[2021] QIRC 229
General information, not legal advice.
Queensland Industrial Relations Commission
2021-06-28
Original judgment source is linked above.
(a) the steps it has taken to comply with the terms of the exemption;
(b) the number of persons affected by the exemption, the nature of the effects and the steps taken to redress any adverse effects; and
(c) the implementation of and compliance generally with the terms of the exemption.
(a) a person, on the person's own behalf, or on behalf of the person and another person or other people; or
(b) 2 or more people, on their own behalf, or on behalf of themselves and another person or other people; or
(c) a person or people included in a class of people on behalf of the people in that class;
may grant an exemption to the person, people or class of people from the operation of a specified provision of the Act.
See also section 174C in relation to the tribunal's powers for deciding the application.
(a) may be granted subject to such terms as the tribunal provides; and
(b) may be granted so that it applies only in such circumstances, or in connection with such activities, as the tribunal determines; and
(c) is to be granted for a specified period of not more than 5 years.
(7) An exemption under subsection (1) may be renewed for further periods of not more than 5 years, on application by the person or people to whom, or in respect of whom, the exemption was granted.
(b) whether there are non-discriminatory ways of achieving the objects or purposes for which the exemption is sought;
(c) whether the exemption is in the community interest;
(d) whether any other person or body, other than the applicant, support the application;
(e) whether it is reasonable and appropriate to grant the exemption; and
The HR Act
(a) requiring public entities to act and make decisions in a way compatible with human rights;[14] and
(b) requiring courts and tribunals to interpret statutory provisions, to the extent possible that is consistent with their purpose in a way compatible with human rights.[15]
The determination of existing rights and liabilities has been accepted as the defining characteristic of the judicial function. Put another way, the exercise of judicial power is giving a binding and authoritative determination between different parties as to their legal rights and duties according to existing legal principles. On the other hand, the general distinction between legislation and the execution of legislation is that legislation determines the content of a law as a rule of conduct or a declaration as to power, right or duty, whereas executive authority applies the law in particular cases. The exercise of statutory power, neither legislative nor judicial in character, is most likely administrative in character, it being a category of power applicable to executive or governmental decision-making generally.
Section 447(1)(p) of the Industrial Relations Act 2016 provides that the Commission's functions include any other function conferred on the Commission under that Act or any other Act. Section 174B of the Act provides:
174B Functions of industrial relations commission
The industrial relations commission has the following functions -
(a) in relation to complaints about contraventions of this Act that are referred, or to be referred, to the commission under this Act -
(i) to make orders under section 144 before the complaints are referred to the tribunal; and
(ii) to review decisions of the commissioner under section 169 about lapsing of the complaints; and
(iii) to enforce agreements for resolution of the complaints by conciliation; and
(b) to grant exemptions from this Act in relation to work-related matters;
(c) to provide opinions about the application of this Act in relation to work-related matters;
(d) any other function conferred on the commission by this Act;
(e) to take any other action incidental or conducive to the discharge of a function mentioned in paragraphs (a) to (d).
Some the functions conferred on the Commission by s 174B clearly involve the exercise of judicial power. For example, the power to hear and decide complaints of unlawful discrimination made under the Act involves the making of a binding and authoritative determination between different parties as to their legal rights and duties according to existing legal principles.
By contrast, the function of granting an exemption from the Act in relation to work related matters does not involve the exercise of judicial power because it does not involve making a binding and authoritative determination between different parties as to their existing legal rights and liabilities. Furthermore, the granting of an exemption in relation to work-related matters does not involve the exercise of legislative power because it does not involve a determination of the content of a law as a rule of conduct and does not involve making a declaration as to power, right or duty.
Section 58 of the HR Act applies
(a) to act or make a decision in a way that is not compatible with human rights; or
(b) in making a decision, to fail to give proper consideration to a human right relevant to the decision.
(5) For subsection (1)(b), giving proper consideration to a human right in making a decision includes, but is not limited to -
(c) identifying the human rights that may be affected by the decision; and
(d) considering whether the decision would be compatible with human rights.
