1
Fair Work Act
2009
s.394 - Application for unfair dismissal remedy
Ms Deborah Hallam
v
Sodexo Remote Sites Australia Pty Ltd
(U2017/3968)
COMMISSIONER SPENCER BRISBANE, 4 AUGUST 2017
Application for relief from unfair dismissal – jurisdictional objection – redeployment not
reasonable in all the circumstances – genuine redundancy.
INTRODUCTION
[1] An application pursuant to s.394 of the Fair Work Act 2009 (the Act) was made by Ms
Deborah Hallam (the Applicant) alleging that her dismissal from Sodexo Remote Sites
Australia Pty Ltd (the Respondent) was harsh, unjust or unreasonable. The Respondent raised
a jurisdictional objection pursuant to s.385(d) of the Act, arguing that the dismissal was a case
of genuine redundancy.
[2] The Applicant commenced employment with the Respondent in 2006, and was made
redundant on 24 March 2017. At the time of her dismissal, the Applicant held the position of
“Relief Project Manager”, however had not been rostered to work since September 2016.1
Between June 2016 and September 2016, the Applicant had worked at the Respondent’s
worksite located in Dysart, Central Queensland. The Applicant resided in Mareeba, and
travelled to worksites on a fly-in fly-out basis.
[3] The Applicant was employed within one of the Respondent’s “relief pools”,
workgroups designed to backfill positions at various worksites during periods of employee
absence.2 Whilst the relief pools were predominately designed to backfill labour positions, the
Applicant was employed as a manager within her respective relief pool.3
[4] On 24 February 2017, the Respondent sent the Applicant the following termination
letter:
“Dear Deborah,
1 Statutory Declaration of Deborah Hallam declared 15 June 2017 at [17].
2 Statutory Declaration of Colin Purves declared 23 May 2017 at [5].
3 Ibid at [6].
[2017] FWC 4105 [Note: An appeal pursuant to s.604 (C2017/4642) was
lodged against this decision- refer to Full Bench decision dated 19
December 2017 [[2017] FWCFB 6847] and Full Bench Decision dated 15
March 2018 [2018] FWCFB 1496] for result of appeal.]
DECISION
E AUSTRALIA FairWork Commission
http://www.fwc.gov.au/documents/decisionssigned/html/2018FWCFB1496.htm
https://www.fwc.gov.au/documents/decisionssigned/html/2017fwcfb6847.htm
[2017] FWC 4105
2
Re: Termination of Employment
To operate our business in-line with our Client’s expectations and within the scope of
our commercial contract we are required to continually review and adjust our
operations at the workplace level. This allows us to remain competitive in the market
and ensures that we deliver the Quality of Life services to our Clients and employees.
In line with our latest business review to optimise labour efficiencies the company has
decided to change the construct and application of the relief pool across its broader
operations. This means the intermittent and irregular workforce needed to cover its
unpredictable operational requirements will now be sourced, if and when required,
through a labour hire agency. As a result of this operational change, your position as a
relief employee has been deemed redundant and will no longer be required to be
performed.
Future opportunities of employment
It is good practice to minimise the adverse effects of changes and attempt to retain our
valued staff. For this reason we would like you to consider other suitable
redeployment opportunities within the business.
We have provided to you a full list of current vacancies within our business nationally.
If you are interested in any of the listed vacancies please notify us in writing and
outline the position, the work location, your knowledge, skills, experience, and your
qualifications / licences as required by the position.
It should be noted that if Sodexo is unable to reasonably redeploy you, your
employment with Sodexo will be terminated in line with your industrial instrument
with final day of employment being Friday 24th March 2017.
You will of course receive all due termination entitlements and Sodexo will also assist
to provide career transition support. Sodexo’s Employee Assistance Program is also
available as an anonymous support resource for you during this difficult time.
To avoid any certainty, the purpose of this letter is also to give you at least the
required period of notice of termination.
Employment with Agencies
Sodexo Energy and Resources - Mining is currently working primarily with two global
labour hire Agencies, namely Chandler Macleod and HAYS. Both of these companies
have expressed interest in engaging Sodexo Employees from our relief pool to cover
casual workforce requirements for their broad range of clients. Should you wish to
explore these options further, please refer to the contact details included below.
…
If you have any questions or wish to discuss further about the termination of
employment notified in this letter, your Scheduler will be able to assist by phone and
email with some of your questions. If you prefer to meet with an HR representative,
[2017] FWC 4105
3
please let your scheduler know as they will be able to book a suitable time for this.
The relevant contact details are included below:
…
Yours sincerely,
Shalyn Jones
HR Operations Manager” (emphasis added)
[5] The Applicant was made redundant as the result of a restructure that saw the relief
pools outsourced to an external labour hire company. The Respondent submitted that there
were significant commercial benefits to the restructure. It was submitted by Counsel for the
Applicant, that the Applicant’s case revolves around the application of s.398(2), and whether
it would have been reasonable, in all the circumstances, to redeploy the Applicant within the
Respondent’s, or with any of its associated entities’, enterprises.4
[6] The Applicant submitted that there were several positions into which she was capable
of being redeployed, and that the Respondent had failed to provide sufficient notice to the
Applicant of the redundancy. In addition, it was submitted that the Respondent did not make
all reasonable attempts to redeploy the Applicant.
[7] The Respondent objected to conciliation prior to the determination of the jurisdictional
objection. Pursuant to s.396 of the Act, the Fair Work Commission (the Commission) must
first consider the jurisdictional objection, prior to dealing with the merits of the application.
Accordingly, it was agreed with the parties that the jurisdictional objection would be
determined and Directions were set for the filing of material. The matter was heard by consent
in Brisbane (with video link to the Cairns court house) on 5 July 2017, and 14 July 2017.
[8] The parties further agreed that, subject to this Decision, given that conciliation of this
matter had not occurred, they would engage in discussions relating to the progress of the
application.
[9] At the Hearing, the Applicant was represented by Mr Ryan Haddrick of Counsel,
instructed by Ms Amanda Langtree, Associate with Preston Law, who both appeared with
permission granted pursuant to s.596 of the Act. The Respondent was represented by Mr Sean
Edwards, Legal Counsel – Workplace Relations and Employment (in-house counsel) of the
Respondent.
[10] Whilst not all of the evidence and submissions are referred to in this Decision, all of
such have been considered.
RELEVANT LEGISLATION
[11] Pursuant to s.385 of the Act:
“385 What is an unfair dismissal
4 Transcript dated 14 July 2017 at PN25.
[2017] FWC 4105
4
A person has been unfairly dismissed if the FWC is satisfied that:
(a) the person has been dismissed; and
(b) the dismissal was harsh, unjust or unreasonable; and
(c) the dismissal was not consistent with the Small Business Fair Dismissal
Code; and
(d) the dismissal was not a case of genuine redundancy.
Note: For the definition of consistent with the Small Business Fair Dismissal Code:
see section 388.”
[12] Relevantly, s.389 of the Act provides:
“389 Meaning of genuine redundancy
(1) A person’s dismissal was a case of genuine redundancy if:
(a) the person’s employer no longer required the person’s job to be
performed by anyone because of changes in the operational requirements of the
employer’s enterprise; and
(b) the employer has complied with any obligation in a modern award or
enterprise agreement that applied to the employment to consult about the
redundancy.
(2) A person’s dismissal was not a case of genuine redundancy if it would have
been reasonable in all the circumstances for the person to be redeployed within:
(a) the employer’s enterprise; or
(b) the enterprise of an associated entity of the employer.”
SUMMARY OF THE RESPONDENT’S SUBMISSIONS AND EVIDENCE
[13] The Respondent was part of a large multinational group of companies, operating in
approximately 80 countries, and employing over 3000 people in Australia.5 The associated
corporate entities of the Respondent (Sodexo Remote Sites Australia Pty Ltd) in Australia
were: IFM Services Pty Ltd and Sodexo Australia Pty Ltd.6
[14] The Respondent raised a jurisdictional objection pursuant to s.385(d) of the Act,
stating that the dismissal was a case of genuine redundancy. Accordingly, it was submitted by
the Respondent that it bears the onus of proof to satisfy the requirements of s.389 of the Act.7
5 Transcript dated 5 July 2017 at PN642 – PN645.
6 Ibid at PN868 – PN872.
7 Roy Morgan Research Ltd v Baker [2013] FWCFB 8936 [21] – [27].
[2017] FWC 4105
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[15] The Respondent submitted that in late 2016, a business decision was made to eliminate
four of the Respondent’s relief pools from its operations. The Respondent’s seasonal relief
employees were replaced with labour sourced through an external labour hire company, and
its permanent relief employees (such as the Applicant) were replaced by existing employees
from each individual worksite operated by the Respondent. In stating that the loss of the
Applicant’s job was a genuine redundancy, the Respondent referred to the Explanatory
Memorandum to the Fair Work Bill 2009, which relevantly provides:
“1548. The following are possible examples of a change in the operational
requirements of an enterprise:
…
the employer is restructuring their business to improve efficiency and the tasks done
by a particular employee are distributed between several other employees and
therefore the person's job no longer exists.”
