[2025] FWC 1876
General information, not legal advice.
Fair Work Commission
2025-07-02
Original judgment source is linked above.
s.394 - Unfair dismissal
Application for an unfair dismissal remedy - where dismissal due to applicant's incapacity to perform the inherent requirements of his role - employer is a specialist maintenance contractor - applicant worked for employer's client on the client's site - employer's client removed the applicant's site clearance due to the applicant's unsafe conduct in carpark - ordinary principles applied - valid reason for dismissal - no alternative work for applicant - procedural fairness present - no unfairness in dismissal - application dismissed
a) the Applicant was prohibited from accessing or attending upon the workplace of the Respondent's client (Patricks) at the Patricks' Terminal Site (PTS) in Port Botany, Sydney, New South Wales (where the Applicant was employed to work); and
b) the Respondent had no other suitable and available roles (or work) to transfer the Applicant to perform at another workplace or worksite.
a) access to the PTS is only able to occur via a security gate to the PTS, which requires either a pre-authorised valid Patricks' issued access card, or a formal sign in (whereby Patricks' security checks and authorises access, and escorts the individual through or around the PTS);
b) PTS attendees (who are not escorted) must hold a valid Maritime Security Identification Card (MSIC) to enter the PTS;[5] and
a) on 28 May 2024, the Applicant got into his vehicle (a white Toyota Hilux) and accelerated through the carpark across various unoccupied parking bays, and cut off the Complainant's vehicle (a maroon hatchback), as well as another ute;
a) he had been refused entry to the PTS (occupied and controlled by Patricks) to perform his job;
b) the Respondent had made efforts to have Patricks reverse its decision (to deny him entry to the PTS), but Patricks had advised that it would not be reversing its decision under any circumstances;
d) suitable redeployment options had been considered by the Respondent, and were either not available, or not viable.
a) an occupier of premises (or land) has possession, and ultimate custody and control, of such premises (Donaldson v Bottroff [1965] SASR 145; Wheat v E Lacon & Co Ltd [1966] UKHL 1; [1966] AC 552);
b) occupation does not require ownership, i.e. a lease or license grants occupation in the same way that ownership does (Bulong v Cohn [1901] WALawRp 13; [1901] 3 WALR 74);
d) the legal responsibility of an occupier extends to visitors who have lawfully and unlawfully entered the premises, i.e. the general duty of care of an occupier of premises extends to all classes of entrants onto the premises (Hackshaw v Shaw [1984] HCA 84; (1984) 155 CLR 614). It follows that an occupier can be discerning and strict about who it does, and does not, allow to enter upon or otherwise access its premises; and
e) any change to (a) to (d) above would need the express consent or authorisation of the occupier (in this case Patricks). In other words, absent such express consent or authorisation by the relevant occupier, the position in (a) to (d) above is absolute or unimpeachable.
A person has been unfairly dismissed if the FWC is satisfied that:
(b) the dismissal was harsh, unjust or unreasonable; and
(c) the dismissal was not consistent with the Small Business Fair Dismissal Code; and
(d) the dismissal was not a case of genuine redundancy.
Note: For the definition of consistent with the Small Business Fair Dismissal Code: see section 388."
(a) the unfair dismissal application was made within the period required by s.394(2) of the Act;
(b) the Applicant is a person protected from unfair dismissal within the meaning of s.382 of the Act;
(c) the Applicant was "dismissed" by the Respondent within the meaning of s.386 of the Act;
(d) the Small Business Fair Dismissal Code (as provided for in s.388 of the Act) does not apply; and
(e) the Applicant's dismissal was not a case of genuine redundancy within the meaning of s.389 of the Act.
Whether the Applicant's dismissal was harsh, unjust, and/or unreasonable
In considering whether it is satisfied that a dismissal was harsh, unjust or unreasonable, the FWC must take into account:
(a) whether there was a valid reason for the dismissal related to the person's capacity or conduct (including its effect on the safety and welfare of other employees); and
(b) whether the person was notified of that reason; and
(c) whether the person was given an opportunity to respond to any reason related to the capacity or conduct of the person; and
(d) any unreasonable refusal by the employer to allow the person to have a support person present to assist at any discussions relating to dismissal; and
(e) if the dismissal related to unsatisfactory performance by the person - whether the person had been warned about that unsatisfactory performance before the dismissal; and
(f) the degree to which the size of the employer's enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(g) the degree to which the absence of dedicated human resource management specialists or expertise in the enterprise would be likely to impact on the procedures followed in effecting the dismissal; and
(h) any other matters that the FWC considers relevant".
