University of Wollongong v National Tertiary Education Industry Union
[2002] FCAFC 85
At a glance
Source factsCourt
Federal Court of Australia (Full Court)
Decision date
2002-01-01
Before
Branson J, Edward J, Conti JJ
Source
Original judgment source is linked above.
Judgment (12 paragraphs)
THE COURT: 1 This is an appeal by the University of Wollongong ("the University") from a judgment of a single Judge of the Court (Branson J) in relation to the summary dismissal of the second respondent, Edward Steele, from his employment by the University. The first respondent to the appeal is National Tertiary Education Industry Union ("the Union"), an association of employees registered under the Workplace Relations Act 1996 ("the Act").
The enterprise agreement 2 Dr Steele was employed as an academic at the University from about February 1985 until 26 February 2001. At the date of his dismissal he held the rank of Associate Professor. An enterprise agreement negotiated between the Union and the University applied to him. That agreement is the University of Wollongong (Academic Staff) Enterprise Agreement, 2000 to 2003 ("the Agreement"). 3 The Agreement regulates termination of the relationship of employer and employee between the University and its staff members by stipulating as follows for the giving of notice on one side or the other; "14.1 Notice periods may be provided under sub-clause 14.4 of this clause or Clauses 28 (Probationary Appointments) or 62 (Termination of Employment on the Grounds of Ill Health) of this Agreement or an individual staff member's contract of employment. The required period of notice will be whichever is the greater. 14.2 The University must not terminate a staff member's employment unless: a. the staff member has been given the required period of notice; or b. the staff member has been paid the required amount of compensation instead of notice; or c. where the staff member is guilty of serious misconduct, that is, misconduct of such a nature that it would be unreasonable to require the University to continue the employment of the staff member concerned during the required period of notice. A staff member must not resign from their employment unless the University has been given the required period of notice. … … … … … 14.4The required period of notice is as follows: · Not more than 1 year At least 1 week · More than 1 year but not more than 3 years At least 2 weeks · More than 3 years but not more than 5 years At least 3 weeks · More than 5 years At least 4 weeks 14.5 The period of notice should be increased by 1 week if the staff member is over 45 years old; and has completed at least 2 years of continuous service with the University." 4 Part 7 of the Agreement is headed "Performance Management". It commences with cl 59, headed "Preamble", which provides; "59.1 Other than as provided for in Clause 28 (Probationary Appointments) and Clause 26 (Incremental Progression) all decisions to discipline or terminate the employment of an academic staff member can only be taken by the Vice-Chancellor in accordance with Parts 6 and 7 of this Agreement. 59.2 The University must not terminate the employment of an academic unless the academic has been given notice and/or compensation as required under Clause 14 of this Agreement provided that the University may terminate without notice the employment of an academic found to have engaged in conduct of a kind envisaged in Section 170CM(1)(c) of the Australian Workplace Relations Act such that it would be unreasonable to require the University to continue employment during a period of notice; 59.3 Disciplinary action should be used as a last resort. An academic supervisor must make every effort to resolve instances of possible misconduct or unsatisfactory performance through guidance, counselling and appropriate academic staff development, or appropriate work allocation before a possible report to the Vice Chancellor under Clause 60 of this Agreement. 59.4 In cases involving misconduct, disciplinary action shall be limited to the scope of sub-clause 59.5 b.1. to 3. below. 59.5 Definitions a. 'Termination of Employment' means termination of employment at the initiative of the University. b. 'Disciplinary Action' means action by the University to discipline a member of academic staff for unsatisfactory performance, misconduct or serious misconduct and is limited to: · Formal censure or counselling; · Demotion by one or more classification levels or increments; · Supervision with or without pay; · Termination of employment; c. 'Serious Misconduct' shall mean: · Serious misbehaviour of a kind which constitutes a serious impediment to the carrying out of an academic's duties or to an academic's colleagues carrying out their duties. · Conviction by a court of an offence which constitutes a serious impediment of the kind referred to above. · Serious dereliction of the duties required of the academic office. d. 'Misconduct' shall mean conduct which is not serious misconduct but which is nonetheless conduct which is unsatisfactory." 5 Clause 60 relates to performance management. There is provision for review of any dissatisfaction with a staff member's performance. This may extend to disciplinary action, even dismissal from the University. Any required notice period is to be paid out in lieu of notice (cl 60.17). 6 Clause 61 is also to be found in Pt 7 of the Agreement. It is headed "Misconduct and Serious Misconduct". It provides, so far as is relevant; "61.1 Before the Vice-Chancellor takes disciplinary action against a staff member for reasons amounting to misconduct or serious misconduct, the Vice-Chancellor must take the steps in this clause, except that, where a matter which may involve misconduct or serious misconduct has been dealt with in good faith as if it were a case of unsatisfactory performance under Clause 60 of this Agreement, the procedures of this Clause are not required, but the provisions of Clause 60 of this Agreement, including notice periods and review procedures must be followed. 61.2 Any allegation of misconduct/serious misconduct shall be considered by the Vice-Chancellor. If the Vice-Chancellor believes such allegations warrant further investigation the Vice-Chancellor shall: a. notify the staff member in writing and in sufficient detail to enable the academic to understand the precise nature of the allegations, and to properly consider and respond to them; b. require the staff member to submit a written response within 10 working days. 61.3 At the time of notifying the staff member in accordance with sub-clause 61.2 the Vice-Chancellor may suspend the staff member on full pay, or may suspend the staff member without pay if the Vice-Chancellor is of the view that the alleged conduct amounts to conduct of a kind envisaged in section 170CM(1)(c) of the Australian Workplace Relations Act such that it would be unreasonable to require the University to continue employment during a period of notice. Provided that: a. where suspension without pay occurs at a time when the staff member is on paid leave of absence the staff member shall continue to receive a salary for the period of leave of absence; b. the staff member may engage in paid employment or draw on any recreation leave or long service leave credits for the duration of the suspension without pay; c. the Vice-Chancellor may at any time direct that salary be paid on the ground of hardship; d. where a suspension without pay has been imposed and the matter is subsequently referred to a Committee, the Vice-Chancellor shall ensure that a Committee at its first meeting determine whether suspension without pay should continue and that Committee shall have the power to revoke such a suspension from its date of effect. 