[2013] FWC 4163 [Note: An appeal pursuant to s.604 (C2013/6008) was
lodged against this decision - refer to Full Bench decision dated 13
September 2013 [[2014] FWCFB 613] for result of appeal.]
DECISION
Fair Work Act 2009
s.394—Unfair dismissal
Debbie De Laps
v
Victorian Association for the Teaching of English Inc
(U2013/433)
COMMISSIONER RYAN MELBOURNE, 26 AUGUST 2013
Termination of employment - jurisdiction (voluntary resignation) - forced to resign -
reasonableness of employee response - options other than resignation.
[1] The Applicant, Ms Debbie de Laps was employed by VATE as its Executive Officer
since 2004.
[2] On 14 December 2012 Ms de Laps wrote a letter to the President of the Council of
VATE in which Ms de Laps gave 6 weeks’ notice of her intention to retire from her position
as Executive Officer. The termination of the employment relationship ended on 25 January
2013 due to the effluxion of the 6 week notice period.
[3] On 15 February 2013 Ms de Laps filed an application for an Unfair Dismissal
Remedy. Ms de Laps asserted that she “resigned, in circumstances giving rise to a
constructive dismissal of her employment by” VATE.
[4] VATE filed a Form F3 on 28 February 2013 in which it raised a jurisdictional
objection to the application as follows:
“The Respondent objects to the Application for Unfair Dismissal Remedy and seeks
the dismissal of the application on the jurisdictional ground that the Applicant was not
dismissed and the termination of the Applicant's employment arose out of the
Applicant's own initiative and not on the initiative of the Respondent.
The Applicant initiated the termination of her employment by advising the Respondent
of her resignation on 14 December 2012.”
[5] A Notice of Listing and Directions were issued on 2 April 2013 in which the matter
was listed for hearing in relation to both the jurisdictional challenge and the merits application
over 3 days in early June 2013. The Directions required Ms de Laps to file and serve the
material she wished to rely on by 22 April 2013. This material was filed on 23 and 26 April
2013 and was quite voluminous. On 24 April 2013 VATE sought that the matter not proceed
as planned but rather that the jurisdictional objection be dealt with separately.
[6] The matter of the jurisdictional objection by VATE was then listed for hearing on 21
May 2013 with VATE limiting its filed material to the jurisdictional issue.
AUSTRALIA FAIR WORK COMMISSION
https://www.fwc.gov.au/documents/decisionssigned/html/2014FWCFB613.htm
[7] At the hearing on 21 May 2013 Ms de Laps gave evidence on her own behalf. Ms de
Laps also adopted as her evidence the contents of her witness statement filed in the matter,
Exhibit A5. This evidence included all of the evidence that Ms de Laps relied on in relation to
the merits of her substantive application as well as in relation to the jurisdictional issue. Ms de
Laps was cross-examined in relation to her decision to retire. Ms de Laps also tendered 4
statutory declarations made by persons who were supporting Ms de Laps application. None of
the 4 persons were called to give evidence.
[8] No evidence was led by VATE.
Evidence of Ms de Laps
[9] Ms de Laps evidence comprised both her witness statement, which she adopted as her
evidence and additional oral evidence.
[10] The witness statement, Exhibit A5, comprised 222 paragraphs and 63 attachments.
Whilst there is much in the evidence of Ms de Laps which goes to the merits of her
application the witness statement does include the evidence of Ms de Laps upon which she
relies to establish the course of conduct of the employer which forced her to end the
employment relationship.
[11] Ms de Laps’ evidence at paras 13 to 22 of Exhibit A5 includes an account of events
which led her to suffer a workplace illness or injury which was caused by a combination of
events. Firstly, the conduct of Mr Terry Hayes, the Chairperson of the Conference Committee
for the 2011 VATE national conference, in or about April 2011 where he displayed “an
arrogant manner towards my staff, including intimidating, harassing and bullying them”.
Secondly, the conduct of Mr Hayes in January 2012 in relation to a requisition by members
for a special meeting of all members of VATE to consider the performance of Ms de Laps in
the context of organising the 2011 national conference. Thirdly, the conduct of signatories to
the requisition in June 2012 who, in response to the Councils’ refusal of the requisition, wrote
to VATE in terms which “were generally vitriolic, aggressive and nasty towards VATE and
the Council”. Ms de Laps was “quite upset by the nature and quantity of these emails”. Ms de
Laps “formed a view that Mr Hayes was attempting to have me removed as the Executive
Officer of VATE and had developed some groundswell of support amongst VATE's members
to achieve this objective.” Ms de Laps “was very upset by this” and “began to have trouble
sleeping, frequently waking at 2:00am or 3:00am with heart palpitations.”
[12] Ms de Laps’ evidence at paras 22 to 29 of Exhibit A5 identifies that she was on
WorkCover approved leave for the period from 2 July 2012 until 29 July 2012 and was ready
to return to work on 9 August 2012. Ms de Laps described the grounds for the WorkCover
claim as “that I had been bullied and harassed by Mr Hayes and the signatories to the
requisition”.
[13] The course of conduct upon which Ms de Laps relies to assert that she was forced to
resign (retire) only commences at the time that VATE initiated actions in relation to the return
to work.
[14] On 9 August 2012 Ms White, the Acting Treasurer of the Council of VATE,
telephoned Ms de Laps and informed her that at the Council meeting on 8 August 2012, she
(Ms White), Ms Wagner (the Acting President of the Council of VATE) and Mr Huggard (the
Vice-President of the Council of VATE) had told the Council that they had employed a
Consultant, Mr Martin Nally (Mr Nally), to settle a grievance between Mr Hayes and the
Council. The Council had also decided to appoint Mr Nally to advise on the development of a
Return to Work (RTW) plan for Ms de Laps.1
[15] Ms de Laps was very unhappy about Mr Nally being engaged to deal with both the
grievance between Mr Hayes and the Council and her RTW plan as she regarded this as a
conflict of interest because her WorkCover claim, which had led to the need for a RTW plan,
arose out of bullying and intimidating behaviour that Ms de Laps had experienced from Mr
Hayes. Ms de Laps had a preferred RTW coordinator of her own choosing which she wanted
VATE to use. On 13 August 2012, Ms de Laps attended her doctor as she was upset about the
appointment of Mr Nally by the Council. The doctor recommended that Ms de Laps take sick
leave until 20 August 2012
[16] Notwithstanding being on sick leave Ms de Laps did attend a meeting on 14 August
with Mr Nally. Ms de Laps described the meeting as follows:
“37. The meeting lasted for one hour. My RTW plan was not mentioned at all during
the meeting until I raised it during the last few minutes. Rather, during the meeting,
Mr Nally's sole focus was on discussing his investigation with Mr Hayes into what he
referred to as "my allegations of bullying". A number of times during the meeting, I
asked Mr Nally words to the effect that "How will any of this help me return to work
next week?". Mr Nally would reply that dealing with Mr Hayes would help me in my
plans to return to work. I told Mr Nally words to the effect that I did not agree with
this.
38. In my telephone discussion with Mr Nally where we arranged the meeting, I had
specifically said to him that I had not wanted to talk about Mr Hayes at all, as my
claim of bullying had been accepted and I had returned to work and I wanted to move
on from that experience, which had upset me greatly. I had also told this to Ms
Wagner and Ms White prior to meeting with Mr Nally in our telephone conversations
on 9 and 10 August 2012.”
[17] On Sunday 26 August 2012 Ms White, the Acting Treasurer of the Council of VATE
telephoned Ms de Laps asking her about the management of the current elections for Council.
Ms de Laps later on Sunday 26 August emailed Ms White to advise her that Ms de Laps
“would take care of the issue” when she attended the office on Tuesday.
[18] On Monday 27 August Ms White telephoned Ms de Laps and Ms de Laps evidence is
as follows:
“53. The next day, on 27 August 2012, Ms White called me and told me that she was
offended by my email the previous day. Ms White told me that I was "pushing back"
against her when she was trying to help me and get a good outcome. Ms White told me
that she was trying to make "all these people accountable". I took this to mean Mr
Hayes and the other signatories to the requisition. Ms White told me that I had to go
along with her to achieve that outcome and that I "owed her" as she had been a witness
for me in my WorkCover claim and it was my turn to do her a favour. I told Ms White
that I did not want to play these games and that I objected to her implying that my
WorkCover claim had been in some way dishonest and manufactured. I told Ms White
that I resented the way in which my RTW plan had been handled, particularly being
forced to deal with Mr Nally who, in my view, was primarily focused on dealing with
the issue between Mr Hayes and the Council and was not supporting me in my return
to work.”