[16] The Respondent submitted that the result of the organisational change was such that
the Applicant’s duties and functions were redistributed to the existing employees. It was
submitted that the Applicant, “no longer had any functions or duties left to discharge.”8
[17] Mr Colin Purves, Human Resources Director – Energy and Resources of the
Respondent, provided a statement and oral evidence in these proceedings. Mr Purves stated
that, in August 2016, the Respondent had commenced a project to, “optimise the relief
pools”.9 Mr Purves stated that a business decision was made to terminate several relief pools,
and source the Respondent’s, “intermittent and irregular workforce from labour hire
agencies, and utilise its existing permanent labour from the work sites to backfill management
positions”.10
[18] It was clarified at the Hearing, that the decision to terminate the relief pools was
approved by the Respondent in either November or December 2016,11 however the proposal
was first contemplated in either August or September 2016.12
[19] The business case in support of the decision, projected a cost saving of
$2,434,440.86.13 In the case of relief project managers (such as the Applicant), Mr Purves
stated, “…Sodexo no longer had the obligation to pay permanent employees (i.e. relief pool
managers) their high wages when the employee remained ready, willing and able to perform
their services and Sodexo was unable, for whatever reason, to place them at a client site…”14
Mr Purves identified several key problems with the relief pools, including the burden to
administer and manage the relief pools;15 the inherent lack of ownership, accountability and
8 Submissions of the Respondent dated 25 May 2017 at [13].
9 Statement of Colin Purves declared 23 May 2017 at [18].
10 Ibid at [19].
11 Transcript dated 5 July 2017 at PN668.
12 Ibid at PN672.
13 Statement of Colin Purves declared 23 May 2017 at [23].
14 Ibid at [27].
15 Ibid at [31].
[2017] FWC 4105
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responsibility for a workforce that is viewed as transient;16 and the lack of clear reporting and
governance for sites, where relief pools operated.17
[20] The Respondent submitted that it is not relevant whether the duties of the Applicant
continue to exist but rather, “whether the job previously performed by the Applicant still
exists.”18 The Respondent submitted that, whilst the functions and duties of the Applicant’s
role have been redistributed to other employees, the position itself no longer exists, and in
accordance with the example provided in the Explanatory Memorandum, it had improved the
efficiency of its business by distributing the Applicant’s duties to other employees.
[21] The Respondent submitted that there were genuine and demonstrable changes to its
operational requirements. It submitted that the relief pools had, “evolved and morphed over
time, polluting the labour mix with management positions, poor performing employees,
employees with site or other restrictions, and adding rigid and inflexible, inefficient,
cumbersome, and costly work processes; significantly eroding the Respondent's
competitiveness and lean profit margins.”19
[22] Mr Purves made reference to the Respondent’s redeployment obligations, in particular
he stated:
“Where there was an open position or vacancy within the Sodexo business or
associated entity and an affected employee could reasonably perform that role (even
if some upskilling was required) then that affected employee would be redeployed into
that role. Any employee affected by this optimisation program would not… be
required to apply for or compete against the market for a suitable role… It is
important to note, that almost all of these new roles were non-management roles… I
believe that at the time of the optimisation project, less than 1% of all existing and
generated vacancies in Sodexo and its associated entities may have been management
or supervisory roles… we provided all affected employees with a list of open
vacancies within Sodexo and its associated businesses. Whilst these positions had
been previously advertised in open market, the affected employees were asked to
review these positions, notify and discuss with us if there were any suitable positions
that interested them, and if the position was suitable then they would be redeployed
into that position without any form of an application or the need compete with the
open market.” 20
[23] In relation to the redeployment obligations, the Respondent, in assessing alternative
jobs for the Applicant and the process of implementation, referred to the case of Kekeris v A.
Hartrodt Australia Pty Ltd,21 where it was held that:
“[27] When one looks at the specific duties performed by the applicant prior to her
termination they have much in common with those of two of the positions in the new
16 Ibid at [35].
17 Ibid at [38].
18 Submissions of the Respondent dated 25 May 2017 at [16]; see Ulan Coal Mines Limited v Honeysett and Ors [2010]
FWAFB 7578.
19 Submissions of the Respondent dated 25 May 2017 at [21].
20 Ibid at [42], [45] and [47].
21 [2010] FWA 674.
[2017] FWC 4105
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structure. The test is not however whether the duties survive. Paragraph 1548 of the
explanatory memorandum makes clear that it can still be a ‘genuine redundancy’
where the duties of a previous job persist but are redistributed to other positions. The
test is whether the job previously performed by the applicant still exists. The evidence
clearly discloses that none of the supervisory positions that existed prior to the
restructure survived. In particular, the applicant’s job of supervisor of sea freight
import and export no longer exists.”
[24] The Respondent stated that this case was relevant to the Applicant; when considering
the duties, experience and qualifications of the alternative positions.
[25] Ms Shalyn Jones, Human Resources Manager – Energy and Resources for the
Respondent, provided evidence in these proceedings. Ms Jones was responsible for engaging
with the Applicant, regarding any opportunities for redeployment within the Respondent’s
enterprise.
[26] In her Statutory Declaration, Ms Jones detailed the steps taken to consult with the
Applicant regarding the redundancy and the redeployment process. These steps are critical to
the redeployment process and have been summarised below.
[27] On 24 February 2017, Ms Jones effected correspondence to be sent by post to the
Applicant, advising her that her position was to be made redundant effective 24 March 2017.
The correspondence contained a list of vacancies nationwide, across the Respondent’s
enterprise, and its associated entities; enterprises (national vacancy list).22
[28] On 28 February 2017, Ms Jones telephoned the Applicant on her mobile number as
recorded on the Respondent’s personnel file, to confirm receipt of the correspondence. The
telephone call was not answered, and Ms Jones was not able to leave a message.
[29] On 2 March 2017, the Applicant telephoned Ms Jones. During that telephone
conversation, Ms Jones became aware that the telephone number listed for the Applicant on
the Respondent’s file was not current. Ms Jones stated that the Applicant said she had not
received the letter and national vacancy list sent to her. Ms Jones indicated to the Applicant
that she would be communicating with her over the next four weeks, to explore redeployment
opportunities. Ms Jones indicated to the Applicant, that if a suitable position for redeployment
could not be identified, the Applicant’s employment would be terminated.
[30] The Applicant and Ms Jones agreed to communicate over the following weeks to
discuss redeployment opportunities, however Ms Jones was given the impression that the
Applicant expected her to, “do all the work.” The Applicant also indicated to Ms Jones that
her preferred form of communication would be email. Ms Jones emailed the Applicant the
letter and a copy of the national vacancy list.
[31] On 3 March 2017, the Applicant emailed Ms Jones with a list of concerns, including:
that the national vacancy list did not contain any similar positions and that the Respondent
had not attempted to mitigate the effects of the redundancies. The Applicant requested copies
of her employment records.
22 Statement of Ms Shalyn Jones sworn 22 May 2017 at Annexure 4.
[2017] FWC 4105
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[32] Ms Jones attempted to telephone the Applicant, however the Applicant did not answer
her phone. Ms Jones emailed the Applicant, indicating that the Applicant had been provided
with the requisite notice of the redundancies.
[33] On 4 March 2017, the Applicant emailed Ms Jones reiterating that she felt that the
Respondent had not attempted to contact her. On 7 March 2017, Ms Jones emailed the
Applicant copies of her employment contracts, in accordance with the request in the
Applicant’s email dated 3 March 2017.
[34] On 16 March 2017, Ms Jones emailed the Applicant a new copy of the national
vacancy list, and requested that the Applicant notify her if she had an interest in any positions.
The same day, the Applicant emailed Ms Jones and stated that hardcopy versions of her
employment records had not been received. The Applicant did not comment on the national
vacancy list.
[35] On 17 March 2017, Ms Jones emailed the Applicant to inform her that she was out of
the country, and would contact her next on 20 March 2017. On 20 March 2017, Ms Jones
telephoned the Applicant in relation to the national vacancy list. Ms Jones stated that the
Applicant told her that, “there was nothing in the list of vacancies that seemed relevant to her
and therefore was not interested in any of those options.”23 During the telephone call, Ms
Jones identified several positions for redeployment, including a Site Administrator position.
Ms Jones stated that the Applicant did not consider that the Site Administrator position was
suitable for redeployment.