61.4 If the allegations are denied by the staff member and the Vice-Chancellor is of the view that there has been no misconduct or serious misconduct he/she shall immediately advise the staff member in writing, and may, by agreement with the academic, publish the advice in an appropriate manner. 61.5 If the allegations are admitted in full by the staff member and the Vice-Chancellor is of the view that the conduct amounts to misconduct or serious misconduct the Vice-Chancellor shall advise the staff member in writing of the Vice-Chancellor's decision and the operative date of the disciplinary action. 61.6 If the allegation is denied in part or in full or if the staff member has not responded to the allegations the Vice-Chancellor shall refer the matter to a Committee in accordance with the provisions of sub-clause 61.9, unless the Vice-Chancellor decides to take no further action or counsel or censure the staff member for unsatisfactory behaviour and take no other action. 61.7 During any period of suspension the staff member may be excluded from the University, provided that he or she shall be permitted reasonable access to the University for the preparation of his or her case and to collect personal property. 61.8 … 61.9 Where a matter is referred to a Committee pursuant to sub-clause 61.6 the Vice-Chancellor shall convene the Committee within 10 working days where practicable. … … … … … 61.10 The terms of reference of the Committee are to report on the facts relating to the alleged misconduct or serious misconduct, including whether any mitigating circumstances are evident. 61.10.1 The Committee shall provide a report to the Vice-Chancellor and the staff member as soon as is practicable following the conclusion of Committee proceedings. 61.10.2 On receipt of the report of the Committee, and having considered its findings on the facts related to the alleged misconduct or serious misconduct, the Vice-Chancellor may take disciplinary action. Where the disciplinary action is to terminate the academic staff member the academic staff member will be provided with notice or payment in lieu of notice as provided for under Clause 14 of this Agreement provided that the University may terminate without notice the employment of an academic found to have engaged in conduct of a kind envisaged in Section 170CM(1)(c) of the Australian Workplace Relations Act such that it would be unreasonable to require the University to continue employment during a period of notice. 61.10.3 If, having considered the Committee's findings on the facts relating to the alleged misconduct or serious misconduct, the Vice-Chancellor is of the view that there has been no misconduct or serious misconduct he/she shall immediately advise the staff member in writing, and may, by agreement with the staff member, publish the advice in an appropriate manner. 61.10.4 Where a staff member has been suspended without pay pending the decision of the Vice-Chancellor, then any lost income shall be reimbursed if there was no misconduct or serious misconduct. However, a decision taken by the Vice-Chancellor in his or her discretion not to dismiss or impose another penalty shall not be construed as an admission that there was no conduct justifying suspension without pay. 61.10.5 This clause in no way constrains the University from carrying out other or further investigations relating to the consequences of conduct of a staff member or former staff member when required in the public interest, eg inquiring into the truth of research results. 61.10.6 All actions of the Vice-Chancellor under this clause shall be final, except that nothing in this sub-clause shall be construed as excluding the jurisdiction of any external court or tribunal which, for this sub-clause, would be competent to deal with the matter." 7 The relevant provisions of s 170CM of the Act are; "(1) Subject to subsection (8), an employer must not terminate an employee's employment unless: (a) the employee has been given the required period of notice (see subsections (2) and (3)); or (b) the employee has been paid the required amount of compensation instead of notice (see subsections (4) and (5)); or (c) the employee is guilty of serious misconduct, that is conduct of such a nature that it would be unreasonable to require the employer to continue the employment of the employee concerned during the required period of notice (see subsection (7))." … … … … … (7) Without limiting the generality of the reference to serious misconduct in paragraph (1)(c), the regulations may identify: (a) particular conduct; or (b) conduct in particular circumstances; that falls within that reference. …… … … …" 8 Regulation 30CA of the Workplace Relations Regulations 1996 (Cth), promulgated in exercise of the power conferred by s 170CM(7) of the Act, provides; "(1) For paragraph 170CM(1)(c) of the Act, serious misconduct includes: (a) wilful, or deliberate, behaviour by an employee that is inconsistent with the continuation of the contract of employment; and (b) conduct that causes imminent, and serious, risk to: (i) the health, or safety, of a person; or (ii) the reputation, viability or profitability of the employer's business. (2) For subregulation (1), conduct that is serious misconduct includes: (a) the employee, in the course of the employee's employment, engaging in: (i) theft; or (ii) fraud; or (iii) assault; or (b) the employee being intoxicated at work; or (c) the employee refusing to carry out a lawful and reasonable instruction that is consistent with the employee's contract of employment. (3) Subregulation (2) does not apply if the employee is able to show that, in the circumstances, the conduct engaged in by the employee was not conduct that made employment in the period of notice unreasonable. (4) For this regulation, an employee is taken to be intoxicated if the employee's faculties are, by reason of the employee being under the influence of intoxicating liquor or a drug (except a drug administered by, or taken in accordance with the directions of, a person lawfully authorised to administer the drug), so impaired that the employee is unfit to be entrusted with the employee's duty or with any duty that the employee may be called upon to perform."