[19] On 29 August Ms de Laps met with Ms Wagner and Mr Nally in a 2 hour meeting
which did not address Ms de Laps return to work but which was focussed on the issues raised
by Mr Hayes. Ms de Laps evidence was that questions from Mr Nally “were frequently asked
of me in an aggressive and berating tone.” Mr Nally also informed Ms de Laps “that part of
his investigation was to establish whether my allegations of bullying against Mr Hayes were
"vexatious".” Ms de Laps was distressed by the questioning. Ms de Laps evidence was that
Ms Wagner response to Ms de Laps distress was to roll her eyes and sigh in frustration and
that at no stage did Ms Wagner “attempt to intervene in Mr Nally's questioning or call a halt
to the meeting”. Notes taken of the meeting by Ms de Laps support person (Ms Caruso)
support the evidence of Ms de Laps.2 Mr Nally reported to the Council of VATE on 12
September 2012 and the extract of Minutes of the Council meeting present a view of the
meeting of 29 August which is very different from that painted by both Ms de Laps and Ms
Caruso. I also note the contents of para 16 of Exhibit A4 where Mr Thompson recalls Mr
Nally’s report to the Council meeting.
[20] Ms Caruso’s notes of the meeting of 29 August 2012 record the following exchange
between DD (Ms de Laps) and MN (Mr Nally):
“DD: the issue that concerns me now is that I have lost confidence in the people who
call themselves the exec.
There needs to be an acknowledgement in council that
Processes have been trampled on
There needs to be a pledge that this will not happen again
People were hurt by this
MN: What if that does not happen
Is that non negotiable
DD: It is not negotiable for me”
[21] In early September 2012 Ms de Laps, being distressed about the way in which her
RTW plan was being handled by the Council of VATE, instructed her solicitor to write to
VATE expressing Ms de Laps concerns. The solicitor did this on 7 September 2012.
[22] On 11 September while Ms White was in the VATE offices Ms de Laps asked to
speak to Ms White.
“I told Ms White that I did not intend to involve lawyers beyond that one letter, but I
simply wanted to make the Council listen to me and talk to me about my concerns. I
asked Ms White whether she believed that my WorkCover claim had been vexatious
as had been suggested by Mr Nally. Ms White refused to answer. I asked her three
times, and each time she ignored the question. I interpreted this as Ms White having
the view that she thought my WorkCover claim was vexatious. Ms White then told me
that she had done what I had asked and listened to me and that she had nothing to say.
She left without further discussion.” 3
[23] On 25 September 2012 Ms Wagner requested that Ms de Laps meet with her and
Ms White on 27 September 2012 “to touch base with your return to the office” (Attachment
D24 to Exhibit A5) Ms de Laps was accompanied by Mr Tony Thompson as her support
person. The evidence of Ms de Laps and Mr Thompson (Exhibit A4), describe a meeting, a
significant of which, was not merely touching base but was an exercise in which Ms White,
the Acting Treasurer of VATE, made allegations and accusations against Ms de laps in
relation to use of a mobile phone, hours of work, WorkCover and travel expenses and sought
responses from Ms de Laps in relation to these issues.
[24] At paras 87 to 96 of Exhibit A5 Ms de Laps raises a number of issues under the
heading “Continual undermining of Ms de Laps as Executive Officer: September to
November 2012”.
[25] At a meeting of the newly elected Council of VATE which was held on17 October
2012, Ms Wagner as President reported on the meeting between Ms Wagner, Ms White and
Ms de Laps on 27 September 2012. Ms de Laps objected to the report on the basis that it “was
inaccurate and did not properly reflect what had occurred at the meeting”.
“96. In response to my request, Brenton Doecke (Mr Doecke), the newly elected
Treasurer, told the Council that the President had the right to submit a report as she
saw fit. Further, upon me asking a question regarding the decision at the meeting of
Council on 12 September 2012 not to increase membership fees for 2013, Mr Doecke
stated that I was merely a staff member and not entitled to speak or put a proposal at a
Council meeting. I was humiliated and shocked by this comment by Mr Doecke. No
one intervened as Mr Doecke was talking to me.”
[26] On the morning after the Council meeting Ms de Laps who was “upset about the
Council meeting the previous evening” (para 97 of Exhibit A5) went to see her treating
physician who declared her unfit for work from 18 October 2012 until 26 October 2012.
[27] Whilst it is not clear from the evidence it appears that Ms de Laps only returned to
work on 7 November 20124 and on the evening of the 7 November 2012 Ms de Laps attended
the first meeting of the newly elected Executive Committee.
Ms de Laps’ notes of the meeting were Attachment DL-36 to Exhibit A5.
[28] At paras 100 to 110 of Exhibit A5 Ms de Laps details what happened at the Executive
Meeting. After the meeting Mr Huggard sent an email to all Council members in which he
said "at Debbie's suggestion, no Executive minutes would be circulated". Ms de Laps
considered this comment to be a misrepresentation of what occurred at the Executive Meeting
and she sought that Mr Huggard correct the misrepresentation which he declined to do. Ms de
Laps subsequently addressed this issue in her report to the Council meeting on 21 November
2012.
[29] On 21 November 2012 Ms de Laps attended the Council meeting accompanied by her
support person, Ms Janny McCurry. Ms de Laps describes her involvement in the Council
meeting as follows:
“114. Very early on in the meeting, Ms Mason moved to have me dismissed from the
meeting on the grounds of "misconduct and failure to follow all of Council directives".
No details were given regarding the nature of the misconduct and, despite my request,
Ms Mason declined to give me any details while I was present in the room. I was
extremely upset by the conduct of Ms Mason and it was very embarrassing and
humiliating for me. Prior to the events described in this witness statement, I had never
been asked by VATE Council to leave a Council meeting. The directive and Ms
Mason's motion was unexpected and did not give me any opportunity to say anything
before I left the room. I was humiliated, shocked and distraught by what had occurred.”5
[30] At paras 117 - 119 Ms de Laps describes events after that Council meeting:
“117. The following day, on 22 November 2012, three members of the Council
resigned.
118. For the three weeks after the allegations against me were made at the Council
meeting on 21 November 2012, I received no further communication from the VATE
Council. I did not have any idea what the nature of the misconduct alleged against me
was. I felt completely isolated by the Council and very distressed at the way I had
been treated.
119. On 29 and 30 November 2012, I managed and oversaw the running of VATE's
annual State conference, which was attended by 850 people. In my opinion, the
conference was a success. At the conference, no member of Council approached me or
spoke to me. VATE's annual State conference is the association's major annual event.
No concerns about my conduct or performance in relation to this conference was
articulated to me at any stage.”
[31] On 10 December 2012 Ms Wagner wrote to Ms de Laps in the following terms:
“The purpose of this letter is to invite you to a formal meeting to discuss your
performance and conduct during your employment at VATE.
The discussion will be held on a confidential and without prejudice basis.
We propose to hold the meeting on Wednesday 12th December at 5pm at the VATE
Offices in Collingwood.
The following persons, Monika Wagner, President, and Ross Huggard, Vice-President,
will be present on behalf of VATE.
You may bring a support person if you wish. Please note that the role of the support
person is to provide you with emotional support. The support person is not to act as
your advocate and should not speak on your behalf. In the event a support person
attends the meeting with you, please (provide us with your support person's details
prior to the meeting. Please let us know whether the proposed date, time and venue are
suitable to you.
Should you have any questions, please contact me.”
[32] On the same day Ms de Laps went to see her treating doctor who certified her unfit for
work on 11 and 12 December 2012. At 4.45pm on the same day Ms de Laps emailed Ms
Wagner, cc’d to Mr Huggard as follows:
“Monika
I regret that I am unavailable tomorrow evening due to a prior commitment. I will be
in touch again regarding your correspondence.
Debra”
[33] Ms Wagner replied at 10.58pm the same day as follows:
“Our written request to attend the meeting provided you with sufficient notice to make
arrangements to attend, particularly as the time of the proposed meeting is within your
ordinary hours of work.
Accordingly, your response is unreasonable and we require you to attend.
Please advise us of the support person (if any) you wish to bring to the meeting. We
require this information tomorrow morning.
Failure to respond appropriately may be deemed as a failure by you to follow a lawful
and reasonable direction by your employer.”
[34] On 12 December 2012 Ms de Laps wrote to Ms Wagner in reply to the letter of 10
December 2012
“Regarding your emails over the past two days, I make the following observations:
Your letter dated 10th December was received by me late on Monday when I returned
from a medical appointment.
The letter 'invites' me to a 'proposed' meeting at a time and date which was not
reasonably possible for me to attend. I informed you of this fact as soon as possible, as
your letter invited me to do in its penultimate paragraph.
I am therefore somewhat surprised at your legally formulated threat which quite
wrongly but deliberately seeks to characterise and interpret this as a 'failure to follow a
lawful direction' by you as my employer. Such language designed, so it would seem,
to intimidate me is neither helpful nor appropriate.
The letter indicates that you wish to discuss my 'performance and conduct during [my]
employment at VATE' which I note covers a significant number of years. Given also
the recent unanswered correspondence sent on my behalf seeking details of my leave
entitlements and full details of the allegations of misconduct now made, I believe it is
quite reasonable for me to ask you to provide in advance of the proposed meeting an
outline of the specific issues you wish to discuss in order that I can be properly
prepared.
I am quite willing to attend an appropriate meeting and co-operate fully with an
'annual review of performance' as provided by my contract notwithstanding that there
has not previously been any such formal review since 2008. I have noted however the
urgency you now attach to conducting this meeting shortly prior to the end of this
calendar year. In view of my existing appointments and duties combined with the
impending vacation period I suggest that this could be more reasonably arranged in the
new year.
