[2012] FMCA 350
General information, not legal advice.
Federal Magistrates Court of Australia
2012-05-15
Original judgment source is linked above.
13 August 2007 as the weekday chef at Greenwood Manor. The applicant was responsible for the preparation of meals and supervision of kitchen hands. He was required to work from 9am to 6pm from Monday to Friday, with one hour for lunch. That amounts to 40 hours per week. Mr McMahon acknowledged in oral evidence that he had, and continues to have, no issues with the quality of the applicant's work as a chef. 3. Mr McMahon gave evidence, which I accept, that there was a longstanding practice that the chef would rotate the milk crates in the fridge to ensure that the oldest milk was at the front and readily accessible so that it could be used first. 4. On about 30 June 2011, the applicant asked three of the kitchen hands, Ida, Huylia and Nurtan, to rotate the milk crates in the fridge. Ida and Nurtan refused. The applicant complained about Ida and Nurtan's refusal to Mr Chapman. Mr Chapman told the applicant that it was his job to shift the milk crates. 5. Mr Chapman made a file note of the conversation, which reads as follows[321]: * 30 June 2011 * 5.50pm Approached by Nish * Spoke for 30min. Nish claims I do / have not ever supported him on any issue whatsoever @ G.W. Asked me to keep out of kitchen and give him free hand with Staff. Explained gently that his proposed changes affect kitchen hand job description ∴ must follow P +P's to achieve change. * Asked Nish if he wanted to continue to work here as he appeared to be unsettled at his work for some time. He stated "fine" - "just keep out of my kitchen + support me when I ask you too (sic)". * Asked Nish if he would be at work tomorrow as it had been noted by myself + A.M that he did not normally attend work after a discussion with management. No answer. 6. The applicant did not attend work the following day. He said he was stressed because he felt unsupported by Mr Chapman. 7. In about July 2011, the applicant completed a checklist indicating that some bins were broken. He said Mr Chapman approached him aggressively and asked what was wrong with the bins. After some discussion, Mr Chapman arranged for the broken bins to be replaced. 8. The applicant said that, after the problem with the milk crates, he felt unsupported by Mr Chapman, and felt that the kitchen hands did not respect his authority. 9. The applicant said he then contacted WorkSafe in relation to the kitchen hands not respecting his authority and Mr Chapman not supporting him. He said he told WorkSafe that he did not wish to make a formal report. The applicant said that WorkSafe advised him to speak with his occupational health and safety representative about his concerns. This enquiry was not made known to the management of Greenwood Manor until after the applicant was dismissed. 10. On 21 July 2011, Mr McMahon, Mr Chapman and Ms Muir held a management review meeting to discuss potential costs savings within the facility. The minutes of the meeting are as follows[322]: * Management Meeting * Held: Cheltenham Manor 21st July 2011 * Present: Brett McMahon, Amanda Muir, Neville Chapman * Issues: * Greenwood Manor: * Cherrie's Return: This extra cost burden is presently adding considerably to the wages costs at the Manor. Brett asked the question about whether costs could be cut. Amanda was of the view that the first area that ought to be examined was the kitchen because she had noticed that when Nish was not available for work recently, the kitchen had operated smoothly without him.
This led to a discussion about whether the Chef's role ought to be split in 2. After much discussion it was resolved that this was probably an appropriate way to move forward. It would not jeopardize service quality or delivery and would start to cut some costs. Amanda and Neville to sit down with the kitchen staff and / or Nish to explain our position and carry this resolution into effect if practicable.
Further resolved that, over the course of the next quarter, Amanda to assess the needs of the care staff to determine whether appropriate staffing levels were in place.
Brett to assess whether extra service fees ought to be lifted.
Brett also to assess whether any costs could be brought down. Report to be given to the November Management meeting.
Meeting closed: There being no further items to discuss, the meeting was closed.
Able to manage food preparation and heating of evening meals for 46 residents
Dear Nish
Notice of workplace restructure
This letter is to formally give you notice that a business decision has been taken to restructure the role of Chef at Greenwood Manor. This involves the full time position of Chef as currently worked reducing to a part-time role from September 5 2011. The new hours will be 9:00am to 2:30pm.
This decision is not in any way a reflection on your work performance. You are most welcome to stay on in the new position or should you wish to move on to a new challenge we may be able to consider a redundancy offer.
Please consider your options over the weekend and let us know on Monday your intentions. You are most welcome to have someone present at a meeting on Monday if you wish.
Thank you.
Neville Chapman
Manager
16 August 2011. 6. On 16 August 2011, the applicant sent a letter to Mr Chapman[327] which said: * CHANGE OF MY WORK SCHEDULE
I refuse to accept the letter in relation to the change of my work schedule without consulting me. I wish to place on record my objection to this letter and I confirm that I accept under strong protest without prejudice to my future interests and further action.
