[2022] TASFC 11
General information, not legal advice.
Supreme Court of Tasmania (Full Court)
2022-12-06
Blow CJ, Estcourt J, Jago J, Geason J
Original judgment source is linked above.
CITATION: Nazar v Hydro Electric Corporation [2022] TASFC 11
APPEALED FROM: Hydro Electric Corporation v Nazar [2022] TASSC 37
Workers' Compensation - Entitlement to compensation - Employment related injury, disability or disease - Arising in course of employment - Worker living away and on call - Injured while walking and within mobile phone range.
Kavanagh v Commonwealth [1960] HCA 25; (1960) 103 CLR 547; Henderson v Commissioner of Railways (Western Australia) [1937] HCA 67; (1937) 58 CLR 281; Humphrey Earl Limited v Speechley [1951] HCA 75; (1951) 84 CLR 126; Hatzimanolis v ANI Corporation Ltd [1992] HCA 21; (1992) 173 CLR 473; Comcare v PVYW [2013] HCA 41, 250 CLR 245; St Helens Colliery Company Limited v Hewitson [1924] AC 59; Potts v Commonwealth (1971) 18 FLR 128; Wilkinson v Forestry Commission [1986] TASSC 47, discussed.
Judgment Number: [2022] TASFC 11
BUDDY DETLEF NAZAR v HYDRO ELECTRIC CORPORATION
BUDDY DETLEF NAZAR v HYDRO ELECTRIC CORPORATION
(a) a worker suffers an injury, not being a disease, arising out of or in the course of his employment; or
his employer is, except as is otherwise provided by this Act, liable to pay compensation in accordance with this Act -
"Repeatedly the contrast has been made between the effect of the words 'out of' and the effect of the words 'in the course of'. Whatever language was chosen to institute the contrast the first expression was treated as requiring a causal connexion between the employment or its incidents and the second as requiring that the pursuit of the employment should be an accompanying condition. I have seen nothing to suggest that within the expression 'in the course of the employment' there had been discovered any element of causal relation with the employment and its incidents. To prescribe that element was considered to be work of the words 'arising out of'. It was thus natural for this Court to say after the word 'or' had been substituted for 'and' in the Western Australian provision that the result of English authority was 'to show that the words "arising in the course of the employment" describe a condition which is satisfied if the accident happens while the workman is doing something in the exercise of his functions although it is more than an adjunct to or an incident of his service'."
"The reason given by the Full Court for the conclusion that the accident did not arise out of or in the course of the employment appears to me to depend upon the view that before the accident the deceased entirely left the sphere of his duty and, independently of his employment, was finding his way over part of his employer's premises to the place where for his own benefit he was allowed to camp. In my opinion such a view makes too marked a contrast between the deceased's actual work with the gang and his use of the facilities of the camp. It treats the employment as entirely restricted to working with and supervising the gang when at work and the camp as something no different from the workman's own dwelling or other place of residence.
Cases of this description are never easy. The general principle governing the ascertainment of the "course of employment" appears now to be settled. It is not merely a question of the existence and continuance of a relationship. To be in the course of the employment, the acts of the workman must be part of his service to the employer. But the difficulty lies in the application of this conception. For the service consists in more than the actual performance of the work which the workman is employed to do. It includes the doing of whatever is incidental to the performance of the work. General expressions of this kind have not proved very helpful. (My emphasis.)
Where the accident arises shortly before the beginning of actual work or shortly after its cessation, or in an interval when labour is suspended, and it occurs at or near the scene of operations, the question whether it arises in the course of the employment will depend on the nature and terms of the employment, on the circumstances on which work is done and on what, as a result, the workman is reasonably required, expected or authorized to do in order to carry out his actual duties. That the workman is liable to the control of the employer is of some importance . That he has not yet assumed the same relation to his employer's premises and work as an ordinary member of the public is another matter of weight ...". (Case references omitted.)
