Delegation issue
82That brings me to the delegation issue. The Director-General is for relevant purposes the employer: s 116(3) of the Health Services Act. It is the Director-General who may fix the salary, wages and conditions of employment of staff employed under Pt 1 of Ch 9 of the Health Services Act in so far as they are not fixed by or under any other law. To "fix" salary, wages and conditions of employment means to settle definitely or set those things or determine what they shall be. Section 21 of the Health Administration Act, enables the Director-General to delegate his or her functions under the Health Services Act to any person. The section provides:
21 Delegation
(1) The Minister, Director-General or Corporation may, by instrument in writing, under seal (in the case of the Corporation), delegate such of their functions (other than this power of delegation) conferred or imposed by or under this or any other Act as are specified in the instrument to any person, and may, by such an instrument, revoke wholly or in part any such delegation.
(2) A delegation under subsection (1) may be made to:
(a) a specified person (whether a natural person or a corporation), or
(b) a person for the time being holding a specified office.
(3) Except in so far as the instrument of delegation otherwise provides, a person to whom a function has been delegated under subsection (1) may:
(a) in the case of a natural person-by writing under the person's hand, or
(b) in the case of a corporation-by writing under its seal,
authorise another person to exercise the function so delegated, and may, in like manner, revoke wholly or in part any such authority.
(4) An authority under subsection (3) may be given to:
(a) a specified person, or
(b) a person for the time being holding a specified office.
...
There are no relevant regulations.
83Section 49(5) of the Interpretation Act provides that a delegated function that purports to have been exercised by a delegate shall, until the contrary is proved, be taken to have been duly exercised by the delegate. Thus, any presumption of regularity is rebuttable.
84There was no instrument of delegation in evidence from the Director-General giving authority to Ms Manning, Ms Harris and Ms Dealy to set terms and conditions of employment. The evidence of Ms Manning, Ms Harris and Ms Dealy was that they had received no delegation from the Director-General authorising them to set terms and conditions of employment.
85In my opinion, to alter a contract of employment to provide for no requirement to work night shift without the nurse's consent is to set or fix a condition of employment. The evidence of Ms Manning, Ms Harris and Ms Dealy that they had received no delegation from the Director-General authorising them to set terms and conditions of employment weighs against the presumption of regularity applying in this case.
86It was submitted for the applicant that Ms Manning and Ms Harris habitually undertook the task of approving the appointment of nurses and preparing and signing documentation, which set out the conditions of employment of employees and, therefore, the Court was entitled to infer that they were authorised to do so.
87The documents referred to were in the main letters of confirmation of appointment. In Mr Ozurumba's case, for example, the letter, signed by Ms Manning, stated: "I am pleased to confirm you have been successful in your application for the abovementioned position...." In signing the letter Ms Manning was not fixing conditions of employment. Ms Manning was merely conveying to Mr Ozurumba what were to be his conditions of appointment if he accepted them by signing in the space provided. These conditions were attached to the letter in what appeared to be a standard format.
88Ms Manning did sign a letter dated 7 July 2008 to Ms Rai that purported to be an offer of employment. The letter was signed "for and on behalf of the Director-General NSW Department of Health". That would seem to be a recognition on Ms Manning's part that she had no authority to make offers of employment in her own name. How Ms Manning was able to sign for and on behalf of the Director-General was not explained
89In any event, the fact Ms Manning conveyed an offer to Ms Rai of employment by "the Government of NSW" is not conclusive evidence of the fixing of conditions of employment by Ms Manning. It may have been the case, and probably was, that the employment conditions offered had been fixed by the Award and in accordance with the Health Service's policies. The fact that Ms Manning signed for the Director-General tends to indicate she did not fix the conditions of employment.
90I note that on 2 February 2004 Ms Manning signed a letter of offer of employment to Ms Raniga. The letter was signed by Ms Manning "for Dr Diana Horvath AO" who at the time was Chief Executive Officer of the Central Sydney Area Health Service. In what circumstance Ms Manning was able to sign for Dr Horvath was not explained. However, the terms and conditions of employment for Ms Raniga were in a standard form and very similar to those applicable to Ms Rai. The fact that Ms Manning signed for Dr Horvath tends to indicate Ms Manning did not fix the conditions of employment.
91The applicant referred to Ms Manning's position description and the fact it gave Ms Manning the responsibility to "recruit suitable qualified nurses within available resources." Recruitment of nurses is not the same thing as fixing their employment conditions.
92Nowhere in Ms Manning's evidence did she claim that her authority extended to fixing conditions of employment. Ms Manning was clearly under the impression, albeit wrongly so, that the Award enabled the Hospital to dictate whether a nurse was to work night shift and that that did not amount to fixing an employment condition by way of a variation to employment contracts. Further, the claim by Ms Manning that she had the authority to appoint staff does not necessarily amount to a proposition that in doing so she had authority to fix their conditions of employment.