Mr. Maggs about the state of the store room. * As indicated to you on the telephone, you will collect this letter at 4:00pm today. I expect your written response by 4:00pm Wednesday 24 August. If I require any further clarification, I will seek that from you. If I can reach a decision on the merits of your position from your letter I will endeavour to do so on Thursday 25 August. If I find there has been any criminal behaviour on your part I will let you know on that day as well. * Of course if you require any further assistance, please do not hesitate to contact me. 4. The applicant did not respond to the substance of Mr McMahon's letter verbally or in writing by 25 August 2011 or at all. However, they did have a telephone conversation in which he said he would not respond to the allegations. 5. On 25 August 2011, the applicant obtained a further medical certificate that stated that he would be unfit for his usual occupation from
25 August 2011 to 1 September 2011. 6. On 29 August 2011, the applicant received a letter dated 25 August 2011 from Mr McMahon[328]. That letter said: * Dear Nish * I must say at the outset of this letter that I have been most disappointed with your unwillingness to follow the requests that I set out in my earlier letter to you. Your conduct and statements bepoke (sic) of deliberate efforts to delay an investigation and it seemed to me that many of your statements were false. * You will also recall that when I spoke to you this afternoon I was clear to you that I wished to have your response by tomorrow afternoon. I also indicated that if you were, for whatever reason, unable to provide a letter then I was very happy to sit down with you and a representative to hear your side of the story. Then you advised me that you had some sort of statement that you had ready. * You (sic) telephone call earlier this evening in which you refused to provide that statement, or a letter or come in to see me about the allegations leaves me having to consider the totality of the evidence without your assistance. * I confirm that I have reread the written statements about your conduct and written down the corroborated evidence. That is, the evidence about which there is more than one person writing about an event or a sequence of events. Using this method I find the following: * 1. You received clear training about what constitutes bullying and the consequences of such behaviour. * 2. That you have been seriously intimadatory (sic) to many of the female staff working in the kitchen. I find cases of verbal and physical intimidation against you. I also find periods of time when you refused to talk to other staff for lengthy periods of time. * 3. I find that you did alter job descriptions of kitchen staff without seeking management approval. * 4. I find that you did abuse your manager repeatedly by calling him a racist and a liar. * 5. I also find your intimadatory (sic) behaviour and abuse towards your manager demonstrates a pattern of such behaviour towards others. * 6. I have also viewed the false written documents signed by yourself in respect of at least 2 incidents. * In our view the conduct that you have carried on with amounts to serious misconduct as defined in the Fair Work Act. * For these reasons I have decided to terminate your employment at Greenwood Manor. I will ask Lyndal to finalise your pay directly on the next pay period. * Of course if you require any further assistance, please do not hesitate to contact me. 7. After his employment at Greenwood Manor was terminated on 25 August 2012, the applicant did not work at all for a while. He then obtained some agency work and, on about 10 October 2011, obtained full time employment. 8. In his affidavit, the applicant denied that he had bullied anyone, or that he had been aggressive or falsified documents.
(1) Subsection (2) applies if the Commission is satisfied that an employer has, on or after 26 February 1994, decided to terminate the employment of 15 or more employees for reasons of an economic, technological, structural or similar nature, or for reasons including such reasons, and that:
(a) the employer did not, as soon as practicable after so deciding and in any event before terminating an employee's employment pursuant to the decision, inform each trade union of which any of the employees was a member, and which represented the industrial interests of such of those employees as were members, about:
(i) the terminations and the reasons for them; and
(ii) the number and categories of employees likely to be affected; and
(iii) the time when, or the period over which, the employer intended to carry out the terminations; or
(b) the employer did not, as soon as practicable after so deciding and in any event before terminating an employee's employment pursuant to the decision, give each such trade union an opportunity to consult with the employer on:
(i) measures to avert the termination, or avert or minimise the terminations; and
(ii) measures (such as finding alternative employment) to mitigate the adverse effects of the termination or terminations.
(2) The Commission may make whatever orders it thinks appropriate, in the public interest, in order to put the employees whose employment was terminated pursuant to the decision, and each such trade union, in the same position (as nearly as can be done) as if:
(a) if paragraph 1(a) applies - the employer had so informed the trade union; and
(b) if paragraph 1(b) applies - the employer had so given the trade union such an opportunity.
(3) Subsections (1) and (2) do not apply in relation to a trade union if the employer could not reasonably be expected to have known at the time of the decision that one or more of the employees were members of the trade union."
Whether Mr Chapman read out the reduction in hours letter
Dear Nish
This letter is to formally give you notice that a business decision has been taken to restructure the role of Chef at Greenwood Manor. This involves the full time position of Chef as currently worked reducing to a part-time role from September 5 2011. The new hours will be 9:00am to 2:30pm.
This decision is not in any way a reflection on your work performance. You are most welcome to stay on in the new position or should you wish to move on to a new challenge we may be able to consider a redundancy offer.
Please consider your options over the weekend and let us know on Monday your intentions. You are most welcome to have someone present at a meeting on Monday if you wish.