(a) an act or decision of a public entity is not invalid merely because, by doing the act or making the decision, the entity contravenes subsection (1); and
(b) person does not commit an offence against this Act or another Act merely because the person acts or makes a decision in contravention of subsection (1).
(1) Every person has the right to recognition as a person before the law.
(2) Every person has the right to enjoy the person's human rights without discrimination.
(3) Every person is equal before the law and is entitled to the equal protection of the law without discrimination.
(4) Every person has the right to equal and effective protection against discrimination.
(5) Measures taken for the purpose of assisting or advancing persons or groups of persons disadvantaged because of discrimination do not constitute discrimination.
(a) not to have the person's privacy, family, home or correspondence unlawfully or arbitrarily interfered with; and
(b) not to have the person's reputation unlawfully attacked.
An act, decision or statutory provision is compatible with human rights if the act, decision or provision -
(b) limits a human right only to the extent that is reasonable and demonstrably justifiable in accordance with section 13.
(1) A human right may be subject under law only to reasonable limits that can be demonstrably justified in a free and democratic society based on human dignity, equality and freedom.
(2) In deciding whether a limit on a human right is reasonable and justifiable as mentioned in subsection (1), the following factors may be relevant -
(b) the nature of the purpose of the limitation, including whether it is consistent with a free and democratic society based on human dignity, equality and freedom;
(c) the relationship between the limitation and its purpose, including whether the limitation helps to achieve the purpose;
(d) whether there are any less restrictive and reasonably available ways to achieve the purpose;
(e) the importance of the purpose of the limitation;
(f) the importance of preserving the human right, taking into account the nature and extent of the limitation on the human right;
(g) the balance between the matters mentioned in paragraphs (e) and (f).
Section 48 of the HR Act applies
(1) This Act binds all persons, including the State and, to the extent the legislative power of the Parliament permits, the Commonwealth and the other States.
(a) a court or tribunal, to the extent the court or tribunal has functions under part 2 and part 3, division 3; and
(b) the Parliament, to the extent the Parliament has functions under part 3, divisions 1, 2 and 3; and
(c) a public entity, to the extent the public entity has functions under part 3, division 4.
(3) Subsection (2) does not limit or otherwise affect -
(a) another function conferred by this Act on an entity mentioned in the subsection; or
(b) a function conferred by this Act on any other entity.
(4) Nothing in this Act makes the State liable to be prosecuted for an offence.
(1) All statutory provisions must, to the extent possible that is consistent with their purpose, be interpreted in a way that is compatible with human rights.
(2) If a statutory provision can not be interpreted in a way that is compatible with human rights, the provision must, to the extent possible that is consistent with its purpose, be interpreted in a way that is most compatible with human rights.
(3) International law and the judgments of domestic, foreign and international courts and tribunals relevant to a human right may be considered in interpreting a statutory provision.
(a) an Act or provision of an Act that is not compatible with human rights; or
(b) a statutory instrument or provision of a statutory instrument that is not compatible with human rights and is empowered to be so by the Act under which it is made.
(5) This section does not apply to a statutory provision the subject of an override declaration that is in force.
(a) the onus rests with Leidos to establish that the exemption is necessary and that the genuine occupational exception in s 25 of the AD Act does not apply;
(c) the human rights relevant to the application are:
(d) some factors relevant to findings in Victorian decisions that the limitation of rights and granting of an exemption was justified are not present in this application including namely:
Genuine occupational requirement exemption - s 25 of the AD Act
... an inherent requirement is something that is essential to the position. And certainly, an employer cannot create an inherent requirement for the purposes of s 170DF(2) by stipulating for something that is not essential or, even, by stipulating for qualifications or skills which are disproportionately high when related to the work to be done. But if a requirement is, in truth, essential, it is irrelevant that it derives from the terms of the employment contract or from the conditions governing the employment relationship.