I would in any event be grateful if you could suggest some alternative times during
working hours to conduct the review and also confirm that you will provide me with
an agenda prior to the meeting, setting out the items or topics you wish to address. I
will expect reasonable notice of such further appointed time to enable me to arrange
for a support person to be present. The name of the person will be provided before the
meeting as requested.
I agree that the meeting should be treated as confidential however please note·that I do
not agree for it to be held on a 'without prejudice basis' as there is on my
understanding simply no valid reason or purpose for this. On the contrary, assuming
the review is to be conducted in good faith, transparency of the process must of course
be assured.
As you will be aware there remain some unanswered concerns of mine regarding
certain issues which flowed from my resumption of employment after my illness
which was, as you know, the subject of a Work Cover 'bullying' claim. These concerns
have been previously expressed to you in writing on a number of occasions. I trust
therefore that these issues will all be properly addressed by you in the near future and
that the timing of this annual review is not, as it would now appear, a response to those
genuine complaints and the exercising of my rights as an employee, including those
under the Fair Work Act.
Given my complaints as expressed, including relationship issues which have arisen
only since the election of the new Council, from which I sense a degree of hostility, I
query whether natural justice can be adequately afforded to me in the review process
which you personally seek to conduct without any opportunity being allowed for
advocacy on my behalf. I propose therefore that the review should be conducted by an
appropriately qualified and independent consultant to ensure that the process is
unbiased and conducted with the procedural and substantive fairness that should
underpin such reviews. I have a genuine and reasonable concern that the flow of recent
communications I have received from you, and the negative attitudes freely
demonstrated by other members of the new Council, suggest that there is a potential
conflict in you personally conducting the review of my performance in such
circumstances.
Take Notice therefore that I am willing comply with any lawful and reasonable
direction by my employer including to co-operate fully in respect of the conduct of an
annual performance review and will continue to perform my duties to the best of my
ability and to serve the interest of the·organisation as and when required. I do however
object to any treatment that is either unlawful, patently unfair, contrary to natural
justice or is inconsistent with my statutory or contractual rights.
I look forward to your response.”
[35] Ms Wagner replied to Ms de Laps in writing on 13 December 2012 advising Ms de
Laps that the meeting would be held on Monday 17 December at 2.30pm and provided an
agenda for the meeting which contained a list of 22 specific allegations against Ms de Laps
which were set out in 15 paragraphs. The letter also contained the following:
“In any event we are happy to work with you in the manner you have suggested and
attach an agenda for you. Please be prepared to discuss all the matters in the agenda.
We look forward to seeing you and your support person at that time.
VATE Council is offering you every opportunity to meet and discuss the issues under
consideration. However, we must note that your failure to attend could result in
decisions being made based on the material currently available to Council.
We hope you take the opportunity to be heard as you state in your letter.”
[36] Ms de Laps gave evidence as follows:
“190. After reviewing the 13 December 2012 letter and the attached meeting agenda, I
was very distressed and upset. I regarded the allegations of misconduct and poor
performance as either being issues that had previously been satisfactorily dealt with,
trivial or unsubstantiated. I regarded the allegations against me as a continuation of the
way I had been treated by the new Council, particularly Ms White and Ms Wagner. It
was clear to me that the new Council no longer wanted me to continue as the
Executive Officer of VATE and no longer had any confidence in my ability to perform
the role satisfactorily. I believed that I no longer had the respect or trust of the
Council, particularly Ms Wagner, Ms White, Mr Huggard, Mr Doecke and Ms Mason.
This had been a pattern of conduct that I had seen from the time that these individuals
had joined the Council, with the exception of Mr Huggard, who had been on the
Council for a number of years prior.
191. After much deliberation with my family and friends, I reluctantly decided that I
had no option but to retire.
192. On 14 December 2012, I wrote a letter to the President of the Council. In this
letter I refuted the allegations against me, and gave six weeks' notice of my intention
to retire from 19 December 2012.” 6
[37] In her oral evidence before the Commission Ms de Laps, in examination in chief, said:
“PN54. Mr Feldman: You'll see at paragraph 191 you say, "After much deliberation
with my family and friends, I reluctantly decided that I had no option but to retire."
Can you please tell the Commissioner what you mean by "I had no option but to
retire"?---
Ms de Laps: Yes. I felt that I had been - that the outcome of my time at VATE was
going to be that I would be terminated one way or another and I formed that view
because over past months the people mentioned in paragraph 190 had been
deliberately trying to undermine me, and I felt that they were - it was a witch hunt.
They were trying to get rid of me. I was incredibly stressed and unwell. I felt like I'd
been hanging on by my fingertips for months and when I got that letter on 13
December, it felt to me like they had stomped on my hands and I had to let go. I
slipped and let go. So, I was certain that I was going to be sacked.
PN108. Mr Millar: Now, was this letter something that you spoke to your lawyer
about drafting?---
Ms de Laps: I drafted it first and then showed it to my lawyer.
PN63. At the time I received that letter, as I said, I was devastated to see a huge list of
accusations against me that had never ever previously arisen, particularly given that
the people who were raising these allegations had never worked with me and many of
the allegations pertained to a period prior to them joining the counsel. To me it just
looked like a further example of the way that they were circling around me, trying to
get me to leave.
PN67. You could, if you had chosen, have attended that meeting. You'd agree with
that?---If I hadn't been so stressed and if I hadn't already provided answers to some of
those matters previously, yes, I probably could have attended that meeting, but
because I had previously discussed a number of those issues and believed that I had
completely exonerated myself in relation to those matters, I was totally - "devastated"
is the only word I can use to see them being tabled now as allegations of poor
performance or misconduct. They had never been badged as that to me previously.
PN68. But you felt if you put your responses, you may well be exonerated from the
concerns that were raised in the letter?---I didn't believe that that was an option. I
believed that there was only two options; that I would either be terminated or put on a
performance management contract.
PN71. And you knew it was important that you attend that meeting if your
employment was to be ongoing?---What I believed was that the decision had already
been made and that there was no point in my attending the meeting.
PN76. I believe that if there had been an independent mediator or person conducting
the meeting with me, that it would have been possible to exonerate myself; but I
believed I'd already exonerated myself on several accounts and that those explanations
had been not accepted even though I'd been told they had been accepted at the time.
So the fact that they had reappeared on this agenda, made me believe that nothing I
could say would exonerate me.
PN93. You decided to resign instead of attending the meeting on 17 December. That's
right, isn't it?---I believed that the termination was the inevitable outcome.
PN96. I chose to use the word "retire" because, in the end, I wanted to retain some
shred of dignity and to be able to say to all of my friends and professional associates
when they learned tat I'd suddenly disappeared from VATE, that I had decided to
retire rather than that I'd resigned or that I'd been sacked.
PN101. You've referred elsewhere in your statement to going and seeing a lawyer. I
think it was the following week. I don't want to know anything about your discussions
with the lawyer, but were you in discussions with a lawyer prior to you submitting the
resignation?---I was in discussion with Mr Cornish prior to that, but that was not who I
spoke to the following week.
PN102. So before putting in your resignation - Mr Cornish is your lawyer?---Yes.
PN103. Before putting in the resignation, you had spoken to him?---I had.”
Applicant’s Submissions
[38] The Applicant’s submissions filed on 26 April 2013 state in part:
“99. As the language of s.386(1)(b) indicates, it is not necessary to identify a single act
which forces the employee to resign. Rather, it is sufficient to establish a "course of
conduct" on behalf of the employer. This is consistent with the principles surrounding
the doctrine of repudiation, where it has been held that repudiation may be evidenced
by a single act or by an accumulation of conduct in circumstances where no individual
act on its own constitutes a repudiation.
100. In this case, it is alleged that in the circumstances, it was an accumulation of the
conduct of the VATE Council which had the effect that Ms de Laps had no real
choice, or in Ms de Laps's words "no option" but to resign. This conduct was born out
of a change in the composition of the VATE Council form (sic) one which was very
supportive and worked well with Ms de Laps for a period often years, to a Council that
was, in the majority, supportive of Mr Hayes. This was in circumstances where Ms de
Laps had made a WorkCover complaint by reason of Mr Hayes conduct, and the
former Council had relinquished Mr Hayes of organizational responsibility in VATE.
This led to a dispute between Mr Hayes and the former VATE Council and Ms de
Laps.