"The acts of a workman which form part of his service to his employer are done, needless to say, in the course of his employment. The service is not confined to the actual performance of the work which the workman is employed to do. Whatever is incidental to the performance of the work is covered by the course of the employment. When an accident occurs in intervals between work the question whether it occurs in the course of the employment must depend upon the answer to the question whether the workman was doing something which he was reasonably required, expected or authorized to do in order to carry out his duties."
"... an interval or interlude in an overall period of episode of work will ordinarily be seen as being part of the course of employment if the employer, expressly or impliedly, has induced or encouraged the employee to spend the interval or interlude at a particular place or in a particular way. Indeed, the modern cases show that, absent gross misconduct on the part of the employee, an injury occurring during such an interval or interlude will invariably result in a finding that the injury occurred in the course of employment. Accordingly, it should now be accepted that an interval or interlude within an overall period or episode of work occurs within the course of employment if, expressly or impliedly, the employer has induced or encouraged the employee to spend that interval or interlude at a particular place or in a particular way. Furthermore, an injury sustained in such an interval will be within the course of employment if it occurred at that place or while the employee was engaged in that activity unless the employee was guilty of gross misconduct taking him or her outside the course of employment. In determining whether the injury occurred in the course of employment, regard must always be had to the general nature, terms and circumstances of the employment 'and not merely to the circumstances of the particular occasion out of which the injury to the employee has arisen'." (Footnote omitted.)
"[50] ... the Hatzimanolis principle, when it is appropriate to be applied, effects a connection between the circumstances in which the employee sustains injury and the employment. The principle may create a temporal element, in the notion of an interval, but it also creates a factual association or connection with the employee's employment. It does so by the fact of the employer's inducement or encouragement.
[51] The need for there to be a factual connection or association between the circumstances of the injury and the employment is implied by the definition of injury, as one suffered in the course of the employee's employment. ...
[52] The relevant connection or association created by the Hatzimanolis principle is between that activity and the employer's encouragement to engage in it. Likewise, when an injury is sustained by an employee at a place and by reference to that place, in the sense earlier discussed, the connection between that circumstance and the employment is provided by the fact that the employer induced or encouraged the employee to be present at that place." (Footnote omitted.)
"An inducement or encouragement to be at a particular place does not provide the necessary connection to employment merely because an employee is injured whilst engaged in an activity at that place."
"[44] ... To identify the relevant connection does not raise any question about causation. It simply identifies the circumstance in which the injury is suffered. It is that circumstance which must be the subject of the employer's inducement or encouragement.
[45] An injury occurring to an employee by reference to or associated with a place where the employee is present may involve something occurring to the premises or some defect in the premises. For example, if the light fitting in this case had been insecurely fastened into place and simply fell upon the respondent, the injury suffered by her would have arisen by reference to the motel. The employer would be responsible for injury because the employer had put the respondent in a position where injury occurred because of something to do with the place. Liability in those circumstances is justifiable. Liability for everything that occurs whilst the employee is present at that place is not."
"66 The essential inquiry is how was the injury brought about? The worker was taking a walk along the Tullah lakeside whilst on Availability Duty where he was required to be contactable by the employer within 15 minutes and be ready to proceed to commence work within 15 minutes of being contacted. In the context of this matter, walking along the Tullah lakeside is an unexceptional activity that would have been a recognised practice for workers required to work at Tullah,and it would have been recognised as an acceptable activity by the employer. I find that it was within the scope of activity or activities which the employer induced or encouraged the worker to undertake.
68 If viewed in isolation, the activity in question had a tenuous connection with the worker's employment. However, when regard is had to the time, place and circumstance of the activity as well as the general nature, terms and circumstances of his employment, the connection becomes far less remote and the injury can be said to have occurred in the course of the worker's employment.
69 Accordingly, as to the activity in which the worker was engaged when his injury occurred, that is, taking a walk in the Tullah area with his partner and dog so as to remain in mobile phone contact with the employer in case he was called in to work, was within the scope of activity that the employer had encouraged or induced the worker to undertake. On this basis and applying the test in Comcare v PVYW (supra), the worker's injury occurred in the course of his employment with the employer."
