[2022] FWC 1481
General information, not legal advice.
Fair Work Commission
2022-06-10
Gleeson CJ, Crennan JJ
Original judgment source is linked above.
s.394 - Application for unfair dismissal remedy
Scott Ambrose, John David Bourke, Jamie Clifford, Andrew James Craker, Shelley Farr, Wayne Anthony Harris, Billy Jack, Leigh Moyle, Jonathon Neill, Breht Richardson, Scott Sawyer, Bradley Jon Smith, Deborah Wilson, Gera Brenda Wubs, Jason Lerch, David Haggath and Jamie Boulton
(U2022/10535, U2021/10536, U2021/1042, U2021/10543, U2021/10549, U2021/10550, U2021/10551, U2021/10554, U2021/10555, U2021/10556, U2021/10557, U2021/10558, U2021/10559, U2021/10560, U2021/10624, U2021/10628 and U2021/10630)
Application for relief from unfair dismissal - whether applicants were dismissed - applications dismissed.
(a) the person's employment with his or his employer has been terminated on the employer's initiative; or
(b) the person has resigned from his or his employment, but was forced to do so because of conduct, or a course of conduct, engaged in by his or his employer."
"In its letter of termination, Koompahtoo claimed that the conduct of Sanpine amounted to repudiatory breach of contract. The term repudiation is used in different senses. First, it may refer to conduct which evinces an unwillingness or an inability to render substantial performance of the contract. This is sometimes described as conduct of a party which evinces an intention no longer to be bound by the contract or to fulfil it only in a manner substantially inconsistent with the party's obligations. It may be termed renunciation. The test is whether the conduct of one party is such as to convey to a reasonable person, in the situation of the other party, renunciation either of the contract as a whole or of a fundamental obligation under it... Secondly, it may refer to any breach of contract which justifies termination by the other party... There may be cases where a failure to perform, even if not a breach of an essential term ... manifests unwillingness or inability to perform in such circumstances that the other party is entitled to conclude that the contract will not be performed substantially according to its requirements. This overlapping between renunciation and failure of performance may appear conceptually untidy, but unwillingness or inability to perform a contract often is manifested most clearly by the conduct of a party when the time for performance arrives. In contractual renunciation, actions may speak louder than words."[9]
"BHP Group Limited, an incorporated Australian-listed company, and BHP Group Plc, an incorporated UK-listed company, form a Dual Listed Company (DLC). These entities and their subsidiaries operate together as a single for-profit economic entity (referred to as 'BHP' or 'the Group') with a common Board of Directors, unified management structure and joint objectives."
"I am delighted to offer you the position of Operator Production in the OS Production team with Operations Services (the Company). The location of this position is outlined in Schedule 1 and will report to Supervisor Production (or such other person as nominated by the Company from time to time). Your employment will commence on 2 April 2019. You will be employed on a full time basis.
Please find enclosed with this Employment Agreement, the following sections and schedules:
Once you have read and understood these documents, you can accept the offer by confirming your acceptance with Avature within 5 working days.
I would like to take the opportunity to congratulate you on your selection and I am sure you will find this position both challenging and rewarding."
Operator Production in the OS Production Department.
Supervisor Production (or such other person as nominated by the Company from time to time).
During your employment you may be required to work on multiple sites across the East Coast of Australia as directed by the Company. If your deployment is inter-State, you will be provided with advance notice of 4 weeks (unless a shorter period is mutually agreed).
You must perform the duties reasonably associated with your Position. In addition, you must perform other duties which you are capable of performing, as required by the Company.
"Given the strong performance of the OS team at Mr Arthur Coal, we are extremely pleased that everyone will continue employment with OS as a result of this decision. All team member's roles will continue with the OS Production team at another deployment.
This is the benefit of the OS model in action. We are in a fortunate position to offer continued employment with OS to manage these times that occur in the mining industry as out team members are employed to work on multiple sites across an East or West Coast Hub, rather than to work on a specific site.
We will soon commence an employee preference process to assist you to identify opportunities to continue your career with OS and talk through the relocation package available to you. Your Superintendent will provide you with more information on this..."[15]
"Do we know when OS will no longer be required at Mt Arthur Coal?
Yes, a decision has been made to not renew the current Site Work Package. As a result, OS team members will not be required at Mt Arthur Coal past 1 November 2021. Between now and then we will work with everyone on options to continue employment with Operations Services. This is the benefit of the OS model; you are employed via an East Coast Hub to support multiple sites.
What does this mean for Operations Services employees?
We will continue to support stable jobs for our employees. All our employees will have ongoing employment with OS at an alternative deployment location.
You will have access to a relocation package to support you to continue employment.
We have commenced an Employee Preference Process with OS employees to work through your transition to an alternative location. We will be as open and transparent as possible throughout this process with our key focus being on the safety and wellbeing of our people. Our commitment is to communicate as regularly and as often as possible during this process.