12 August 2011. That letter read: * Dear Nish * As per verbal agreement, we acknowledge your intention to leave work today at 3pm due to being "unwell". We note your refusal to accept the letter which was discussed with you today. (emphasis added) * We encourage you to not return to work on Monday, and seek the legal advise (sic) you obviously need. Please advise us on Monday the date when you and your Representative can attend a meeting with Management to resolve this issue. * Thank you * Amanda Muir 4. Mr Chapman was asked what letter Ms Muir had been referring to in her letter. Mr Chapman said that he had written a proposal. When asked where the proposal was, Mr Chapman said he did not have it with him. He said he had not been asked for it. When asked if he could get the proposal during the lunch break, he said that it had been rewritten into the reduction in hours letter. 5. Ms Muir also said that Mr Chapman did not read the reduction in hours letter aloud to the applicant at the meeting on 12 August 2011. She corroborated Mr Chapman's evidence that he wrote the reduction in hours letter after the meeting had concluded. She said Mr Chapman took to the meeting a written document that contained the proposal in point form. She said it just consisted of notes, jotted down. She said that document was the "letter" that she said in the have Monday off letter that the applicant had refused to accept. She said the document was not really a "letter" and she had just used the wrong terminology because she was so stressed at the time. 6. I find that Mr Chapman did read aloud to the applicant the reduction in hours letter at the commencement of the meeting on 12 August 2011. I find that Mr Chapman and Ms Muir both lied about this matter. My reasons for these findings are as follows. 7. The applicant was not shaken in his strong and clear evidence, which he has maintained from the outset, that Mr Chapman read the reduction in hours letter aloud to him at the commencement of the meeting on
12 August 2011. 8. Mr Chapman was unable to produce the "proposal" that he said was discussed at the meeting. He said it could not be produced because it had been typed over. This does not explain the whereabouts of the hard copy of the proposal that Mr Chapman, supposedly, took to the meeting and tried to persuade the applicant to take home with him. 9. The hard copy "proposal" document, if it had existed, would have been known to be an important document in this case. The situation had escalated dramatically within days. I consider it to be highly likely that Mr Chapman would have kept and produced the hard copy "proposal" document if it had ever existed. 10. The evidence about the "proposal" has the hallmarks of recent invention. The applicant had said clearly in his affidavit, which was filed and served on or about 20 February 2012, that Mr Chapman had read the reduction in hours letter aloud to him at the meeting on
12 August 2011. However, neither Mr Chapman nor Ms Muir disputed that allegation in their responding affidavits filed and served on or about 29 February 2012. Nor did they mention in their affidavits the supposed "proposal" document. 11. The applicant gave evidence before Mr Chapman and Ms Muir gave evidence. It was not put to the applicant in cross examination that
Mr Chapman had brought to the meeting and tried to give to the applicant a "proposal" document consisting of jotted down notes. It seems that the respondent's counsel was completely unaware of the supposed "proposal" document. 12. Ms Muir, on the day, noted in the have Monday off letter that the applicant had refused to take the "letter". Her claim that this was a misnomer is unconvincing. A person of her experience would be well able to summon up an accurate word for the supposed "proposal" document, such as "note", "memo", "document" or "proposal". 13. Mr Chapman also described the relevant document as a letter in his handwritten notes concerning 12 August 2011. He wrote: * ... he again refused to take our letter (how are you going to seek advice without it?) ... .(last document in exhibit 5) 14. The reduction in hours letter asked the applicant to let the respondent know his intentions on Monday, presumably, when he came to work. The have Monday off letter advised the applicant not to come to work on Monday. It makes more sense that the have Monday off letter would have been written after the reduction in hours letter. 15. Mr Chapman said he posted the reduction in hours letter on Friday
12 August 2011 by registered post at the post office. As a matter of common knowledge, to send the letter by registered post on
12 August 2011, Mr Chapman would have needed to go into the post office during its opening hours on 12 August 2011 and the post office would have post marked the envelope 12 August 2011. However, it is post marked Monday 15 August 2011. I do not accept that
Mr Chapman posted the letter on 12 August 2011. 16. Even if Mr Chapman had posted the letter on Friday 12 August 2011, the applicant could not have received it, in the normal course of post, before Monday 15 August 2011. Therefore, it makes no sense for the reduction in hours letter to say: * Please consider your options over the weekend and let us know on Monday your intentions ...
unless the contents of the reduction in hours letter were conveyed to the applicant on Friday 12 August 2011.
12 August 2011. However, Mr Chapman's notes of the meeting on
12 August 2011 specifically refer to Mark in the context of the applicant's allegation that Mr Chapman was a racist (exhibit 5). 4. For all of these reasons, I accept that Mr Chapman read aloud to the applicant the reduction in hours letter at the commencement of the meeting on 12 August 2011.
Whether the applicant called Mr Chapman a racist etc
Mr Chapman "a racist" and "a complete racist" and "a complete liar". He denied that he called Mr Chapman "a liar" repeatedly. He said that he only said that Mr Chapman was treating him differently on the grounds of his ethnicity. Later, the applicant said that he only used the words "racist" and "liar" to explain his feelings, not to accuse or threaten. 3. I do not accept the applicant's evidence on these matters. He clearly admitted calling Mr Chapman a racist in his affidavit. He did not seek to retract that admission when asked if he wished to correct anything in his affidavit. The applicant's oral evidence on this point was unconvincing. I find that the applicant did repeatedly call
Mr Chapman "a racist", "a complete racist", "a liar" and "a complete liar" during the meeting on 12 August 2011.
Whether the respondent consulted with the applicant
This letter is to formally give you notice that a business decision has been taken to restructure the role of Chef at Greenwood Manor. This involves the full time position of Chef as currently worked reducing to a part-time role from September 5 2011. The new hours will be 9:00am to 2:30pm.
This decision is not in any way a reflection on your work performance. You are most welcome to stay on in the new position or should you wish to move on to a new challenge we may be able to consider a redundancy offer.
Please consider your options over the weekend and let us know on Monday your intentions. You are most welcome to have someone present at a meeting on Monday if you wish. (emphases added)
Whether the respondent was prevented from consulting
(c) the employee refusing to carry out a lawful and reasonable instruction that is consistent with the employee's contract of employment.
(4) Subregulation (3) does not apply if the employee is able to show that, in the circumstances, the conduct engaged in by the employee was not conduct that made employment in the period of notice unreasonable.
(5) For paragraph (3) (b), an employee is taken to be intoxicated if the employee's faculties are, by reason of the employee being under the influence of intoxicating liquor or a drug (except a drug administered by, or taken in accordance with the directions of, a person lawfully authorised to administer the drug), so impaired that the employee is unfit to be entrusted with the employee's duties or with any duty that the employee may be called upon to perform.
