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[2015] NSWIRComm 37
Industrial Relations Commission (NSW)
2015-09-28
Walton J, Harrison DP
Original judgment source is linked above.
background
application to bring further evidence
statutory context
the impugned decision
sufficient reason'. Factors going to the formation of a view of a sufficient reason are outlined in s 256(4)(a) to (d). It is not appropriate to formulate any definition of what constitutes a sufficient reason': see Martin v Nominal Defendant (1954) 74 WN (NSW) 121. However, the evidence of the proceedings before the Commissioner was relevant to be considered pursuant to the statutory requirements in regard to the formulation of the view."
[13] Similarly, in Skelly v Prouds Jewellers Pty Ltd (1994) 53 IR 3 at 6, in the context of an application for the extension of time to appeal, the Full Commission emphasised the need to take all relevant factors into account in determining an extension of time application; see also the decision of Walton J, Vice-President in Brady v Kennedy (t/as Sardines) (1999) 91 IR 258. In our view, the considerations discussed in those decisions are apposite to the exercise of discretion under s 85(3) of the Act. In particular, we would adopt the observations of the Vice-President in Brady, that "the ultimate exercise of discretion is governed by the requirements of justice in a particular case".
[14] To arbitrarily adopt an approach that "ignorance of the law is no excuse" when dealing with an application for an extension of time may lead to a failure to consider potentially relevant issues, such as the reasons and circumstances as to the ignorance of the relevant time limitation, personal circumstances affecting or potentially affecting an applicant's knowledge or access to professional advice and the actual circumstances giving rise to late lodgement, including any attempts to lodge an application. The Commission needs only to be satisfied that there is a "sufficient reason" to accept the late application, having "particular" regard to the matters identified. When viewed in that way, the maxim concerning ignorance of the law emerges as even less relevant than otherwise may be the case. The use of the maxim in applications to extend time in unfair dismissal matters has the real potential for error, as this matter highlights.
83 The rationale for imposing time limits on the filing of applications is that the respondent employer is entitled to know within a reasonable period of time whether the dismissal will be challenged and where challenged these matters need to be dealt with expeditiously.
…
85 In Smith and New South Wales Police Service (No 2) [2004] NSWIRComm 311 the Full Bench observed at paragraphs 25 and 26:
An application for relief from unfair dismissal pursuant to Part 6 of Chapter 2 of the Act has time of the essence. The initial obligation is upon the applicant to file his or her application within 21 days. The discretion to be exercised by the Commission under s 85(3) must be viewed within the framework of the legislative intention expressed by that requirement.
In considering the reason for delay, hardship to both applicant and respondent and the conduct of the employer, there may come a point when the length of delay outweighs in a substantial way other considerations.
86 In Herron v McGregor (1986) 6 NSWLR 246 at 254 McHugh JA observed:
The public interest requires that complaints be lodged and dealt with as expeditiously as possible: see Birkett v James [1978] AC 297 at 329 ... Memories fade. Relevant evidence becomes lost. Even when written records are kept, long delay will frequently create prejudice which can never be proved affirmatively.
87 The principles associated with the legislative intention to fix time limits were also canvassed by McHugh J in Brisbane South Regional Health Authority at 553:
A limitation period should not be seen therefore as an arbitrary cut off point unrelated to the demands of justice or the general welfare of society. It represents the legislature's judgment that the welfare of society is best served by causes of action being litigated within the limitation period, notwithstanding that the enactment of that period may often result in a good cause of action being defeated ... The extension provision is a legislative recognition that general conceptions of what justice requires in particular categories of cases may sometimes be overridden by the facts of an individual case...But whether injustice has occurred must be evaluated by reference to the rationales of the limitation period that has barred the action. The discretion to extend should therefore be seen as requiring the applicant to show that his or her case is a justifiable exception to the rule that the welfare of the State is best served by the limitation period in question. Accordingly when an applicant seeks an extension of time to commence an action after a limitation period has expired, he or she has the positive burden of demonstrating that the justice of the case requires the extension.