[36] On 21 March 2017, the Applicant emailed Ms Jones, alleging that Ms Jones had not
contacted her, and that the process was unfair. Ms Jones telephoned the Applicant to discuss
her email. Ms Jones followed up those discussions with an email sent to the Applicant, which
recorded that Ms Jones indicated that the Applicant was required to engage in discussions
with the Respondent regarding redeployment, rather than the process requiring unilateral
effort on the Respondent’s behalf.
[37] On 22 March 2017, the Applicant emailed Ms Jones alleging that no consultation had
occurred, and stating that the Respondent had not provided her with any suitable
redeployment opportunities. On 24 March 2017, Ms Jones emailed the Applicant and advised
her that she was unable to be redeployed, and accordingly her employment would be
terminated.
[38] The Respondent submitted that it would have been unreasonable, given the available
roles, to redeploy the Applicant into an identified position on the same terms and
remuneration as her previous position. The Respondent submitted that it had done all that
was, “reasonably practicable to identify and explore all redeployment opportunities across
Australia and within its business.”24
[39] At the Hearing, it was put to the Applicant during cross-examination that several of
the positions identified by the Applicant as redeployment opportunities were inappropriate,
given the Applicant’s training and qualifications. The Respondent referred to a sample of the
23 Statement of Shalyn Jones declared 22 May 2017 at [52].
24 Submissions of the Respondent dated 25 May 2017 at [63].
[2017] FWC 4105
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positions identified by the Applicant,25 of which the Applicant conceded that she lacked the
necessary training or experience. These positions included: Housing Manager; HSE
Specialist; HSEQ Coordinator; HSE 7/11 Advisor; Property Administrator; Sourcing
Manager, Food & Beverage; Personal Logistics Coordinator; Funding and Development
Manager; and Catering Manager, PwC.
[40] The Respondent provided reasons as to the Applicant’s unsuitability for these
positions, based on the qualifications and experience required for the roles, being different to
that of the Applicant. The position of Property Administrator, was referred to by Counsel for
the Applicant as a position capable of being performed by the Applicant. In relation to this
position, it was put to the Applicant that it was an, “unsuitable position”, to which the
Applicant responded, “I think I could upskill for that.”26
[41] The Respondent argued the position required experience dealing with real estate
matters; negotiating, managing and interpreting tenancy agreements; and that “upskilling” the
Applicant to meet the requirements for the role could not be achieved within a reasonable
timeframe. In particular, it was submitted that the Applicant would be required to complete
six “property management modules”, and that this would take up to 12 months to complete.27
It was submitted that it would be unreasonable, to hold the position open for that period of
time.28
[42] In the months leading up the Applicant’s dismissal, the Respondent had secured
contract extensions with Rio Tinto, to provide services at various worksites. The Applicant, in
her correspondence sent to Ms Jones, had made reference to those contract extensions.
[43] The Respondent submitted that it would have been unreasonable to redeploy the
Applicant into those positions as Rio Tinto had expressly excluded the Applicant from
accessing its worksites (as Ms Jones provided in her statement).29 The Applicant disputed the
factual basis on which Rio Tinto had excluded her from its worksites, however this provided
an impediment to placing the Applicant, in alternative positions at these sites.
[44] The Respondent argued that the situation was not dissimilar to the circumstances in
Pettifer v MODEC Management Services Pty Ltd, where it was found that the capacity to
enter a worksite, was essential to the capacity to work, and that this was a relevant
consideration when determining, the reasonableness of the redeployment and whether there
was a valid reason for dismissal.30
[45] The Respondent submitted that the evidence of Mr Purves and Ms Jones was more
responsive and accurate on the issue of the redeployment, in relation to the available
positions, and that their evidence should be preferred over the evidence of the Applicant.
[46] It was submitted that, whilst the Sodexo Remote Sites Onshore Enterprise Agreement
2013 (the Agreement) applies to the Respondent’s onshore business, the positions of Project
25 Respondent’s Outline of Closing Submissions dated 13 July 2017 at [60].
26 Transcript dated 5 July 2017 at PN388.
27 Respondent’s Outline of Closing Submissions dated 13 July 2017 at [66].
28 Ibid; Wilson v Mackay Taxi Holdings Ltd [2014] FWC 2425.
29 Statement of Shalyn Jones declared 22 May 2017 at [68].
30 [2016] FWCFB 5243 at [33].
[2017] FWC 4105
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Manager and Relief Project Manager are not explicitly provided in cl.11 of the Agreement. It
was therefore submitted by the Respondent, that the Applicant’s employment was not covered
by the Agreement. Similarly, the Respondent submitted that the position also fell outside of
the classifications in the Hospitality Industry (General) Award 2010 (the Award).
[47] The Respondent submitted that the consultation obligations in the Act only arise where
the Applicant’s employment was governed by a relevant enterprise agreement or modern
award. Accordingly, it was submitted that, as the Applicant’s position fell outside of the
classifications in the Agreement and the Award, there was no obligation to consult about the
redundancy. Nonetheless, the Respondent argued that it had met its consultation obligations.
[48] Whilst this submission has been taken into consideration, the case law sets out relevant
obligations for consultation. These considerations are set out later in this Decision.
SUMMARY OF THE APPLICANT’S SUBMISSIONS AND EVIDENCE
[49] The Applicant commenced employment with the Respondent on 5 November 2006.
The Applicant had been employed across a range of roles with the Respondent. In an early
position referred to as “domestic”, she was required to travel to the Respondent’s “Arnhem
Village” worksite in Gove, Northern Territory, where she would perform various
housekeeping duties.31 Arnhem Village provided accommodation for construction workers
employed by the mining company, Alcan (now Rio Tinto Alcan).
[50] In 2008, the Applicant was transferred to the position of “Administration Officer”, and
promoted to “Administration Manager” later that year.32 In December 2008, the Applicant
was promoted to the position of “Relief Manager” at Arnhem Village. Whilst the term “relief”
was used to describe this position, the Applicant was permanently employed at Arnhem
Village.33 The Applicant’s usual duties included: performing the duties of Housekeeping
Manager, performing the duties of Accommodation Manager, and covering shifts on the front
counter at the worksite.34
[51] In 2008, Alcan sold its mining operations to Rio Tinto, and Arnhem Village was
amalgamated with another village, Gove House. The Applicant began working across both
worksites, and her position title was changed to “Relief Project Manager”.35 In 2010, the
Applicant was appointed to the position of “Project Manager of Gove House”.36
[52] In 2011, the Applicant was appointed to the “relief circuit” in the position of “Relief
Assistant Project Manager/Administration”.37 Between 2011 and 2012, whilst assigned to the
relief circuit, the Applicant worked on various worksites operated by the Respondent,
including: Weipa Depot, Ernest Henry, George Fisher, North Goonyella, Dysart, Tanami and
Dalby Stayover.38
31 Statutory Declaration of Deborah Hallam declared 15 June at [2].
32 Ibid at [3] – [4].
33 Ibid at [5].
34 Ibid.
35 Ibid at [6].
36 Ibid at [7].
37 Ibid at [8].
38 Ibid.
[2017] FWC 4105
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[53] In 2013, the Applicant was appointed to the role of “Project Manager” at Dalby
Stayover. From 2014 to 2015, the Applicant worked in various positions for the Respondent,
including “Accommodation Clerk” and “Accommodation Manager”, at various sites around
Australia.39 From December 2015, until the time of her dismissal on 24 March 2017, the
Applicant was employed in the position of “Relief Project Manager” at the Respondent’s
Weipa site. The Applicant was based in Mareeba, and undertook her duties on a fly-in fly-out
basis. However, as previously noted, the Applicant had not been rostered to work since
September 2016.40
[54] At the time of the dismissal, the Applicant’s remuneration was approximately
$93,372.00 per annum. The evidence was that the Applicant had received the applicable
notice of the termination of her employment, and redundancy payments, however at a very
late stage, on her evidence. She argued the redundancy consultation and redeployment were
deficient.
[55] At the Hearing, Counsel for the Applicant emphasised the application of s.389(2) of
the Act, that is, whether it was reasonable, in all the circumstances, to redeploy the
applicant.41 The Applicant referred to the decision of the Full Bench in Ulan Coal Mines
Limited v Honeysett and Ors,42 where it was held that:
“[26] First, s.389(2) must be seen in its full context. It only applies when there has been
a dismissal. An employee seeking a remedy for unfair dismissal cannot succeed if the
dismissal was a genuine redundancy. In other words, if the dismissal is a case of
genuine redundancy the employer has a complete defence to the application. Section
389(2) places a limitation on the employer’s capacity to mount such a defence. The
defence is not available if it would have been reasonable to redeploy the employee.
The exclusion poses a hypothetical question which must be answered by reference to
all of the relevant circumstances.