Mr Chapman "a racist", "a complete racist", "a liar" and "a complete liar" at the meeting on 12 August 2011. These words were repeated in the sense that they were said more than once during the meeting. However, there is no suggestion that they were said on other occasions. 9. It is noteworthy that the applicant had regained sufficient composure prior to 3pm on 12 August 2011 to apologise to Ms Muir for his language. However, he made no attempt to apologise to Mr Chapman on that day or at any subsequent time. In his affidavit, the applicant said he had used strong words in the heat of the moment, and he should have chosen his words more carefully. However, he did not, at that stage, or even at the trial, apologise for his language. 10. The applicant referred to two cases in which an employee used strong language against an employer. In Carter v Dennis Family Corporation [2010] VSC 406, the employee said his employer was bullying him. At [333], Habersberger J said: * I have found that Mr Carter's accusation of bullying was not false in the sense that I believe he genuinely felt aggrieved by Mr Dennis' aggressive attitude towards him, although I doubt whether the conduct described by Mr Carter would constitute bullying. I have also found that Mr Carter had no collateral improper purpose in making the accusation. He wanted the behaviour to stop because it was not helping him deal with the company's pressing problems. In the circumstances, I do not consider that Mr Carter's accusation was serious misconduct or repudiation. 11. The applicant relied on this case for the proposition that the employee's genuine belief in the truth of the allegations he had made against his employer mitigated their seriousness. It was submitted that the applicant genuinely believed that Mr Chapman was a liar and had discriminated against him, and Mark, for reasons of their race. Having observed the applicant in the witness box, I accept that he genuinely believed that Mr Chapman was a racist and a liar. 12. The second case the applicant relied upon was Drury v BHP Refractories Pty Ltd (1995) 62 IR 467. In that case, the applicant was a specialised refractory bricklayer. The applicant, Mr Drury, had a dispute with his superior, Mr Seston, about whether he should be paid for certain public holidays. Mr Drury told Mr Seston he was being "pigheaded" on 14 April and 21 April. A few days later, it seems that Mr Drury "raved more abuse and ... stormed off in his usual manner". On 28 April, Mr Drury told Mr Seston he was "being fucking pigheaded". As he walked away, Mr Drury told Mr Seston "to go and get fucked". Later that day, Mr Drury again told Mr Seston that he "was being fucking pig-headed". On 29 April, Mr Drury said to
Mr Seston, said "no wonder your fucking wife left you". 13. In these circumstances, Wilcox CJ, (in the Industrial Relations Court of Australia) said at 473: * Having said all this, the fact remains that Mr Drury 's behaviour was unacceptable. I agree with Mr Raymond that it did not constitute "serious misconduct", warranting instant dismissal. But it was behaviour that went beyond even the "give and take" atmosphere of a modern Australian workplace. It was disruptive behaviour that called into question the authority of the person who was in charge of the project. If continued after a clear warning, it was conduct that constituted a valid reason, connected with the operational requirements of the project, for Mr Drury 's termination: see s.170DE(1) of the Act. And, if the conduct continued after the written warning of the morning of
29 April, the termination would not have been harsh, unjust or unreasonable; see s.170DE(2). * However, Mr Drury did not continue his abuse of Mr Seston between the giving of that warning and his termination. Perhaps he would have done so, sooner or later, if not dismissed. But the fact is that, even on Mr Seston's account of the matter, Mr Drury made no derogatory, abusive or intimidatory statements to Mr Seston between the time he was given the written warning and the time that Mr Seston terminated him. Mr Drury did continue to press his claim for the two days' pay, both with Mr Fox and in his subsequent conversation with
Mr Seston. But he was entitled to do this. The warning notice did not enjoin him from that course; nor could it reasonably have done so. The unacceptable aspect of Mr Drury 's behaviour was not the pressing of his claim for the two days pay, whether or not the claim was well-founded, but his doing so in an abusive and insubordinate manner. Mr Seston seems to have overlooked this distinction in deciding to terminate Mr Drury on the afternoon of 29 April. He seems to have regarded his action in pressing his claim as conduct that defied the morning's warning. It was not. To dismiss Mr Drury at that time, when he had not acted in defiance of the warning was to breach s.170DE(2) of the Act; the termination was, in the circumstances, harsh, unjust or unreasonable. I agree with the Judicial Registrar that the termination was invalid for substantive unfairness. ... 14. The respondent argued that there was insufficient evidence to justify the applicant calling Mr Chapman a liar. The material the applicant said he relied upon as at 12 August 2011 was somewhat confused. It concerned some statements about some buns and some rubbish bins. However, as the findings in this case show, Mr Chapman lied to the court. It is not unlikely that he has lied on less significant occasions as well. I consider that the applicant, based on is own experience, reasonably thought Mr Chapman was a liar as at 12 August 2011. Whether the applicant should have called Mr Chapman a liar is another matter. 15. In relation to the claim of racism, the evidence was equivocal. The applicant claimed that Mr Chapman had got rid of Mark, the chef at Cheltenham Manor, because, like the applicant, he was Sri Lankan.
Mr Chapman said that Mark wanted to go on extended leave without pay. The facility was unable to accommodate that request and Mark's employment was terminated after he failed to attend work. I accept that evidence. It strikes me as plausible. 16. In the absence of any other alleged instances of racism on the part of Mr Chapman, and in view of the number of other staff at Greenwood Manor who seem to belong to races other than Mr Chapman's, I do not accept the applicant's claim that Mr Chapman is a racist. However, having heard the applicant give evidence, I do accept that he genuinely believed on 12 August 2011, and still believes, that Mr Chapman is a racist. 17. The respondent argued that, whether true or not, the names that the applicant called Mr Chapman were subversive, insubordinate, and warranted instant dismissal. The respondent relied on Macken's Law of Employment, Seventh Edition, Lawbook Co, 2011 at [8.340]. That paragraph reads as follows: * Insulting or objectionable language * The use of insulting or objectionable language may constitute misconduct.321 The standard is not that of the dainty and the genteel but the standard applying in the 'give and take atmosphere' of the modern workplace.322 If abusive language is common at the workplace its use by an employee would not normally be regarded as sufficiently serious to warrant dismissal323 unless it is directed to challenging the authority of a supervisor.324 This is on the basis that abuse may justify dismissal where it interferes with the proper performance of the employment.325 Insult is very often coupled with disobedience and insolence and rarely is there a single act but usually a course of conduct culminating in a final showdown. Illustrative is the case of Pepper v Webb326_, where the plaintiff was employed as a gardener. Over a period of three months, his work deteriorated and he became inefficient. On the day of dismissal he was directed to put in some plants, which he refused to do retorting 'I couldn't care less about your bloody greenhouse and your sodding garden'. Although viewed singly his conduct would not have justified dismissal, the course of misconduct was held to be sufficiently serious to justify immediate dismissal._
321 The employer bears the onus of establishing that the alleged conduct occurred and that the circumstances in which it occurred rendered the conduct offensive: Connor v Grundy Television Limited [2005] VSC 466 (30 November 2005, Osborn J) at [63] - [65].
