies for the job?
The answer is yes. In respect of these employees, they must be provided prior opportunity to apply for a vacant Continuing position and be considered for that position before any other external applications are called for. "Considered" means they are either considered and offered the job, considered and offered an interview, and then interviewed and offered the job, or considered and offered an interview and a decision made not to offer them the job. Other processes relevant to the role, such as referee checks or other analytical measures may be applied. As part of this process of "consideration", there is an obligation to give preference candidates who have been employed by the University over two or more semesters, over two consecutive calendar years, on a 0.5 FTE or more time fraction in the circumstances as set out below.
Because the clause requires this to occur "ahead of external recruitment [my emphasis]", nothing in this determination should be taken as precluding the University from advertising continuing positions to other internal applicants should it chose to do so - but the clause does not oblige it to do so.
C. Does (and if so in what circumstances does) clause 1.15.9 of the Agreement require the University to offer a casual or fixed term employee who is suitably qualified who has been employed by the University over two or more semesters over two consecutive calendar years on a 0.5 FTE or more time fraction, and who satisfy the selection criteria determined by the University, a vacant Continuing position if they apply for it, in preference over another candidate who is not a casual or fixed term employee?
The answer is yes, but only if it is reasonable. In respect to a vacancy for a continuing position, a positive obligation exists requiring the University to prefer a candidate who has been employed by the University over two or more semesters, over two consecutive calendar years, on a 0.5 FTE or more time fraction over one who does not (where it assumed both meet the selection criteria), to the extent of what is reasonable in the circumstances. The circumstances where it might be unreasonable cannot be described definitively, but might include where the candidate is otherwise disqualified, such as through a restraint, prior misconduct or due to some other evidence that they are manifestly inappropriate for the role.
[1] University of Melbourne Enterprise Agreement 2024 clause1.42.9 and 1.42.1
[3] Applicant's Outline of Arguments, 3 April 2025 [69]
[4] Outline of Submissions of the Respondent, 17 April 2025 [5] - [6]
[5] Applicant's Outline of Argument [29]
[6] Outline of Submissions of the Respondent, 17 April 2025 [2]
[7] Applicant's Arguments in Reply, 21 April 2025 [6]
[10] Witness Statement of Paula McAllister, 17 April 2025 [12]
[14] Applicant's Outline of Submissions [66], [109]
[17] FreshFood Management Services Pty Ltd v AMWU & UWU [2023] FWCFB 97 [123]
[18] Applicant's Outline of Submissions [31], Outline of Submissions of the Respondent [8]
[19] [2018] FCAFC 131 [197]
[20] Applicant's Outline of Submissions [31]
[22] [2020] FCAFC 123 [65]
[23] Applicant's Outline of Submissions [37]
[25] Berri [33 (4)] See also South Australian Water Corporation v Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia [2024] FCAFC 40 [24] - [26]; Bluescope Steel (AIS) Pty Ltd & Anor v Commissioner of Taxation [2019] FCAFC 84; (2019) 368 ALR 643 [20]
[26] Applicant's Outline of Submissions [56]
[27] Applicant's Arguments in Reply [8]
[28] Applicant's Outline of Submissions [57]
[29] Applicant's Arguments in Reply [13] - [14]
[31] Outline of Submissions of the Respondent [8]
[36] Transcript PN190-PN191; PN233 - PN243
[39] Outline of Submissions of the Respondent [30]; Transcript PN193 - PN198; PN254 - 262
[43] [2011] FCA 1256 [77]
[45] Ibid [79]; see also Australian International Air Pilots Association v Qantas Airways Limited [2017] FCA 346 [29]
[49] See in particular Codelfa Construction Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337 [352]; Berri [62]
[50] Linfox Armaguard Pty Ltd (T/A Linfox Armaguard) v Transport Workers' Union of Australia [2024] FWCFB 373 [42]
[51] Health Services Union v Ballarat Health Services [2011] FCA 1256 [79]
[52] [2022] FWC 253 [27]
[54] Amcor v Construction, Forestry, Mining and Energy Union; Minister for Employment and Workplace Relations v Construction, Forestry, Mining and Energy Union (2005) CLR 241 [66]
[55] City of Wanneroo v Holmes [1989] FCA 369; (1989) 30 IR 362 [379]
[56] Berri [47]; National Tertiary Education Union v La Trobe University [2015] FCAFC 142; Bluescope Steel (AIS) Pty Ltd v Australian Workers Union [2019] FCACF 84 [20]
[58] National Tertiary Education Union v La Trobe University [2015] FCAFC 142 [74] - [75]
[61] Outline of Submissions of the Respondent [6]
[62] Transcript [394]; Outline of Submissions of the Respondent [6], [17]
[63] MacKenzie Witness Statement [14] - [15]
[65] MacKenzie Witness Statement [20], [CM5]
[73] Applicant's Outline of Submissions [103]
[77] Brown Witness Statement [10] - [12]
[83] Ibid [57] and for the addition of the last sentence of the clause, see [58] and [59(c)]
[87] Applicant's Arguments in Reply [11]
[94] McAllister Witness Statement, "PM-2"
[106] McAllister Witness Statement, "PM-2" p.6
Printed by authority of the Commonwealth Government Printer
National Tertiary Education Industry Union
University of Melbourne [2025] FWC 1268
(2019) 368 ALR 643
(2006) 151 FCR 513
(1982) 149 CLR 337
(1989) 30 IR 362