The Employee Preference Process (EPP) has been established to help us understand your preferred path through this change. The process will ask for your thoughts regarding:
1. Preferred alternate deployment locations (top 3);
2. Access to relocation support to reside closer to your next deployment;
3. Questions, concerns, and feedback you may have regarding the announcement; and
4. Any personal circumstances such as family and caring responsibilities we should take into consideration.
Through this change we are supporting OS employees to make decisions based on their
personal needs. We will seek to meet your preference of location, but we have to balance this with ensuring business requirements are met.
An eForm has been created for the EPP and will be made available from today for employees to complete. This can be accessed from any BHP or personal electronic device. A paper-based form is also available for those unable to complete this online. All forms must be completed by Friday, 6th August 2021.
The QR code below may be used to access the eForm. Open the camera on your phone or tablet and hold in front of the QR code. A link will appear for you to complete the survey.
What OS Production deployments could I transfer to?
Operations Services currently has a number of Production deployments operating across Queensland, Western Australia and South Australia. We are focusing transfer opportunities at the following locations. The closest townships are also listed as reference.
Each of the Queensland deployments currently operates on a 7/7 day and night shift roster (7 day shifts; 7 rostered off; 7 night shifts; 7 rostered off), commencing on either a Wednesday or a Thursday.
Our Olympic Dam deployment in South Australia currently operates a 2/1 day and night shift roster (7 day shifts; 7 nights shifts; 7 rostered off), commencing on a Thursday.
Will I be required to sign a new contract or agreement?
OS employees transferring to another OS role within the East Coast point of hire (Queensland and New South Wales inclusive), will not be required to sign a new contract or agreement. A letter confirming their next location will be issued to the employee as confirmation of this change.
OS employees transferring to another OS role outside of the East Coast point of hire, a new contract may be required. This will be discussed with you where applicable.
Where employees opt to access the relocation package, an addendum to their employment contract will be provided to detail and need to be signed to accept the terms and conditions associated with the relocation offer.
What occurs if I am due to transfer interstate but there are COVID-19 border restrictions?
Due to the dynamic nature of COVID-19 border closures and restrictions, we will work with you to avoid you being at a disadvantage wherever possible through this process.
In the event of a border closure impacting your ability to move interstate, we will address this with you at the time and accommodate you being able to continue working at Mt Arthur until 1 November 2021.
If you elect to commute from NSW to another state and are impacted by border closures, we will address this with you at the time and accommodate you being able to continue working wherever possible.
Operations Services is no longer required at Mt Arthur Coal past 1 November 2021. There are no options for Operations Services team members to remain working at Mt Arthur Coal with OS.
Can I get a job under the Mt Arthur EA? Or with the replacement Company/labour provider?
Mt Arthur is not currently offering roles. All OS team members will continue their role at other deployments across the East Coast hub. This means you can move to another deployment and continue working with OS.
I moved my family to the Hunter Valley after the last changes. I don't want to move (or fly) to the Bowen Basin for work. What options do I have?
Your role as a production technician in the East Coast hub continues. There are roles available for all our team members at other deployments across the East Coast hub and OS will support you and your family to relocate to continue employment. This means you can move to another deployment and continue working with OS.
If you do not wish to continue employment with OS at another deployment or elsewhere with BHP, you will be required to resign. Where your resignation is aligned to or delayed until the end of the Site Work Package (1 November 2021) you may be eligible to receive a completion payment with your final pay. Further details will be provided during your 1:1 discussions.
What occurs if I decline the transfer with OS to an alternate deployment?
All OS employees are guaranteed ongoing employment with OS at an alternate location.
We appreciate though that, not all employees will wish to relocate or commute to an alternative OS deployment.
OS will continue to operate the MAC deployment through to 1 November.
For those not remaining with OS or BHP past this date, you will be required to resign. Where your resignation is aligned to or delayed until the end of the Site Work Package (1 November 2021) you may be eligible to receive a completion payment with your final pay. Further details will be provided during your 1:1 discussions.
If my role doesn't exist at Mt Arthur anymore, why can't I get a redundancy payment?
While you have been based at Mt Arthur Coal, you were employed within the East Coast hub and therefore can be directed to work at alternative locations as part of your role with Operations Services."
"Employee Preference Form | OS Production MAC - July 2021
As announced, the Site Work Package at Mt Arthur Coal will conclude on 1 November 2021. Commencing immediately, we have initiated the Employee Preference Process for all OS employees at this location.
The Employee Preference Process (EPP) has been established to help us understand your preferred path through this change. We are supporting you, our employees, to make decisions based on your personal needs. We will seek to meet your preference but we have to balance this with ensuring business requirements are met.
You are only required to complete this form once. Where an employee declines to participate in this process, Operations Services will be required to determine an outcome for the employee without the benefit of any preference information. Any personal information provided in this form will be used for the purposes described above and otherwise handled in accordance with the BHP Privacy Policy available publicly on the BHP website.
Should you have any questions regarding this form or the Employee Preference Process, please speak with your Leader."
"We note that the FAQ suggests that such an employee would be required to resign their employment. That is an incorrect statement of the legal position.
