[2025] FCA 527
General information, not legal advice.
Federal Court of Australia
2025-05-21
Needham J
Original judgment source is linked above.
(a) a whistleblower victimisation claim (s 1317AD of the Corporations Act); and/or
(b) an adverse action claim (s 340 of the FW Act).
the elements of s 1317AD are, relevantly: that Natural Solar engaged in conduct which caused a detriment to Mr Williams;
(a) when Natural Solar engaged in the detrimental conduct, Natural Solar believed or suspected that Mr Williams may have made, proposes to make or could make a disclosure that qualifies for protection under Pt 9.4AAA; and
(b) that belief or suspicion was the reason, or part of the reason, for the detrimental conduct.
Natural Solar bears the onus of showing, when it engaged in the detrimental conduct, it did not believe or suspect that Mr Williams may have made, proposes to make or could make a disclosure qualifying for protection, and that the belief or suspicion did not form the reason or part of the reason, for the detrimental conduct: s 1317AD(1)(b) - (c) (Jackson at [218]).
The meaning of the words of s 361(2) is clear. To have, in the process of assessing whether there is a prima facie case for interim injunctive relief, regard to the existence of the reverse onus for which s 361(1) provides is to proceed as though s 361(1) "appl[ies]" in that context. Yet s 361(2) says that it doesn't. The applicants cannot, at this juncture, draw any strength from the existence of the reverse onus of proof to which s 361(1) gives effect.
Are the matters relied on by the applicant "adverse actions" within the meaning of ss 341 and 342 of the Fair Work Act?
(1) A person has a workplace right if the person:
(a) is entitled to the benefit of, or has a role or responsibility under, a workplace law, workplace instrument or order made by an industrial body; or
(b) is able to initiate, or participate in, a process or proceedings under a workplace law or workplace instrument; or
(i) to a person or body having the capacity under a workplace law to seek compliance with that law or a workplace instrument; or
(ii) if the person is an employee - in relation to his or her employment.
... also repeatedly subjected to verbal abuse and physical threats by Messrs Grüber and Schröder, including on one occasion being told by Mr Schröder that Mr Grüber wanted to get into a fist fight with him and that if he wanted to continue within the group then he'd need to be locked in a room with him.
In cases involving senior management employees, the "potential implications" test may be of little utility as their conduct will likely always have potential employment ramifications: The Environment Group Ltd v Bowd [2019] FCA 951 at [126] (Steward J) ... In Bowd, Steward J said at [126]:
[I]n the case of a CEO, the complaint must be one directed at or concerned with that person's employment in a substantive way. In that respect, observing the required nexus may be direct or indirect, may not greatly assist. It must, as a matter of substance, be about that CEO's employment.
Are the disclosures relied on by the applicant of such a kind as to qualify for protection under Part 9.4AAA of the Corporations Act?
(a) breaches of directors' duties (eg. ss 181, 182, 183 of the Corporations Act as well as obligations under the common law such as fiduciary obligations), in relation to matters such as Natural Solar's contractual relationship with Tesla and procurement of Tesla products, and pricing used by Solaray, in the context of underquoting which affected Natural Solar's profit (AS38-40);
(b) incorrect, improper or deliberate delaying of the financial accounts of Natural Solar; and
(c) incorrect, improper or deliberate attempt to avoid or delay paying the agreed purchase price for Natural Solar's shares and thereby breaching the SPA.
(4) This subsection applies to a disclosure of information if the discloser has reasonable grounds to suspect that the information concerns misconduct, or an improper state of affairs or circumstances, in relation to:
(b) if the regulated entity is a body corporate - a related body corporate of the regulated entity.
(5) Without limiting subsection (4), this subsection applies to a disclosure of information if the discloser has reasonable grounds to suspect that the information indicates that any of the following:
(a) the regulated entity, or an officer or employee of the regulated entity;
(b) if the regulated entity is a body corporate - a related body corporate of the regulated entity, or an officer or employee of a related body corporate of the regulated entity;
(c) constitutes an offence against, or a contravention of, a provision of any of the following:
(iii) the Banking Act 1959;
(iiia) the Financial Accountability Regime Act 2023;
(v) the Insurance Act 1973;
(vi) the Life Insurance Act 1995;
(vii) the National Consumer Credit Protection Act 2009;
(viii) the Superannuation Industry (Supervision) Act 1993;
(ix) an instrument made under an Act referred to in any of subparagraphs (i) to (viii); or
(d) constitutes an offence against any other law of the Commonwealth that is punishable by imprisonment for a period of 12 months or more; or
(e) represents a danger to the public or the financial system; or
(f) is prescribed by the regulations for the purposes of this paragraph.
Note: There is no requirement for a discloser to identify himself or herself in order for a disclosure to qualify for protection under this Part.