[27] Secondly, it is implicit in the terms of s.389(2)(b) that it might be reasonable for
an employee dismissed by one employer to be redeployed within the establishment of
another employer which is an entity associated with the first employer. It follows that
an employer cannot succeed in a submission that redeployment would not have been
reasonable merely because it would have involved redeployment to an associated
entity. Whether such redeployment would have been reasonable will depend on the
circumstances. The degree of managerial integration between the different entities is
likely to be a relevant consideration.
[28] Thirdly, the question posed by s.389(2), whether redeployment would have been
reasonable, is to be applied at the time of the dismissal. If an employee dismissed for
redundancy obtains employment within an associated entity of the employer some
time after the termination, that fact may be relevant in deciding whether redeployment
would have been reasonable. But it is not determinative. The question remains whether
redeployment within the employer’s enterprise or the enterprise of an associated entity
39 Ibid at [10].
40 Ibid at [17].
41 Transcript dated 14 July at PN25.
42 [2010] FWAFB 7578.
[2017] FWC 4105
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would have been reasonable at the time of dismissal. In answering that question a
number of matters are capable of being relevant. They include the nature of any
available position, the qualifications required to perform the job, the employee’s skills,
qualifications and experience, the location of the job in relation to the employee’s
residence and the remuneration which is offered.”
[56] Counsel for the Applicant, referred to the decision of the Full Bench in Technical and
Further Education Commission T/A TAFE NSW v Pykett,43 where the Full Bench quoted
obiter also from the decision in Honeysett (referred to above):
“[33] The Full Bench went on to make some obiter remarks about the operation of
s.389(2):
“It may be appropriate to make some concluding remarks about the operation
of s 389(2). It is an essential part of the concept of redeployment under s
389(2)(a) that a redundant employee be placed in another job in the employer’s
enterprise as an alternative to termination of employment. Of course the job
must be suitable, in the sense that the employee should have the skills and
competence required to perform it to the required standard either immediately
or with a reasonable period of retraining. Other considerations may be relevant
such as the location of the job and the remuneration attaching to it. Where an
employer decides that, rather than fill a vacancy by redeploying an employee
into a suitable job in its own enterprise, it will advertise the vacancy and
require the employee to compete with other applicants, it might subsequently
be found that the resulting dismissal is not a case of genuine redundancy. This
is because it would have been reasonable to redeploy the employee into the
vacancy. In such a case the exception in s 385(d) would not apply and the
dismissed employee would have the opportunity to have their application for a
remedy heard. The outcome of that application would depend upon a number
of other considerations.
Where an employer is part of a group of associated entities which are all
subject to overall managerial control by one member of the group, similar
considerations are relevant. This seems to us to be a necessary implication
arising from the terms of s 389(2)(b). While each case will depend on what
would have been reasonable in the circumstances, subjecting a redundant
employee to a competitive process for an advertised vacancy in an associated
entity may lead to the conclusion that the employee was not genuinely
redundant.”
[57] The Applicant argued that Pykett was authority for the redeployment process.44 The
Applicant, in her second Statutory Declaration, set out various positions that she considered
she would be able to perform, with either minimal or no additional training. She made
particular reference to the positions of: Relief Project/Camp Manager, Training Coordinator,
Accounts Payable Officer, Sourcing Manager, Funding and Development Administrator, HSE
Advisor, Fuels and Warranty Manager, Finance Administrator, Assistant Manager – Uniform
Shop, General Administrator, Accounts Administrator, Catering Manager, Finance Shared
43 [2014] FWCFB 714.
44 Transcript dated 14 July at PN149.
[2017] FWC 4105
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Services Manager, Site Administrator/Supervisor, Property Administrator, Office Services
Supervisor, HSEQ Supervisor, Accounts Receivable Officer, Functions Coordinator, Housing
Manager, Contracts Administrator, Assistant Catering Manager, Personnel Logistics
Coordinator, Facilities Manager, Site Manager – Corporate, Facility Coordinator, HR
Administrator, Village Manager and HSEQ Coordinator.45 The Applicant stated that, “[h]ad I
known about these positions… I would have sought more information about them…”46
[58] The Applicant particularly argued she was able to satisfy all the requirements of the
Property Administrator position. In addition, during cross-examination, Ms Jones conceded
that the Applicant, “…with her skills and a bit of training, she would have been able to
[perform all of the main duties].”47
[59] The Applicant’s representative was critical of the redeployment exercise, stating that
the Applicant was not able to fully assess an alternative position, as not all of the relevant
information was provided. The list did not set out whether the job was worked on a fly-in fly-
out basis, whether relocation expenses were paid and the applicable salary and qualifications
for each position. It was also argued that the fact that the Applicant was not provided with
detailed job descriptions for each position was a relevant consideration. It was submitted that
at various times the Applicant requested information about the positions, including in an
email to Ms Jones sent two days before the termination of her employment, in which the
Applicant stated, “[n]ow let's talk job opportunities, the listing sent with the letter were out of
date when they arrived, even out of date when you emailed the letter as they are updated
weekly from what I understand (emailed 10.30pm 2/3/17 and letter arrived 9/3/17) and then
nothing sent until I emailed on 16th March because you had not answered my email, then
soon after you emailed current jobs listing.”48
[60] During cross-examination, Ms Jones stated that the email sent by the Applicant was
not connected to the previous discussions she had with the Applicant. It was Ms Jones’
evidence that the Applicant had not expressed any desire to explore redeployment
opportunities, prior to that email. Further, Ms Jones stated that the email was part of a chain,
in which Ms Jones had provided a list of current vacancies within the Respondent’s business.
[61] The Applicant submitted that the Respondent did not discuss the identified positions
with the Applicant as it had alleged. Further, it was submitted that, “the Respondent simply
decided that the Applicant would not accept redeployment to a lower paid position in
circumstances where the possibility has not been fully disclosed with the Applicant.”49 In the
alternative, the Applicant submitted that merely making the Applicant aware of any vacancies
would not discharge its redeployment obligations.50
[62] The Applicant submitted that a failure to offer or redeploy into a suitable position,
even an identified lower level position, may render the redundancy not genuine.51 It was
45 Statutory Declaration of Deborah Hallam dated 3 July 2017 at Annexure A.
46 Ibid at [7].
47 Transcript dated 5 July at PN970.
48 Applicant’s “Response to Sodexo Form F3 Response to Unfair Dismissal Application” dated 25 May 2017 at Annexure 27.
49 Submissions of the Applicant dated 16 June 2017 at [29].
50 See Howarth and Ors v Ulan Coal Mines Limited [2010] FWA 4817 at [41].
51 McLeod v Alcyone Resources [2014] FWCFB 1542 at [32]; Jenny Craig Weight Loss Centres Pty Ltd v Margolina [2011]
FWAFB 9137 at [28] – [29].
[2017] FWC 4105
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submitted that, on the Respondent’s own submissions, there were identified positions to
which the Applicant may have been redeployed. The Applicant also considered that given the
size of the Respondent’s enterprise and operations, her experience and the period of time
between the decision to restructure being made and the redundancy taking effect, it would
have been reasonable for the Respondent to commence redeployment as early as November or
December 2016, when the decision to terminate was made.
[63] The Applicant specifically referred to the Respondent advertising for positions of
Village and Camp Managers in November 2016, a position which the Applicant had worked
in the previous months. Further, it was submitted that, “[t]he sheer number of positions
turned over in a twelve month period meant that the Respondent ought to have known that it
quite easily had the capacity to absorb the Applicant into another position.”52
[64] The Applicant also submitted that the Commission should favour the evidence of the
Applicant, over that of Mr Purves and Ms Jones, as the Applicant’s evidence, was
straightforward and focused on the relevant alternative positions.53
CONSIDERATION
[65] The Applicant alleged that the termination of her employment from the Respondent
was harsh, unjust or unreasonable. The Respondent raised a jurisdictional objection to the
application, stating that the dismissal was a case of genuine redundancy. It is noted, that
whilst this Decision does not concern the merits of the substantive application (only the
jurisdictional objection) the only reason for the dismissal provided by the Respondent, was
that it was a case of redundancy.
[66] As stated, the jurisdictional objection must first be determined prior to considering the
merits of the application.54 The requirements for establishing that a dismissal was a case of
genuine redundancy are set out in s.389 of the Act, as follows:
s.389(1)(a) - the person’s employer no longer required the person’s job to be performed by
anyone because of changes in the operational requirements of the employer’s enterprise
[67] It was not contested, that the Applicant’s job of “Relief Project Manager” was no
longer required, as a result of removing the relief pools.