As explained above, such an employee is not required to resign. Rather, their employment with OS would come to an end by reason of their employment being terminated at the employer's initiative. Consequently, such an employee would be entitled to redundancy pay.
We will be advising all of our members that don't wish to accept a role with OS in Central Queensland that they should not resign from their employment."
"OS employees are employed in the role of Production Technician across the East Coast of Australia, not to work at one particular site. OS continues to require these roles to be performed and employees' employment with OS will continue after the conclusion of the Site Work Package at Mt Arthur Coal."
"As you are aware, on 20 July 2021, OS Production communicated that it will no longer be required to provide the Services at Mt Arthur Coal Mine after 1 November 2021. OS Production also confirmed that it still requires OS Production employees to continue in their role and there will be no job losses for our employees.
On 20 July 2021, OS Production notified its employees currently working at the Mt Arthur Coal deployment about the conclusion of the Services and has provided those employees with information about what this means for them, including reinforcing to them that they will remain in their current roles after the conclusion of the Services (as OS Production still requires their roles to be performed), and options relating to their next deployment. OS Production has also commenced 1:1 discussions with the relevant employees and initiated an employee preference process to provide those employees with multiple avenues to provide feedback based on their personal circumstances and their preferences going forward. OS Production is continuing to engage in 1:1 discussions with its employees and to respond to any questions and feedback from employees. The CFMMEU is able to join these 1:1 discussions if invited by an employee to do so.
Shortly after OS Production commenced notifying employees about the conclusion of the Services, we sought to engage with Jeff Drayton, District Vice President, by providing to him notification and information regarding the conclusion of the Services and what this means for OS Production employees currently working at the Mt Arthur Coal Mine deployment. OS Production also invited Mr Drayton to engage in discussions regarding that notification and information. To date he has not sought to engage with us to discuss these matters.
OS Production employees are employed in the role of Production Technician across the East Coast of Australia, not to work at one particular site. As stated in their employment contract, during their employment as a Production Technician, they may be required to work on multiple sites across the East Coast of Australia as directed by OS Production.
Whilst the Services at Mt Arthur Coal Mine will end on 1 November 2021, OS Production continues to require Production Technician roles (including the relevant employees' roles) to be performed across the East Coast of Australia, with currently operating deployments being in Queensland. Given this, there has been no decision to make any OS Production Technicians' roles redundant (and therefore no obligation to consider redeployment opportunities or redundancy pay considerations arise) and we will be communicating with relevant employees about the location of their next East Coast deployment.
Although the nature of the OS Production employees' roles is that they may be required to work across multiple sites on the East Coast of Australia, OS Production recognises the personal impact this may have on some employees currently residing in New South Wales. This is why OS Production has made an offer of relocation support to eligible employees and why it is seeking employees' feedback based on their personal circumstances and their preferences going forward.
Given there has been no decision to make any OS Production Technicians' roles redundant, it also follows that there has also been no misrepresentation to OS Production employees about their redundancy pay entitlements or other workplace rights as alleged in your correspondence.
Of course it is open to an OS Production employee, as is always the case, to resign from their employment with OS Production if the nature of their role with OS Production no longer suits their personal circumstances or for any other reason. OS Production would like to clarify that no employees will be forced, or asked, to resign. It is OS Production's preference that all OS Production employees remain with OS Production after the conclusion of the Services."
"Will I be required to resign if I don't agree to work at another OS deployment?
No, employees will not be forced, or asked, to resign. It is our preference that all employees remain with OS Production after the conclusion of the deployment at Mt Arthur Coal Mine on 1 November 2021 as we will continue to need you in your East Coast Production Technician role.
However, it is open to an employee, as is always the case, to resign from their employment with OS Production if the nature of their role with OS Production no longer suits their personal circumstances or for any other reason.
What is the Site Work Package (SWP) Completion Payment?
To ensure the completion of OS production services at Mt Arthur Coal, we will be introducing a SWP completion payment for eligible employees. The payment is a one-off lump sum payment made to an eligible employee at OS' discretion, and will be paid to an eligible employee in the next full pay cycle following the conclusion of the SWP at 1 November 2021.
Do I need to resign in order to be paid the completion payment?
We had previously made you aware that you may be eligible to receive a completion payment, but that we had not finalised the details of that payment yet. We can now confirm that the completion payment is being offered by OS to eligible employees to secure the provision of OS Production's services to the Mt Arthur Coal Mine up to and including on 1 November 2021.
Employees are not required to resign in order to receive the completion payment.
All OS Production employees who were working at the OS Production deployment at Mt Arthur Coal Mine on 20 July 2021 and who remain employed by OS as at 1 November 2021 will be entitled to receive the completion payment (subject to any unsatisfactory performance or misconduct).
What if I don't want to move or travel to the Bowen Basin when OS concludes the provision of the Services at Mt Arthur Coal Mine?