"I conclude that there is nothing in the evidence which sustains a conclusion that the respondent was injured in the course of an activity induced or encouraged by the employer. Accordingly in my view the injury falls outside of the concept of an injury occurring in the course of employment, and is not compensable."
"If each collier was bound by his contract to travel to his employer's colliery by this provided train, then cadit questio_._ The collier would be in the course of his employment when he was doing a thing he was bound by his contract of service to do. But the conferring upon a collier of a privilege which he is free to avail himself of or not, would, primâ facie, impose no duty whatever upon him to use it."
"The difficulty of reconciling all the authorities on this question as to the course of a workman's employment arises, I think, from the omission on the part of some of the Courts to frame some test which must be satisfied in order to bring an accident within the course of a workman's employment, leaving the County Court Judge in each case to decide whether the evidence establishes that the test is satisfied. I myself have been rash enough to suggest a test, namely, that a workman is acting in the course of his employment when he is engaged 'in doing something he was employed to do.' Or what is, in other and, I think, better words, in effect the same thing, namely, when he is doing something in discharge of a duty to his employer, directly or indirectly imposed upon him by his contract of service. The true ground upon which the test should be based is a duty to the employer arising out of the contract of employment, but it is to be borne in mind that the word 'employment' as here used covers and includes things belonging to or arising out of it.
For instance, haymakers in a meadow on a very hot day are, I think, doing a thing in the course of their employment if they go for a short time to get some cool water to drink to enable them to continue the work they are bound to do, and without which they could not do that work, and workmen are doing something in the course of their employment when they cease working for the moment and sit down on their employer's premises to eat food to enable them to continue their labours."
"The words 'and in the course of' are not equivalent to 'during.' The accident must occur during the employment, but more than that, it must occur 'in the course of the employment.' The employment may be by the year. The accident must, of course, be one which happens during the year, but more than that, it must be in the course of the employment during the year. The employment may be to do some defined manual work, say, hewing coal, but the accident need not arise when the man is actually using his pick. He may be going down in the cage. He may be resting between shifts. He may be taking a meal. He may be merely standing by, waiting for the next job. All these, and such as these are not 'the employment' but are incidental to the employment. The man is in the course of his employment - is engaged in his employment in all such cases. 'They also serve who only stand and wait.' In every case, the facts have to be ascertained and discrimination made between the time during which or the place at which the employment is and those during or at which it is not being carried on.
A first step is to ascertain what is the employment. If the workman is doing anything that his employer could and did expressly or by implication, employ him to do or order him to do, and the accident occurs when he is doing it, the case is within the Act."
BUDDY DETLEF NAZAR v HYDRO ELECTRIC CORPORATION
"[1] At or around 11:00am on Friday, 25 May 2018, the worker slipped and fell on a wet log whilst walking along Tullah lakeside with his partner and his dog. He suffered a fractured femur of the left leg (the injury).
[2] At the time of the injury the worker was employed by the employer as a relief area coordinator. According to the statement of Jamie Young dated 19 June 2019 (W8) the worker:
(a) was on call at the employer's Tullah accommodation in the western part of Tasmania.
(b) commenced a 7 (sic) day shift on Thursday, 24 May 2018 and was on call during this period.
(c) received an on call allowance for each day of the shift.
(d) resided in accommodation in Tullah provided by the employer.
[3] The employer's basic requirements for on call workers are that they must:
(a) answer the phone/respond to a call within 15 minutes of notification.
(b) be in a position to respond (leave home to attend site) within 15 minutes of phone notification.
(c) be fit to drive and rested to levels to enable reasonable response.
(d) remain within suitable response times to the area of call coverage (i.e. not travel to the other end of the State).
[4] The employer does not limit activities performed by workers on call. They can spend time with family, play sport and the like 'as long as they can take a call, or call back quickly and leave for work closely after then'.
[5] On or about 22 May 2019, the worker made a claim for workers compensation with respect to the injury.
[6] The employer has disputed liability for the claim on the basis that the worker's injury did not arise out of or in the course of his employment with the employer."