In some cases the distinction between the inherent requirements of a particular position and those of a particular job, although subtle, may be material. This is often likely to be the case where qualifications are concerned, particularly those qualifications that are not concerned with the physical or mental capacity to perform the tasks involved in the position. Thus to be an American born citizen is an inherent requirement of the position of President of the United States, but it is not an inherent requirement of the "job" of President if that term refers to the work done by the President.
... an inherent requirement is something that is essential to the position. And certainly, an employer cannot create an inherent requirement for the purposes of s 170DF(2) by stipulating for something that is not essential or, even, by stipulating for qualifications or skills which are disproportionately high when related to the work to be done. But if a requirement is, in truth, essential, it is irrelevant that it derives from the terms of the employment contract or from the conditions governing the employment relationship.
'Inherent' has been interpreted to mean 'existing in something as a permanent attribute or quality; forming an element, especially an essential element of something; intrinsic, essential'. In this context, that which is essential to the performance of a particular position must be regarded as an inherent requirement of that position.
There are no general or specific exemptions that apply. It might conceivably be argued that the exemption in section 25 of the Act applies, namely that it is a 'genuine occupational requirement' that employees be of the appropriate nationality. However that would be an argument with significant difficulty. Firstly, 'genuine occupational requirement' has been interpreted narrowly. In this case, the problem arises because of the application of foreign law to the work. There is no issue concerning the employees' ability to carry out the inherent requirements of the roles. These requirements are not 'occupational' - rather they are legislative.
Secondly, the operation of the 'genuine occupational requirements' exemption becomes even more difficult in relation to the exclusion of employees from jobs where they might not be directly required to come into contact with controlled information but, because of where they are required to work, there is an unacceptable risk of accident or involuntary 'transfer'.
There is certainly an arguable case that if the applicants take the steps outlined to meet the ITAR and EAR, there will be a breach of the Act.
The effect of the ITAR amendments is that a company such as the applicant may request that its workforce obtain a Personnel Security Clearance or it can undertake an internal screening process in relation to a person without such a Clearance. The screening process is used to determine the person's substantive contacts with proscribed countries or persons referred to in the amendment. Where the person has a Personnel Security Clearance or passes the screening process, he or she may have access to Controlled Material.
... I concluded that the 2011 amendments were not sufficient to conclude that an exemption was no longer necessary under section 90 of the EO Act. That was because, the 2011 amendments still required the relevant company to seek nationality or national origin information. While the 2011 amendments might well mean that potential workforce members may more readily be employed in roles which require access to controlled materials by undertaking the screening process, that screening process of itself may be regarded as more intrusive than seeking only nationality and national origin information.
As discussed in Thales, it is apparent that, although there have been changes to the US export laws and efforts are being made to ameliorate their effects on employment practices in Australia (and so in Victoria), they are yet to obviate the need for an exemption. That is because, in respect of some workforce members and some controlled materials, there will continue to be a need to make decisions partly or entirely based on workforce members' nationality or national origin. Neither the 2011 amendment nor the other measures discussed above cover the field.
Application of the HR Act to this matter
What human rights may be affected by the granting of the exemption? - s13(2)
The nature of the human right - s 13(2)(a) of the HR Act
Equality before the law is the principle of the general application of the law and the equal treatment of all persons who come before the law, whether that is before a court or tribunal applying the law or before someone administering the law. It is directed to the application and administration of the law, not to the content of the law. Equality before the law is procedural, not substantive, in character. It gives no entitlement to laws of a particular content. It is a principle of universal application. Unlike the other components of s 8(3), it is not limited to unequal treatment that constitutes discrimination. Equality before the law proscribes arbitrary treatment, ie treatment devoid of objective justification, in the application and administration of the law.
The human right to equality before the law requires the tribunal to apply and administer the laws within its responsibility equally towards every person. In doing so it must not treat people arbitrarily (without objective justification).
The human right to equal protection of the law without and against discrimination expresses the fundamental value of substantive equality in the content and operation of the law. It protects the interests that all people have, as of right, in being equally protected by the law from discrimination, including protection from laws that are discriminatory in nature.