[68] In his evidence, Mr Purves linked the redundancies to the operational changes and that
the retention of operating the relief pools was an, “inefficient and costly labour management
process.” In August 2016, the Respondent developed the plan to terminate the relief pools and
outsource its labour requirements, to labour hire companies. It was not disputed that the
restructure represented a significant financial advantage for the Respondent. As a result, the
Applicant’s duties were redistributed amongst the Respondent’s existing staff and labour hire
employees.55
52 Applicant’s Brief Outline of Oral Submissions filed 14 July 2017 at [3(e)(ii)].
53 Transcript dated 14 July at PN35.
54 Fair Work Act 2009 (Cth) s.396.
55 Kekeris v A. Hartrodt Australia Pty Ltd [2010] FWA 674 at [27].
[2017] FWC 4105
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[69] The evidence of Mr Purves in relation to the commercial advantages of the decision,
was uncontested, and accordingly, was accepted. It was not relevant that some of the
Applicant’s duties, were redistributed to the existing managers at the Respondent’s sites,56 the
test is whether the Applicant’s position survived the restructure,57 and on the evidence, it did
not.
[70] The Respondent satisfied the criteria that the Applicant’s job was no longer required to
be performed by anyone.
s.389(1)(b) - the employer has complied with any obligation in a modern award or
enterprise agreement that applied to the employment to consult about the redundancy
[71] In relation to considering the consultation obligations under the Agreement, whilst
cl.11 does not name Relief Project Manager as a relevant position, the list of positions is not
exhaustive.58 Further, the duties performed by the Applicant, had similarities to some of the
duties of various positions explicitly identified.
[72] Clause 11 of the Agreement states:
“11. CLASSIFICATIONS
Employees will be employed at the following levels as determined by the Company:
Level Hospitality and Facility
Management Stream
Facility Maintenance
Stream
Typical positions & duties of position.
1 Typically. includes positions
requiring at least an AQF
Certificate IV or equivalent
skill gained through
experience, such as:
Catering Manager
Head Chef
Executive Chef
Facility Maintainer 1:
Typically includes positions
requiring at least an AQF
Certificate IV or equivalent
skill gained through
experience, such as:
Highly skilled building
and related maintenance
tradespersons with post
trade qualifications,
demonstrable capacity to
repair and maintain
complex equipment or
systems; or cross trade
qualifications (includes
Plumber, Gas Fitter,
Electrician, Refrigeration
56 Johnston v Blue Circle Southern Cement Pty Ltd [2010] FWA 5149 at [48].
57 Ulan Coal Mine Limited v Howarth & Ors [2010] FWAFB 3488.
58 See The Australasian Meat Industry Employees Union v Golden Cockerel Pty Limited [2014] FWCFB 7447; Automotive,
Food, Metals, Engineering, Printing and Kindred Industries Union’ known as the Australian Manufacturing Workers
Union (AMWU) v Berri Pty Limited [2017] FWCFB 3005 at [114].
[2017] FWC 4105
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Mechanic/Air
Conditional Mechanic,
Carpenter).
2 Typically includes positions
requiring at least an AQF
Certificate III or equivalent
skill gained through
experience, such as:
Qualified Chef
Breakfast Chef
Second Chef
Administration Manager
Accommodation Manager
Bar Manager/ Tavern
Manager
Security Supervisor
Parks and Gardens
Manager
Airport Manager
Village Services Manager
Cleaning Manager
Reporting Officer
Warehouse Manager
Horticulturalist
Airport Refuelling
Officer
Airport Reporting Officer
Facility Maintainer 2:
Typically includes positions
requiring at least an AQF
Certificate III or equivalent
skill gained through
experience, such as:
Base qualified building
and related maintenance
tradespersons (includes
but not limited to Water
Treatment Plant Operator,
Sewage Treatment Plant
Operator)
…”
[73] On the basis that the Applicant’s employment was covered by the Agreement, and the
consultation obligations in the Agreement, were required to be observed by the Respondent,
the case of Ulan Coal Mine Limited v Howarth & Ors is relevant to the required
consultation:59
“[31] We do not consider, in the particular circumstances of the present matter and
having regard to the obligation under sub-clause 23.1 of the Agreement, that a further
round of discussions was required to be held by the Company with the employees to be
dismissed, either separately or as a group. This does not mean that such separate
discussions might not be worthwhile and appropriate e.g. as part of the consideration
of measures to mitigate the adverse affects of terminations or to ensure that
opportunities for other employment and assistance are properly examined. However
they are not part of the discussions envisaged and required under sub-clause 23.1 of the
Agreement and that is the test in these particular circumstances. In different
59 [2010] FWAFB 3488.
[2017] FWC 4105
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circumstances this will of course vary according to the terms of particular awards and
agreements.”60
[74] It is noted, however that the Applicant did not seek to rely on a failure to consult as to
the operational decision, as grounds to dismiss the jurisdictional objection. The Applicant’s
submissions relating to consultation and mitigation, were made in reference to the
“reasonableness” element of s.389(2), in relation to redeployment. The Applicant’s
representative noted the time lag between when the decision was made to approve the strategy
to remove the relief pools, and when the employees were told, and how it impacted on the
redeployment process. The Applicant argued that if the employees had been notified or
consulted at an earlier stage, jobs that were available at an earlier time (than when they were
notified) could have been isolated for the redeployment exercise.
[75] Consideration has been given to the processes engaged in by the Respondent, to
consult with the Applicant, regarding the redundancy decision.
s.389(2) - A person’s dismissal was not a case of genuine redundancy if it would have been
reasonable in all the circumstances for the person to be redeployed within: (a) the
employer’s enterprise; or (b) the enterprise of an associated entity of the employer
[76] The Applicant submitted that it would have been reasonable in all the circumstances to
redeploy the Applicant. In summary, the Applicant submitted that given that the decision to
make the Applicant redundant was made in either November or December 2016, it would
have been reasonable for the Respondent to begin quarantining positions for redeployment at
that time (at an earlier stage when the proposal was under consideration), or at the very least
notify the Applicant, in a timely manner, that her position was to be made redundant, in order
that she had the longest opportunity to gain alternative employment. Further, it was submitted
that there were several identified positions (including that of Property Administrator) that the
Applicant was capable of being redeployed into; and that during the redeployment period, the
Respondent did not make reasonable attempts to consider or assist redeployment of the
Applicant.
[77] In relation to s.389(2), the decision of Stickley & Ors v Kestrel Coal Pty Ltd is
relevant,61 where the Full Bench of the Commission held that:
“[13] Under the heading “Considerations and Conclusion” the Commissioner
sequentially considered the elements of the definition of genuine redundancy in s.389.
Some factors, such as work chosen to be performed by contractors, were relevant to s.
389(1)(a) and s. 389(2)(a). Insofar as the work of contractors is concerned, the appeal
only relates to the finding with respect to s.389(2)(a). In that respect the Commissioner
said:
“[182] With respect to s.389(2)(a) “reasonable in all the circumstances for the
person to be redeployed within the employer’s enterprise”, and whether the
Applicants could have been reasonably redeployed into the Respondent’s
enterprise, it is not accepted that the Respondent had an obligation to redeploy
60 Ibid at [31]; see also Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services
Union of Australia v QR Limited [2013] FWCFB 10165 at [44].
61 [2015] FWCFB 4760.
[2017] FWC 4105
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the Applicant into a “backfill position” filled by Mastermyne employees. The
timing of this project, and the short-term engagement of the project are relevant
considerations, as is the Respondent’s prerogative to structure their workforce
on the optimum, operational and flexible basis for their business.
[183] The roles in the organisational structure were not being recruited for, and
while only the Applicant’s names had been deleted from the structure, it is
accepted that the jobs no longer existed, and therefore, the job, position or
work were not available for redeployment to, for the Applicants.”
[14] In this passage the Commissioner was applying the relevant element of the
definition. The language used to summarise the requirement varied from the language
in the section. In no case was there any ‘obligation’ in a legal sense to employ
employees in roles filled by employees of the contractor. However, this passage must
be considered in the context of the decision as a whole. Properly understood, in our
view, the Commissioner was expressing a conclusion in relation to the reasonableness
of continuing to employ persons to perform the work that had become work of
contractors. The Commissioner did not state that work being performed by contractors
was irrelevant to that process. Indeed the Commissioner expressly considered those
circumstances.
[15] In our view, the considerations leading to the ultimate conclusion regarding the
work of the contractor’s employees were all properly considered and taken into
account. We are not persuaded that the discretion was improperly exercised or that
there were any significant errors in the findings of fact. The facts and circumstances
were considered by the Commissioner to be relevant circumstances in making the
requisite overall judgment. The decision does not apply a binding principle that
s.389(2)(a) has no application in relation to the work of contractors.”62
[78] In further considering the redeployment obligations, the Full Bench of the
Commission in Technical and Further Education Commission T/A TAFE NSW,63 held that:
“[25] The word ‘redeployed’ should be given its ordinary and natural meaning. The
ordinary meaning of the word ‘redeploy’ includes:
“Move (troops, workers, material etc) from one area of activity to another,
reorganise for greater effectiveness; transfer to another job, task or function.”