88 In Hurrell and Queensland Cotton Corporation Limited [2003] NSWIRComm 139 the Full Bench stated at [12]:
... a lack of knowledge of the 21 days time limitation specified in s 85(1) of the Act may well be a relevant consideration in determining whether to accept an application out of time. A failure to consider or to give any weight to such evidence may well amount to a failure to have regard to evidence relevant to essential aspects of the exercise of discretion. The discretion to accept an application out of time involves balancing a range of considerations, including an applicant's ignorance of the relevant time limit, whether an applicant has an arguable case and the applicant's prospects of success.The Commissioner's Findings as to Whether the Appellant was Dismissed
Appellant
Leave to Appeal 1. Leave to appeal should be granted as "the Commissioner might have erred in the exercise of his discretion" in the impugned decision: House v The King (1936) 55 CLR 499 ('House v King'). That error caused the decision to be "unreasonable and unjust" and occasioned a "substantial injustice" to the appellant. An appeal is necessary to correct that injustice. 2. In particular, the appellant contended that the Commissioner made the following errors in the impugned decision: 1. Broadly speaking, the Commissioner did not properly consider all relevant material to the disposition of the discretion and, conversely, placed emphasis upon irrelevant matters, including facts about which he was mistaken; 2. Principally, as noted above, the Commissioner failed to give appropriate weight to the appellant's psychological condition. In that respect, the Commissioner should have had regard to the fact that "ordinary standards of 'reasonableness' are often not appropriate in relation to persons whose psychological injuries may be profound" when considering whether there was "sufficient reason" to extend time; 3. The Commissioner failed to give appropriate weight to the appellant's good character (as certified by letter from Ms Jeanette Barker), in circumstances where Mr Morgan did not provide any supporting documents as to his character or credibility; 4. The Commissioner placed too much emphasis on the evidence that the appellant had previously been before the Commission. In so doing, he "incorrectly drew a similarity between past matters and this matter", relying on notions of the appellant's propensity as a litigant, instead of properly considering the matter before him on its facts. The appellant's prior litigation in this jurisdiction is relevant only as evidence for the fact that the appellant did not understand the statutory time limitation prescribed by the Act which is a matter which tends to support the acceptance of his application; 5. Ultimately, the Commissioner declined to extend time to hear the application when, in the circumstances of the matter, "to not allow an extension of time would offend the concept of reasonableness"; and 6. The Commissioner erred in his determination that the appellant was not dismissed and incorrectly considered the appellant's contract for the 2013 school year, rather than that made for the 2014 school year to which the unfair dismissal application was directed.
Extension of Time 1. As to the merits of his case on the extension of time, the appellant divided the reason for the delay in filing the application into distinct periods of time: first, the appellant was on workers compensation leave (until 12 December 2013) and was not properly informed of his dismissal and, secondly, he was denied procedural fairness and continued to suffer "a state of mental incapacity sufficiently extreme for him to start any formal legal proceedings". In essence, two explanations for delay over that time were proffered, namely, the impact of the appellant's psychological condition and the alleged procedural unfairness on the part of the respondent. 2. The impact of the appellant's psychological condition was the primary justification for lateness advanced by the appellant on appeal. In that respect, he made the following submissions in these proceedings: 1. It was inappropriate, and against the respondent's policy, for it "to provide any notice of termination of employment while [the appellant] was on WorkCover" for a workplace injury. He was, at that time, unable to respond as he was unfit for work due to his psychological condition. 2. The appellant contended that, although he returned to work on 12 December 2013, his psychological condition persisted after that date such that it contributed to the delay in his application. The medical certificate he provided to the respondent on 12 December 2013 expressed the view of his doctor, Dr S Gudipalli, that he was "suffering from anxiety disorder/PTSD due to work place issues". He described that psychological condition as "an illness which renders persons, amongst other things, unable to act decisively even in their own interests" and contended that he had "no capacity to make important decisions to conduct litigation [and]…lacked the drive necessary to pursue matters effectively". He contended that he was unable to undertake "serious matters outside his normal routine", even after his return to work (save for taking the step of requesting a meeting with Mr Morgan which was not responded to). Thus, there "was a direct link with his health problems and the consequences of the out of time application". As soon as possible after returning to reasonable health, the appellant filed his application. 3. The Commissioner failed to consider s 52 of the Limitation Act 1969 which provides that the running of a limitation period is suspended for a person under a disability, including a mental illness, for the duration of that disability. Disability, in this context, is defined in the Disability Discrimination Act which the Commissioner also failed to consider. A substantial wrong occurred in declining to exercise the discretion to accept an out of time application as the Commissioner erred in law by failing to have regard to the suspension of the limitation period. 