Your role with OS Production as a Production Technician across the East Coast of Australia will continue after 1 November 2021. OS Production continues to require Production Technician roles to be performed across the East Coast hub, with currently operating deployments being in Queensland. OS Production will support you, and where applicable, your family to relocate closer to your next deployment should you wish to do so.
To the extent the previous FAQs may have suggested that employees would be required to resign in these circumstances, this is incorrect. We wish to clarify that no one will be required to resign. However, it is open to any employee, as is always the case, to resign from their employment with OS Production if the nature of their role with OS Production no longer suits their personal circumstances or for any other reason.
Currently the operating OS Production deployments within the East Coast hub are in Queensland. There is also an option for employees to consider a transfer to a South Australian role. If you do not wish to move or travel to another OS Production deployment within the East Coast hub, or transfer to a South Australian role, we will discuss your options and next steps during your 1:1 discussion.
What if I decide I am not going to transfer to another deployment on the East Coast?
Whilst OS will conclude the provision of the Services at Mt Arthur Coal Mine on 1 November 2021, all OS employees currently working at the OS Production Deployment at Mt Arthur Coal Mine are guaranteed ongoing employment with OS Production. OS Production continues to require Production Technician roles to be performed across the East Coast of Australia, with currently operating deployments being in Queensland.
Although the nature of your role is that you may be required to work across multiple sites within the East Coast hub, OS Production recognises the personal impact this may have on some employees currently residing in New South Wales. This is why OS Production has made an offer of relocation support to eligible employees and why it is seeking employees' feedback based on their personal circumstances and their preferences going forward.
To the extent the previous FAQs may have suggested that employees would be required to resign in these circumstances, this is incorrect. We wish to clarify that no one will be required to resign. However, it is open to any employee, as is always the case, to resign from their employment with OS Production if the nature of their role with OS Production no longer suits their personal circumstances or for any other reason.
Currently the operating OS Production deployments within the East Coast hub are in Queensland. There is also an option for employees to consider a transfer to a South Australian role. If you do not wish to move or travel to another OS Production deployment within the East Coast hub, or transfer to a South Australian role, we will discuss your options and next steps during your 1:1 discussion.
What options do I have to keep living in New South Wales?
Operations Services does not dictate where team members live. You can live in the location that suits you and your family.
To the extent the previous FAQs may have suggested that employees would be required to resign if they wished to stay in New South Wales, this is incorrect. We wish to clarify that no one will be required to resign. However, it is open to any employee, as is always the case, to resign from their employment with OS Production if the nature of their role with OS Production no longer suits their personal circumstances or for any other reason.
Currently the operating OS Production deployments within the East Coast hub are in Queensland. There is also an option for employees to consider a transfer to a South Australian role. If you do not wish to move or travel to another OS Production deployment within the East Coast hub, or transfer to a South Australian role, we will discuss your options and next steps during your 1:1 discussion."
"I refer to our discussion via Webex on 23 September 2021.
During this call, you requested a response from me in respect of the following two issues:
1. How OS intends to "lawfully sever" the employment relationship on 1 November with those employees who make the choice not to work at a Queensland Mine; and
2. You requested that OS speak with management of Mt Arthur Coal about directly employing OS employees to fill what you say are roles that will be left vacant following the conclusion of the Site Work Package for OS MCAP Pty Ltd (OS Production) for OS Production's provision of production execution services at Mr Arthur Coal (Services).
As you know, OS Production employees are employed in the role of Production Technician across the East Coast of Australia, not to work at one particular site. As stated in their employment contract, during their employment as a Production Technician, they may be required to work on multiple sites across the East Coast of Australia as directed by OS Production. Each of the employees with whom we have been discussing options for them, have netered contracts with OS on those terms.
Wilst the Services at Mr Arthur Coal Mine will end on 1 November 2021, OS Production continues to require Production Technician roles (including the relevant employees' roles) to be performed across the East Coast of Australia. OS Production has work in Queensland that we wish the employees to perform. As such, OS Production has no wish to bring the employment relationship to end with any of its employees current working at the Mr Arthur Coal deployment. If, as you have said is the case for the employees you are representing, an OS Production employee withdraws their service and has no intention of complying with a fundamental term of their employment contract to work at other sites across the East Coast of Australia as directed by OS Production, that employee will be bringing their employment with OS Production to an end.
During our telephone discussion you stated that the employees, for whom you are the representative, will not work at a Queensland site where OS Production provides services and where it has work for them following the conclusion of the MAC Services. That is their choice of course, and OS respects that choice. It is open to an OS Production employee, as is always the case, to leave their employment with OS Production, if the role no longer suits their personal circumstances, or for any other reason. However, OS Production's preferences is that all OS Production employees remain with OS Production after the conclusion of the Service.
To be clear, OS will not be bringing the employment to an end - it will end because of the employee's own choice. OS Production hopes that it does not come to that. However, without prejudice of any other rights, OS will not insist on full notice from those employees in those cases.