101. The new Council, led by Ms Wagner, Ms White and Mr Doecke, supported Mr
Hayes and displayed great hostility and antagonism towards Ms de Laps. In summary,
this conduct included:
(a) Engaging Mr Nally to settle the grievance between Council and Mr Hayes
and also to facilitate Ms de Laps’ safe return to work. This was, at it highest, a
careless and incompetent appointment that exposed Ms de Laps to further
involvement in Council's dealing with Mr Hayes in circumstances where she
was returning to work following a bullying claim (which was accepted) which
had caused Ms de Laps great distress. Ms de Laps made it clear on a number of
occasions that she did not want to become involved in any mediation or
reconciliation between Council and Mr Hayes;
(b) The inappropriateness of the appointment of Mr Nally was confirmed in his
meetings with Ms de Laps on 14 and 29 August 2012. These meetings were
ostensibly about discussing and managing Ms de Laps' return to work. Instead
they focused on Mr Hayes's grievance with VATE, questioned the bona fides
of Ms de Laps complaint against Mr Hayes, and were generally conducted in a
hostile and accusatory way which led to great distress to Ms de Laps. Further,
VATE refused to even discuss replacing Mr Nally as Ms de Laps return to
work provider after Ms de Laps expressed to Council her distress at the
progress of her return to work program. This conduct is particularly egregious
given that Ms de Laps was in a vulnerable state having just returned to work
following depression and anxiety, borne out of the very issues that Mr Nally
sought to explore with Ms de Laps in her RTW;
(c) Ms Wagner and Ms White, in a meeting with Ms de Laps on 27 September
2012, questioning Ms de Laps working hours arrangements with VATE in
circumstances where this had already been agreed upon by VATE and never
questioned for the 10 years since Ms de Laps had been performing the role of
Executive Officer. There was also an accusation that Ms de Laps was not in
fact working from home in according with the RWT plan when Ms de Laps
was not in the office. This was effectively accusing Ms de Laps of misleading
behaviour and gross misconduct, without any basis. Again, this took place
when Ms de Laps was vulnerable by reason of her recent depression and
anxiety, and her taking further sick leave by reason of the way she was being
treated by VATE;
(d) Continually undermining the authority of Ms de Laps as the Executive
Officer;
(e) Questioning, at an Executive Committee meeting on 7 November 2012,
whether Ms de Laps properly briefed other VATE staff members while she was
away on sick leave. This was in circumstances where Ms de Laps had provided
instructions to staff
28 members and bad also been discouraged by Council to perform duties while
on sick leave;
(f) Council dismissing Ms de Laps from the Council meeting on 21 November
2012 on the grounds of misconduct, without any prior warning that this was an
issue. This was a humiliating way in which to treat an Executive Officer of 10
years standing without any previous history of misconduct or poor
performance. After this meeting, many Council meetings made disparaging
remarks about Ms de Laps' "mental illness". Council knew Ms de Laps was
trying to recover from the depression and anxiety that led to her WorkCover
claim and sick leave, and yet subjected her to this humiliation, and effectively
commenced performance managing her; and
(g) Sending Ms de Laps a letter on 13 December 2012 (three weeks after being
thrown out of the November Council meeting) outlining 19 allegations of
misconduct and poor performance and giving Ms de Laps effectively one
business day to prepare for this meeting. As will be discussed below, these
allegations were either frivolous, bad already been dealt with, or were totally
unsubstantiated.
102. By reason of the above, the Council, by a course of conduct designed to
undermine, distress and humiliate Ms de Laps left her with no choice but to resign. In
short, VATE's conduct forced Ms de Laps to resign for the purposes of s.386(1)(b).”
[footnotes omitted]
Respondent’s Submission
[39] The Respondent’s submissions filed 17 May 2013 state in part:
“12. It is obvious that as at the date of resignation, there were live issues concerning
the Applicant's performance and conduct in her role. The Respondent differs from the
account given by the Applicant in her material in many respects - the Respondent was
taking measured and reasonable steps to address serious issues concerning the
Applicant's conduct and performance. But the meeting which was intended to obtain
the Applicant's response had not occurred- it was set for Monday 17 December 2012,
(after the Respondent had originally invited the Applicant to a meeting on 12
December 2012 which the Applicant said she could not attend because of a "prior
commitment" and later, after being queried by the Respondent, provided a medical
certificate for her absence).with a detailed meeting agenda having been provided. The
Applicant chose to resign instead of attending that meeting. She was perfectly entitled
to resign, but she cannot have it both ways: by choosing to resign she prevented the
performance issues being pursued and determined, and she cannot now claim the
employer acted to terminate her employment.
13. Having made her decision "reluctantly" and after "much deliberation", she
presumably decided that resigning before the scheduled meeting was the better course.
It was a voluntary act. She is in no position now to complain that the performance and
conduct concerns did not justify termination of employment when it was her decision,
and not the employer's, to bring that termination about.
14. On a proper analysis, this is not a case of an employee being forced to resign, but
instead an employee who chose to resign, and then, much later, changed her mind.
That much is clear from paragraph 216, where the Applicant refers to having "deeply
regretted having retired". She refers to having "considered withdrawing my retirement
notice", although clearly she did not, at any time, purport to do so. Her subsequent
regrets do not bring about a retrospective change in the free nature of the decision
made by her to resign from her employment.
15. The free nature of that decision to resign is emphasised from the Applicant's
conduct after the resignation was submitted. She wanted to agree on the way her
departure was communicated, and to have an opportunity to meet with the staff (see
DL-52 and DL-55). As detailed in paragraphs 194 to 197 of her witness statement, the
Applicant decided not to sign a deed which had been proffered by the Respondent. It
was a reasoned decision. This was not a case of an employee who simply did as she
was requested by the employer, as a result of being overborne or intimidated by the
employer's actions. She was capable of making her own decisions, without being
forced into taking steps which were detrimental to her interests. Moreover, it is clear
that the Applicant was receiving legal advice, at least from 19 December 2012 (see
paragraph 201), yet there was no suggestion of the Applicant seeking to withdraw her
resignation, either in the immediate aftermath of resignation or in the six week notice
period through to 25 January 2013. It was a considered and deliberate action of the
Applicant in deciding to resign from her employment.
16. It follows that at no point did the employer's actions have the actual or intended
effect of bringing about the termination of employment, which was voluntarily
decided upon by the Applicant.”
The Case Law
[40] Both parties took me to relevant case law. Ms de Laps relied primarily upon the
decision of Deegan C in Davidson v Commonwealth of Australia7, where the Commissioner
provided a useful summary of the case law. VATE drew my attention to a number of relevant
authorities and in particular the decision of Bissett C in Ashton v Consumer Law Action
Centre.8
[41] VATE also drew my at attention to the decision of DP Sams in Gunther and Daly v
Melouney T/a Easts Riverside Holiday Park 9 where the Deputy President cited extensively
from a decision of Roberts C in Daffey v MSS Security P/L10.
[42] In Mohazab v Dick Smith Electronics Pty Ltd (Mohazab) a Full Court of the Industrial
Relations Court of Australia said:
“a termination of employment at the initiative of the employer may be treated as a
termination in which the action of the employer is the principal contributing factor
which leads to the termination of the employment relationship.”
and
“In these proceedings it is unnecessary and undesirable to endeavour to formulate an
exhaustive description of what is termination at the initiative of the employer but
plainly an important feature is that the act of the employer results directly or
consequentially in the termination of the employment and the employment relationship
is not voluntarily left by the employee. That is, had the employer not taken the action
it did, the employee would have remained in the employment relationship.” 11
[43] In Pawel v Australian Industrial Relations Commission (Pawel) Dowsett J of the
Federal Court said:
“When an employee resigns, he or she has usually reached a decision, taking into
account many factors. Some may be entirely personal and unrelated to any
"misconduct" on the part of the employer........ That dissatisfaction will often have
been arguably caused (in part or in whole) by a decision or decisions of the employer.
If "initiative" implies only causation, it will usually be arguable that the employer has
"initiated" the termination............ I do not accept that any employee whose decision to
resign was, to some extent, motivated by action or inaction on the part of the
employer, may initiate proceedings pursuant to subs 170CE(1). Mere "causation" or
"motivation" will not satisfy the requirement that the termination be at the initiative of
the employer.”12
[44] In P O’Meara v Stanley Works Pty Ltd (O’Meara), a Full Bench of the AIRC said:
“In our view the full statement of reasons in Mohazab which we have set out together
with the further explanation by Moore J in Rheinberger and the decisions of Full
Benches of this Commission in Pawel and ABB Engineering require that there to be
some action on the part of the employer which is either intended to bring the
employment to an end or has the probable result of bringing the employment
relationship to an end. It is not simply a question of whether “the act of the employer
[resulted] directly or consequentially in the termination of the employment.” Decisions
which adopt the shorter formulation of the reasons for decision should be treated with
some caution as they may not give full weight to the decision in Mohazab. In
determining whether a termination was at the initiative of the employer an objective
analysis of the employer’s conduct is required to determine whether it was of such a
nature that resignation was the probable result or that the appellant had no effective or
real choice but to resign.” 13
[45] A further relevant decision is that of a Full Bench of Fair Work Australia in Davidson
v Commonwealth of Australia:
“[14] It was submitted by the Applicant, relying upon the decision in J. Searle v Moly
Mines Limited, that in determining the issue of jurisdiction the Commissioner should
not have considered the reasonableness of the Applicant’s response to the conduct of the
Department, only the fact that the conduct lead to him leaving his employment. We
consider that this submission involves a misunderstanding of the statutory requirement
in s.386(1)(b) of the Act and what was decided in J. Searle v Moly Mines Limited. The
inquiry as to whether the conduct of an employer has “forced” an employee to resign
necessarily requires consideration as to the appropriateness of the employee’s response:
whether the conduct of the employer left the employee with no reasonable choice but to
resign.” 14
[46] Finally I note the recent decision of a Full Bench of the Fair Work Commission in
Bruce v Fingal Glen P/L (in liq) 15, which said:
“[22] In relation to whether on “an objective analysis of the employer’s conduct” the
late payment of wages and failure to pay superannuation “was of such a nature that
resignation was the probable result”, we note that the Full Bench in O’Meara was
drawing from Rheinberger. In that case Justice Moore said that:
‘However it is plain from these passages [in Mohazab] that it is not sufficient
to demonstrate that the employee did not voluntarily leave his or her
employment to establish that there had been a termination of the employment
at the initiative of the employer. Such a termination must result from some
action on the part of the employer intended to bring the employment to an end
and perhaps action which would, on any reasonable view, probably have that
effect. I leave open the question of whether a termination of employment at the
initiative of the employer requires the employer to intend by its action that the
employment will conclude. I am prepared to assume, for present purposes, that
there can be a termination at the initiative of the employer if the cessation of
the employment relationship is the probable result of the employer's conduct’.