"60 Even though it was the worker's choice to go on a walk with his partner and dog, the evidence is that he was inhibited by what he could do whilst on call. He could not do anything inconsistent with being on Availability Duty. Walking in the Tullah area whilst remaining within mobile phone reception and ensuring that he could attend work within 15 minutes is entirely consistent with the worker's obligations to the employer whilst on Availability Duty. That provides the necessary nexus between the activity he was performing at the time of the injury and his employment.
"1 The learned Chief Commissioner erred in law in making the findings that the Respondent's "injury occurred in the course of his employment with" the Appellant (at [69]) and that his 'injuries arose in the course of' that employment (at [70]).
Those findings were not open to the learned Chief Commissioner upon the evidence if she had correctly applied to that evidence settled principles of law stated by the High Court in Comcare v PVYW [2013] HCA 41; (2013) 250 CLR 246, in particular at [36]-[39], which she did not do.
(a) what the Respondent was relevantly doing when injured, was climbing onto or over a log while in charge of a dog on a lead, causing him to slip and fall;
(b) the injury was brought about by that activity, specifically, by slipping and falling while attempting to climb onto or across a log while in charge of a dog on a leash;
(c) the injury was therefore one that occurred while the Respondent was engaged in an activity, not one that occurred by reference to a place;
(d) the relevant enquiry was therefore whether the Appellant induced or encouraged the Respondent to engage in that activity;
(e) the Appellant had not expressly o. r impliedly induced or encouraged the Respondent to engage in that activity; and
(d) therefore, the Respondent's injury did not arise m the course of his employment.
The learned Chief Commissioner erred in failing to come to those findings because having accepted (at [65]) that what the Respondent was doing when he was injured was climbing onto or across a log while walking his dog in company with his partner (to which it is necessary to add the evidence that he was at the same time handling his dog on a leash, at [8]), she then failed to properly address 'the essential inquiry' as to how the injury was brought about, or failed to address that enquiry at all, because she failed to address that question (at [66]) to any degree in the context of the activity being engaged in by the Respondent when the injury occurred.
(a) (at [66]) that walking along the Tullah lakeside would have been a recognised practice for workers required to work at Tullah;
(b) (at [66]) that walking along the Tullah lakeside would have been recognised as an acceptable activity by the Appellant;·and
walking along the Tullah lakeside, or taking a walk along the Tullah lakeside (at [66]);
doing so in the company of his partner (at [67]);
taking a walk in the Tullah area with his partner and dog (at [69]),
were activities in which the Appellant induced or encouraged the Respondent to engage or were activities that were "within the scope of' such activity, and without defining the 'scope' of such activity so as to explain the factual finding that those activities were within that ' scope'.
That finding failed to correctly apply to the facts established by the evidence the 'Hatzimanolis principle' according to Comcare v PVYW.
By approaching the question of the 'necessary nexus' in the way that she did (at [60]), the learned Chief Commissioner failed to properly make the necessary enquiries, including, as to what it actually was that the worker was doing when injured, how the injury was actually brought about while engaging in that activity ('the essential enquiry'), and the presence or absence of inducement or encouragement to undertake that activity.
The learned Chief Commissioner erred in law at [69] when she purported to apply 'the test in Comcare v PVYW' in coming to the conclusion that the Respondent's injury occurred in the course of his employment with the Appellant based on a finding that the activity engaged in by the Respondent when his injury occurred was "within the scope of' activity that the employer had encouraged or induced the worker to undertake.
Once it was clear that an activity was engaged in at the time of injury, then in order to properly apply the 'Hatzimanolis principle' according to Comcare v PVYW at [36]-[39], the learned Chief Commissioner had to address not merely the evidence that the Respondent 'was taking ,a walk in the Tullah area with his partner and dog' and whether that was 'within the scope of activity' in which the Appellant had induced or encouraged the Respondent to engage - she had to undertake a more focussed enquiry as to what the employee was actually doing when injured, and how the injury was brought about while engaging in that activity.
