[2012] FWA 5552

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FAIR WORK AUSTRALIA

DECISION

Fair Work Act 2009
s.394—Unfair dismissal

Harry Grives
v
Aura Sports Pty Ltd
(U2011/15149)

COMMISSIONER JONES

MELBOURNE, 9 JULY 2012

Termination of Employment - Minimum Employment Period - Casual Employee - Regular and Systematic Employment

Introduction

[1] On 23 December 2011 the Applicant filed an application for relief from unfair dismissal pursuant to S. 394 of the Fair Work Act 2009 (the Act).

[2] The Respondent objects to the application; firstly, on the basis that the Respondent is a small business within the meaning of the Act and the Applicant has not served the requisite period of employment with the Respondent. Second, the Respondent submits the dismissal of the Applicant was a case of genuine redundancy within the meaning of the Act.

[3] The Applicant was represented at the hearing of this matter by Mr L Keane and was called as a witness. The Respondent was represented by Mr J Murdoch Senior Counsel and called the following witnesses:

[4] At the hearing both parties agreed that the objections and the merits of the application be dealt with at the one hearing.

Background

[5] The Respondent’s business is in essence the laying of synthetic and timber floors for its clients. Its work is therefore project based with projects taking around 8-12 days to be completed. 1

[6] The Respondent submits that the reason for the Applicant’s dismissal is the dramatic downturn in business activity following the cessation of the Building Education Revolution. Mr Jelekainen, sole director of the Respondent, explained:

[7] Evidence was provided by the Respondent’s accountant, Mr Warby, Williams Hall Chadwick Accountants, which was uncontested, and disclosed the Respondent’s turnover in the following financial years ending:

Mr Warby stated that he believed that the 2012 YTD turnover figures would, at the date of the hearing, be around $5.15m. 4

[8] The Respondent states that given the dramatic decline in the number of projects and consequently revenue, it could not sustain the level of staff it employed and consequently the Applicant’s employment was terminated.

[9] The parties agree that:

Legislation

[10] Section 382 of the Act provides relevantly, that a person is protected from unfair dismissal if the person has completed a minimum employment period with his or her employer. S. 383 sets out that the minimum employment period is, where the employer is not a small business - 6 months ending at the earlier of the time the person was given notice of his or her dismissal or immediately before the dismissal. If the employer is a small business, the minimum employment period is one year, ending at that time.

[11] It is apparent from the agreed facts (at [9]) that the Applicant was employed for a period of less than one year. If the Respondent is a small business within the meaning of the Act, he will not be a person who is protected from unfair dismissal.

[12] S. 23 of the Act deals with the meaning of a small business and provides:

[13] It is a further consequence from the agreed facts that the determination of whether the Applicant is a protected person is dependent upon my satisfaction as to whether or not both casual employees employed at the time of the Applicant’s dismissal were employed by the Respondent on a regular and systematic basis.

[14] S. 385 of the Act provides:

[15] The effect of S. 385 of the Act is that the question as to whether the dismissal was a case of genuine redundancy must be first decided prior to a consideration as to the merits of the application; that is, whether the dismissal was harsh, unjust or unreasonable within the meaning of S. 387 of the Act.

[16] Accordingly, in considering the matters in dispute, this decision proceeds as follows, having regard to the evidence and submissions of the parties:

Was the Respondent a Small Business?

[17] The determination of this issue depends upon a finding as to whether or not two casual employees employed by the Respondent at the time of dismissal:

were employed on a regular and systematic basis.

The evidence

[18] Mr Martin was employed as a causal employee from April 2011 until May 2012, when he resigned. 5 Mr Patterson was employed by the Respondent on a full-time basis from July 2009 to February 2011 and as a casual employee from February 2011 to late March 2012 when he resigned to take up full-time work with another employer.6

[19] Mr Patterson’s evidence was that:

[20] The Respondent provided a summary in tabular form of hours worked by each of the casual employees in each fortnightly period from the period 7 April 2011 to 30 November 2011. This table was derived from timesheets submitted by each employee and payroll information. 12 The veracity of the information contained in the table was not disputed by the Applicant.

[21] The table is set out below:

 13

[22] I considered that the table should be disaggregated into hours worked on a daily basis, in order to consider the patterns of employment of Mr Martin and Mr Patterson. The daily hours worked by each of the employees over the course of their casual employment with the Respondent, during 7 April 2011 to 30 November 2011, from the timesheets completed by the employees was translated into a table, which is set out in Attachment A to this decision.

Regular and systematic

[23] The determination as to whether the employee was employed on a regular and systematic basis is an objective one having regard to the evidence.