322 Drury v BHP Refractories Pty Ltd (1995) 62 IR 467 at 473 (standard of language in the building industry); Jupiter General Insurance Co Ltd v Ardeshir Bomanji Shroff [1937] 3 All ER 67 at 74. See also Bondi Bowling Club Ltd v Federated Liquor and Allied Industries Employees Union (1972) 14 AILR 132. (Reinstatement granted after dismissal for abusive language. Superior could not object to abuse after encouraging the employee to speak "person to person" to him in private.)
323 Boilermakers and Blacksmiths Society of Australia v BHP Co Ltd;
Re Dowling noted (1968) 10 AILR 37 (claim for reinstatement upheld). Compare Farley v Lums (1917) 19 WALR 117.
324 John Lysaght (Australia) Pty Ltd v Federated Ironworkers Association (1973) 15 AILR 323; Byrnes v Treloar (1997) 77 IR 332.
325 Brooks, Contracts for the Performance of Work, An Examination of the Supposed Differences between Contracts of Service and Contracts for Services (AULSA Conference, Sydney, 1988).
326 Pepper v Webb [1969] 1 WLR 514; compare Wilson v Racher [1974] ICR 428 (Court of Appeal).
Mr Chapman were not obscene, they were nevertheless very hurtful, offensive, subversive, insubordinate and warranted instant dismissal. The respondent also noted that the applicant has never apologised to Mr Chapman for his offensive language. Moreover, the respondent said that the applicant was insubordinate on 30 June 2011, when he loudly and aggressively told Mr Chapman to keep out of his kitchen. The applicant denied that. 2. In view of my findings about Mr Chapman's evidence in relation to his letter dated 12 August 2011 and in view of my findings about the applicant's denial in oral evidence that he had called Mr Chapman a racist, I do not accept that either of them was an entirely truthful witness. I accept that the applicant told Mr Chapman to keep out of his kitchen. I consider that the applicant, mistakenly, considered that he was absolutely in charge of everything that happened in the kitchen. However, I do not believe that he went as far as Mr Chapman said. I do not consider that the exchange on 30 June 2011 can properly be regarded as an example of intimidating or bullying behaviour. 3. The respondent also argued that it was entitled to summarily dismiss the applicant because he refused to answer the questions that Mr McMahon put to him in the letter dated 22 August 2011. The applicant made it clear in cross examination that he had had no intention in August 2011 of answering those questions. He did not suggest that he needed more time or that he needed legal advice before answering them. 4. The respondent relied on the following passages from pages 244 and 245 of Macken: * An obligation to answer questions seems to arise out of the contract of employment, but is, like all implied terms, subject to modification by statute or express agreement. * ... * A failure to answer questions which an employee is properly required to answer could be so serious as to render the employee liable to dismissal. In Associated Dominions Assurance Society v Andrew Herron J said766 that a duty lies upon an employee in general terms to give information to the employer such as: * is within the scope of his employment and which relates to the mutual interest of employer and employee. If an employee is requested at the proper time and in reasonable manner to state to his employer facts concerning the employee's own actions performed as an employee ... generally speaking [the employee is bound] to make such disclosure ... Questions asked relating to the employee's activities could be so reasonable and fair that to refuse the information may well be disobedience justifying dismissal. * 766 Associated Dominions Assurance Society Ltd v Andrew (1949) 49 SR (NSW) 351 at 357-358. An employee is required to answer honestly when asked whether they or other employees are planning to leave and join a competitor Kynixa Ltd v Hynes [2008] EWHC 1495 at [271] - [276]. 5. However, Macken contains some other pertinent passages that the respondent did not rely on, also at pages 244 and 245, namely: * The suggestion in Sybron that an employee may have to answer questions even at the risk of self-incrimination759 requires some qualification, at any rate if their Lordships meant by that phrase exposure to the risk of criminal prosecution. Generally speaking, individuals are not required to incriminate themselves.760 Thus although disciplinary "offences" under a public sector statute are not criminal offences, it has been held that the privilege against self-incrimination can apply to questions in respect of them761 and so an employee may not be obliged to answer such questions unless statute requires to the contrary. The New South Wales Industrial Commission held that an order requiring employees of the fire service to incriminate themselves would not be a lawful order.762 But the protection against self-incrimination can be excluded by statute or regulation; whether or not it has been excluded will depend on the terms of the legislation.763 When so excluded, it can indeed go so far as to require an employee to answer even if to do so might expose her or him to disciplinary action under statutory provisions,764 or even to criminal sanctions.765 * ... * However, an untrue statement made by an employee who is obliged to answer, say pursuant to the contractual obligation or by statute, will not necessarily justify dismissal because of its untruth, as where the employee is being called to answer serious but extravagantly inaccurate allegations against her or him and where the untruth relates to her or his own actions and does not falsely implicate any other person. 767
759 Sybron Corp v Rochem [1984] 1 Ch 112 at 126 per Stephenson LJ.
760 Reid v Howard [1995] HCA 40; (1995) 184 CLR 1 at 14: "There is simply no scope for an exception to the privilege, other than by statute." Note Murray Irrigation Ltd v Balsdon [2006] NSWCA 253; (2006) 67 NSWLR 73 (special leave to appeal to HC dismissed) (contractual duty to answer questions which may have incriminated but dismissal for refusal to answer questions was harsh, unjust or unreasonable in breach of the applicable enterprise agreement).
761 Police Service Board v Morris and Martin [1985] HCA 9; (1985) 156 CLR 397 at 403 per Gibbs CJ; at 408 per Wilson and Dawson JJ; at 411 per Brennan J; Murphy J contra. Rich v Australian Securities & Investments Commission [2004] HCA 42; (2004) 220 CLR 129 at [127]; Borland v NSW Deputy State Coroner [2006] NSWSC 2002; Valantine v Technical and Further Education Commission [2007] NSWCA 208.
762 Re Dispute - Board of Fire Commissioners; Re Reports [1971] AR (NSW) 615 at 618; Pieter Lips v Supercheap Auto Pty Ltd [2004] WAIRComm 12089; Gardiner v Bluescope Steel (Ais) Pty Ltd [2005] NSWIRComm 1034.