4. Ultimately, the Commissioner failed to take into account the impact of the appellant's psychological condition or correctly balance the relevant medical evidence in making his decision. 1. As to the procedural unfairness occasioned by the respondent, the appellant submitted that: 1. Mr Morgan dismissed him from employment for the 2014 school year via email. The use of email to inform the appellant of his dismissal was unreasonable: see Maritime Union of Australia v Sydney International Container Terminals Pty Ltd [2015] FCA 855. The appellant was not provided with a formal letter or personal contact to inform him of his termination. 2. The email notice was "invalid and, thereby, denied [the appellant] the statutory time period legally required to challenge an unfair termination notice". In consequence of this procedural unfairness, the appellant was "disadvantaged in filing his unfair dismissal application". 3. The failure of Mr Morgan to meet with the appellant to discuss his employment after he sought a meeting (by way of a letter dated 28 November 2013) "was [a] denial of the appellant's fundamental rights (the hearing rule) and by such denial, the appellant was denied procedural fairness to address his unfair dismissal with the respondent" and his application was delayed for that reason. 4. Mr Morgan failed to inform the appellant of any rights that he may "have to appeal his decision making process." 5. The Commissioner failed to give appropriate weight to the failure of the respondent to adhere to the high standards of probity, ethics and fairness with which the respondent is expected to conduct itself. 6. The Commissioner also failed to consider that, in consequence of the procedural unfairness attending his dismissal, the delay "cannot be sheeted home" to the appellant. The conduct of the respondent was not reasonable in the circumstances and led to the delay in the application. 7. Finally, to the extent that the Commissioner preferred Mr Morgan's version of events, that is, that the appellant did not seek a meeting by the aforementioned letter on 12 December 2013, he erred. In that respect, the appellant made some submissions which were said to impeach Mr Morgan's credibility and noted that his own character was supported by a reference provided by Ms Barker. 1. In respect of each segment of time and the overall time, the appellant advanced a sufficient reason for the delay in filing his application. As such, the Commissioner was "incorrect" in his assessment that the appellant failed to advance a reason that was satisfactory under the Act. 2. While there is public interest in ensuring proceedings are brought without delay, there is a greater interest in allowing a person who has suffered at the hands of another "as much time as is necessary" to recover. 3. There is particular hardship against the appellant in this case. The appellant is 64 years old and to obtain other work will be difficult. That difficulty is exacerbated when it is considered that "he has been dismissed unfairly, unjustly and unreasonably in circumstances where due to illness he was not able to do more to defend himself". The fact that he worked in a small community reduces the availability of work and magnified the notoriety of his dismissal. This hardship has been borne out in the period since the dismissal as the appellant has not found employment due to those factors as well as the uncertainty of his employment status. 4. The hardship to the respondent was limited since it was on notice that the appellant would pursue litigation and the period of time that had elapsed was not long enough to cause the loss of records or memory. Further, the importance of this hardship must be diminished given that the respondent's conduct had a bearing on the lateness of the application.
Dismissal 1. The Commissioner erred in not properly addressing the contract alleged to have been made for the 2014 school year. The consideration of the 2013 school year contract was not relevant in the proceedings before the Commission. In this respect, the Commissioner addressed the wrong issue. 2. As to the existence of a contract for the 2014 school year, the appellant made submissions going to the credibility of Mr Morgan and to the evidence given during cross-examination by Ms Clark. In particular, the appellant submitted that Ms Clark did not deny that a contract had been made when she testified that Mr Morgan did not tell her "directly" that the appellant would be offered a position in 2014. The qualification "directly" has particular significance in that respect. She was told, as part of the executive Committee, that the appellant would be offered a position, as evidenced by her contemporaneous diary notes which were before the Commissioner (and the statutory declaration that the appellant sought to adduce in these proceedings). The appellant contended that the fact that Ms Clark was informed that he would be offered a position for the 2014 school year corroborated that an employment arrangement had been made by Mr Morgan with the appellant. Hence, the precise manner in which Ms Clark was informed of that arrangement (indirectly rather than individually) did not affect the value of her evidence in that respect. 3. The appellant emphasised that he was not made aware of the applicability of the provisions of the TS Act on his employment. 4. Nevertheless, the appellant considered that the application of s 50 of the TS Act had the effect of rendering the temporary engagement contract to be not of a fixed or outer limit nature. In that respect, the appellant sought to rely on the decision in USU on behalf Paul Parker & Newcastle City Council re dismissal [2014] NSWIRComm 1012 to support the proposition that a contract that contains a right to terminate by either party on notice in accordance with the award is "inconsistent with a notion of a contract for a fixed or specified period of time".