The nature of the purpose of the limitation - s 13(2)(b) of the HR Act
The relationship between the limitation and its purpose, including whether the limitation helps to achieve the purpose - s 13(2)(c) of the HR Act
Whether there are any less restrictive and reasonably available ways to achieve the purpose - s 13(2)(d) of the HR Act
The importance of the purpose of the limitation, the importance of preserving the human right and finding a balance between the two - s 13(2)(e)-(g) of the HR Act
Whether there are any non-discriminatory ways for achieving the objects or purposes for which the exemption is sought?
Whether the exemption is in the community interest
Whether any other persons or bodies other than the Applicant support the application
(a) significant financial and other penalties, including imprisonment, may be imposed on Leidos and on the US exporter of Controlled Materials to Leidos;
(b) in addition to imposing financial penalties, the US Department of State also has the power of "statutory debarment" under the US Arms Export Control Act for non-compliance with ITAR. Statutory debarment would prohibit Leidos from accessing Controlled Material for a specified period should it be found to be in breach of ITAR, which in turn, would prevent Leidos from performing the contracted works for defence.
(a) Inform applicants for employment or contract work in roles which require access to Controlled Material and are subject to permits, licenses, approvals or agreements made under US and Australian import and export control laws that they may be adversely affected by ITAR and EAR controls if they:
(ii) hold, or have held, dual nationality and/or citizenship from countries other than the US or Australia; or
(iii) hold permanent residency in a country or countries other than the US or Australia;
(iv) have substantive contacts with countries proscribed by section 126.1 or ITAR;
(b) Request and maintain records of information from Personnel who perform or may perform work on the Applicant's premises or offsite and who are subject to the Applicant's control and direction for positions related to projects which use Controlled Material, in relation to current citizenship, prospective citizenship, previous citizenships, permanent residency, race or nationalities, or substantiative contacts where such contacts are affiliated with countries proscribed by section 126.1 of ITAR, provided the request for information is limited to information for the purposes of paragraphs (c) to (l) below:
(c) Impose a condition of any offer of employment in roles which are likely to require access to Controlled Material that an applicant for those roles must, pursuant to ITAR, be authorised to access that Controlled Material, whether pursuant to an individual approved obtained from the US Department of State or otherwise;
(d) Take into account current citizenships, prospective citizenships, previous citizenships, permanent residency, race or nationalities, or substantive contacts of personnel where such contacts are affiliated with countries proscribed by section 126.1 of ITAR in determining whether those personnel may be offered a role or allocated work that involves access to Controlled Material;
(e) Maintain records of the current citizenships, prospective citizenships, previous citizenships, permanent residency, race and nationalities and substantive contacts of personnel who have or may have access to Controlled Material;
(f) Require personnel involved in projects which access Controlled Material to notify the Applicant of any change to their citizenship or permanent residency status, nationalities or substantive contacts;
(g) Restrict access to Controlled Material to particular personnel based on their current citizenships, prospective citizenships, previous citizenships, permanent residency, race or nationalities, or substantive contacts where such contacts are affiliated with countries proscribed by section 126.1 of ITAR;
(h) Record information relating to security clearances granted to personnel who are under the control and the direction of the Applicant in relation to work requiring access to Controlled Material;
(i) Impose limitations or prohibitions on access to Controlled Material on persons not authorised to access the Controlled Material;
(j) Maintain records of the current citizenships, prospective citizenships, previous citizenships, permanent residency, race or nationalities of persons who have or will have access to Controlled Material, with distribution limited to only those persons with a need to know, for the purposes of determining their ability to participate in a particular engagement.
(k) Establish security systems and access protocols that will prevent the unauthorised export or transfer (including re-export or re-transfer) of Controlled Material;
(l) Disclose, if and when required, current citizenships, prospective citizenships, previous citizenships, permanent residency, race or nationalities, or substantive contacts where such contacts are affiliated with countries proscribed by section 126.1 of ITAR, of the Applicant's personnel in Queensland to:
(iv) any other person or organisation for which, or on whose behalf, or at whose request the Applicant undertakes work in respect of which the Applicant has directly or indirectly an obligation not to transfer Controlled Material to persons of certain nationalities.