763 Police Service Board v Morris and Martin [1985] HCA 9; (1985) 156 CLR 397 following Pyneboard Pty Ltd v Trade Practices Commisson [1983] HCA 9; (1983) 152 CLR 328 and Sorby v Commonwealth [1983] HCA 10; (1983) 152 CLR 281. Some legislation may give limited protection, see, eg Occupational Health and Safety Act 2000 (NSW), s 65; Occupational Health and Safety Act 2004 (Vic), s 154 and see Johnstone, Occupational Health and Safety Law and Policy, Text and Materials (2nd ed, LBC, 2004), pp 392-393.
764 Police Service Board v Morris and Martin [1985] HCA 9; (1985) 156 CLR 397.
765 Scanes v Wilson (sub nom Commissioner of Police) (1974) 22 FLR 262 at 265, applying R v Travers (1957) 74 WN (NSW) 484.
767 Scanes v Wilson (1974) 22 FLR 262; Murray Irrigation Ltd v Balsdon [2006] NSWCA 253; (2006) 67 NSWLR 73 (unfair dismissal). Contrast McDonald v Parnell Laboratories (Aust) [2007] FCA 1903 at [55] (intentionally misleading answers regarding attendance at work).
Claim 3: adverse action: dismissal and change of hours
12 August 2011; and 2. in the applicant's letter dated 16 August 2011. 6. However, in closing submissions, the applicant did not press the alleged complaint to Ms Doran and relied only on the alleged complaint about the reduction in working hours. The applicant said that his complaint was oral on 12 August 2011, and was confirmed in writing in his letter dated 16 August 2011. In that letter, the applicant said he accepted the reduction in his working hours but formally protested against the change. 7. The respondent disputed that there was any complaint. The respondent said that the applicant simply abused Mr Chapman at the meeting on 12 August 2011, calling him a racist and a liar, and did not make any complaint at all. The respondent argued that the applicant's letter dated 16 August 2011 was not a complaint but an acceptance of the change of hours, even though the applicant used the words "I accept under strong protest". 8. The applicant did not give any evidence to the effect that, at the meeting, he said words to the effect of: * I complain about the reduction in my hours; or * I object to the reduction in my hours. 9. I find that the applicant did not use any such words at the meeting on 12 August 2011. However, I consider that the applicant, by the words that he did use and by his conduct, implicitly but clearly complained at the meeting on 12 August 2011 about the reduction in his working hours. I consider that an implicit but clear complaint is sufficient for the purposes of s.341(1)(c)(ii) of the Act. 10. Moreover, the applicant's letter of 16 August 2011 was undoubtedly a complaint about the reduction in his working hours. It is true that the applicant accepted the reduction in working hours. However, he did so "under strong protest". That was clearly a complaint. 11. The question then is whether Mr McMahon dismissed the applicant because he complained about the reduction in his working hours. Subsection 361(1) of the Act provides that: * (1) If: * (a) in an application in relation to a contravention of this Part, it is alleged that a person took, or is taking, action for a particular reason or with a particular intent; and * (b) taking that action for that reason or with that intent would constitute a contravention of this Part; * it is presumed, in proceedings arising from the application, that the action was, or is being, taken for that reason or with that intent, unless the person proves otherwise. 12. That is, it is for the respondent to prove that it dismissed the applicant for reasons other than the impugned reason. 13. Section 360 of the Act provides that: * For the purposes of this Part, a person takes action for a particular reason if the reasons for the action include that reason. 14. That is, if the respondent had a number of reasons for dismissing the applicant, the respondent will have breached s.340 of the Act if any one of those reasons was a prohibited reason. A majority in Barclay and Another v Board of Bendigo Regional Institute of Technical and Further Education (2011) 191 FCR 212; (2011) 274 ALR 570; (2011) 203 IR 312; [2011] FCAFC 14[332] said at [27] and [28]: * The central question under s 346 is why was the aggrieved person treated as he or she was? If the aggrieved person was subjected to adverse action, was it "because" the aggrieved person did or did not have the attributes, or had or had not engaged or proposed to engage in the industrial activities, specified by s 346 in conjunction with s 347? * The determination of those questions involves characterisation of the reason or reasons of the person who took the adverse action. The state of mind or subjective intention of that person will be centrally relevant, but it is not decisive. What is required is a determination of what Mason J in Bowling (at 241; 617) called the "real reason" for the conduct. The real reason for a person's conduct is not necessarily the reason that the person asserts, even where the person genuinely believes he or she was motivated by that reason. The search is for what actuated the conduct of the person, not for what the person thinks he or she was actuated by. In that regard, the real reason may be conscious or unconscious, and where unconscious or not appreciated or understood, adverse action will not be excused simply because its perpetrator held a benevolent intent. It is not open to the decision-maker to choose to ignore the objective connection between the decision he or she is making and the attribute or activity in question. 15. In General Motors Holden Pty Ltd v Bowling (1976) 51 ALJR 235; 12 ALR 605, Mason J (as his Honour then was) said at 617 - 618: * It is to my mind a very considerable leap forward to say that this finding in itself is a comprehensive expression of the reasons for dismissal and that they were dissociated from the circumstance that the respondent was a shop steward. No doubt this is an advance which could be made if officers of the appellant had said in evidence: "We dismissed him because he was a troublemaker, because he was deliberately disrupting production and setting a bad example and we did so without regard at all to his position as a shop steward", and that evidence had been accepted. Yet this evidence was not given and, even if it had been given, there may have been a question as to its reliability. Once it is said that the appellant dismissed him because he was deliberately disrupting production and was setting a bad example it is not easy to say without more that this had nothing to do with his being a shop steward. Although the activities in question did not fall within his responsibilities as a shop steward his office gave him a status in the work force and a capacity to lead or influence other employees, a circumstance of which the appellant could not have been unaware. It would be mere surmise or speculation, unsupported by evidence, to suppose that the appellant's management, if concerned as to the bad example he was setting, divorced that consideration from the circumstance that he was a shop steward. 