"Finally, to require that regard be had to a particular matter in making a discretionary judgment is not to require that that matter shall be allowed an actual influence upon the ultimate result. The matter is to be considered for such bearing as it may have upon the question to be decided, and it is to be allowed such weight (if any) as the tribunal thinks it ought to be given; but if the tribunal thinks it ought to have no weight, then no weight is required to be given to it: cf. Beresford v. Ward [1961] YR 632, at 634."[17]
s.387(a) - Whether there was a valid reason for the Applicant's dismissal which is related to his capacity or conduct
"[90] In DA v Baptist Care SA (Baptist Care), the Full Bench said:
The concept of "capacity" in s 387(a) as a basis for a valid reason for dismissal goes beyond the physical or skill capacity of the employee, and encompasses situations where employees do not have or maintain the necessary licence, certification, qualification, approval or accreditation to lawfully perform the inherent requirements of their job. Where an employee cannot perform the inherent requirements of their job and there is no reasonable scope for the employee to be redeployed into another role, it is likely that there will be a valid reason for dismissal based on the employee's capacity.
[91] The Full Bench went on to say that in a situation where an employee's capacity to perform the inherent requirements of their job is affected by the actions of a third party, the employer still has an obligation to treat the employee fairly. Considerations which may arise in an assessment of whether the employer has acted fairly towards the employee in such situations may include the extent to which the employer has the power to alter, modify or challenge the outcome determined by the third party, the extent to which the employer has exercised that power, and the capacity of the employer to redeploy the employee to a position where the employee's capacity is not affected by the third party's conduct.
[92] The Full Bench cited other decisions of the Commission which the parties also referred me to including Kool v Adecco Industrial Pty Ltd, which was expressly approved by Full Benches in Pettifer v MODEC Management Services Pty Ltd (Pettifer) and Tasmanian Ports Corporation Pty Ltd t/a Tasports v Gee (Tasports).
[93] In Pettifer, there was evidence before the Full Bench which demonstrated that the respondent, which was a labour hire employer, was bound by its contract with the host employer to remove an employee from the worksite when instructed to do so by the host employer. The respondent did not agree that the employee's conduct justified his removal from the worksite but was nevertheless bound to comply with the host employer's direction. As the employee was no longer capable of performing the inherent functions of his role, the respondent sought to find alternative employment for the employee. Only after exhausting these inquiries did the respondent rely on this reason to dismiss the employee. In these circumstances the Full Bench concluded that the respondent had a valid reason relating to the employee's capacity to terminate his employment and only exercised this reason because it genuinely was unable to find suitable alternative employment for him. In that case the Full Bench arrived at the same conclusion as the Commission at first instance and found that the termination was not harsh, unjust or unreasonable.
[94] In Tasports, the employer did not provide the Commission with a copy of the contract between it and the client, so it did not establish that the client in fact had a legal right to require the employee's removal from the worksite or that the employer had no recourse to preserve the employee's employment at the site once that step had been taken. The employer did not form its own independent conclusion as to whether the employee had committed misconduct but instead essentially adopted the outcome of the client's procedurally unfair investigation. Finally, the employer failed to adequately investigate options for Mr Gee's redeployment. In that case the Full Bench upheld the Commission's decision at first instance that the dismissal was unfair.