Respondent
Leave to Appeal 1. In the proceedings below, the Commissioner was only required to determine whether the Commission's discretion ought to be exercised to accept the appellant's out of time application. 2. In concluding that the appellant had not established a sufficient reason for him to exercise the Commission's discretion to extend time, the Commissioner correctly had regard to settled principles and the relevant statutory criteria. His decision, in that respect, turned on the facts of the matter. The appeal raises no substantial issues or principles of law in that respect and could not be said to have wider implications for the Commission's jurisprudence or the proper administration of justice. As such, leave to appeal should be refused. 3. The Commissioner was not required to address the jurisdictional issue. Hence, leave should not be granted to test whether the Commissioner fell into error in finding the appellant was not dismissed.
Extension of Time 1. To succeed on the merits of his appeal, the appellant must demonstrate that the Commissioner erred in not accepting his application out of time such that the Commissioner's discretion miscarried as he acted on a wrong principle, allowed extraneous or irrelevant matters to guide or affect him, mistook facts, did not take into account some material consideration, or reached a conclusion on the facts that was unreasonable or plainly unjust and amounted to a substantial wrong: House v King at 502. The appellant has not demonstrated that any such error occurred. 2. The Commissioner did not err in finding that the appellant's psychological condition did not represent a sufficient reason to attract the favourable exercise of the Commission's discretion. His decision in that respect was "unsurprising" for the following reasons: 1. Mr Morgan's email of 28 November 2013 made it clear that the appellant's existing temporary contract would expire at the end of 2013 and that he would not be offered a new contract. Thus, the appellant was aware from 3 December 2013 that he would not be offered a contract for the 2014 school year; 2. The appellant was fit to return to work from 12 December 2013; 3. He returned to work on that date and continued working for the remainder of the 2013 school year; 4. The appellant did not rely on his psychological condition to explain the delay in filing his application at the first available opportunity; 5. The appellant brought no medical evidence to support his belated contention that, although he was fit to work, he was unfit for, to use his words, "serious matters outside his normal routine" such as filing an unfair dismissal application. 1. In that light, the appellant's reliance on the Disability Discrimination Act and the Limitation Act is misplaced. There was no evidence that the appellant was suffering a disability that prevented or impeded him from filing his application within the statutory time limit. As such, the Commissioner was correct not to have regard to that legislation. 2. The procedural unfairness alleged by the appellant could not represent a sufficient reason for the Commissioner to extend time because the appellant was obliged to file his application in time irrespective of the same. In particular, the form of the notice (email) and the failure of Mr Morgan to respond to an alleged request for a meeting, which he denies receiving, do not constitute a sufficient reason to extend time. 3. In any event, the Commissioner was correct in his finding that the respondent's conduct did not have any bearing on the lateness of the application. 4. The Commissioner's determination that the appellant's hardship was not dissimilar to that of other applicants who unsuccessfully sought extensions of time to bring unfair dismissal applications was correct. He was also correct to take into account the "prejudice or hardship" that the respondent would suffer if he exercised the Commission's discretion to extend time: at [97]. 5. Lastly, the Commissioner was correct to find that the appellant should have been aware of the statutory time limitation. The appellant had filed an unfair dismissal application in 2009 more than two months late and on 17 May 2011 some 130 days late. The latter application was dismissed as it was found that there was not a sufficient reason to have the out of time claim accepted. 6. To the extent that leave to appeal is granted, the appeal should be dismissed.