In relation to your query about roles at Mr Arthur Coal, Mt Arthur Coal determines how it will resource the execution of its mine plan following the conclusion of the Services. If any OS Production employees are interested in pursing employment at Mr Arthur Coal or elsewhere within BHP, they are able to apply for any BHP roles currently advertised, which can be accessed on the Internal Jobs portal through the Digital Workspace. However, there is no requirement for OS Production to consider redeployment to Mr Arthur Coal as OS Production continues to require the relevant employees' roles to be performed and its desire is for all OS Production employees currently working at the Mt Arthur Coal deployment to remain with OS Production.
OS Production is still engaging with relevant employees to finalise their position going forward. Please contact me if you wish to discuss."
"NOTIFICATION OF CONTINUING ROLE WITH OPERATIONS SERVICES
As you know, the OS production services at Mt Arthur Coal will conclude on 1 November 2021.
I refer to our 1:1 meeting on 20 September 2021 where you were advised of your options to choose on completion of the MAC services. At that meeting you indicated you did not wish to continue your role at another OS services location.
Nature of your role with OS across the East Coast of Australia
You are employed in a continuing role of Production Technician across the East Coast of Australia. You were not employed to work at only one particular site. As stated in your employment contract with OS Production, during your employment as a Production Technician, you may be required to work on multiple sites across the East Coast of Australia as directed by OS Production. This is a fundamental term of your employment contract.
This means that even though the OS production services at Mt Arthur Coal Mine will end on 1 November 2021, OS Production continues to require you to perform your role at other sites across the East Coast of Australia, with currently operating services being in Queensland.
The details of the continuing work we have available for you if you wish to reconsider your choice are as set out below for your reconsideration.
Proposed Initial Roster 7 Days, 7 Off, 7 Nights, 7 Off; Thursday start.
Reporting to Linda Hamlin, Supervisor Production
**Date recorded in HR SAP system only, in alignment with OS Payroll Cycles.
This work is available in accordance with your contract.
If you have changed your mind and have any concerns about the location or proposed roster, including the impact it will have on your family and caring responsibilities, please raise this with your current line leader for consideration by no later than 22 October 2021.
Of course if it is still your choice to leave your employment with OS Production on completion of its MAC services, and if the work at Blackwater Mine does not suit your personal circumstances, or for any other reason, we need to confirm that now. OS Production's preference is that you, and all other OS Production employees, remain with OS Production after the conclusion of the OS production services at Mt Arthur Coal.
However I wish to make it clear, there has been and will be no decision to make you or your role redundant. This means you are not entitled to any redundancy pay and OS Production is not required to consider any redeployment opportunities with any other BHP entities.
By 22 October 2021, please return a signed copy of this letter, to your line leader confirming either:
1. You still do not wish to continue your employment with OS.
2. You have changed your mind and will commence work at the Mine allocated in this letter on the allocated commencement date and will contact your line leader within 24 hours to arrange discussions for commencing at Blackwater Mine.
If you do not wish to continue your employment or you do not return a signed copy of this letter by 22 October 2021, this indicates to OS Production that you do not intend to continue with your employment. In these circumstances, your employment with OS will come to an end in accordance with your choice with effect on 1 November 2021.
Should you have any questions or concerns, please direct these to your Line Leader. Thank you for your ongoing contribution and commitment to the Operations Services team.
☐ I will commence work at {mine} as per the details set out in this letter.
☐ I do not wish to continue my employment with OS Production
Signed: ________________________ Date: ________________________"
"I refer to my previous letter to you on 12 October 2021 regarding your employment with OS Production.
As you know, you are employed in a continuing role of Production Technician across the East Coast of Australia. You were not employed to work at only one particular site. As stated in your employment contract with OS Production, during your employment as a Production Technician, you may be required to work on multiple sites across the East Coast of Australia as directed by OS Production. This is a fundamental term of your employment contract.
The OS production services at Mt Arthur Coal Mine, where you are currently working with OS Production, will conclude on 1 November 2021 as previously discussed with you. However, you were advised that OS Production continues to require your role to be performed at other sites currently operating services across the East Coast of Australia.
At the meeting held with you on 20 September 2021 you were advised of your options for other deployments on completion of the OS production services at Mt Arthur Coal. At the meeting or after that meeting you indicated you did not wish to continue your role at another OS services location.
My subsequent letter to you on 12 October 2021 advised you OS Production has provided you continuing work at Blackwater. You were asked to return a signed copy of that letter by 22 October 2021 confirming that either:
1. You do not wish to continue your employment; or
2. You will commence work at the mine allocated on the nominated commencement date and will contact your line leader within 24 hours to arrange discussions for commencing at the allocated mine.
My letter to you stated that if you did not return a signed copy of my letter by the time requested, this would indicate to OS Production that you do not intend to continue with your employment.
As you have not returned a signed copy of my letter, OS Production understands that you do not intend to continue with your employment.
Your employment with OS Production will come to an end in accordance by your choice with effect on 1 November 2021. Wages and any accrued but untaken leave will be paid up until that date.
Should you have any questions or concerns, please direct these to your Line Leader."