[24] The concept of a casual being employed on a ‘regular and systematic’ basis is to be found in other provisions of the Act. S. 384, which is directed to a person’s period of employment, excludes a period of service as a casual employee unless the employment as a causal was on a regular and systematic basis and during that period, the employee had reasonable expectation of continuing employment by the employer on a regular basis: S. 384 (2). 14

[25] S. 23(2)(b) provides that a casual employee is not to be counted unless at that time, he or she has been employed on a regular and systematic basis (my emphasis).

[26] I am satisfied that the reference to ‘at that time’ is a reference to the date of dismissal in this matter.

[27] I note that the provision requires that the employee ‘has been employed’ and not ‘is employed’ on a regular and systematic basis. I am satisfied that, accepting the observation of the Full Bench in Shortland v The Smiths Snackfood Co Ltd, 15 that a casual employee may move from periods of engagement which are intermittent and periods which are regular and systematic, the provision requires an examination of the basis of the casual employee’s employment over the whole period of the casual employee’s employment with the Respondent.16

[28] Finally S. 23(2)(b) requires that the casual be employed on both a regular and systematic basis. Unlike S 384(2) there is no requirement that in addition the employee has a reasonable expectation of continuing employment.

[29] The Macquarie Dictionary meaning of ‘regular’ relevantly includes:

The Macquarie Dictionary meaning of ‘systematic’ relevantly includes:

[30] The Court of Appeal, Australian Capital Territory, in Yaraka Holdings Pty Ltd v Giljevic 19 considered a deeming provision applicable to independent contractors which, in part, deemed an individual to have been employed by an employer if the engagement ‘has been on a regular and systematic basis.’20 It should be noted that the deeming provision included matters which should be considered in determining whether an engagement has been on a regular and systematic basis. The following extracts from the judgements of the majority are instructive. Crispin P and Gray J noted:

[31] Their Honours noted that:

[32] Relevantly, their Honours observed in relation to the meaning of ‘regular’ that:

[33] In respect of the meaning of ‘systematic’, their Honours held:

[34] Madgwick J concurred with the majority. In a separate judgement, his Honour considered examples provided in the relevant statute of ‘individuals who are workers’ concluding that ‘the meaning to be ascribed to (the deeming provision) is conditioned by the examples.’ 25 Accordingly, his Honour stated:

[35] The finding as to whether employment is regular and systematic is a discretionary one having regard to the totality of the evidence. Setting out factors which dictate a finding one way or another is to be avoided, particularly so given the Act is silent as to the matters to be considered.

[36] However, in considering the circumstances of Mr Martin and Mr Patterson, I have had regard to the dictionary meanings of the words ‘regular’ and ‘systematic’ and the observations of the Court of Appeal in Yaraka Holdings. My consideration of the circumstances of Mr Martin and Mr Patterson is based on the evidence contained in Attachment A.

[37] Examining Mr Martin’s pattern of employment it can be seen that for the period from 17 April 2011 to 4 August 2011, the hours worked (although irregular) were frequent and disclosed a repetitive pattern of a number of days worked continuously with a break of two or three days in between. For a period of one month, 5 August 2011 to 11 September 2011, there is no evidence of frequency or repetitive pattern in hours worked. From 12 September 2011, until 19 October 2011, Mr Martin worked frequent hours with repetitiveness in those frequent hours being evident. There was a gap of one month when Mr Martin did not work at all for the Respondent (from 20 October 2011 to 16 November 2011). From 17 November 2011 Mr Martin worked frequent hours for six days, with a break of five days followed by three days of work. Mr Martin was not called as a witness and there is no evidence as to the circumstances of the patterns revealed by the table.

[38] Although there are gaps in the periods of Mr Martin’s employment as a casual with the Respondent, overall I am satisfied that:

[39] Consequently, I find that Mr Martin was a casual employee employed on a regular and systematic basis at the time of the Applicant’s dismissal by the Respondent. Mr Martin is therefore to be counted in calculating the number of employees of the Respondent for the purpose of S. 23.

[40] Examining Mr Patterson’s period of employment as a casual with the Respondent, a different pattern emerges. From 17 April 2011 until 3 May 2011 Mr Patterson does not work any hours for the Respondent. On 4 May 2011 he works four days in a row and after one day break worked another two days, following which there is a gap of four months during which Mr Patterson does not work for the Respondent at all. Mr Patterson’s evidence was that there were occasions in February 2011 during which he was offered work by the Respondent and declined as he was working elsewhere. There is little evidence of his circumstances in this period, other than he was working for other employers on a full time basis in late April/May 2011.