[23] The situation contemplated in this passage is one in which the act of an employer
which led to an employee’s resignation was not intended to cause an employee’s
resignation (as was the case in Mohazab), but “would, on any reasonable view,
probably have that effect”. Rheinberger therefore qualifies the passage from Mohazab
quoted above in two respects. First, an employer may be found to have constructively
dismissed an employee notwithstanding that it did not engage in the relevant conduct
with the subjective intention of forcing the employee to resign. Secondly, although it
is an “important feature” of constructive dismissal, it is not sufficient that “the act of
the employer results directly or consequentially in the termination of the employment
and the employment relationship is not voluntarily left by the employee”. There must
also be either an intention to force an employee to resign, or else the conduct must be
of such a nature that resignation was the probable result. The “limb” of the O’Meara
test relating to resignation as a probable result of an employer’s conduct should be
read in this light.”
Consideration
[47] I now need to determine whether there was conduct or a course of conduct by VATE
which, judged objectively, was intended to bring the employment relationship to an end or
had the probable result of bringing the employment relationship to an end. I also need to have
regard to the response of Ms de Laps to the conduct of VATE and whether her decision to
retire was because she was left with no reasonable choice but to retire/resign.
[48] I accept the evidence of Ms de Laps that various actions initiated by members of
VATE led to Ms de Laps suffering stress and anxiety which led to Ms de Laps requiring time
off work to recover from the stress and anxiety. However whilst various actions initiated by
members of the Council led to Ms de Laps suffering further stress the cause of the further
stress cannot solely be laid at the feet of VATE as part of the cause of the stress and anxiety
suffered by Ms de Laps was caused by the conduct of Ms de Laps.
[49] The actions of Ms White, Ms Wagner and Mr Huggard in employing Mr Nally, to
settle a grievance between Mr Hayes and the Council of VATE, combined with the action of
the Council of VATE in deciding to appoint Mr Nally to advise on the development of a
RTW plan for Ms de Laps was cited by Ms de Laps as part of the conduct that forced her to
retire/resign.
[50] In written submissions filed with the Commission Ms de Laps complains that the
employment of Mr Nally to settle a grievance between Mr Hayes and the Council of VATE
was “at its highest, a careless and incompetent appointment that exposed Ms de Laps to
further involvement in Council's dealing with Mr Hayes in circumstances where she was
returning to work following a bullying claim (which was accepted) which had caused Ms de
Laps great distress.” There appears to be no justification for this assertion. Mr Hayes had a
grievance with the Council of VATE over the refusal of the Council to put a matter to the
members of VATE through the requisition process. VATE were entitled to employ someone
to assist in resolving this grievance.
[51] I am of the view that the conduct of the Council of VATE in also appointing Mr Nally
to assist in the RTW of Ms de Laps was highly inappropriate. It may have been possible for a
single person to carry out the two separate roles without causing further stress to Ms de Laps
but it certainly was not practical to do so. Mr Nally did not approach each task as a separate
matter but rather conflated both matters together. There was clear conflict between the two
specific roles Mr Nally agreed to perform for VATE. The evidence of Ms de Laps that Mr
Nally also informed Ms de Laps “that part of his investigation was to establish whether my
allegations of bullying against Mr Hayes were "vexatious". Given that Mr Nally was also
engaged by VATE to assist Ms de Laps return to work after suffering a workplace injury
through Mr Hayes intimidatory conduct the conflict of interest between Mr Nally’s two roles
couldn’t have been clearer.
[52] Ms de Laps was advised of the appointment of Mr Nally on 9 August 2012. Ms de
Laps spoke to Mr Nally after the 9 August 2012 and agreed to meet him on 14 August 2012.
Ms de Laps attended her doctor on 13 August 2012 and was given a certificate of incapacity
for the period 13 August 2012 to 20 August 2012. Once having been deemed unfit to work
Ms de Laps was entitled to spend the period of incapacity away from work so that she could
regain her capacity to work. Yet, despite being incapacitated for work Ms de Laps attended a
meeting on 14 August 2012 with Mr Nally. After the meeting on 14 August 2012 Ms Wagner
sent an email to Ms de Laps on 17 August 2012 concerning the RTW plan and Ms de Laps
responded by email on 19 August 2012. Ms Wagner then replied to Ms de Laps email on 20
August 2012.
[53] Neither Mr Nally nor Ms Wagner should have had work related contact with Ms de
Laps whilst she was incapacitated for work where the contact was part of the process of
resolving a dispute between Mr Hayes and the Council of VATE. It would appear that Mr
Nally and Ms Wagner acted improperly in that Ms de Laps had every right not to attend any
meeting with Mr Nally or to engage with any member of the Council of VATE concerning the
resolution of the dispute between Mr Hayes and the Council of VATE whilst she had a
certificate of incapacity for work. I note however Ms de Laps that attended a meeting with
Mr Nally and engaged by email with Ms Wagner. However it is clear that Ms de Laps
attended a meeting with Mr Nally and Ms Wagner on the basis that it was a meeting only in
regard to the RTW yet the meeting turned into a discussion about resolving the dispute
between Mr Hayes and the Council of VATE.
[54] I accept the evidence of Ms de Laps and Ms Caruso concerning the meeting held on
the 29 August 2012 that the attitude of Mr Nally and Ms Wagner was hostile towards Ms de
Laps. Ms de Laps was very distressed by the conduct of Mr Nally and Ms Wagner at the
meeting and this level of distress continued for some days.
[55] Ms de Laps made two appropriate responses to the meeting of 29 August 2012.
[56] Firstly, she contacted the WorkCover insurer who advised her “to apply for a
conciliation with the Accident Compensation Conciliation Service (ACCS), as I needed to
challenge the acceptance of only limited liability for compensation arising out of my
WorkCover claim (that is, liability only until 29 July 2012).” Ms de Laps made the
application for conciliation.
[57] Secondly, Ms de Laps sought advice from her solicitors and she instructed them to
write to VATE, which they did on 7 September 2012 and which Ms de Laps emailed to the
Council of VATE on 10 September 2012.
[58] Notwithstanding that Ms de Laps had formally communicated her concerns to the
Council of VATE through her solicitors letter, Ms de Laps then on 11 September 2012 sought
to engage in a conversation with Ms White on the reasons behind the letter. Not surprisingly
Ms White did not engage with Ms de Laps but simply listened to her. Ms de Laps described
the one sided conversation thus:
“I told Ms White that I did not intend to involve lawyers beyond that one letter, but I
simply wanted to make the Council listen to me and talk to me about my concerns. I
asked Ms White whether she believed that my WorkCover claim had been vexatious as
had been suggested by Mr Nally. Ms White refused to answer. I asked her three times,
and each time she ignored the question. I interpreted this as Ms White having the view
that she thought my WorkCover claim was vexatious. Ms White then told me that she
had done what I had asked and listened to me and that she had nothing to say. She left
without further discussion.”
[59] The conclusions drawn by Ms de Laps concerning Ms White are quite unreasonable.
One day after having received formal communication from Ms de Laps solicitor it would have
been unusual for any member of the Council of VATE, let alone the Officers of the Council,
to have engaged in conversations with Ms de Laps about the solicitors letter. This is
especially so given that the Council of VATE was due to meet on 12 September 2012.
[60] It would have been more prudent for Ms de Laps to wait until after the Council of
VATE had formally responded to her solicitors letter before attempting to engage in
conversation with any member of the Council of VATE about the letter. It was prudent for Ms
White not to respond to Ms de Laps and it is unreasonable for Ms de Laps to interpret Ms
White’s silence in the way she did.
[61] Ms de Laps did not attend the Council meeting on 12 September 2012 as her doctor
had restricted her hours of work and the 12 September 2012 was not one of the days that she
was working.
