Stanley v Service to Youth Council Incorporated
[2014] FCA 643
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2014-06-20
Before
White J
Source
Original judgment source is linked above.
Judgment (13 paragraphs)
Background 26 Most of the matters which I recount in this section of the reasons were non-contentious. When necessary, I will identify areas of contention and make findings concerning them. 27 SYC is a not-for-profit organisation which commenced operations in 1958. Its purpose is the assistance of young disadvantaged persons. SYC provides assistance to young people in obtaining employment, housing, training and provides "well-being services". 28 Over the last decade or so, SYC has experienced considerable growth. It now has operations in South Australia, Victoria, New South Wales and Queensland, and employs some 450 persons. SYC has 39 housing units and 20 houses under management. 29 SYC's Helping Young Persons Achieve (HYPA) Division provides temporary housing for young people at risk of becoming homeless. 30 The applicant commenced employment at SYC on 16 November 2009 in a position entitled "Project Manager - Facilities Management". Initially, her employment was for a fixed term but she was made permanent on 13 September 2010. At the same time, her position was re-described as "Facilities Manager". The applicant's duties as Facilities Manager included managing and maintaining the premises of SYC; establishing and delivering all facilities-related services (such as cleaning, preventative maintenance and attending to breakdowns) at over 30 individual sites in Adelaide and Melbourne; hands-on operational management of each site; developing specifications for, and the assessment of, contract tenders; assessing and engaging contractors and suppliers; identifying and assessing occupational safety hazards; and undertaking audits to ensure compliance with applicable legislation and regulations. At the time of the applicant's termination, her salary was $71,428 per annum. 31 Before 11 February 2011, the applicant reported to Mr Lemmey, SYC's Corporate Services Manager. Mr Lemmey had responsibility for the management of both the Property and Assets Department (the P and A Department) and the Information and Communications Technology Department. Mr Lemmey reported directly to Mr Edginton, the CEO. 32 The P and A Department, in which the applicant worked, comprised three staff, being Mr Lemmey, the applicant and a Mr Ellbourn, who had the title "Property and Infrastructure Coordinator". 33 Mr Lemmey resigned from his employment at SYC on Friday, 11 February 2011. Mr Furniss assumed responsibility for the P and A Department, with the effect that the applicant and Mr Ellbourn then reported to him. 34 The applicant said that, on the day of Mr Lemmey's departure, she informed Mr Furniss of her pregnancy, and of her intention to take parental leave closer to her due date. She said that Mr Furniss responded by saying "congratulations" and that he was "shocked". The applicant said that Mr Furniss then made the remarks which are the subject of her sexual harassment claim, which I will detail later. 35 The applicant also complained of Mr Edginton's conduct at the time she announced her pregnancy and thereafter. She said that at the morning tea on 11 February to farewell Mr Lemmey, she began telling colleagues that she was pregnant. She said that Mr Edginton was standing within earshot of the group whom she told of the pregnancy. Although the other employees congratulated her on the pregnancy, Mr Edginton did not do so and did not join in the conversation. The applicant said: I remember feeling awkward about his lack of response; I didn't expect "gushing" but his total lack of response made it seem like I had done something wrong. 36 The applicant went on to say that Mr Edginton's attitude towards her changed after her announcement of her pregnancy. She claimed that she and Mr Edginton had often had "chats", but that this did not occur after her announcement. This made her feel "awkward, uncomfortable and embarrassed" around Mr Edginton. In her cross-examination, the applicant acknowledged that the "chats" were in the nature of exchanges of pleasantries when she and Mr Edginton passed one another incidentally in the office and that her work relationship with Mr Edginton had not been close. 37 Mr Edginton did not recall the applicant announcing her pregnancy at Mr Lemmey's farewell. He acknowledged that he may have heard at that time of her pregnancy but said that his absence of reaction, as described by the applicant, was consistent with the limited nature of his relationship with her at the time. He denied that his attitude towards the applicant had changed because of the announcement of her pregnancy. 38 I accept Mr Edginton's evidence on this topic. I am satisfied that, as CEO, he did not have the kind of contact or relationship with the applicant in February 2011 which would have made it natural for him to offer congratulations to her so that any inference could reasonably be drawn from his omission to do so. I consider that this aspect of the applicant's evidence is an example of her retrospective rationalisation of events so as to give them a more sinister connotation than is appropriate. 39 As already noted, Mr Furniss, the Chief Operating Officer, assumed responsibility for the P and A Department after Mr Lemmey's departure. SYC contemplated that this would be a temporary arrangement and that, after the implementation of a review of its information and communications technology requirements and the recruitment of a new manager, responsibility for the P and A Department would pass to Mr Matthews, the CFO. In essence, SYC proposed altering the role previously performed by Mr Lemmey so as to make it more "operational". Mr Lemmey's replacement would not have responsibility, as did Mr Lemmey, for information and communication technology. 