[41] It is manifest that, from early May 2011 until 19 September 2011, Mr Patterson did not work frequently nor in a repetitive pattern. Clearly, there was no ongoing reliance by the Respondent on Mr Patterson’s services nor was there any method or plan to his employment.

[42] On 19 September 2011, Mr Patterson works continuously, at times very long hours, for 11 days. After a gap of three days, Mr Patterson then works continuously for five days. From 8 October 2011 to 19 October 2011, Mr Patterson did not work at all for the Respondent. He then worked two days for the Respondent followed by a four day break. From 27 October 2011 to 30 November 2011, Mr Patterson worked three periods of 8 days or more continuously with two breaks of one day and one of four days.

[43] I am satisfied that there were periods of continuous work from 19 September 2011 to the end of November 2011. The days and hours in those periods can be characterised as frequent. However I am not satisfied that they disclose a repetitive pattern. Consequently, I am not satisfied Mr Patterson has been employed, on balance, on a regular basis.

[44] Furthermore, the pattern of employment in this period, in my opinion fails to disclose an ongoing reliance by the Respondent on Mr Patterson’s services nor any method or plan. Consequently, I am not satisfied that Mr Patterson was employed on a systematic basis.

[45] I find, therefore, that Mr Patterson was not a casual who has been employed on a regular and systematic basis at the time of the Applicant’s dismissal.

[46] It follows that Mr Patterson is not to be counted for the purpose of calculating the number of employees employed by the Respondent at the time of the Applicant’s dismissal: S. 23(2)(b).

[47] It also follows that the Respondent employed fewer than 15 employees at the time of the Applicant’s dismissal and is therefore a small business.

[48] As the Respondent is a small business, the Applicant is required to have completed a minimum employment period of one year to be a person protected from unfair dismissal.

[49] The Applicant, having not completed the requisite minimum employment period, is not a person who is protected from unfair dismissal.

[50] The Applicant’s application is dismissed for want of jurisdiction. An order giving effect to this decision will be issued today.

COMMISSIONER

Appearances:

Mr L Keane appeared on behalf of the Applicant.

Mr J Murdoch SC appeared on behalf of the Respondent.

Hearing details:

Brisbane.
Wednesday, 20 June 2012.
Thursday, 21 June 2012.
Friday, 22 June 2012.

ATTACHMENT A

Hours worked - Brendan Martin & Chase Patterson

Day

Date

Brendan Martin

Chase Patterson

Sunday

17/04/2011

6.5

 

Monday

18/04/2011

10.5

 

Tuesday

19/04/2011

11

 

Wednesday

20/04/2011

9

 

Thursday

21/04/2011

8.5

 

Friday

22/04/2011

 

 

Saturday

23/04/2011

 

 

Sunday

24/04/2011

 

 

Monday

25/04/2011

 

 

Tuesday

26/04/2011

 

 

Wednesday

27/04/2011

12

 

Thursday

28/04/2011

10

 

Friday

29/04/2011

7.5

 

Saturday

30/04/2011

 

 

Sunday

1/05/2011

 

 

Monday

2/05/2011

 

 

Tuesday

3/05/2011

6.5

 

Wednesday

4/05/2011

7.5

6

Thursday

5/05/2011

9.5

9.5

Friday

6/05/2011

4

4

Saturday

7/05/2011

5.5

5.5

Sunday

8/05/2011

 

 

Monday

9/05/2011

6

10

Tuesday

10/05/2011

6.5

7.5

Wednesday

11/05/2011

4.5

 

Thursday

12/05/2011

7.5

 

Friday

13/05/2011

 

 

Saturday

14/05/2011

 

 

Sunday

15/05/2011

 

 

Monday

16/05/2011

8

 

Tuesday

17/05/2011

8

 

Wednesday

18/05/2011

5.5

 

Thursday

19/05/2011

5.5

 

Friday

20/05/2011

10

 

Saturday

21/05/2011

 

 

Sunday

22/05/2011

 

 

Monday

23/05/2011

9

 

Tuesday

24/05/2011

7

 

Wednesday

25/05/2011

7.5

 

Thursday

26/05/2011

 

 

Friday

27/05/2011

6.5

 

Saturday

28/05/2011

 

 

Sunday

29/05/2011

 

 

Monday

30/05/2011

8

 

Tuesday

31/05/2011

10.5

 

Wednesday

1/06/2011

10.5

 

Thursday

2/06/2011

9

 

Friday

3/06/2011

10.5

 

Saturday

4/06/2011

10.5

 

Sunday

5/06/2011

8

 

Monday

6/06/2011

11.5

 

Tuesday

7/06/2011

9

 