[95] In Adecco, the terms of the contractual relationship between the labour hire company and the host employer were not in evidence before the Commission. The labour hire employer simply acquiesced in the host employer's contention that the worker had engaged in misconduct without forming any independent view about whether this allegation was substantiated, in circumstances where the Commission found, on the evidence before it, that it was not. Further, the Commission found that a failure on behalf of the applicant's employer to explore redeployment opportunities for the applicant constituted an element of unfairness in the circumstances of the applicant's dismissal. Taking into account these and other matters, Deputy President Asbury, as she then was, found that there was no valid reason for the applicant's dismissal related to her capacity or conduct and that the dismissal was unfair."[27]
a) the extent to which the Respondent had the 'right', 'power', or ability to alter or modify the outcome determined by Patricks (per Patricks' Prohibition Notice) was non-existent at law. This issue does not concern Patricks having a contractual right to exclude the Respondent's employees from the PTS. Patricks' right to exclude persons from the PTS arises from it being the legal occupier of the PTS, full stop (see paragraph [23] of this decision);
b) notwithstanding (a), the Respondent endeavoured to have Patricks withdraw the Patricks' Prohibition Notice, which was unambiguously refused by Patricks. This is despite the Respondent conducting an investigation and forming its own view as to the Applicant's misconduct (which the Respondent determined only required a warning);[28]
d) in view of (a) to (c) above, the Applicant was treated fairly by the Respondent in terms of the manner in which Patricks' Prohibition Notice was brought to his attention, and otherwise dealt with.
s.387(b) - Whether the Applicant was notified of the valid reason
s.387(c) - Whether the Applicant was given an opportunity to respond to any reason related to his capacity or conduct
"the opportunity to defend, implies an opportunity that might result in the employer deciding not to terminate the employment if the defence is of substance. An employer may simply go through the motions of giving the employee an opportunity to deal with allegations concerning conduct when, in substance, a firm decision to terminate had already been made which would be adhered to irrespective of anything the employee might say in his or her defence. That... does not constitute an opportunity to defend."[34]
a) confirming that the Patricks' Prohibition Notice would not be withdrawn by Patricks;
b) obtaining the Applicant's response to the Show Cause Letter; and
s.387(d) - Whether there was any unreasonable refusal by the Respondent to allow the Applicant to have a support person present to assist at any discussions relating to dismissal
s.387(e) - Whether the Applicant was warned about that unsatisfactory performance before his dismissal
The degree to which the size of the Respondent's enterprise would be likely to impact on the procedures followed in effecting the dismissal (s.387(f)); and the degree to which the absence of dedicated human resource management specialists or expertise in the enterprise would be likely to impact on the procedures followed in effecting the dismissal (s.387(g))
s.387(h) - Any other matters that the Commission considers relevant
(a) the presence of a valid reason for the Applicant's dismissal weighs against a finding that the Applicant's dismissal was harsh, unjust and unreasonable; and
(b) other relevant criterion are either not relevant, or neutral considerations.
Mr Kirk Bond, National Legal Officer, of the Maritime Union of Australia (MUA), appeared for Mr Samuel Panebianco (Applicant).
Mr Andrew Denton, of Counsel, instructed by Mr Chris Gardner, Partner, and Ms Emma Tullberg, Senior Associate, Seyfarth Shaw lawyers, appeared with permission on behalf of Kalmar Equipment (Australia) Pty Ltd (Respondent).
[1] In making the factual findings set out in this decision, I adopt and rely upon the aide-mémoires (labelled A, B and C), as handed up by the Respondent at the hearing, containing a chronology and evidentiary references in relation to "The Applicant's Access to the Patricks Port Botany Site", "Kalmar's Internal Investigation", and "Redeployment".
[2] Transcript, PN160 and PN166. See also PN464.
[6] Respondent's Submissions, CB p.36. Scanlan Statement, 19 November 2024, at [14], CB, p.149.
[8] Stapylton Statement, 20 November 2024, at [40]-[42], CB, pp.393-394.
[10] Stapylton Statement, 20 November 2024.
[11] Respondent's Submissions, at [16]-[19], CB, p.37.
[13] Scanlan Statement, 19 November 2024, at [26]-[33], CB, pp.151-152. The Applicant was of course free to continue to attend upon the carpark next to the PTS (as it is a public carpark), but not the PTS itself.
[14] Stapylton Statement, 20 November 2024, at [69]-[90], CB, pp.399-403.