40 In April 2011, SYC advertised the position of "Property and Assets Manager". Ms England was the successful applicant and commenced on 1 June 2011. 41 On 19 May 2011, the applicant submitted her request for parental leave. This was for annual leave commencing on 1 August 2011, paid parental leave under the Paid Parental Leave Act 2010 (Cth) commencing on 19 September 2011 and, in effect, unpaid leave commencing on 23 January 2012. SYC granted that request. 42 In the period between Ms England's commencement on 1 June 2011 and the applicant's departure on leave on 1 August 2011, the P and A Department comprised Ms England, the applicant and Mr Ellbourn. During this period, Ms England was familiarising herself with the functions of the P and A Department. She said that she was assessing an appropriate employment structure by which to carry out those functions. Ms England reported to Mr Matthews. 43 On 22 June 2011, SYC advertised internally and externally for a Property and Assets Coordinator. The advertisement indicated that the advertised position was "a 12 month parental leave relief position". Ms England said (and I accept) that she had not then had sufficient time to determine how best to structure the P and A Department for the long term. Given the applicant's pending parental leave, her recommendation was that Mr Ellbourn should "step up into" the applicant's role and for SYC to replace Mr Ellbourn during the applicant's absence. Mr Matthews approved that course of action. Hence, the advertisement of 22 June 2011 related to Mr Ellbourn's then position but properly described it as a parental leave relief position. The position was available only because Mr Ellbourn was filling the applicant's position during her absence on parental leave. 44 However, SYC did not proceed with the recruitment of a Property and Assets Coordinator. During the interview period, Ms England formed the view that a different structure was appropriate. She considered that both Mr Ellbourn and the applicant spent too much time performing routine administrative work and that the division of roles between them was inappropriate. Accordingly, Ms England recommended that, instead of recruiting a Property and Assets Coordinator, SYC employ someone to provide administrative assistance. Mr Matthews approved this recommendation and a Ms Young was employed as the administrative assistant. Ms Young commenced on 3 August 2011. Her salary, being of the order of $50,000 per annum, was more than $20,000 less than that of the applicant. Ms Young's letter of appointment specified that her employment was "for a period of up to 12 months depending on the return of the employee on parental leave". That employee was the applicant. 45 Ms England said, and I accept, that after the commencement of Ms Young, the P and A Department operated in a tiered manner: in a broad sense, she performed the more complex tasks; Mr Ellbourn, tasks at a middle level of complexity; and Ms Young, administrative tasks supporting both. I accept that the P and A Department continued in this three-tiered way until (and after) the termination of the applicant's employment. 46 The applicant was aware of the changes in the P and A Department before commencing her leave. She said, and I accept, that they caused her concern. The matters causing her concern included her appreciation that the new manager's position would incorporate a significant portion of her own duties. The applicant enquired of Mr Matthews whether she would still have a job to which she could return. Mr Matthews responded by saying that he could not answer that at that time. The applicant deposed that she then became "very concerned" about her job and "felt strongly that SYC was trying to get rid of [her]". 47 The applicant enquired of Ms Downie, an HR Advisor at SYC, whether she would have a job to which she could return after her parental leave. Ms Downie gave advice to the applicant to the following effect: SYC must hold your position open, otherwise they will need to find you an alternative role. … You can take a maximum of one year off first and SYC must keep your job for you. Then, if you wanted to, you could apply for another 12 months off. If you want to come back part-time, SYC must try to accommodate this. 48 Although these remarks appear to have been of a reassuring kind, the applicant deposed: I was very scared, hurt and humiliated by this time. I felt that SYC were not even trying to hide their adverse treatment to me. They seemed to enjoy taking advantage of me during my pregnancy because I was never made to feel comfortable in my role after announcing my pregnancy. In cross-examination, the applicant said that it was Mr Matthews and Mr Furniss who she considered were enjoying taking advantage of her. 49 When commencing her leave, the applicant was required to hand back to SYC her mobile phone and her building access, car park access, and company credit cards. She said that she felt "a little offended" at being required to hand over these items, especially as the first part of her leave was annual leave. She claimed that her entitlement to the car park was a term of her contract of employment. 50 As previously noted, the applicant's child was born on 20 August 2011. 