[62] On 27 September 2012 Ms de Laps met with Ms Wagner and Ms White. This was a
work day for Ms de Laps and she was fit to work on that day. Ms de Laps in her witness
statement paints a very negative picture of this meeting and of the conduct of Ms White in
particular. Having regard to both the evidence of Ms de Laps and Mr Thompson (exhibit A4)
who accompanied Ms de Laps to the meeting as her support person it is clear that the
questioning of Ms de Laps about her use of a phone and other matters was quite robust.
However even on Ms de Laps and Mr Thompson’s evidence it is clear that each issue raised at
the meeting was a matter that could legitimately be raised by the Council with its Executive
Officer. The conduct of Ms Wagner and Ms White at the meeting is relevant and tends to
support the contention of Ms de Laps.
[63] It is also clear from the evidence that on 30 September 2012, 3 days after this meeting,
the Council of VATE formally responded to the letter from Ms de Laps solicitors. Ms de Laps
solicitors sent a further letter to the Council of VATE on 12 October 2012 raising issues
concerning Ms de Laps leave entitlements and the RTW plan. The Council of VATE
responded to this letter through their own solicitors on 2 November 2012 and again on 13
November 2012.
[64] During this period Ms de Laps complains of conduct by VATE which Ms de Laps
describes as “continual undermining of Ms de Laps in her role as Executive Officer”.
[65] Ms de Laps complains about in November 2012 Ms White called Ms de Laps and
advised her that days off work since 29 July 2012 would be dealt with as personal leave. In
early November 2012 the position adopted by Ms White was correct. At that time Ms de Laps
WorkCover claim only related to a period up to 29 July 2012. It was only on 12 November
2012 that the issue was resolved at a conciliation with the Accident Compensation
Conciliation Service when the insurer agreed to pay WorkCover compensation for the period
from 2 July 2012 until 5 November 2012. The reinstatement of Ms de Laps leave with VATE
only occurred on 6 December 2012 when the insurer advised Mr Doecke to do so.
[66] Ms de Laps complains about Ms White attending the office and searching for
documents on Ms de Laps computer and making requests and issuing instructions to staff.
[67] The conduct of Ms White, in her capacity as Acting Treasurer, visiting the office when
Ms de Laps was not there and looking for documents on Ms de Laps computer and giving
instructions to staff is not a matter which must be characterised, as Ms de Laps asserts, as
conduct undermining the Executive Officer. In any organisation the elected officers of the
organisation have statutory obligations (in this case under the Associations Incorporation Act)
to manage the affairs of the organisation. Even on the evidence of Ms de Laps it appears that
Ms White was carrying out the Treasurer’s role. However, the conduct of Ms White in
visiting the office when Ms de Laps was not there and looking for documents on Ms de Laps
computer and giving instructions to staff appears to be inconsistent with the very purpose of
having an Executive Officer and to that extent supports the contentions made by Ms de Laps.
[68] Ms de Laps complains about Mr Huggard sending out the Agenda for the meeting of
the Council on 17 October 2012 without having sought any involvement from Ms de Laps
who “had always played a role in determining the agenda for Council meetings”.(para 94 of
A5)
[69] The contention that Mr Huggard was acting to undermine Ms de Laps is not the only
plausible explanation for Mr Huggard’s actions. It is very clear from Ms de Laps own
evidence (Attachment DL-36 to A5) that Mr Huggard took the view that when Ms de Laps
was incapacitated for work that it was not necessary for her to have contact with VATE nor to
respond to communications from the Executive Committee or Council. The evidence supports
a conclusion that Mr Huggard was not acting in the way contended for by Ms de Laps.
[70] Ms de Laps complains that the President, Ms Wagner, inaccurately reported to the 17
October 2012 meeting of the Council of VATE on the meeting between Ms de Laps and Ms
Wagner and Ms White on 27 September 2012. From Ms de Laps evidence it is clear that Ms
Wagner’s report to Council was not entirely accurate. Ms de Laps addressed this matter in her
report to Council where she had the opportunity of putting the record straight. The conduct of
Ms Wagner supports the contention of Ms De Laps that members of the Council of VATE
were hostile towards her.
[71] Ms de Laps complains that Mr Doecke, a newly elected member of the Council of
VATE, referred to Ms de Laps as “merely a staff member and not entitled to speak or put a
proposal at a Council meeting” during the 17 October meeting of the Council of VATE.
[72] On the 18 October Ms de Laps visited her doctor because she “was very upset about
the Council meeting the previous evening” and her doctor recommended that Ms de Laps take
leave until 26 October 2012. In her evidence Ms de Laps describes the symptoms she suffered
both before and after her visit to her doctor on 18 October 2012 and that her doctor considered
that these symptoms were being caused by the stress Ms de Laps was experiencing at work.
[73] It is easy to appreciate that Ms de Laps would have suffered stress over this period
given that matters had escalated to the point where Ms de Laps was communicating to the
Council of VATE through her solicitors and the Council of VATE were communicating to Ms
de Laps through their solicitors.
[74] To the extent that Ms de Laps was very upset about the Council meeting on 17
October 2012 it would appear that this level of upset cannot and should not be wholly
attributed to conduct which was part of a course of conduct to force Ms de Laps to resign. Ms
de Laps does not assert that Mr Doecke’s comments were wrong. The complaint by Ms de
Laps is that she was “humiliated and shocked” by the comment. If the comment was true: ie
that the Executive Officer did not under the rules of VATE have the right to speak at Council
nor to put proposals to Council, then Ms de Laps sense of shock and humiliation was
misplaced. It might very well be a shock to an Executive Officer to be reminded that the
Executive Officer position does not have speaking rights or the right to put matters before the
Council but that is merely a shock that needs to be got over. The conduct of Mr Doecke is
supportive of the contention of Ms de Laps that members of the Council of VATE were
hostile to her and the position expressed by Mr Doecke appears to be inconsistent with the
very purpose of VATE having an Executive Officer.
[75] On 7 November 2012 Ms de Laps attended the first meeting of the newly elected
Executive Committee which had been elected at the 17 October 2012 meeting of the Council
of VATE. Ms De Laps complains about the conduct of that meeting and in particular the
conduct of Ms Wagner and to a lesser extent the conduct of Mr Huggard.
[76] Ms de Laps took extensive and very detailed notes of the Executive Meeting of 7
November 2012 and these were exhibited as Attachment DL-36 to Exhibit A5. A careful
reading of those notes does not support a contention that members of the Executive
Committee were acting in a manner which was intended to force Ms de Laps to resign.
[77] One of the issues discussed at the Executive Meeting was the content of the Director’s
Liability insurance that applied to Council members. The issue had been raised at the Council
meeting on 17 October 2012.
[78] At the Executive Committee meeting Ms White identified that she had investigated the
level of Directors Liability insurance and had found that it did not cover protection for legal
action as threatened by Ms de Laps solicitor. Ms White advised that she had arranged for a
cover note to extend the insurance protection for Council members. The rest of the
conversation on this matter was recorded by Ms de Laps in her notes as follows:
“MGW Regarding insurance. Debbie made some opening remarks at the last Council
meeting that said we were all covered by Directors Liability insurance. In fact, given
the legal threat contained in your lawyer's last letter it seems we are not in fact covered
for that sort of threat. I was so concerned about it that I investigated further and took
out a cover note. Is there anything you want to say about that?
(DD spoke about how that insurance was first purchased back in 2004 on the advice of
the Treasurer at the time)
MGW it is a standard sort of cover, but in the situation that your lawyer puts us in it
doesn't cover us. (more discussion about the details etc. Decision to follow it up and to
notify Council at the next meeting.)
MGW Normally that is something Debbie would do so I'm happy to hand that over to
her.
RH Are you comfortable doing that Debbie?
DD Of course! I have no trouble at all separating out my dispute with you (gesturing
to the three of them) and my responsibilities as EO. No difficulty whatsoever.
MGW Well it would be very important that you make sure that we are covered by
insurance to be protected from your lawyer's threats.”
[79] Not only was Ms de Laps of the view that she could easily separate the dispute she had
with VATE from her duties as Executive Officer but also the Executive Committee were
content to give Ms de Laps the job of ensuring that each Council Member was properly
insured against any legal action that Ms de Laps might take against VATE.
[80] Given that this is Ms de Laps evidence there is nothing which suggests that any
member of the Executive Committee at that meeting was engaging in conduct which was
intended to force Ms de Laps to resign.
[81] A further issue discussed at the Executive Meeting concerned the outcome of the
National Conference which had been held in 2011. The evidence of Ms de Laps through her
notes of the meeting shows that members of the Executive were concerned about a potential
liability to pay a portion of the profits of the National Conference to the national association.
Questioning of Ms de Laps was firm but not unfair and it appears that the questioning was
necessary to allow members of the Executive Committee to understand the issues and the
consequences.
[82] On 21 November 2012 Ms de Laps attended the meeting of the Council of VATE but
was required to leave the meeting. Ms de Laps account of the meeting is set out above in para
28 of this decision.
[83] Whilst Ms de Laps was “humiliated, shocked and distraught” by being required to
leave the Council meeting this is not sufficient to make out a contention that VATE was
engaging in a course of conduct intended to force Ms de Laps to resign.