16. The respondent argued that it dismissed the applicant for the reasons set out in Mr McMahon's letter dated 22 August 2011, most notably, the bullying in the workplace. The respondent said that the reasons for dismissal did not have to be good or fair in an adverse action claim. The only question is, what were the real reasons? The respondent submitted that the complaint about a reduction in hours could not have been the reason for the applicant's dismissal because the applicant in fact accepted that reduction. The respondent argued that the reason for the dismissal was not the complaint, if there was one, but the applicant's intemperate and aggressive behaviour. 17. The respondent relied on Khiani v Australian Bureau of Statistics [2011] FCAFC 109 at [31] where the Full Court said: * These submissions demonstrate the failure of the appellant to understand the nature of Pt 3-1 of the Fair Work Act. A general protections application is not intended to provide an opportunity for the appellant to raise whatever issues she wishes to about the validity of the steps taken before her dismissal. The crucial issue in such an application is the causal relationship between adverse action and one or more of the factors mentioned in the various provisions of Pt 3-1. The issue is whether the person who has taken the adverse action has done so because the person against whom the adverse action has been taken has one or more of the relevant characteristics or has done one or more of the relevant acts. In the present case, the question is whether the respondent has taken adverse action against the appellant because she had a workplace right to be on sick leave, or because she had exercised that right. 18. The respondent also relied upon George v Northern Health (No. 3) [2011] FMCA 894 at [91], where O'Sullivan FM said: * Mr Carter's evidence could not have been more definitive. It was to the effect that any complaint or inquiry made by the applicant played no part in (the decision to or) the termination of the applicant's employment. The evidence given by Mr Carter was unequivocal on this issue and I accept it as to the real and operative reason. I am satisfied the decision to terminate was 'dissociated' from any complaint or inquiry made by the applicant. (citation omitted) 19. There was no doubt that the decision to terminate the applicant's employment was taken by Mr McMahon. It was put to Mr McMahon in cross examination that if the applicant complained about
Mr Chapman, Mr McMahon would not have the applicant in his business. Mr McMahon answered: * Well, that's a ridiculous notion. I mean, I desperately am in need of chefs, they are hard to find; it was one of the more disappointing days that I had on 15 August when I arrived at the business and found the other things. We are desperately short of chefs and nurses in our industry. I had had reasonable feedback from this particular chef over the previous four years and I did not want to lose a chef.[333] 20. It was put to Mr McMahon that he had manufactured a redundancy for the applicant. Mr McMahon said he disagreed with that proposition "absolutely". [334] 21. Mr McMahon accepted in oral evidence that the applicant was entitled to complain about his reduced working hours and was entitled to have no adverse action taken against him by reason of the complaint. Mr McMahon said: * I never took any action against him with respect to the complaint. But it wasn't a complaint. It was a diatribe against the managers. And I do have an issue with the way he carried on.[335] 22. Mr McMahon also said in relation to the applicant and the meeting on 12 August 2011: * he'd just exploded in a most unseemly manner.[336] 23. It was put to Mr McMahon that he had made up his mind on
16 August 2011 that the applicant had to go and the gathering of written complaints about the applicant's bullying was just window dressing or a charade. Mr McMahon said in relation to various ways this was put that the allegation was "wrong", "we will agree to disagree" and "that is dead incorrect"[337]. Mr McMahon denied that he had exaggerated the seriousness of the bullying allegations and said the suggestion of exaggeration was "very objectionable"[338]. 24. The reasons for the applicant's termination that were given in
Mr McMahon's letter dated 25 August 2011 were explained as follows: * I confirm that I have reread the written statements about your conduct and written down the corroborated evidence. That is, the evidence about which there is more than one person writing about an event or a sequence of events. Using this method I find the following: * 1. You received clear training about what constitutes bullying and the consequences of such behaviour. * 2. That you have been seriously intimadatory (sic) to many of the female staff working in the kitchen. I find cases of verbal and physical intimidation against you. I also find periods of time when you refused to talk to other staff for lengthy periods of time. * 3. I find that you did alter job descriptions of kitchen staff without seeking management approval. * 4. I find that you did abuse your manager repeatedly by calling him a racist and a liar. * 5. I also find your intimadatory (sic) behaviour and abuse towards your manager demonstrates a pattern of such behaviour towards others. * 6. I have also viewed the false written documents signed by yourself in respect of at least 2 incidents. * In our view the conduct that you have carried on with amounts to serious misconduct as defined in the Fair Work Act. * For these reasons I have decided to terminate your employment at Greenwood Manor. I will ask Lyndal to finalise your pay directly on the next pay period. 25. The applicant argued that the reasons for termination set out in the letter dated 25 August 2011 were not the real reasons for the applicant's termination. The applicant argued that his complaint about the reduction in his hours caused the respondent to do a U-turn, from wanting the applicant to continue working at Greenwood Manor, albeit with reduced hours, to wanting the applicant to leave entirely. 26. The applicant emphasised that the respondent had been satisfied with his work performance up to 12 August 2011, and the only thing that changed on that date is that the applicant complained about his reduced hours. In particular, the applicant noted that Mr McMahon's letter dated 16 August 2011 referred to "the events of last Friday". The applicant said the relevant event was the applicant's complaint about his reduced working hours. 