51 On 27 October 2011, the applicant noted that she was due to provide an updated police clearance and wished to attend to that whilst she was still on leave. She sent an email that day to Ms England enquiring whether she could organise the clearance whilst on leave. Ms England responded the same day, informing the applicant that she would make enquiries as to what needed to be done. As will be seen later, Ms England had already decided by this time, or within a further few days, that the applicant's position as Facilities Manager was no longer required. However, she did not inform the applicant at that time of that decision and did not ever provide the details concerning the obtaining of the police clearance which the applicant had requested. 52 In December 2011, the applicant began to contemplate returning to work earlier than the previously foreshadowed date of 31 July 2011. On 12 December 2011, she sent an email to SYC addressed to Ms England asking if it would be possible for her to return to work in April or May 2012, and enquiring whether she could return on a part-time basis, having regard to her proposed childcare arrangements. 53 Ms England responded with an email on 19 December 2011 indicating that she would arrange a meeting in the New Year to discuss return to work options. 54 When the applicant had not heard from Ms England by 25 January 2012, she sent a further email to Ms England, asking: Just wondered if you were still wanting to meet to discuss me returning to work? 55 Unbeknown to the applicant, Ms England and Mr Matthews had decided, by at least 4 November 2011, that the position of Facilities Manager was redundant. The applicant first learned of that decision at a meeting on 7 February 2012, which Ms England arranged in response to the applicant's email of 25 January. 56 The participants in the meeting on 7 February 2012 were the applicant, Mr Dyer and Ms England. Ms England told the applicant that SYC had conducted an organisational review of its management services operations and that her position as Facilities Manager had been selected on a "preliminary basis" for redundancy. This was because the P and A Department was operating efficiently with the existing employment structure, and the role which she had previously performed as Facilities Manager had been absorbed into the other roles within the Department. At the meeting, the applicant was given a letter, signed by Ms England, the substantive part of which was as follows: Service to Youth Council has recently conducted an organisational review of its Management Services operations. As a consequence we advise that your position of Facility Manager has been selected on a preliminary basis for redundancy. This letter, however, does not constitute notice of termination of employment. Accordingly we advise that you are required to attend a meeting with me at 10.00am on Tuesday, 14 February 2012 here at Level 6, 50 Grenfell Street, Adelaide. The purpose of the meeting will be to discuss the possible redundancy of this position and to discuss any alternatives to the termination of your employment as well as any proposals and suggestions that you may have. We will also discuss other ways of mitigating any adverse effects should no alternative be agreed. You may bring a support person to the meeting if you prefer. Should it not be possible to reach an alternative agreement, you will be provided with pay in lieu of notice and any severance payments in respect of your termination on the grounds of redundancy. We would ask that you put any submissions or suggestions that you may have in writing to us by no later than 5.00pm on Monday, 13 February 2012. Please contact Lee Dyer at any time prior to the meeting on 14 February 2012 if you wish to discuss matters further. 57 The applicant asked if the Administrative Assistant's position being performed by Ms Young was available, but was told it was not. She was also given a print-out of SYC's current vacancies and asked to consider whether she was interested in applying for any of those. 58 The applicant attended the further meeting on 15 February (rescheduled from 14 February) with her solicitor, Ms Murray. SYC's lawyer, Mr Short, was also present. Ms Murray indicated that the applicant did not regard any of the alternative roles as being suitable, having regard to her skills and qualifications. Mr Short responded by saying that SYC agreed and that, because no other suitable position could be found, SYC was making the position of Facilities Manager redundant and was terminating the applicant's employment. Ms England then read a prepared statement and provided a letter to the applicant dated 15 February 2012. The letter had the same content as the statement read by Ms England. The body of the letter was as follows: We refer to our earlier meeting of 7 February 2012. In the interim period we have been unable to identify any alternative position which is reasonably suitable to your skills and experience. You have also been unable to provide us with any suggestions or suitable alternative positions for us to consider. We now confirm that we have decided to make your position of Facility Manager redundant effective immediately. This decision in no way reflects upon your work performance or conduct. This decision is based purely on operational grounds. As a consequence, we advise that your employment with SYC will cease effective immediately. Severance pay, payment in lieu of notice and any annual leave owed to you will be paid out by electronic transfer to your nominated bank account. We would like to thank you for your contribution to SYC and to wish you all the best for the future. 59 The applicant's employment was then terminated. She received a payment comprised of her annual leave credit, four weeks' pay in lieu of notice, and a severance payment of four weeks' pay. 60 I will return to relevant events occurring subsequent to the termination later in these reasons.