[84] The very nature of an organisation such as VATE means that where a member of the
Council wants to raise allegations of misconduct against the most senior employee of the
organisation such allegations should in the first instance be disclosed to the Council in the
absence of the employee. This is exactly what occurred.
[85] It is completely understandable that Ms de Laps would be “humiliated, shocked and
distraught” by events but that is to do no more than acknowledge Ms de Laps personal and
subjective reaction to events as they occurred.
[86] The conduct of Ms Mason in moving a motion to have Ms de Laps excluded from the
meeting appears to have occurred in a manner most calculated to openly attack Ms de Laps in
her presence. The conduct of Ms Mason certainly supports the overall contention of Ms De
Laps as it discloses a level of hostility between Ms Mason and Ms de Laps.
[87] The next event that Ms de Laps complains of is the conduct of Mr Doecke who was
elected as the Treasurer at the Council of VATE meeting on 17 October 2012. Mr Doecke
advised Ms de Laps on 6 December 2012 that he “would be working directly with the
Accounts Officer in future and not with” Ms de Laps. Ms de Laps “was very upset and angry”
with the decision of Mr Doecke and Ms de Laps regarded this decision as “completely
undermining my authority and role as Executive Officer”.(para 122 of witness statement)
[88] It was for the newly elected Council and the newly elected Executive Committee to
decide how they would meet their obligations as elected officers of the organisation. Mr
Doecke’s intention to have direct contact with the Accounts Officer related to his role as
Treasurer. Ms de Laps may not have been pleased with this but it was not for her to prevent
Mr Doecke from carrying out the obligations placed upon him as the Treasurer of an
incorporated association. Very clearly at one level there is nothing wrong with Mr Doecke’s
conduct. However, the conduct of Mr Doecke appears to be inconsistent with the very
purpose of VATE having an Executive Officer.
[89] On 10 December 2012 Ms Wagner initiated a request for Ms de Laps to attend on 12
December 2012 a “formal meeting to discuss your performance and conduct during your
employment at VATE.” The events between 10 December and 14 December 2012 are set out
above at paras 31to 36.
[90] Given the history of events leading up to 10 December 2012 including the broad
assertion of “misconduct and failure to follow all of Council directives” raised by Ms Mason
at the 21 November 2012 Council meeting, the letter of 10 December 2012 from the President
of the Council of VATE must be seen in the context of that recent history.
[91] The letter put Ms de Laps on notice that her entire performance and conduct during
her employment with VATE was up for discussion. Notwithstanding the possible breadth of
issues that may have been raised Ms de Laps was only given 2 days notice of the meeting and
was specifically denied the opportunity of having an advocate at the discussion. The letter
from Ms Wagner as President of the Council of VATE made it very clear that Ms de Laps
support person would have an extremely limited role:
“You may bring a support person if you wish. Please note that the role of the support
person is to provide you with emotional support. The support person is not to act as
your advocate and should not speak on your behalf.”
[92] The tone and content of Ms de Laps response to this letter is understandable. In
particular Ms de Laps complained about the lack of detail in relation to the issues to be
discussed:
“The letter indicates that you wish to discuss my 'performance and conduct during
[my] employment at VATE' which I note covers a significant number of years. Given
also the recent unanswered correspondence sent on my behalf seeking details of my
leave entitlements and full details of the allegations of misconduct now made, I
believe it is quite reasonable for me to ask you to provide in advance of the proposed
meeting an outline of the specific issues you wish to discuss in order that I can be
properly prepared.”
[93] Ms de Laps also raised a specific concern in relation to the fairness of the proposed
meeting:
“Given my complaints as expressed, including relationship issues which have arisen
only since the election of the new Council, from which I sense a degree of hostility, I
query whether natural justice can be adequately afforded to me in the review process
which you personally seek to conduct without any opportunity being allowed for
advocacy on my behalf. I propose therefore that the review should be conducted by an
appropriately qualified and independent consultant to ensure that the process is
unbiased and conducted with the procedural and substantive fairness that should
underpin such reviews. I have a genuine and reasonable concern that the flow of recent
communications I have received from you, and the negative attitudes freely
demonstrated by other members of the new Council, suggest that there is a potential
conflict in you personally conducting the review of my performance in such
circumstances.”
[94] The actions of VATE in setting out in detail the allegations made against Ms de Laps
in the letter dated 13 December 2012 was necessary in order to accord any degree of
procedural fairness towards Ms de Laps. However, the letter from Ms Wagner, as President of
the Council of VATE, merely reiterated that Ms de Laps could have a support person in
attendance and thus must be accepted as being a refusal to allow Ms de Laps to have an
advocate on her behalf. Notwithstanding the fact that the letter from Ms Wagner, as President
of the Council of VATE, contained 22 specific allegations, some of which were extremely
broad, Ms de Laps was only given 3 and half days to prepare to discuss all the matters in the
agenda.
[95] Importantly, the letter from Ms Wagner, as President of the Council of VATE, on 13
December 2012 made it very clear that the Council of VATE was already in possession of
material relating to the allegations and that if Ms de Laps failed to attend the meeting on 17
December then this “could result in decisions being made on the material currently available
to Council”.
[96] Whilst the letter from Ms Wagner, as President of the Council of VATE, on 13
December 2012 included a list of the allegations it did not disclose “the material currently
available to Council”.
[97] In her oral evidence to the Commission Ms de Laps explained her subjective position
very clearly and colourfully. (See extracts of transcript at [37] of this decision.)
[98] It is relevant to note that the letter of retirement sent by Ms de Laps was only sent after
Ms de Laps sought legal advice. In that sense it was a carefully considered act on Ms de Laps’
behalf.
[99] The very fact that Ms de Laps has been able to present to the Commission a detailed
response to each of the allegations of misconduct made against her suggests that she had the
ability to do so at either a meeting with Ms Wagner, President of the Council and Mr
Huggard, Vice President of the Council or to an independent investigator.
[100] I have no doubt that there were factions or camps within the Council of VATE. One of
those factions or camps appears to have been aligned with Mr Terry Hayes and one with Ms
de Laps16. There may very well have been unaligned Council members. The balance within
the Council amongst the three groups appears to have been significantly altered after the
Council meeting on 21 November 2012 when three Councillors resigned.
[101] I certainly discern that Ms de Laps was taken aback by the conduct of the new Council
in making a significant number of serious allegations about her performance in the role of
Executive Officer, but as the most senior employee in the organisation Ms de Laps is
accountable to the Council and in turn the Council is accountable to the membership of the
organisation for the proper conduct of the affairs of VATE.
[102] There is nothing novel about a new governing body of a membership based
organisation deciding to investigate the past conduct of employees of the organisation,
including the most senior employee.
[103] The making of allegations by the Council against Ms de Laps does not constitute
conduct which was intended to force Ms de Laps to resign or which had the probable
consequence of forcing Ms de Laps to resign.
[104] Even if Ms de Laps is correct in that of some members of the Council were motivated
to try and have Ms de Laps removed even on the evidence of Ms de Laps it is clear that it is
never contended that each and every member of Council was so motivated.
[105] I note the submission put by Mr Millar of Counsel on behalf of VATE in describing
the options available to Ms de Laps in dealing with the issues she had with VATE.
“PN311. Mr Millar: Now, there may be all sorts of grievances that the applicant has,
and clearly there are, about things that happened during the course of the employment
relationship. She had many concerns which clearly magnified in number of intensity
towards the end of employment relationship. She also had issues concerning a return
to work from WorkCover.
PN312. But none of that means that the applicant in the end was forced to retire or
resign. She may well have had - she may well have had, and it's not necessary to
determine, every reason to be irritated about the way matters had developed internally.
But that doesn't mean she was forced to resign. If she was irritated there are ways in
which these matters can be discussed and resolved. And, clearly, from the
respondent's perspective there were serious concerns that the employer wanted to
discuss and resolve, and things didn't reach that point because the applicant decided to
go first.”
[106] I note the submission of Mr Millar as to what other reasonable options Ms de Laps had
available to her other then resigning.
“PN503. THE COMMISSIONER: Just on that, what reasonable choice did the
applicant have other than to resign?
PN504. MR MILLAR: What reasonable choice? The applicant's choice was to attend
and answer whatever allegations were put to her - - -
PN505. THE COMMISSIONER: So in your contention, that's a reasonable choice?
PN506. MR MILLAR: Absolutely. She was still an employee and still required to
follow the lawful and reasonable directions of the employer, including the reasonable
inquiries that were being made about a series of workplace matters. It was, in my
submission, incumbent upon her if she continued as an employee to answer those
allegations. She avoided an earlier meeting because of apparently a prior commitment.
But instead of attending the meeting she chose to resign first. So, yes, she had an option
which was to attend the meeting.
PN507. THE COMMISSIONER: I'm not using the word option. I'm very deliberately
using the word "reasonable choice", because that's the test in the full bench in Davidson,
where they pose the question, "whether the conduct of the employer left the employee
with no reasonable choice but to resign".
PN508. Which means, when you ask the question the other way, what other reasonable
choices did the employee have? You're saying that attending the meeting was a
reasonable choice.