(a) "Act" means the Anti-Discrimination Act 1991;
(b) "Applicant" means Leidos Australia Pty Ltd (ACN 612 590 155)
(c) "Controlled material" means material (including equipment, technology, articles and services) and information (including classified or sensitive information and technical data) to which the security requirements apply;
(d) "EAR" means the Export Administration Regulations of the US;
(e) "ITAR" means the International Trafficking in Arms Regulations of the US;
(f) "Personnel" means the current and prospective workforce of the Applicant, including employees, contract workers, employees of contractors and candidates or applicants for these roles;
(g) "Security requirements" means any of the following:
(i) requirements of Australian or US laws, including but not limited to ITAR and EAR, including requirements of any permit, licence or approval granted, or agreement made, under those laws;
(ii) contractual requirements applying to the Applicant and relating to any of the requirements mentioned in subparagraph (i) above.
(a) it is necessary to enable the Applicant to obtain and maintain US export licenses and approvals or to perform contractual obligations which involve access to Controlled Material;
(b) the Applicant has taken all steps reasonably available to avoid engaging in conduct which would otherwise be in breach of sections 14, 15, 15A, 124 and 127 of the Act, including:
(i) reliance of ITAR exemptions, exceptions or other provisions, including section 126.18 of ITAR, where applicable;
(ii) where personnel are nationals or dual nationals of a country not approved for access to Controlled Material, then the Applicant will either request the US Department of State, or request the relevant export license holders to request the US Department of State to amend the relevant export licenses to enable those personnel to have access to Controlled Material, unless the Applicant, on reasonable grounds, determines that either:
(iii) in the event the US Department of State requires the Applicant to provide further information specific to an individual, then with the consent of the individual, the Applicant will work with the individual to supply all relevant information to the US Department of State so than an application for approval may be made in relation to that individual.
(a) the position will or is likely to require access to Controlled Material and that any individual occupying the position must be able to satisfy the ITAR-based requirements which may require specific authorisation for that individual to access Controlled Material; and
(b) if a candidate for the position is concerned as to whether or not they will satisfy the requirement in (a) above, the candidate should contact a nominated member of the Applicant's personnel who is able to provide relevant information, including information about the scope of the exemption and the candidate's individual rights.
(a) the steps it has taken to comply with the terms of the exemption;
(b) the number of persons affected by the exemption, the nature of the effects and the steps taken to redress any adverse effects; and
(c) the implementation of and compliance generally with the terms of the exemption.
[1] Race is defined in the Anti-Discrimination Act 1991 (Qld); Schedule 1 to include "colour, descent or ancestry, ethnicity or ethnic origin and nationality or national origin".
[2] Affidavit of Alison McPheat filed on 29 June 2020 and Affidavit of Alison McPheat filed on 14 October 2020.
[3] Affidavit of Alison McPheat filed 29 June 2020.
[4] ITAR controls the import and export of certain defence-related articles and services including technical data, listed on the US munitions list.
[5] EAR controls the import and export of commercial items and dual use items.
[6] Affidavit of Alison McPheat filed 29 June 2020.
[7] The Queensland Industrial Relations Commission is the Tribunal for the purposes of s 113 of the AD Act.
[8] Affidavit of Alison McPheat filed 7 October 2020.
[9] The maximum period allowable under the Anti-Discrimination Act 1991 (Qld), s 113(6)(c).
[10] Re: Kalwun Development Corporation Limited [2019] QIRC 141, [6].
[11] Exemption application re Boeing Australia Holdings Pty Ltd and Ors [2003] QADT 21.
[12] Human Rights Act 2019 (Qld), s 3.
[23] Exemption application re Boeing Australia Holdings Pty Ltd and Ors (No. 3) [2008] QADT 34; Chivers v State of Queensland (Queensland Health) [2014] QCA 141, [57].