27. To say that Mr McMahon meant the applicant's complaint about reduced working hours when he said "the events of last Friday" is disingenuous. The "events of last Friday", as Mr McMahon described them in his letter of 25 August 2011, were: * 4. I find that you did abuse your manager repeatedly by calling him a racist and a liar. * 5. I also find your intimadatory (sic) behaviour and abuse towards your manager demonstrates a pattern of such behaviour towards others. 28. Mr McMahon described the events of 12 August 2011 in his letter dated 16 August 2011 in the following terms: * You are probably aware that I was on holidays for the bulk of last week. When I returned to duty on Monday, I received a report from Amanda about the events of last Friday. Let me comment upon those events first: * 1. It is alleged that you verbally assaulted one of your managers in a most violent way. * 2. Among other matters, it is alleged that you accused Neville of being "a racist" and "a liar" on numerous occasions in front of witnesses. * 3. It is alleged that you were extremely aggressive. * You at least apologised to Amanda for some of your behaviour. I must say that I was extremely disappointed by this report of your poor behaviour. You have possibly left yourself open to defamation and an anticipated violence order to be taken out against you. However, it will not be up to me as to whether such action is taken against you. 29. In Mr McMahon's letter dated 22 August 2011, he referred to the events of 12 August 2011 in the following terms: * 2. Bullying with respect to your supervisors * In this area I want specific reasons as to why you called your Manager "a rascist" (sic), "always been a rascist" (sic), "just a complete rascist" (sic) etc. * I also want you to explain why you called your Manager a "liar" / "complete liar". * I also want you to explain why you felt a need to try and physically intimidate your Managers. I also want you to explain why you felt the need to be extremely aggressive. 30. In none of Mr McMahon's written statements about the events of
12 August 2011 did he refer to the applicant's complaint about his reduced working hours. I do not accept the applicant's contention that, when Mr McMahon referred to "the events of last Friday", he meant the applicant's complaint about his reduced working hours. Having seen Mr McMahon give evidence, I consider that he was referring to what he understood to be a serious verbal assault on his two most senior staff. The fact that "the events of last Friday" might technically have included an implicit complaint about the reduction in the applicant's working hours does not mean that Mr McMahon saw the complaint as a significant part of the exchange between the applicant and Mr Chapman and Ms Muir on 12 August 2011. 31. The applicant argued that the "investigation" by Mr McMahon about the alleged bullying by the applicant was a charade. The applicant argued that Mr McMahon had solicited complaints about bullying from staff members to accumulate evidence to justify dismissal. The applicant relied upon Howard v Pilkington (Australia) Ltd [2008] VSC 491 at [139] where Judd J said: * In my view Pilkington cannot avoid the consequence of their full knowledge of the alleged breaches by explaining their conduct as part of an investigation. A genuine investigation may excuse an employer from acting promptly to dismiss an employee if the investigation was necessary to properly inform the employer of the true character or extent of the employee's conduct. That is not this case. In my view the investigation was a managed process, designed to accumulate material to justify Mr Howard's early termination. Mr Kruger's written interrogation of Mr Howard was demonstrated to be a charade, designed to justify his dismissal for failure to co-operate. This is no doubt why Pilkington did not rely upon Mr Howard's responses as a justification. 32. The applicant argued that Mr McMahon's evidence about how the investigation came about was unconvincing. That evidence was primarily the following: * You then went back to Ms Muir by phone or in person?---No, the next event was that the lady at the front desk who also is the assistant activities coordinator, came up and spoke to me and asked me to come and see her privately which I did. I dealt with the resident first and then she came and discussed things with me privately. She said that I needed to know some further facts about what had been going on in the facility in the previous weeks and months and I said, "Okay, no problem", so I went and had those discussions and she alluded to the fact that the staff in the kitchen were being the subject of bullying and had been for some months, that she had observed Nish yelling abuse at one of the kitchen-hands and standing over her with her back and she's crying and into the kitchen. She had observed quite a number of other things and she went through a list of those with me, I - yes. And I was genuinely appalled because I was greatly concerned about the residents at the time, we had to ensure their meals. At the same time, we have to ensure the safety of our staff and it was then that I knew that there was an issue running in the facility that needed a little more examination.
I certify that the preceding one hundred and fifty-two (152) paragraphs are a true copy of the reasons for judgment of Riley FM
[324] Exhibit NR-7 to the affidavit of Nishamal Ratnayake sworn 10 February 2012.
[325] Exhibit NR-4 to the affidavit of Nishamal Ratnayake sworn 10 February 2012.
[327] Exhibit NR-8 to the affidavit of Nishamal Ratnayake sworn 10 February 2012.
[328] Exhibit NR-12 to the affidavit of Nishamal Ratnayake sworn 10 February 2012.
[330] Rankin v Marine Power International Pty Ltd [2001] VSC 150 at [250] per Gillard J.
[331] Labour Law, Fifth Edition, Creighton and Stewart, Federation Press, 2010 at [18.26].
[332] The High Court is currently reserved in an appeal from this decision. Neither party considered that it was necessary or desirable for the decision in the present matter to await the outcome of the appeal.
[335] Transcript, page 123 lines 41 to 43
[339] Transcript, page 115, line 37 to page 116 line 33.
Ratnayake
Greenwood Manor Pty Ltd [2012] FMCA 350
Barclay and Another v Board of Bendigo Regional Institute of Technical and Further Education (2011) 191 FCR 212; (2011) 274 ALR 570; (2011) 203 IR 312; [2011] FCAFC 14
Carter v Dennis Family Corporation [2010] VSC 406
George v Northern Health (No.3) [2011] FMCA 894
Howard v Pilkington (Australia) Ltd [2008] VSC 491
Khiani v Australian Bureau of Statistics [2011] FCAFC 109
National Tertiary Education Industry Union v Central Queensland University [2008] FCA 481
National Tertiary Education Industry Union v Central Queensland University [2007] AIRC 537
Piddlington v Lilock Pty Ltd (T/A Glenhuntly Private Nursing Home) [1996] IRCA 445 (5 September 1996)
(1985) 156 CLR 397
(2004) 220 CLR 129
(1976) 12 ALR 605
(1997) 77 IR 332
(2011) 274 ALR 570
(2011) 203 IR 312
(1976) 51 ALJR 235
(1995) 184 CLR 1
(2006) 67 NSWLR 73
(1983) 152 CLR 328
(1974) 22 FLR 262
(2011) 191 FCR 212
(1995) 62 IR 467
(1983) 152 CLR 281