Wednesday

8/06/2011

9

 

Thursday

9/06/2011

10.5

 

Friday

10/06/2011

10

 

Saturday

11/06/2011

9.5

 

Sunday

12/06/2011

8

 

Monday

13/06/2011

6.5

 

Tuesday

14/06/2011

10.5

 

Wednesday

15/06/2011

8

 

Thursday

16/06/2011

11.5

 

Friday

17/06/2011

10.5

 

Saturday

18/06/2011

 

 

Sunday

19/06/2011

 

 

Monday

20/06/2011

9

 

Tuesday

21/06/2011

10.5

 

Wednesday

22/06/2011

9

 

Thursday

23/06/2011

5.5

 

Friday

24/06/2011

7.5

 

Saturday

25/06/2011

10

 

Sunday

26/06/2011

7.5

 

Monday

27/06/2011

11

 

Tuesday

28/06/2011

14.5

 

Wednesday

29/06/2011

12

 

Thursday

30/06/2011

15

 

Friday

1/07/2011

14

 

Saturday

2/07/2011

 

 

Sunday

3/07/2011

 

 

Monday

4/07/2011

 

 

Tuesday

5/07/2011

9.5

 

Wednesday

6/07/2011

11

 

Thursday

7/07/2011

10.5

 

Friday

8/07/2011

5

 

Saturday

9/07/2011

 

 

Sunday

10/07/2011

 

 

Monday

11/07/2011

 

 

Tuesday

12/07/2011

11.5

 

Wednesday

13/07/2011

10.5

 

Thursday

14/07/2011

10.5

 

Friday

15/07/2011

10

 

Saturday

16/07/2011

3.5

 

Sunday

17/07/2011

 

 

Monday

18/07/2011

12

 

Tuesday

19/07/2011

12

 

Wednesday

20/07/2011

11.5

 

Thursday

21/07/2011

11.5

 

Friday

22/07/2011

11.5

 

Saturday

23/07/2011

 

 

Sunday

24/07/2011

 

 

Monday

25/07/2011

11.5

 

Tuesday

26/07/2011

8

 

Wednesday

27/07/2011

10

 

Thursday

28/07/2011

10

 

Friday

29/07/2011

9

 

Saturday

30/07/2011

10.5

 

Sunday

31/07/2011

10

 

Monday

1/08/2011

9

 

Tuesday

2/08/2011

10

 

Wednesday

3/08/2011

12

 

Thursday

4/08/2011

11

 

Friday

5/08/2011

 

 

Saturday

6/08/2011

 

 

Sunday

7/08/2011

 

 

Monday

8/08/2011

 

 

Tuesday

9/08/2011

 

 

Wednesday

10/08/2011

 

 

Thursday

11/08/2011

6

 

Friday

12/08/2011

 

 

Saturday

13/08/2011

 

 

Sunday

14/08/2011

 

 

Monday

15/08/2011

8

 

Tuesday

16/08/2011

9.5

 

Wednesday

17/08/2011

11

 

Thursday

18/08/2011

10.5

 

Friday

19/08/2011

7.5

 

Saturday

20/08/2011

 

 

Sunday

21/08/2011

 

 

Monday

22/08/2011

9

 

Tuesday

23/08/2011

11.5

 

Wednesday

24/08/2011

 

 

Thursday

25/08/2011

 

 

Friday

26/08/2011

 

 

Saturday

27/08/2011

 

 

Sunday

28/08/2011

 

 

Monday

29/08/2011

 

 

Tuesday

30/08/2011

4.5

 

Wednesday

31/08/2011

4

 

Thursday

1/09/2011

6.5

 

Friday

2/09/2011

7

 

Saturday

3/09/2011

 

 

Sunday

4/09/2011

 

 

Monday

5/09/2011

 

 

Tuesday

6/09/2011

 

 

Wednesday

7/09/2011

 

 

Thursday

8/09/2011

 

 

Friday

9/09/2011

 

 

Saturday

10/09/2011

 

 

Sunday

11/09/2011

 

 

Monday

12/09/2011

12.5

 

Tuesday

13/09/2011

10.5

 

Wednesday

14/09/2011

12

 

Thursday

15/09/2011

11.5

 

Friday

16/09/2011

12.5

 

Saturday

17/09/2011

8

 

Sunday

18/09/2011

8

 

Monday

19/09/2011

9.5

12.5

Tuesday

20/09/2011

9.5

10

Wednesday

21/09/2011

9.5

9.5

Thursday

22/09/2011

9.5

7

Friday

23/09/2011

11

6

Saturday

24/09/2011

 

6

Sunday

25/09/2011

 