(a) The job advertisements to which the Applicants responded clearly identified the job as being a job at Mt Arthur;
(b) The communications between the Applicants and OS/BHP in the period between when the Applicants applied for their jobs until they starting work with OS at Mt Arthur identified the job as being a job at Mt Arthur; and
(c) The covering email sent to each Applicant together with their contract of employment stated "We are delighted to confirm your offer of employment with BHP for the position of OS Production MAC..." [emphasis added by the Applicants]
"The reference to 'the job' is primarily a reference to the physical and mental tasks carried out for the employer, but aspects of the work, including location of the work, are not excluded from consideration as elements of the job. In a different statutory context there is a somewhat similar usage of the term under the United Kingdom Employment Protection (Consolidation) Act 1978 under which written particulars must be supplied to employees of the terms of employment, including "the title of the job which the employee is employed to do". There "'job' means the nature of the work which the employee is employed to do in accordance with his contract and the capacity and place in which he is so employed."
For the location of employment to be accepted as an element of the job for the purposes of testing a redundancy situation, performance of work at a particular location needs to have been a term of the particular employment. A relocation of the work to be done in the course of employment may then justify a determination that the employer no longer wishes the job to be done if the relocation is unilaterally determined and is of such a degree that it is effectively a unilateral repudiation of the contract of employment. A relocation will not be in breach of the contract of employment if transferability within employment is an express or implied term of the original contract of employment, or if there has subsequently been a consensual variation of the terms of employment by agreement expressly made between the parties or able to be implied through conduct of the employer and employee."
"[46] The rights and liabilities of parties under a provision of a contract are determined objectively, by reference to its text, context (the entire text of the contract as well as any contract, document or statutory provision referred to in the text of the contract) and purpose.
[47] In determining the meaning of the terms of a commercial contract, it is necessary to ask what a reasonable businessperson would have understood those terms to mean. That enquiry will require consideration of the language used by the parties in the contract, the circumstances addressed by the contract and the commercial purpose or objects to be secured by the contract.
[48] Ordinarily, this process of construction is possible by reference to the contract alone. Indeed, if an expression in a contract is unambiguous or susceptible of only one meaning, evidence of surrounding circumstances (events, circumstances and things external to the contract) cannot be adduced to contradict its plain meaning.
[49] However, sometimes, recourse to events, circumstances and things external to the contract is necessary. It may be necessary in identifying the commercial purpose or objects of the contract where that task is facilitated by an understanding "of the genesis of the transaction, the background, the context [and] the market in which the parties are operating". It may be necessary in determining the proper construction where there is a constructional choice. The question whether events, circumstances and things external to the contract may be resorted to, in order to identify the existence of a constructional choice, does not arise in these appeals.
[50] Each of the events, circumstances and things external to the contract to which recourse may be had is objective. What may be referred to are events, circumstances and things external to the contract which are known to the parties or which assist in identifying the purpose or object of the transaction, which may include its history, background and context and the market in which the parties were operating. What is inadmissible is evidence of the parties' statements and actions reflecting their actual intentions and expectations.
[51] Other principles are relevant in the construction of commercial contracts. Unless a contrary intention is indicated in the contract, a court is entitled to approach the task of giving a commercial contract an interpretation on the assumption "that the parties ... intended to produce a commercial result". Put another way, a commercial contract should be construed so as to avoid it "making commercial nonsense or working commercial inconvenience".
[52] These observations are not intended to state any departure from the law as set out in Codelfa Construction Pty Ltd v State Rail Authority of New South Wales and Electricity Generation Corporation v Woodside Energy Ltd. We agree with the observations of Kiefel and Keane JJ with respect to Western Export Services Inc v Jireh International Pty Ltd." (citations omitted)
(a) The job advertisements to which the Applicants responded clearly identified the job as being a job at Mt Arthur;
(b) The communications between the Applicants and OS/BHP in the period between when the Applicants applied for their jobs until they starting work with OS at Mt Arthur identified the job as being a job at Mt Arthur; and
(c) The covering email sent to each Applicant together with their contract of employment stated "We are delighted to confirm your offer of employment with BHP for the position of OS Production MAC..." [emphasis added by the Applicants]
"It can sometimes be difficult, to distinguish between a "request" and a "requirement". There is an overlap and an area of difference between the two. The area of overlap is that both a request and a requirement can take the form of a question. The difference is that to "request" that a person do something is to leave the person with a choice as to whether or not to do the thing. On the other hand, to "require" involves asking or demanding that a person do something in a manner that indicates that there is no option but to comply..."
(a) In Mr Cole's announcement, he informed the Applicants that "everyone will continue employment with OS as a result of this decision [for OS to cease work at Mt Arthur]. All team members' roles will continue with the OS Production team at another deployment." Mr Cole also emphasised that the Applicants were "employed to work on multiple sites across an East Coast or West Coast Hub, rather than to work at a specific site."
"The Employee Preference Process (EPP) has been established to help us understand your preferred path through this change. We are supporting you, our employees, to make decisions based on your personal needs. We will seek to meet your preference but we have to balance this with ensuring business requirements are met.