[26] The Explanatory Memorandum to what is now s.389(2) is in the following terms:
“1551. Subclause 389(2) provides that a dismissal is not a case of genuine
redundancy if it would have been reasonable in all the circumstances for the
person to be redeployed within the employer's enterprise, or within the
enterprise of an associated entity of the employer (as defined in clause 12).
1552. There may be many reasons why it would not be reasonable for a person
to be redeployed. For instance, the employer could be a small business
62 Ibid at [13] – [15].
63 [2014] FWCFB 714.
[2017] FWC 4105
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employer where there is no opportunity for redeployment or there may be no
positions available for which the employee has suitable qualifications or
experience.”
…
[34] Honeysett is authority for the proposition that for the purpose of s.389(2) it is
sufficient if the Commission identifies a suitable job or position to which the
dismissed employee could be redeployed. The Commission must then determine
whether such a redeployment was reasonable in all the circumstances. We note that
given the factual context the Full Bench in Honeysett did not need to consider whether
s.389(2) may be satisfied if the dismissed employee could be redeployed to perform
other work within the employer’s enterprise (or that of an associated entity.) Given its
particular factual circumstances Honeysett is not authority for the proposition that it is
always necessary to identify a particular job or position to which the dismissed
employee could have been redeployed.
[35] As we have mentioned, the use of the past tense in the expression ‘would have
been reasonable in all the circumstances for the person to be redeployed ...’ in section
389 (2)(a) directs attention to the circumstances which pertained when the person was
dismissed. As noted in Honeysett, [T]he exclusion poses a hypothetical question which
must be answered by reference to all of the relevant circumstances’. The question is
whether redeployment within the employer’s enterprise or an associated entity would
have been reasonable at the time of dismissal. In answering that question the Full
Bench in Honeysett observed that a number of matters are capable of being relevant:
“They include the nature of any available position, the qualifications required to
perform the job, the employee’s skills, qualifications and experience, the
location of the job in relation to the employee’s residence and the remuneration
which is offered”. 64 (emphasis in original and footnotes omitted)
[79] At the Hearing on 5 July 2017, the Respondent objected to the admission of the further
statement of the Applicant dated 3 July 2017. The statement was filed in response to
documents obtained as a result of an Order to Produce, issued late in the proceedings. The
Order to Produce sought, “[d]ocuments showing positions vacant within the Respondent’s
enterprise, or the enterprise of a related entity of the Respondent, at any time between 1
August 2016 to 12 April 2017.”
[80] The further statement was admitted into evidence on the basis that the evidence was of
probative value, and in the interests of fairness. The Respondent was on notice, as a result of
the Order to Produce and the fact that it was in possession the underlying material, and that
the material would be raised at the Hearing, in relation to the legislative tests, to determine
whether there were any positions suitable for redeployment.
[81] The Applicant held a Diploma of Management and a Certificate III in Business
Administration that had been sponsored by the Respondent,65 and she had been employed in a
range of roles across ten years. The Applicant’s representative referred to a number of
64 Ibid at [25] – [26], [34] – [35].
65 Transcript dated 5 July 2017 at PN268.
[2017] FWC 4105
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positions on the list capable of being performed by the Applicant. In particular, the Applicant
referred to the positions of: Relief Project/Camp Manager, Training Coordinator, Accounts
Payable Officer, Sourcing Manager, Funding and Development Administrator, HSE Advisor,
Fuels and Warranty Manager, Finance Administrator, Assistant Manager – Uniform Shop,
General Administrator, Accounts Administrator, Catering Manager, Finance Shared Services
Manager, Site Administrator/Supervisor, Property Administrator, Office Services Supervisor,
HSEQ Supervisor, Accounts Receivable Officer, Functions Coordinator, Housing Manager,
Contracts Administrator, Assistant Catering Manager, Personnel Logistics Coordinator,
Facilities Manager, Site Manager – Corporate, Facility Coordinator, HR Administrator,
Village Manager and HSEQ Coordinator.66
[82] A number of positions were raised in cross-examination with the Applicant. The
Respondent, referred to a range of the positions relied on by the Applicant. Particular mention
was made of the positions of Housing Manager; HSE Specialist; HSEQ Coordinator; HSE
7/11 Advisor; Property Administrator; Sourcing Manager, Food & Beverage; Personal
Logistics Coordinator; Funding and Development Manager; and Catering Manager, PwC. The
Respondent submitted various references to the transcript of proceedings, where the Applicant
conceded she did not, at the time, possess the necessary qualifications or experience to be
redeployed into those specific positions.67
[83] For example, in relation to the position of Housing Manager, the Applicant conceded
she did not possess any of the required qualifications, and that it would not be a suitable
position for redeployment, stating that, “I’ve made these choices based on the summary,
realising that maybe with some up training I could get a real estate licence, but now seeing
the job description, no.”68 The Applicant made similar concessions in relation to the positions
of HSC Specialist,69 HSC Advisor 7/11,70 and HSEQ Coordinator.71
[84] The Respondent also submitted that several of the positions identified by the
Applicant, appeared on the national vacancy lists provided to the Applicant, and that she did
not express an interest in those positions, at that time.72
[85] The Respondent made significant reference to the fact that the Applicant was not
required to “apply” for any positions. However, the Applicant stated that the list of available
roles she was given provided insufficient detail to make an expression of interest. However,
on receiving an expression of interest, all that deal was then provided. Furthermore, she
significantly criticised the process, on the basis that Ms Jones had not responded to her when
she stated she would and therefore, the Applicant lost a period of time that could have been
devoted to the redeployment process. Knowledge of all of the matters were within the
Respondent’s domain and there was a clear expectation that the Applicant would consider any
of the alternative positions. The Respondent had been on notice of such, given the Applicant
sough an Order to Produce, for these vacancies.
66 Statutory Declaration of Deborah Hallam dated 3 July 2017 at Annexure A.
67 Respondent’s Submissions for Closing Statement dated 13 July 2017 at [60].
68 Transcript dated 5 July 2017 at PN346 – PN347.
69 Ibid at PN357.
70 Ibid at PN379.
71 Ibid.
72 Respondent’s Submissions for Closing Statement dated 13 July 2017 at [33].
[2017] FWC 4105
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[86] The Respondent submitted that:
“As reasons outlined in the above, the Respondent submits that redeployment period
was between 24 February 2017 and time of dismissal, 24 March 2017. There were no
contractual obligations binding the Respondent to a defined period of redeployment. In
fact, the Sodexo Career Listings opened vacancies up to the Applicant from 8 March
2017 to the Applicant’s dismissal date. The Commission should not turn its mind to
any period outside this window.”73
[87] The test is whether it would have been “reasonable” in the circumstances to redeploy
the Applicant, having regard whether the time spent exploring redeployment opportunities
was reasonable (among other considerations), rather than whether there was a contractual
obligation to spend a specified period of time exploring redeployment options.
[88] In the circumstances, given that the decision to make the Applicant redundant was
made in, at the latest, December 2016, it would have been reasonable to commence exploring
redeployment opportunities with the Applicant in late December 2016, or at the latest, early
January 2017. The Applicant was not notified of the redundancy until late February 2017 (or
early March 2017 on the Applicant’s submissions), and the Respondent only allocated a
period of some three weeks to explore redeployment opportunities. The Applicant had
become aware of the redundancies when another employee received a redundancy letter. The
Applicant, after querying such, received her redundancy advice much later.
[89] Mr Purves in his evidence, stated that it would not have been reasonable to quarantine
those positions that appeared on the vacancy list earlier, as the Respondent would be required
to move employees and would, “…still have to fulfil the requirements of the contract, so we
would have to find labour from elsewhere which would presumably be agency labour which
adds to our cost base and also means that those roles are filled by individuals who may not
have the same experience and competency levels as the relief pool employees.”74
[90] The Respondent’s submissions were that the Applicant did not express an interest to
be redeployed to be particular job, during the relevant period. Ms Jones gave evidence that, in
the weeks during the redeployment process, the Applicant was difficult to contact and would
not return telephone messages, and that she did receive numerous emails from the Applicant
during this period. However, Ms Jones emphasised that the purpose of the correspondence,
had been for the Applicant to gain access to employment records, rather than to discuss
redeployment opportunities.