[18] Allied Express Transport Pty Ltd v Anderson (1998) 81 IR 410, at 412; Yew v ACI Glass Packaging Pty Ltd (1996) 71 IR 201, at 204.
[19] Briginshaw v Briginshaw [1938] HCA 34; (1938) 60 CLR 336, at 361-362 (per Dixon J); Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd [1992] HCA 66; (1992) 67 ALJR 170, at 170-171 (per Mason CJ, Brennan, Deane and Gaudron JJ).
[20] Neat Holdings Pty Ltd v Karajan Holdings Pty Ltd [1992] HCA 66; (1992) 67 ALJR 170, at 170-171 (per Mason CJ, Brennan, Deane and Gaudron JJ).
[21]Selvachandran v Peteron Plastics Pty Ltd [1995] IRCA 333; (2000) IR 371, at 373.
[22]Walton v Mermaid Dry Cleaners Pty Ltd [1996] IRCA 267; (1996) 142 ALR 681, at 685.
[23] Edwards v Justice Giudice (1999) 94 FCR 561; (1999) 169 ALR 89; [1999] FCA 1836, at [7]; Gelagotis v Esso Australia Pty Ltd [2018] FWCFB 6092, at [117]; Titan Plant Hire Pty Ltd v Van Malsen [2016] FWCFB 5520, 263 IR 1, at [28].
[24] King v Freshmore (Vic) Pty Ltd [2000] AIRC 1019, Print S4213, at [23] to [24].
[25] Pettifer v MODEC Management Services Pty Ltd [2016] FWCFB 5243, at [25]-[33].
[28] Transcript, PN202-PN203, and PN219-PN240; Stapylton Statement, 20 November 2024, at [67]-[90], CB, pp.399-403. Scanlan Statement, 19 November 2024, at [26]-[33], CB, pp.151-152.
[29] Transcript, PN14-PN16, PN63, PN158, and PN380. Stapylton Statement, 20 November 2024, at [67]-[90], CB, pp.399-403. Scanlan Statement, 19 November 2024, at [34]-[37], CB, pp.152-153.
[30] Bartlett v Ingleburn Bus Services Pty Ltd [2020] FWCFB 6429, at [19]; Reseigh v Stegbar Pty Ltd [2020] FWCFB 533, at [55]; Crozier v Palazzo Corporation Pty Ltd (2000) 98 IR 137, at 151.
[31] Crozier v Palazzo Corporation Pty Ltd (2000) 98 IR 137, at 151.
[32] Previsic v Australian Quarantine Inspection Services Print Q3730 (AIRC, Holmes C, 6 October 1998). See also Chubb Security Australia Pty Ltd v Thomas Print S2679 (AIRCFB, McIntyre VP, Marsh SDP, Larkin C, 2 February 2000), at [41]; Read v Gordon Square Child Care Centre Inc [2013] FWCFB 762 (Acton DP, Deegan C and Gregory C), at [46] to [49].
[35] McCarron v Commercial Facilities Management Pty Ltd t/a CFM Air Conditioning Pty Ltd [2013] FWC 3034, at [32].
[36] Fastidia Pty Ltd v Goodwin, Print S9280 (AIRCFB, Ross VP, Williams SDP, Blair C, 21 August 2000), at [43] to [44].
[38] Respondent's Submissions, at [44]-[46], CB, p.41.
[39] ALH Group Pty Ltd t/a The Royal Exchange Hotel v Mulhall (2002) 117 IR 357, at [51]. See also Smith v Moore Paragon Australia Ltd PR915674 (AIRCFB, Ross VP, Lacy SDP, Simmonds C, 21 March 2002), at [92]; Edwards v Justice Giudice [1999] FCA 1836, at [6] to [7].
Printed by authority of the Commonwealth Government Printer
Samuel Panebianco
Kalmar Equipment
(1938) 60 CLR 336
(1992) 67 ALJR 170
(1999) 94 FCR 561
(1999) 169 ALR 89
(1964) 38 ALJR 293
(1998) 81 IR 410
(1996) 71 IR 201
(1984) 155 CLR 614
(1996) 142 ALR 681
(2000) 98 IR 137
(2002) 117 IR 357