You are only required to complete this form once. Where an employee declines to participate in this process, Operations Services will be required to determine an outcome for the employee without the benefit of any preference information.
Please note: Transfers between East/South hub deployments would only be initiated on the explicit request of an OS employee. OS will not require our employees to move from an OS deployment operating in New South Wales to an OS deployment operating in South Australia"[38]
(c) The FAQ documents informed the Applicants that:
(a) they chose to accept, and maintain, employment with a company that provided services to mine sites across the East Coast of Australia, on the basis that they could be required to work at any East Coast mine;
(b) there was no more work for OS or its employees at Mt Arthur after 1 November 2021, because the operator of the mine, not OS, decided not to engage OS's services after that time; and
(c) the Applicants determined that their personal circumstances and preferences did not suit continuing to work for OS at a deployment based at a different East Coast mine site.
(a) In his Form F2 unfair dismissal application, Mr Moyle contended that he was employed by OS and then explained why he believed his dismissal was unfair:
"1. The terms of the employment contract between the Applicant and OS MCAP Pty Ltd (hereafter OS) (hereafter the Contract) specify that the Applicant was employed in the position of "Operator Production in the OS Production Department".
2. OS is a wholly owned subsidiary of BHP Group Ltd (hereafter BHP), which is the ultimate BHP company incorporated in Australia and listed on the ASX. OS is self-described as an asset or team in the BHP group that provides production services. The services of OS are only provided to other BHP entities in the BHP Minerals Australia business, which includes BHP's coal and metalliferous mines.
13. OS' contentions are squarely based on the "point of hire" term of the Contract, which is set out below:
During your employment you may be required to work on multiple sites across the East Coast of Australia as directed by the Company. If your deployment is inter-State, you will be provided with advance notice of 4 weeks (unless a shorter period is mutually agreed).
14. It is evident that term [sic] - at its highest - enables OS to direct the Applicant to work on any number of sites on the East Coast of Australia. Importantly, on the SWP coming to an end at the Mt Arthur Mine, OS never sought to direct the Applicant to transfer to the Blackwater Mine or any other site on the East Coast of Australia. Rather, as has been explained, OS merely sought to facilitate the Applicant transferring sites.
15. During the course of the Applicant's employment with OS, the Applicant was only ever directed by OS to work at the Mt Arthur Mine. Plainly, that direction was consistent with the "point of hire" term in the Contract.
18. As emphasised above, the Contract plainly states the position of the Applicant. In doing so, there is no reference whatsoever to where work is to be performed. Rather, the relevant term of the Contract - at its highest - merely equipped OS with the capacity to direct the Applicant to work on multiple sites. As has been explained, the Applicant was only ever directed - consistent with the Contract - to work at the Mt Arthur Mine. Put simply, consistent with the terms of the Contract, work was only ever performed at the Mt Arthur Mine.
19. In other words, the fact that the Applicant was only ever directed to perform work at the Mt Arthur Mine means that the Applicant's employment (and job) must be interpreted as being an Operator Production at the Mt Arthur Mine.
20. The "point of hire" term in the Contract must be read in that way to ensure that it has legal effect. Otherwise, if that term is to be read as having the effect that the Applicant's employment (and job) is an Operator Production at any site on the East Coast of Australia it plainly disentitles the Applicant from redundancy pay in circumstances where the work made available by the employer is outside of the Applicant's general locality..."
(b) The Form F3 response filed and served by OS made specific reference to the written terms of Mr Moyle's contract of employment with OS, including the Point of Hire Term.
"13. On 15 May 2019, I received a letter from Jared Waerea who was recorded as being the Superintendent Production with BHP - Operations Service. That letter was on BHP letterhead. Enclosed with that letter was a document entitled "Employment Agreement Summary" (hereafter the Contract).
14. The Contract records that the employing company was OS ACPM Pty Ltd (OS ACPM). I don't believe this was ever corrected or that I later received a contract from OS MCAP Pty Ltd (OS).
15. After starting work at MAC, my wages were paid by OS ACPM.
16. The Contract records that I was employed in the position of "Operator Production in the OS Production Department".
17. The Contract includes an item described as "Point of Hire", which stated ..."
(e) An outline of submissions dated 10 March 2022 was filed on behalf of all the Applicants. No specific mention was made of Mr Moyle, or the terms of his contract with OS, in those submissions. Instead, the submissions included the following contentions [emphasis added]:
"20. OS contends that the Applicants have not been dismissed within the meaning of s.386 of the FW Act. This contention rests exclusively upon the "point of hire" term in the OS boilerplate contract of employment that each Applicant was party to...
29. Each Applicant was party to a contract of employment with OS that was in identical terms. The "point of hire" term in each contract is reproduced below ...
30. It is evident that the "point of hire" term provided OS with ability to direct the Applicants to work on any site across the East Coast of Australia."