93Reference was made to the Delegations Manual. The Manual details the authority of the Chief Executive of Sydney South West Area Health Service and the authority delegated by the Chief Executive to specified staff. One would not regard it as an instrument of delegation made under s 21 of the Health Administration Act because it purports to be an exercise of power under the Public Hospitals Act 1929 (repealed). The Manual is also not a "Policy Directive" made pursuant to s 116A(1) of the Health Services Act given that there is no reference in it to delegations by the Director-General. The Manual appears to be merely a statement of policy without statutory force related to a condition of subsidy: see Crown in Right of the State of New South Wales (Director-General, NSW Department of Health) in respect of Sydney West Area Health Service v New South Wales Nurses' Association [2011] NSWIRComm 111 at [46]-[48].
94 If the Manual was a valid instrument of delegation delegating the Director-General's authority to the Chief Executive and in turn the Chief Executive's authority to specified persons it would show conclusively that Ms Manning as a Director of Nursing at Canterbury Hospital had no delegated authority to fix conditions of employment. Nowhere in the Manual does it permit a Director of Nursing (categorised in the Manual as a "Service Manager - Facility Based") to fix employment conditions by the negotiation of contracts of employment with individual nursing personnel.
95The applicant sought to rely on the function of "Signing of Confirmation of Appointment Letters" for "Other Positions" by "Service Managers" to contend that Ms Manning could make an agreement with nurses to vary their contracts of employment to provide that they would not be required to work night shift without their consent. It does not follow that such a function encompasses the fixing of conditions of employment under an employment contract and in my opinion, in the absence of evidenc to the contrary, signing confirmation of appointment letters does not amount to fixing employment conditions.
96The applicant further contended that unless the Delegations Manual was accepted as providing Ms Manning with the authority to negotiate employment conditions it would lead to the absurd result that the Director-General would be required to "directly negotiate terms and conditions of employment with each employee throughout the Health Service." I cannot accept that contention. The conditions of employment of nurses in the public health system are in large measure fixed by an award. Other conditions may be fixed by the Director-General or by his or her delegates. It would be a matter for the Director-General to determine who were to be the authorised delegates to fix those conditions (including by agreement with relevant staff). Thus, if one were to take the Delegations Manual as a guide (and it would appear the Manual reflected the practice) the authority to offer and approve a voluntary redundancy package to an employee was limited to the Chief Executive of an Area Health Service or the Director Clinical Operations, who under s 21 of the Health Administration Act could sub-delegate the authority, subject to the extent of their delegated authority. It would not be a case of the Director-General being required to directly negotiate terms and conditions of employment with each employee throughout the Health Service.
97What may border on the absurd would be if Directors of Nursing in hospitals were delegated with authority to negotiate the terms of employment contracts with individual nurses. That would lead to a chaotic situation.
98Whilst the Delegations Manual is not an instrument of delegation under the Health Services Act it would appear to reflect the practice and adds weight to the respondent's case that it did not intend to enter into a binding contract with the nurses regarding no requirement to work night shift because it tends to indicate that if the Manual had been a valid instrument of delegation Ms Manning would not have had the authority to enter into such a contract.
99It seems to me that there is sufficient evidence to the contrary to prove that the necessary pre-condition for Ms Manning to enter into the claimed binding contractual arrangement with the five secondees, namely, delegated authority to do so, did not exist. That being so, and as Ms Dealy made her representations only on the basis of Ms Manning's instructions, Ms Dealy had no authority to make the representation that there would be no requirement to work night shift in the MAU.
100Ms Harris' position is indistinguishable from that of Ms Manning. She did not receive any relevant delegated authority to fix conditions of employment for Ms Manguzha and the high probability was that no relevant delegation was made to her.
101As there is no evidence that Ms Manning, Ms Harris or Ms Dealy had the authority to fix conditions of employment or did do so as a matter of course in their dealings with nursing staff and as the evidence tends to show no authority existed, it cannot follow that in the "ordinary course of human affairs" it is to be presumed these individuals had the authority to fix employment conditions by entering into binding contracts of employment with individual nurses.
102Moreover, the notion of Directors of Nursing and Midwifery Services, Directors of Nursing or Nursing Unit Managers having a general authority to negotiate contracts or variations to contracts fixing employment conditions for individual nurses is inconsistent with the scheme of the Health Services Act. It is the Director-General who may, subject to s 116A(1), fix the salary, wages and conditions of employment of staff subject to that function, or part of it, being delegated in accordance with s 21 of the Health Administration Act. A purpose of such a scheme must be to ensure a high measure of consistency in a large and diverse public sector organisation.