Dismissal 1. Whilst it was unnecessary for the Commissioner to consider the jurisdictional question, it is evident from the impugned decision that he did so. The conclusion that he reached in that respect was correct. 2. There was no dismissal of the appellant as his temporary employment contract was an "outer limit" contract that simply expired by the effluxion of time at the end of the 2013 school year rather than by termination at the initiative of the employer: Sarah Lunn v Department of Justice [2006] AIRC 756; see, also, Gardner v Secretary of Treasury (Department of Justice - Corrective Services NSW) [2014] NSWIRComm 52 at [20]. The appellant had been employed by the respondent in a temporary capacity on a number of occasions for 12 month periods and, thereby, may be expected to have been aware of the nature of his temporary contract. 3. There was no oral contract in place between the appellant and the respondent for the 2014 school year. 4. The appellant's attempts to retrospectively impeach the character of Mr Morgan appear to be directed to the factual dispute about whether an agreement was made (and, to a lesser extent, whether a letter seeking a meeting was provided to Mr Morgan). Attacks on Mr Morgan's character and credibility are not relevant as the Commissioner's decision did not turn upon an assessment of those matters. 5. Relatedly, in his written submissions the appellant contended that Ms Clark's evidence below demonstrated that she was informed by Mr Morgan that the appellant would be employed during the 2014 school year (albeit not directly). He sought to adduce a statutory declaration which purported to clarify the oral evidence given by Ms Clark in that respect. That material should not be admitted into evidence because Ms Clark was provided the opportunity to convey her evidence before the Commissioner, and she did so. (It may be noted that this submission went to material which was not relied on by the appellant in his oral submissions and was not ultimately before the Commission in these proceedings.) 6. In any event, the appellant's temporary contract of employment was made pursuant to the TS Act and could only be extended in accordance with the requirements set out in s 50(5)(a) of that Act. There is no suggestion that those requirements were met in this case.
Consideration
The Appellant's Psychological Condition
Delay
The Significance of the Appellant's Previous Experience in bringing Out of Time Applications in the Jurisdiction
Jurisdictional Question
Remaining Issues in the Appeal
COnclusion
orders
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 19 November 2015
Stephen York
NSW Department of Education and Communities
NSWIRComm 169 Birkett v James [1978] AC 297 Brady v Kennedy (t/as Sardines) (1999) 91 IR 258 Brisbane South Regional Health Authority v Taylor (1996) 186 CLR 541 CCH Australia Ltd v Bowen (1998) 79 IR 206 Director-General of Education and Training v Bond [2009] NSWIRComm 40 Fox v Australian Industrial Relations Commission (2007) 161 FCR 263; (2007) 166 IR 85 Gardner v Secretary of Treasury (Department of Justice - Corrective Services NSW) [2014] NSWIRComm 52 Griffith Ex-Services Club Limited v Federated Liquor and Allied Industries Employees' Union of Australia (NSW Branch) (1993) 51 IR 186 House v The King (1936) 55 CLR 499 Hurrell and Others v Queensland Cotton Corporation [2003] NSWIRComm 139 Lee v Ausgrid (No 6) [2013] NSWIRComm 62 Little v Commissioner of Police (No 2) [2002] NSWIRComm 52; (2002) 112 IR 212 Maritime Union of Australia v Sydney International Container Terminals Pty Ltd [2015] FCA 855 McDonald's Australia Holdings Ltd & Anor v Industrial Relations Commission of NSW & 2 Ors [2005] NSWCA 286 NAIS v Minister for Immigration and Multicultural and Indigenous Affairs (2005) 228 CLR 470 New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Union and Liverpool City Council [2014] NSWIRComm 17 New South Wales Lotteries Corporation v Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales [2003] NSWIRComm 143 Public Service Association and Professional Officers' Association Amalgamated Union of New South Wales v Secretary of the Treasury [2014] NSWCA 112 Raveena Singh Rai v State Transit Authority of New South Wales [2015] NSWIRComm 27 Re Nursing Homes, & Nurses' (State) Award and Others Awards [2001] NSWIRComm 298 Sarah Lunn v Department of Justice [2006] AIRC 756 Smith and New South Wales Police Service (No 2) [2004] NSWIRComm 311 Stephen York and NSW Department of Education and Communities [2015] NSWIRComm 1011 T D Preece & Co Pty Ltd v Industrial Court of New South Wales [2008] NSWCA 285 USU on behalf Paul Parker & Newcastle City Council re dismissal [2014] NSWIRComm 1012 Category: Principal judgment Parties: Stephen York (Appellant) Secretary, Department of Education and Communities (Respondent) Representation: Counsel: Appellant in person Mr P Ginters (Respondent)
[2006] AIRC 756
(1999) 91 IR 258
(1996) 186 CLR 541
(1998) 79 IR 206
(2007) 161 FCR 263
(2007) 166 IR 85
(1993) 51 IR 186
(1936) 55 CLR 499
(2002) 112 IR 212
(2005) 228 CLR 470
(2003) 125 IR 145
(1982) 45 ALR 411
(1994) 53 IR 3
(1986) 6 NSWLR 246
(2005) 150 IR 263
(1999) 95 IR 380
(2002) 126 IR 407
(2000) 97 IR 484
(1995) 62 IR 190