(f) OS's outline of written submissions dated 19 April 2022 contends, amongst other things, (at [9]) that "Each of the Applicants' contracts of employment with the Respondent contains a "point of hire" clause (East Coast Clause) that states ..."
(g) The Applicants' outline of submissions in reply dated 10 May 2022 does not take any issue with the contention by OS that each Applicant was party to a contract of employment that included as one of its terms the Point of Hire Term. To the contrary, the Applicants asserted in their outline of submissions in reply (at [6]-[7]) that "There was no renunciation for the simple reason that the respective contract of employment only imposed an obligation on each Applicant to work on literally any site on the East Coast of Australia where a direction to that effect was issued. The facts of this case clearly demonstrate that no such direction was issued." [emphasis added]
(h) Mr Walkaden did not make any opening oral submissions relating to Mr Moyle or the terms of his contract with OS.
Mr A. Walkaden, Senior National Legal Officer of the Mining and Energy Union, for the Applicants
[3] NSW Trains v James [2022] FWCFB 55 at [45]
[4] Mohazab v Dick Smith Electronics Pty Ltd [1995] IRCA 625; (1995) 62 IR 200
[5] Mohazab v Dick Smith Electronics Pty Ltd [1995] IRCA 625; (1995) 62 IR 200
[6] Visscher v The Honourable President Justice Giudice [2009] HCA 34; (2009) 239 CLR 361 at [53]- [55]; NSW Trains v James [2022] FWCFB 55 at [62]; Abandonment of Employment [2018] FWCFB 139 at [21]
[7] Abandonment of Employment [2018] FWCFB 139 at [21]
[10] Abandonment of Employment [2018] FWCFB 139 at [21]
[11] Koutalis v Pollett [2015] FCA 1165 at [43]; Canberra Urology Pty Ltd v Lancaster [2021] FWCFB 1704 at [30]
[12] Koutalis v Pollett [2015] FCA 1165 at [43]; Canberra Urology Pty Ltd v Lancaster [2021] FWCFB 1704 at [30]
[13] Bupa Aged Care Australia Pty Ltd v Tavassoli [2017] FWCFB 3941 at [47(2)]
[14] Bupa Aged Care Australia Pty Ltd v Tavassoli [2017] FWCFB 3941 at [47(2)]
[19] Ex R7 at JW-1, "Where is Operations Services?"
[20] I have taken judicial notice of these facts concerning the location of Blackwater. No evidence was adduced on the topic.
[21] Applicants' outline of submissions dated 10 March 2022 at [42]
[22] [1989] AIRC 528; (1989) 31 IR 35 at 48-49; applied in DL Employment Pty Ltd v AMWU [2014] FWCFB 7946 at [41]
[23] Jones v Department of Energy and Minerals [1995] IRCA 292; (1995) 60 IR 304 at 308
[25] Upper Hunter County District Council v Australian Chilling and Freezing Co Ltd [1968] HCA 8; (1968) 118 CLR 429 at 437
[26] Liberty Mutual Insurance Company Australian Branch trading as Liberty Specialty Markets v Icon Co (NSW) Pty Ltd [2021] FCAFC 126 at [45]
[30] BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 52 ALJR 20 at 26
[31] BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 52 ALJR 20 at 26
[32] BP Refinery (Westernport) Pty Ltd v Shire of Hastings (1977) 52 ALJR 20 at 26
[33] Codelfa Constructions Pty Ltd v State Rail Authority (NSW) (1982) 149 CLR 337 at 352
[34] CFMMEU v Personnel Contracting Pty Ltd [2022] HCA 1 at [44]; ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 at [8]- [9]
[35] CFMMEU v OS MCAP Pty Ltd (No 2) [2022] FCA 132 at [81]
[37] Macquarie Dictionary, Revised Third Edition
[49] Abandonment of Employment [2018] FWCFB 139 at [21]
[52] Koutalis v Pollett [2015] FCA 1165 at [43]; Canberra Urology Pty Ltd v Lancaster [2021] FWCFB 1704 at [30]
[55] Transcript at PN488-490; Ex A13 at [33]-[34]
[58] Bupa Aged Care Australia Pty Ltd v Tavassoli [2017] FWCFB 3941 at [47(2)]
[62] Bellingen Shire Council v Colavon Pty Ltd [2012] NSWCA 34 at [33]
Printed by authority of the Commonwealth Government Printer
Scott Ambrose, John David Bourke, Jamie Clifford, Andrew James Craker, Shelley Farr, Wayne Anthony Harris, Billy Jack, Leigh Moyle, Jonathon Neill, Breht Richardson, Scott Sawyer, Bradley Jon Smith, Deborah Wilson, Gera Brenda Wubs, Jason Lerch, David Haggath and Jamie Boulton
OS MCAP Pty Ltd [2022] FWC 1481
(1995) 62 IR 200
(2009) 239 CLR 361
(1995) 60 IR 304
(1982) 149 CLR 337
(1989) 31 IR 35
(2015) 256 CLR 104
(1968) 118 CLR 429
(1977) 52 ALJR 20