(a) To the extent that the "information" believed or suspected to be in the possession of the putative whistleblower, concerns "misconduct", that includes information concerning "fraud, negligence, default, breach of trust and breach of duty", by picking up the definition of "misconduct" in s 9 the Corporations Act (Reiche at [88]; Mount at [129]);
(b) To the extent that the "information" concerns "improper state of affairs or circumstances" (Reiche at [88]; Mount at [129]):
(i) the terms are not defined in the Corporations Act and it ought be inferred that they be given their ordinary meaning;
(ii) "Improper" is a term of broad import which includes, by adoption of its ordinary meaning, as not in accordance with truth, fact, reason or rule; abnormal, irregular, incorrect, inaccurate, erroneous, wrong;
(iii) the terms "improper state of affairs or circumstances" may include conduct in relation to a regulated entity, which, whilst not unlawful, may indicate a systemic issue that would assist the relevant regulator in performing its functions given that the underlying purpose of Part 9.4AAA is to encourage whistleblowing to aid or improve compliance with the law (Mount at [90]-[91]); and
(iv) the terms may include, but is not limited to, information that indicates a danger to the public or a danger to the financial system is also a disclosable matter (Mount at [90]-[91]).
That inquiry is informed, in part, by the nature of the information subjectively possessed and the extent to which it obviously and readily concerns the matters described in s 1317AA(4) or s 1317AA(5). The outcome of the relevant inquiry is of relevance to determining the question of whether the person who engaged in detrimental conduct could have or was likely to have believed or suspected that Mr Reiche had made, may have made, proposed to make or could make a disclosure of information that would qualify for protection under Pt 9.4AAA.
where, on the putative whistleblower's case, the alleged "information" does not obviously or readily engage or assist the regulatory functions (compliance, enforcement and (or) discipline) of ASIC, APRA or another Commonwealth authority in relation to the regulated entity (or a related body corporate), the person who caused to detriment may plausibly not have reason to believe or suspect that disclosure of that information by the whistleblower would qualify for protection under Pt 9.4AAA.
I do not feel that I could effectively work with Mr Williams if he was reinstated to his employment with Natural Solar. That is particularly so given the seniority of Mr Williams' position. I no longer have trust and confidence in Mr Williams as a result of the conduct he has displayed over a protracted period of time.
... this particular interlocutory application cannot turn on the strength of the serious question to be tried. Rather, I consider the ultimate decision about where the interests of justice lie is to be determined by an assessment of what would be injustice or injury to Ms Rugg if her interlocutory application were refused, weighed against the injustice or injury to Dr Ryan (and, to a lesser extent, the Commonwealth) if the interlocutory application were granted. That is why the word "balance" appears in the phrase "balance of convenience".
I certify that the preceding ninety-six (96) numbered paragraphs are a true copy of the Reasons for Judgment of the Honourable Justice Needham.
Williams
Natural Solar Pty Ltd
AMWU & Anor v O-I Operations (Australia) Pty Ltd [2019] FCA 1272
Bradto Pty Ltd v Victoria; Tymbook Pty Ltd v Victoria (2006) 15 VR 65; [2006] VSCA 89
Construction Forestry Mining and Energy Union v Anglo Coal (Capcoal Management) Pty Ltd [2016] FCA 1582
Construction, Forestry and Maritime Employees Union v Programmed Industrial Maintenance Pty Ltd [2025] FCA 257
Heal v Sydney Flames Basketball Pty Ltd [2024] FCA 401
Heavener v Loomes [1924] HCA 10; (1924) 34 CLR 306
Jackson v Heart Research Institute Ltd [2025] FCA 301
JC Williamson Ltd v Lukey and Mullholland [1931] HCA 15; (1931) 45 CLR 282
Mount v Dover Castle Metals Pty Ltd [2025] FCA 101
National Union of Workers v AB Oxford Cold Storage Co Pty Ltd [2017] FCA 1220
Police Federation v Nixon (2008) 168 FCR 340; [2008] FCA 467
Quinn v Overland (2010) 199 IR 40; [2010] FCA 799
Reiche v Neometals Ltd (No 2) [2025] FCA 125
Rugg v Commonwealth [2023] FCA 179
Russell v Institution of Engineers Australia t/a Engineers Australia [2013] FCA 1250
Shea v TRUenergy Services Pty Ltd (No 6) [2014] FCA 271
The Environment Group Ltd v Bowd [2019] FCA 951
Trego v Wesbeam Pty Ltd [2019] FCA 1030
Weber v Thomas Foods International (Stawell) Pty Ltd [2024] FCA 1506; Dabboussy v Australian Federation of Islamic Councils [2024] FCA 1074
(1924) 34 CLR 306
(1931) 45 CLR 282
(2010) 199 IR 40
(2006) 15 VR 65
(2008) 168 FCR 340