By taking the approach that she did, the learned Chief Commissioner failed to make those more focussed enquiries. A proper analysis of the evidence that provided the answers to those enquiries should have focussed on, and identified, the activity that was actually engaged in when injury occurred, that is, the Respondent's climbing onto or over the log, while walking on the lakeside to just pass the time, and what it was that brought the injury about, that is, slipping on and falling onto the log.
Had the learned Chief Commissioner correctly undertaken those enquiries, which would have provided those answers, the only finding reasonably open was that the Appellant had not expressly or impliedly induced or encouraged the Respondent to engage in the activity that brought about the injury in the way that it was brought about, with the result that the necessary factual connection or association between the circumstances of the Injury and the Respondent's employment was absent.
That the learned Chief Commissioner followed that erroneous path is evident at [29], [31], [66], [67] (including the non-specific reference to Hatzimanolis in footnote 9), [68] and [70].
By taking the approach that she did, the learned Chief Commissioner failed to identify that the nexus required by the proper application of the 'Hatzimanolis principle' according to Comcare v PVYW is between the activity engaged in by the worker when the injury occurs and express or implied inducement by the employer to engage in that activity, and she therefore failed to properly address the questions of what that activity was and whether the Appellant had induced or encouraged the Respondent to engage in that activity."
"10 It is not disputed that the injury was suffered in the course of an interval in the sense that the respondent was not engaged in actual work.
"22 The nexus required between the circumstance and the injury (whether place or activity case), can be severed and the emphasis is thus squarely upon identifying the act which caused the injury in the context of the employment duties, meaning the things required by the employer directly or incidentally, to see whether the required connection exists.
'If Mr Westrupp had been injured by a fire at his quarters while sleeping (Danvers) or whilst showering (Comcare v McCallum (1994) 49 FCR 199 ('McCallum')) or had been struck by a car while returning to his accommodation (Mather; see also Watson v Qantas Airways Ltd (2009) 75 NSWLR 539) ('Watson')) or had been assaulted by strangers while returning to his quarters after a meal and a few beers (Kennedy v Telstra Corporation (1995) 61 FCR 160 ('Kennedy')), then, on the authority of Danvers, and cases in this Court and in other courts which have applied Hatzimanolis, he would have been entitled to compensation. We do not understand those authorities to have been overruled, expressly or by implication, by PVYW. The circumstances of the present case, in our view, are not materially different.
In our view, the AAT's approach was too narrow. It paid insufficient attention to the general nature, terms and circumstances of the employment. It gave too much prominence 'to the circumstances of the particular occasion' (Hatzimanolis at 484) and 'focused just upon the occasion giving rise to the injury' (PVYW at [33]). When it is recognised that Mr Westrupp was only in Leinster, and at the camp, as an incident of his employment, that he was under the control of the first respondent throughout his time in Leinster, and that he was or would be expected to use facilities put in place by BHP Billiton, for which the first respondent took the benefit for its own employees as incidents of their engagement, then it seems to us, with respect, that the AAT misapplied the legal principles which govern the proper statutory construction to be given to s 5A of the SRC Act.' (My emphasis).
'The more substantive reason for rejecting the submission advanced on behalf of Ms Dring is that, again with great respect to those who advanced the contrary view, none of the trinity of cases - i.e. Hatzimanolis, PVYW (Comcare) or Westrupp - support any conclusion that any injury suffered by an employee at a 'place' at which the employer required the employee to attend was necessarily an injury suffered 'in the course of employment'.
"1 His Honour erred in law in finding that the Appellant's injuries did not arise in the course of his employment at [29].
"an interval will ordinarily at be accepted as being part of the course of employment if the employer has induced or encouraged an employee to spend the interval 'at a particular place or in a particular way'."
"Whether a worker's attendance at a place can be regarded as being pursuant to his contract of employment will depend upon what the worker was obliged to do under that contract and whether his presence in that place was incidental to his performance of his contractual obligations"
and submits that but for the requirements of his contract the worker would not have been in the place he was when he was injured.
"In our view, the AAT's approach was too narrow. It paid insufficient attention to the general nature, terms and circumstances of the employment. It gave too much prominence 'to the circumstances of the particular occasion' (Hatzimanolis at 484) and 'focused just upon the occasion giving rise to the injury' (PVYW at [33])."