[91] The Respondent alleged that the Applicant did not, during the entire redeployment
period, engage meaningfully in the redeployment process, with the view of maximising her
prospects of being redeployed. However, during the redeployment period, Ms Jones was out
of the country, on a different time zone, and out of reception for a fair period of the
redeployment period. There is clear and uncontested evidence, that the Applicant generally
sought to be redeployed. For example, the email to Ms Jones dated 22 March 2017, which
was not answered by the Respondent, that stated, “[n]ow let's talk job opportunities, the
listing sent with the letter were out of date when they arrived, even out of date when you
emailed the letter as they are updated weekly from what I understand (emailed 10.30pm
73 Ibid at [55].
74 Transcript dated 5 July 2017 at PN916.
[2017] FWC 4105
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2/3/17 and letter arrived 9/3/17) and then nothing sent until I emailed on 16th March because
you had not answered my email, then soon after you emailed current jobs listing.”75
[92] As stated, Ms Jones was unable to be contacted for at least six days during the
redeployment period. Taking all of the facts and circumstances into account, the Respondent’s
obligation to mitigate the redundancy by offering a proper redeployment process, was
procedurally deficient, in some respects, as set out. The Respondent erred in merely relying
on the Applicant to navigate the redeployment process. The list of jobs provided as the basis
for the redeployment exercise, did not provide sufficient relevant information, for the
Applicant to decide whether she sought the position, but it did provide a basis for the
Applicant to express an interest in a position, and then full details were provided. The
Applicant indicated she had responsibility for her son and resided in Mareeba, and therefore
required sufficient detail on the location, remuneration, whether it was fly-in fly-out, who
paid for the flights, availability of relocation costs and or rental assistance.
[93] In relation to the limitations placed on the available positions for redeployment, it was
the evidence of the Applicant that she had been told that she was no longer welcome on Rio
Tinto’s Weipa site, and accordingly the Respondent submitted that she could not be
redeployed to positions on those sites, due to the client’s decision. These matters of exclusion
from worksites have been considered as performance issues. The recent decision of
Tasmanian Ports Corporation Pty Ltd v Gee,76 is relevant to the Applicant’s circumstances,
wherein she was restricted from entering worksites. The Full Bench held:
“[27] It is critical to the determination of grounds 1-4 of Tasports’ appeal to identify the
ratio decidendi of the Full Bench decision in Pettifer. The facts of that matter were that
Mr Pettifer was employed by a labour hire company, Modec Management Services Pty
Ltd, and had been assigned to work for BHP Billiton Petroleum Inc. (BHPB) to
perform work upon a floating production, storage and offloading vessel. After a “near
miss” incident, BHPB directed Modec to remove Mr Pettifer from the vessel. This
direction was made pursuant to a right possessed by BHPB under a term of the labour
supply contract between it and Modec. That right was expressed in the following terms
(the “Company” being BHPB and the “Contractor” being Modec):
“The Company Representative may direct the Contractor to have removed from
the Site or from any activity connected with the work under the Contract,
within such time as a Company Representative reasonably directs, any
subcontractor or person employed in connection with the work under the
contract, whose involvement the company representative considers not to be in
the best interests of the project.
The costs associated with removing such persons shall be borne by the
Contractor. The person shall not be employed elsewhere on the Site or on
activities connected with the work under the Contract without the prior written
approval of the Company. Within a reasonable period of time those person who
have been removed from the work under the Contract shall be replaced at the
expense of the Contractor if the Company so requires by other suitable
qualified persons Approved by the Company.”
75 Applicant’s “Response to Sodexo Form F3 Response to Unfair Dismissal Application” dated 25 May 2017 at Annexure 27.
76 [2017] FWCFB 1714.
[2017] FWC 4105
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[28] Modec did not agree that Mr Pettifer’s conduct justified his removal from the
vessel, but was nonetheless obliged to comply with BHPB’s direction in accordance
with the above contractual provision. Modec endeavoured to find alternative work for
Mr Pettifer, which included consideration of local and international employment
opportunities and discussions with Mr Pettifer’s union to explore alternative roles, and
Mr Pettifer was retained in employment while this occurred. It was ultimately
concluded that there was no suitable alternative role for him. Mr Pettifer was given an
opportunity to respond to this conclusion. He was ultimately dismissed on the basis
that Modec had no suitable role for him to perform. Modec did not seek to justify the
dismissal by reference to any aspect of Mr Pettifer’s conduct.
[29] Mr Pettifer applied to the Commission for an unfair dismissal remedy. In the
decision at first instance, it was concluded that s.387(a) did not arise for consideration
because Modec did not rely on any matter related to the applicant’s capacity or
conduct as a reason for the dismissal. Notwithstanding this, the dismissal was found
not to be unfair, essentially on the basis that there was no practical alternative by
which Mr Pettifer could have been retained in employment.
[30] Mr Pettifer appealed on the basis that the conclusion that s.387(a) did not arise for
consideration was in error, and contended in the appeal that his dismissal occurred
because of the allegation of misconduct levelled against him by BHBP. The Full
Bench rejected the proposition that Modec dismissed Mr Pettifer on the basis of any
consideration as to his conduct. However, the Full Bench determined that his dismissal
was capacity-related, and that the Commissioner erred by not considering this under
s.387(a). The Full Bench said:
“[32] We have concluded that the BHPB instruction that Mr Pettifer was not
permitted to work on the BHPB Site represented a matter which went to Mr
Pettifer’s capacity to work. Consequently, it was a matter that required
consideration pursuant to subsection 387(a) to determine whether or not it was
a valid reason for the termination of his employment. It has long been
established that the Commission is required to consider and reach conclusions
about each of the factors specified in section 387...
[33] Consequently we have concluded that the Commissioner was in error in
her conclusion that the circumstances of the termination of Mr Pettifer’s
employment did not give rise to valid reason considerations. Mr Pettifer’s
incapacity to work on the BHPB Site arose directly from the BHPB prohibition
on his returning to work on that site, as distinct from any dispute over his
conduct. As a consequence, Mr Pettifer was incapable of working on the BHPB
Site in a manner which was akin to a bar or the loss of a form of licence,
essential to his capacity to work. Hence Mr Pettifer’s capacity was a factor
which required a conclusion in terms of whether it represented a valid reason
for the termination of his employment.”
[31] Having found error in the respect identified, the Full Bench proceeded to re-
determine Mr Pettifer’s unfair dismissal remedy application. In relation to s.387(a), the
Full Bench referred to the contractual provision earlier quoted, and said (footnotes
omitted):
[2017] FWC 4105
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“[37] MODEC was therefore contractually obliged to remove Mr Pettifer from
the BHPB Site if instructed to do so. This was the role which Mr Pettifer was
employed to perform. No longer capable of performing the inherent functions
of this role, MODEC sought to find alternative employment for Mr Pettifer.
Only after exhausting these inquiries did MODEC rely on this reason to
terminate Mr Pettifer’s employment. In these circumstances the Full Bench is
satisfied that MODEC had a valid reason relating to Mr Pettifer’s capacity to
terminate his employment and only exercised this reason because it genuinely
was unable to find suitable alternative employment for him.
[38] We have considered Mr Pettifer’s position in the context of the
conclusions reached by Deputy President Asbury in Adecco.
[39] In that matter the Deputy President observed that:
‘[71] I accept that the Adecco, by virtue of its contract with Nestlé for the
supply of labour, may have been required to remove Ms Kool from the
Nestlé site when it was requested to do so. I was not assisted by the
failure of Adecco to call any direct evidence about the terms of its
contract with Nestlé for the supply of labour and the rights of Nestlé to
seek to remove labour hire employees from its site.’
[40] The factual situation before the Deputy President was somewhat different
to Mr Pettifer’s circumstances. In that case, the Deputy President did not have
the terms of the contractual relationship between the labour hire company and
the host employer in evidence before her. Some of her comments in that
context might well be considered to be, at their highest, a general statement of
principle. That principle is that, in the context of labour hire arrangements, the
actions of an employer who dismisses an employee following the exercise of a
host employer’s contractual right to have the employee removed from the host
site cannot rely exclusively on the actions of that third party as their defence to
a claim of unfair dismissal. A discretion remains with the FWC to decide
whether a particular dismissal is unfair in all the circumstances.
[41] In the Adecco case, Deputy President Asbury found that a failure on
behalf of the applicant’s employer to explore redeployment opportunities for
the applicant constituted an element of unfairness in the circumstances of the
applicant’s dismissal. In this case, there is no contest that MODEC did explore
redeployment opportunities for Mr Pettifer both prior to his termination and
afterwards, including liaising with his union to explore the opportunity of
substitution. In this respect, we would also observe that there is absolutely
nothing to suggest that MODEC colluded with its client to remove Mr Pettifer
from the work site.
[42] Having determined that there was a valid reason for Mr Pettifer’s
dismissal related to his capacity it is necessary to make findings in relation to
sub-sections 387(b)-(h) as part of our re-determination of the matter.”