PN509. MR MILLAR: Indeed, and reporting for work as usual was the reasonable
choice. Not resigning was the reasonable choice. Attending the meeting, answering the
queries and dealing with whatever the outcome may have been - a warning,
counselling, performance plan, dismissal or no action whatsoever if the concerns had
been satisfied - were all reasonable choices that were open. It's not as if the only
realistic option for the applicant was to resign. The employer fully expected and had
reason to expect that its letter, requiring the applicant to attend for a meeting and to
discuss the issues that were canvassed in the agenda, would be followed and that the
applicant would cooperate as any employee receiving that form of letter should.
PN510. So there was an option which was simply performance of the employment
contract and it's not as if the applicant had no ability to do anything but resign. She
could have simply continued on and we'll never know what would have happened
because her reasoned decision to prevent the consequences that she saw flowing from
attendance at the meeting meant that it will always be a mystery what the fate of the
parties had been had she not chosen to resign.”
[107] VATE also contended that:
“6. On any view, the Applicant had options other than resignation available to her. Most
obviously, she could have simply attended the meeting which the employer had asked
her to attend, and provided a response to the detailed concerns raised. The fact that the
Applicant made a considered decision to resign, after "much deliberation" and
"speaking to family and friends” emphasises that resignation was a voluntary choice
rather than a response forced upon her.
7. Even if it could be said that resignation was the "possible and foreseeable result" of
the employer's actions, or even a "reasonable response", it is clear from the Full Bench
decision (Bruce v Fingal Glen P/L) that this is not enough. Resignation must be
"objectively the probable result of the Respondent's conduct". That test is not made out.
The probable result was simply the Applicant attending the meeting as requested.”17
[108] Ms de Laps contended that “the decision by the Applicant to resign was not freely
made but was objectively the reasonable and most likely result of the conduct of the
Respondent over a sustained period.”
[109] In considering this matter I have had regard to the decision of a Full Bench of the
AIRC in ABB Engineering Construction Pty Limited v Doumit which stated:
“Often it will only be a narrow line that distinguishes conduct that leaves an employee
no real choice but to resign employment, from conduct that cannot be held to cause a
resultant resignation to be a termination at the initiative of the employer. But narrow
though it be, it is important that that line be closely drawn and rigorously observed.
Otherwise, the remedy against unfair termination of employment at the initiative of the
employer may be too readily invoked in circumstances where it is the discretion of a
resigning employee, rather than that of the employer, that gives rise to the termination.
The remedies provided in the Act are directed to the provision of remedies against
unlawful termination of employment. Where it is the immediate action of the employee
that causes the employment relationship to cease, it is necessary to ensure that the
employer's conduct, said to have been the principal contributing factor in the resultant
termination of employment, is weighed objectively. The employer's conduct may be
shown to be a sufficiently operative factor in the resignation for it to be tantamount to a
reason for dismissal. In such circumstances, a resignation may fairly readily be
conceived to be a termination at the initiative of the employer. The validity of any
associated reason for the termination by resignation is tested. Where the conduct of the
employer is ambiguous, and the bearing it has on the decision to resign is based largely
on the perceptions and subjective response of the employee made unilaterally,
considerable caution should be exercised in treating the resignation as other than
voluntary.”18
[110] I have approached the task of considering the evidence of the Ms de Laps which
supports her contention that she was forced to resign by examining each of the matters relied
on by Ms de Laps and by removing the subjective interpretation of those events as given by
Ms de Laps and replacing it with an objective assessment. The result of looking at the
evidence objectively is that much of what Ms de Laps asserts falls away but some very
important elements remain which point to a course of conduct by the Council of VATE which
would objectively have the probable result of causing Ms de Laps to resign.
[111] I have also had regard to the requirement as stated by the Full Bench in Davidson v
Commonwealth of Australia that:
“The inquiry as to whether the conduct of an employer has “forced” an employee to
resign necessarily requires consideration as to the appropriateness of the employee’s
response: whether the conduct of the employer left the employee with no reasonable
choice but to resign.” 19
[112] In this regard I have specifically taken into account whether the action of resigning
was an appropriate response given the very clear alternative response available to Ms de Laps
of continuing her employment and attending the meeting that had been scheduled for 17
December 2012 I do not consider that the approach adopted by VATE in its communications
with Ms de Laps between 10 December 2012 and 13 December 2012 was designed to accord
procedural fairness to Ms de Laps. Whilst a list of 22 allegations was given to Ms de Laps on
13 December 2012 the lack of disclosure by VATE of the material they already had in their
possession together with the tight timeframe of having a meeting on 17 December 2012 and
together with the refusal to allow Ms de Laps to have an advocate at the meeting on 17
December 2012 all strongly point to a process that was not intended to be fair.
[113] There is a real sense that VATE was giving “lip service” to the concept of procedural
fairness. I am minded of the comment made by Moore J in Wadey v YMCA Canberra where
His Honour said:
“In my opinion the obligation imposed on an employer by that section has, for present
purposes, two relevant aspects. The first is that the employee must be made aware of
allegations concerning the employee's conduct so as to be able to respond to them. The
second is that the employee must be given an opportunity to defend himself or herself.
The second aspect, the opportunity to defend, implies an opportunity that might result in
the employer deciding not to terminate the employment if the defence is of substance.
An employer may simply go through the motions of giving the employee an opportunity
to deal with allegations concerning conduct when, in substance, a firm decision to
terminate had already been made which would be adhered to irrespective of anything
the employee might say in his or her defence. That, in my opinion, does not constitute
an opportunity to defend.”20
[114] The process adopted by VATE and as outlined earlier in this decision does not appear
to have been intended to allow Ms de Laps a proper opportunity to defend herself against
allegations of misconduct and certainly does not appear to have been designed to ensure a fair
outcome. I note that when dealing with less serious matters concerning Mr Hayes intimidatory
conduct of employees of VATE that the Council of VATE utilised the services of an external
agent yet chose to reject the request made by Ms de Laps to have her conduct investigated by
an independent external person.
[115] In the context of all of the other events and conduct which took place in the latter part
of 2012 it appears to me that the response of Ms de Laps was appropriate and was a
reasonable response to the actions of VATE. Rather than considering Ms de Laps’ decision to
resign as “she presumably decided that resigning was the better course” as does VATE, I have
in this decision considered the evidence and the evidence itself supports a finding that Mr de
Laps’ decision to resign was an appropriate response to the conduct of VATE.
Conclusion
[116] I am satisfied that, on an objective assessment of the conduct of VATE, acting through
its elected Council and Executive Committee and Officers, the conduct was of such a nature
that Ms de Laps’ resignation was the probable result of such conduct or that Ms de Laps had
no real or effective choice but to resign. Having carefully considered the response of Ms de
Laps to the conduct of VATE, acting through its elected Council and Executive Committee
and Officers, I consider that Ms de Laps’ response in “retiring” from her employment was an
appropriate response to the conduct. I consider that Ms de Laps was left with no reasonable
choice but to resign. There were in my view no other reasonable choices available to Ms de
Laps.
[117] I find that Ms de Laps was dismissed from her employment with VATE in that while
Ms de Laps resigned from her employment, she was forced to do so because of conduct, or a
course of conduct, engaged in by her employer.
[118] The file in this matter will be returned to the Panel Head in charge of the Unfair
Dismissals Panel for allocation to a Member for arbitration of the merits of the application.
COMMISSIONER
OF FAIR WORK . ... AUSTRAI LY THE SEAL
Appearances:
M. Felman, of Counsel, for the Applicant
R. Millar, of Counsel, for the Respondent
Hearing details:
2013.
Melbourne:
May 21
Printed by authority of the Commonwealth Government Printer
Price code C, PR538265
1 Exhibit A5 at para 30.
2 Attachment GC-1 to Exhibit A2.
3 Exhibit A5 at para 64.
4 Exhibit A5 at para 100.
5 Exhibit A5 at para 114.
6 Exhibit A5 at paras 190-192.
7 Davidson v Commonwealth of Australia , [2011] FWA 3610.
8 Ashton v Consumer Law Action Centre [2010] FWA 9356.
9 Gunther and Daly v Melouney T/a Easts Riverside Holiday Park , [2012] FWA 2473.
10 Daffey v MSS Security P/L, [2011] FWA 3983.
11 Mohazab v Dick Smith Electronics Pty Ltd, 62 IR 200 (1995).
12 Pawel v Australian Industrial Relations Commission, FCA 1660 (1999) at para 58.
13 P O’Meara v Stanley Works Pty Ltd, PR973462, 11 August 2006 (Giudice P, Watson VP, Cribb C
14 Davidson v Commonwealth of Australia [2011] FWA 6265, at [14].
15 Bruce v Fingal Glen P/L (in liq), [2013] FWCFB 5279.
16 Exhibit A5 at para 65.
17 Supplementary submission of Respondent, 14 August 2013.
18 ABB Engineering Construction Pty Limited v Doumit, AIRC Print N69999 (9 December 1996).
19 Davidson v Commonwealth of Australia [2011] FWA 6265, at para 14.
20 Wadey v YMCA Canberra, 1996 IRCA 568.
http://www.fwa.gov.au/alldocuments/PR973462.htm