Accordingly, it should now be accepted that an interval or interlude within an overall period or episode of work occurs within the course of employment if, expressly or impliedly, the employer has induced or encouraged the employee to spend that interval or interlude at a particular place or in a particular way [and the employee does so].
The parenthesised words are those the majority in Comcare added (at [31]) because they implicitly shorthand what followed in Hatzimanolis, which completes the test for whether an injury that occurs within such an interval or interlude is within the course of employment:
Furthermore, an injury sustained in such an interval will be within the course of employment if it occurred at that place or while the employee was engaged in that activity ...
(a) The injury occurred in an interval or interlude within an overall period or episode of work, during which the appellant was not required to perform any "actual work" unless called up to do so.
(b) The appellant suffered injury, but not whilst engaged in "actual work".
(c) When injured, he was engaged in a purely personal recreational activity.
(e) The employer did not induce or encourage the appellant to engage in that activity.
"it is an unstated but obvious purpose of Hatzimanolis to create a connection between the injury, the circumstances in which it occurred and the employment itself. It achieves that connection by the fact of the employer's inducement or encouragement. Thus, where the circumstances of the injury involve the employee engaging in an activity, the question will be whether the employer induced or encouraged the employee to do so." (Comcare at [36]).
"Incidence of service, however, is not a principle the application of which will determine whether the injury was sustained in the course of employment; it is a conclusion. When a tribunal concludes that a worker sustained injury while doing something incidental to his or her employment, it records a result which must have been reached, consciously or unconsciously, by reference to some principle or standard which leads to that result." (Hatzimanolis at 478)
''... the rational development of this area of the law requires a reformulation of the principles which determine whether an injury occurring between periods of actual work is within the course of the employment ...".
'' ... there are cases where an employee is required to embark upon some undertaking for the purpose of his or her work in circumstances where, notwithstanding that it extends over a number of daily periods of actual work, the whole period of the undertaking constitutes an overall period or episode of work. Where, for example, as in Danvers, an employee is required to go to a remote place and live in accommodation provided by his or her employer for the limited time until a particular undertaking is completed, the correct conclusion is likely to be that the time spent in the new locality constitutes one overall period or episode of work rather than a series of discrete periods or episodes of work. An injury occurring during the interval between periods of actual work in such a case is more readily perceived as being within the current conception of the course of employment than an injury occurring after ordinary working hours to an employee who performs his or her work at a permanent location or in a permanent locality.''
(i) On Monday, Tuesday and Wednesday, he was required to perform "actual work", that is, "on the tools", between the ordinary hours of work, which were 7:00 am to 5:00 pm;
(ii) On Thursday (the day before his injury), he was required to perform "actual work" between the ordinary hours of work, but also, from 7:00 am on that day, to be on Availability Duty; and
(iii) On the day of the injury, and for the five days immediately following it (until Wednesday 30 May), he was not required to engage in any "actual work" but was required to be on Availability Duty.
"Availability Duty means duty whereby an Employee is available for recall to perform work after normal working hours. An Employee on Availability Duty must be contactable by Hydro Tasmania within 15 minutes and be ready to proceed to commence work within 15 minutes of being contacted. These times may be varied to meet local requirements".
BUDDY DETLEF NAZAR v HYDRO ELECTRIC CORPORATION
[1] Section 63 was repealed when the Workers Rehabilitation and Compensation Tribunal was abolished and replaced by the Tasmanian Civil and Administrative Tribunal: Tasmanian Civil and Administrative Tribunal (Consequential Amendments) Act 2021, s 387.
Nazar
Hydro Electric Corporation [2022] TASFC 11
(1960) 103 CLR 547
(1937) 58 CLR 281
(1951) 84 CLR 126
(1992) 173 CLR 473
(1971) 18 FLR 128
(1943) 67 CLR 496
(1956) 96 CLR 536
(1962) 107 CLR 353
(2013) 250 CLR 246
(1994) 49 FCR 199
(2009) 75 NSWLR 539
(1995) 61 FCR 160