[24] Qantas Airways Ltd v Christie (1998) 193 CLR 280.
[26] Ibid, [294]-[295] per Gaudon J.
[27] [2019] QCAT 290, [151].
[31] BAE Systems Australia Limited [2012] VCAT 349; Raytheon Australia Pty Ltd (Human Rights) [2014] VCAT 1370; Thales Australia Limited and ADI Munitions Pty Ltd Exemption (Human Rights) [2014] VCAT 1441; Linfox Australia Pty Ltd - Exemption (Human Rights) [2015] VCAT 528; BAE Systems Australia Defence Pty Ltd - Exemption (Human Rights) [2015] VCAT 230.
[32] Affidavit of Alison McPheat filed 29 June 2020, annexure AM1-AM43.
[33] Equal Opportunity Act 2010 (Vic), s 26.
[34] Exemption application re Boeing Australia Holdings Pty Ltd and Ors (No. 3) [2008] QADT 34, [15].
[35] [2012] VCAT 349, [27].
[40] [2014] VCAT 1441, [24]-[26]
[41] Lifestyle Communities Ltd (No 3) (Anti-Discrimination) [2009] VCAT 1869.
[42] Human Rights Act 2019 (Qld), s 25.
[45] [2010] VCAT 328; 33 VR 139, [63] - [64] (this decision was overturned on appeal but this reasoning was not the subject of a ground of appeal).
[46] [2010] VSC 219; 27 VR 409.
[48] WBM v Chief Commissioner of Police [2012] VSCA 159; 43 VR 446.
[52] [2009] VCAT 1869, [285] - [287].
[55] Thales Australia Limited and ADI Munitions Pty Ltd Exemption (Human Rights) [2014] VCAT 1441, [47].
[56] Lifestyle Communities Ltd (No 3) (Anti-Discrimination) [2009] VCAT 1869, [312].
[58] Raytheon Australia Pty Ltd (Human Rights) [2014] VCAT 1370, [130].
[59] Anglo Coal (Moranbah North Management) Pty Ltd [2018] QIRC 52, [9] per DP Swan.
[60] The Australian Institute for Progress Ltd v The Electoral Commission of Queensland [2020] QSC 54, [117] per Applegarth J.
[61] Affidavit of Alison McPheat, filed 14 October 2019, [6].
Anglo Coal (Moranbah North Management) Pty Ltd [2018] QIRC 52
BAE systems Australia Defence Pty Ltd - Exemption (Human Rights) [2015] VCAT 230
BAE systems Australia Limited (Anti-Discrimination Exemption) [2012] VCAT 349
Chivers v State of Queensland (Queensland Health) [2014] QCA 141
Director of Housing v Sudi (Residential Tenancies) [2010] VCAT 328
Exemption application re Boeing Australia Holdings Pty Ltd and Ors [2003] QADT 21
Exemption application re Boeing Australia Holdings Pty Ltd and Ors (No. 3) [2008] QADT 34
Lifestyle Communities Ltd (No 3) (Anti-Discrimination) [2009] VCAT 1869
Linfox Australia Pty Ltd - Exemption (Human Rights) [2015] VCAT 528
Raytheon Australia Pty Ltd (Human Rights) [2014] VCAT 1370
Re: Ipswich City Council [2020] QIRC 194
Re: Kalwun Development Cooperation Limited [2019] QIRC 141
Thales Australia Limited and ADI Munitions Pty Ltd Exemption (Human Rights) [2014] VCAT 1441
The Australian Institute for Progress Ltd v The Electoral Commission of Queensland [2020] QSC 54
Vale v State of Queensland & Ors [2019] QCAT 290
WBM v Chief Commissioner of Police [2010] VSC 219; 27 VR 409
WBM v Chief Commissioner of Police [2012] VSCA 159; 43 VR 446
Wotton v State of Queensland (No 5) [2016] FCA 1457
(1998) 193 CLR 280