6

Monday

26/09/2011

9

11

Tuesday

27/09/2011

9

8

Wednesday

28/09/2011

9.5

9.5

Thursday

29/09/2011

8.5

18.5

Friday

30/09/2011

5.5

 

Saturday

1/10/2011

 

 

Sunday

2/10/2011

 

 

Monday

3/10/2011

7

9.5

Tuesday

4/10/2011

7

8

Wednesday

5/10/2011

15

8

Thursday

6/10/2011

15

5.5

Friday

7/10/2011

10.5

8

Saturday

8/10/2011

 

 

Sunday

9/10/2011

 

 

Monday

10/10/2011

 

 

Tuesday

11/10/2011

13.5

 

Wednesday

12/10/2011

8

 

Thursday

13/10/2011

10

 

Friday

14/10/2011

8.5

 

Saturday

15/10/2011

8.5

 

Sunday

16/10/2011

4

 

Monday

17/10/2011

7

 

Tuesday

18/10/2011

8

 

Wednesday

19/10/2011

5.5

 

Thursday

20/10/2011

 

12

Friday

21/10/2011

 

6

Saturday

22/10/2011

 

 

Sunday

23/10/2011

 

 

Monday

24/10/2011

 

 

Tuesday

25/10/2011

 

 

Wednesday

26/10/2011

 

12.5

Thursday

27/10/2011

 

12

Friday

28/10/2011

 

11

Saturday

29/10/2011

 

6

Sunday

30/10/2011

 

6

Monday

31/10/2011

 

15

Tuesday

1/11/2011

 

6

Wednesday

2/11/2011

 

10.5

Thursday

3/11/2011

 

 

Friday

4/11/2011

 

9.5

Saturday

5/11/2011

 

8

Sunday

6/11/2011

 

6

Monday

7/11/2011

 

10

Tuesday

8/11/2011

 

10

Wednesday

9/11/2011

 

10

Thursday

10/11/2011

 

9.5

Friday

11/11/2011

 

9

Saturday

12/11/2011

 

6

Sunday

13/11/2011

 

9.5

Monday

14/11/2011

 

11

Tuesday

15/11/2011

 

10

Wednesday

16/11/2011

 

13.5

Thursday

17/11/2011

8

 

Friday

18/11/2011

8

 

Saturday

19/11/2011

9.5

 

Sunday

20/11/2011

4

 

Monday

21/11/2011

13

8.5

Tuesday

22/11/2011

11

9

Wednesday

23/11/2011

 

6.5

Thursday

24/11/2011

 

5

Friday

25/11/2011

 

5.5

Saturday

26/11/2011

 

6.5

Sunday

27/11/2011

 

7

Monday

28/11/2011

14

4

Tuesday

29/11/2011

9

10.5

Wednesday

30/11/2011

7

8.5

 1  Witness Statement of Brendan Murphy, Exhibit A7 at [1].

 2   Witness Statement of Ari Jelekainen, Exhibit A3 at [4] to [6].

 3   Witness Statement of Dugald Warby, Exhibit A10.

 4   Transcript of Hearing - 20 June 2012 at [525].

 5   Witness Statement of Mary Elizabeth Grabbe, Exhibit A15 at [3].

 6   Witness Statement of Chase Patterson, Exhibit A18 at [1] - [2], [13].

 7   Ibid at [4]; Transcript of Hearing - 21 June 0212 at [994] .

 8   Ibid at [1007] - [1010].

 9   Witness Statement of Chase Patterson, Exhibit A18 at [9].

 10   Ibid at [14].

 11   Ibid at [6].

 12   Witness Statement of Mary Elizabeth Grabbe, Exhibit A15, Attachments MEG3 and MEG5.

 13   Witness Statement of Mary Elizabeth Grabbe, Exhibit A15, Attachment MEG 1.

 14   The decision of FWA in Shortland v The Smith’s Snackfood Company Ltd [2010] FWAFB; Ponce v DJT Staff Management Services Pty Ltd T/A Daly’s Traffic [2010] FWA 2078; Holland v UGL Resources Pty Ltd T/A UGL Resources [2012] FWA 3453 concerned S. 384 (2).

 15   [2010] FWAFB 5709.

 16   Ibid at [10].

 17   Macquarie Dictionary Online.

 18   Ibid.

 19   (2006) ACTCA 6.

 20   S. 11, Workers Compensation Act 1951 (ACT).

 21   (2006) ACTCA 6 at [64].

 22   Ibid at [65].

 23   Ibid at [68].

 24   Ibid at [69].

 25   Ibid at [87].

26 Ibid at [89].

 27   Ibid at [91].

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