[2017] FWC 4105
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[32] The Full Bench went on to deal with paragraphs (b)-(h) of s.387 and ultimately
came to the same conclusion as that at first instance, namely that the dismissal was not
unfair.”77 (footnotes omitted)
[94] The Respondent in the current matter, did not rely on the reasons relied on the
exclusion by Rio Tinto to terminate the Applicant’s employment, and indeed those reasons
are not before the Commission. However, regard has been had to the inability for the
Applicant to be redeployed to the Rio Tinto sites, in considering the redeployment process.
The client’s decision to exclude the Applicant from these sites, provided a limitation on the
offer of positions for redeployment.
[95] The Respondent is a significantly large international company and therefore, the
processes engaged in are put under heightened scrutiny. It is recognised that this is a case
where a long serving employee, who had worked in a variety of roles, and who was employed
for an extended period of time, when her position was made redundant. Accordingly, at the
time of formulating the process of eliminating the relief pool operations, there was a
requirement on the Respondent, as part of this new operational strategy, to consider the
mitigation of the effects of the redundancies and which roles current employees may have
been able to be redeployed to.
[96] There was no evidence that this was done until a much later stage when the Applicant
was notified that the decision was taken. The available window between the approval of the
decision in November or December 2016 and the communication of the decision in February
2017was not used to the advantage of the employees, to provide a longer lead time to consider
redeployment options.
[97] Having said that, in assessing the available alternative jobs, on the evidence of the
parties regarding the specific requirements of the roles, the Applicant would have required a
period of, “up skilling,” in terms of obtaining further qualifications.
[98] Mr Edwards submitted that the Applicant did not possess the necessary experience or
qualifications to be redeployed into any of the identified positions. In relation to the sample of
positions tendered by the Respondent, the relevant qualifications for those positions included:
Certificate IV Training and Assessment (Personnel Logistics Coordinator); Diploma in
Occupational Health and Safety (HSE Manager); a diploma in a hospitality related discipline
(Assistant Catering Manager); Bachelor Degree in Business (Catering Manager – PwC);
tertiary qualifications in strategic sourcing/procurement (Sourcing Manager – Food and
Beverage); Property Management Registration (Housing Manager); Property Management
Registration (Property Administrator); and Certificate IV in Occupational Health and Safety
(HSEQ Coordinator).78
[99] In relation to the particular focus on the Property Administrator position, Mr Haddrick
stated, “…it is the only other particular position that we say you have rolled gold evidence in
front of the Commission... then it becomes a question of fact for this Commission to decide
whether it was a position that’s reasonable for her to be [redeployed].”79
77 Transcript dated 5 July 2017 at [27] – [32].
78 Exhibit 3.
79 Transcript dated 14 July 2017 at PN142 – PN146.
[2017] FWC 4105
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[100] Mr Haddrick, went on to state:
“Ms Jones accepted that she thought that Ms Hallam could do all 22 of the 22 identified
main responsibilities in the position. At its absolute worst for Ms Hallam, there might
be some further training required to assist in undertaking the role, but the role was
there, ready, open for her. She identified that she could do it and if that opportunity
had been given to Ms Hallam she could have been considered to be redeployed in that
position…”80
[101] Whilst Mr Haddrick established, through the cross-examination of Ms Jones, that the
Applicant possessed the necessary skills to perform the “duties” identified on the position
description for the Property Administrator position, it was also established that she did not
possess the necessary qualifications and experience at that time. This was conceded by the
Applicant during cross-examination.81 The role of Property Administrator required “Property
Management Registration,” as set out in the position description, which required the
Applicant to complete six learning modules.
[102] It is not sufficient that the Applicant would be able to perform some of the duties of
the position, given she lacked the necessary qualifications. Accordingly, the Property
Administrator position was not suitable for redeployment to at the time.
[103] In considering whether it would have been reasonable to hold the position open to
allow Applicant to obtain Property Management Registration, Mr Edwards submitted this
would have taken 12 months. In Wilson v Mackay Taxi Holdings Ltd,82 Simpson C held that:
“[33] Even on the Applicants own best case there is a reasonable prospect that the
Applicant will not hold the qualification attached to the new role for 6 months. I do not
regard such a length of time as reasonable in all of the circumstances. Further while
there was speculation that the Applicant may have been eligible for government
funding to assist in meeting the costs of her undertaking the Certificate IV training, the
fact is no such application had been made at the time of termination.
…
[35] For the reasons set out above I am satisfied it was not unreasonable for the
Respondent to have advertised for the new position in order to engage an employee
who held the qualification the position required instead of redeploying the Applicant
into the Bookkeeper position.”83
[104] The evidence of the Respondent is accepted on the time to obtain the qualification, and
accordingly, it would have been unreasonable to hold the position open for 12 months, whilst
the Applicant obtained registration.
80 Ibid at PN146.
81 Ibid at PN384 – PN387.
82 [2014] FWC 2425.
83 Ibid at [33], [35].
[2017] FWC 4105
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[105] On the evidence, it would have been reasonable in the circumstances, for the
Respondent to engage in consultation at an earlier time, quarantine positions, and extend the
length of the redeployment period.
[106] However, the relevant test is whether it would have been reasonable, in all the
circumstances, to redeploy the Applicant. The process required both parties to engage in the
redeployment exercise. The positions advanced by the Applicant as prospective options for
redeployment, were established on the evidence to be unsuitable, based on the Applicant’s
qualifications and experience at the time of the redundancy. Further, it would not have been
reasonable to hold the positions open for a relatively lengthy period, whilst the Applicant
gained the relevant qualifications.
[107] The Full Bench in Technical and Further Education Commission (t/as TAFE NSW) v
Pykett,84 established that procedural deficiencies with a redeployment process, are alone not
sufficient to find that a dismissal was not a case of genuine redundancy:
“[40] The Commissioner erroneously focussed on the inadequacy of the appellant’s
redeployment policy and failed to make a finding that there was a job, a position or
other work to which Ms Pykett could have been redeployed. Such a finding is a
necessary step in reaching the conclusion that it would have been reasonable in all the
circumstances for Ms Pykett to be redeployed within the appellant’s enterprise. The
failure to make such a finding is an error which warrants correction on appeal…”85
(emphasis added)
[108] On the facts, there was no identified position within the Respondent’s operation, or its
associated entities’ enterprises where it would have been reasonable to redeploy the
Applicant.86
CONCLUSION
[109] Having regard to the matters outlined above, and in particular the requirements of
s.389(2) of the Act, the Respondent has satisfied that the termination of the Applicant’s
employment was a case of genuine redundancy.
[110] Having stated this, the Respondent is a significant employer and it would have been
reasonable for the Respondent to notify the Applicant of the redundancy, at an earlier date,
and commence exploring redeployment opportunities at that time. It would also have been
reasonable to properly consult with the Applicant, regarding the requirements of specific
positions identified as possible avenues for redeployment, and provide all relevant
information with the group of positions at the earliest stage. Whilst these are noted as
deficiencies, the evidence does not confirm that there would have been a different
redeployment outcome, in the circumstances where the Respondent was changing its
operations.
[111] However, the Applicant was also requested to express interest in positions. The
Respondent argued that the Applicant had been confrontational during the redeployment
84 [2014] FWCFB 714.
85 Ibid at [40].
86 Ibid at [36], [40].
[2017] FWC 4105
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process, and was not reasonably proactive or responsive during the redeployment period. It
may have been appropriate to adapt the procedures to account for the periods where there
were lapses in communication between the parties. Expanding the period or commencing
redeployment consultation earlier, and providing a full list of potential alternative jobs with
sufficient information for the Applicant to express relevant interest, may have accommodated
this.
[112] However, this does not overcome the case that there was not a suitable position, within
the Respondent’s or its associated entities’ enterprises, that the Applicant could have been
reasonably redeployed to. Accordingly, despite the identified procedural deficiencies, they are
not considered to be fatal to the Respondent’s procedure, and the jurisdictional objection must
be upheld. Consultation was engaged in, and a reasonable redeployment exercise occurred.
An alternative position was not available on the evidence, and therefore, it was not reasonable
in the circumstances to redeploy the Applicant.
[113] Having taken into account all of the facts and circumstances, against the legislative
tests, the dismissal is considered to be a case of genuine redundancy, in accordance with s.387
of the Act. The substantive application made pursuant to s.394 of the Act is therefore,
dismissed.
[114] I Order accordingly.
COMMISSIONER
Appearances:
Mr. R.W. Haddrick of Counsel, instructed by Ms. A. Langtree of Preston Law for the
Applicant.
Mr. S. Edwards for the Respondent.
Hearing details:
5 and 14 July 2017.
Brisbane.
Printed by authority of the Commonwealth Government Printer
Price code G, PR595135
WORK ISSION THE FAIR THE SEAL