Corke-Cox v Crocker Builders Pty Ltd
[2012] FMCA 677
Federal Magistrates Court (former)
2011-07-22
Burnett Fm
Not yet cited by other cases
Applicant: Richard Corke-Cox
Respondent: Crocker Builders Pty Ltd
Ratio
An employee dismissed because he exercised a workplace right to claim WorkCover benefits contravened s.340 of the Fair Work Act 2009 (Cth). The respondent failed to discharge the onus under s.361 of proving the dismissal was not because of the workplace right, given the temporal connection between the WorkCover claim and dismissal and the respondent's demonstrated unhappiness with the claim.
Outcome
For applicant
granted
Authority signal
Not yet cited by other cases
Signal-weighted score: 0.0
Derived from how later decisions have treated this case. Dark green = leading authority,
green = positively treated, grey = neutral or sparse data,
amber = caution, red = treated negatively.
Key facts · 9
- Corke-Cox commenced employment with Crocker Builders in June 2007 as a painter on a periodic subcontract basis
- On 17 March 2010, Corke-Cox tripped over cabling on the worksite and suffered a right shoulder soft tissue injury
- He reported the injury to his doctor on 17 March and obtained medical certificates certifying unfitness for work
- He made a WorkCover claim on 18 March 2010
- WorkCover initially rejected the claim on 26 March on the basis he was a contractor, not an employee
- Corke-Cox was dismissed on 12 April 2010 at a meeting with Dene Crocker
- The meeting discussed both alleged defects in workmanship and the WorkCover claim
- Corke-Cox applied for review of the WorkCover rejection on 13 April 2010
- Q-Comp set aside WorkCover's rejection on 4 May 2010, finding Corke-Cox was a 'worker'
Factors
For
- Temporal connection between the WorkCover claim (18 March) and the dismissal meeting (12 April)
- Respondent's unhappiness with the claim evidenced by initial insistence that Corke-Cox was not covered by WorkCover
- Respondent's response to WorkCover on 24 March denying responsibility based on alleged self-employment status
- Dene Crocker's demonstrated annoyance at the prospect of the claim affecting the respondent's claim record and future premiums
- Dene Crocker's statement at dismissal meeting: 'You put in a workcover claim'
- The dismissal occurred while Corke-Cox held a medical certificate rendering him unfit for work
- Corke-Cox was ready, willing and able to return to work once cleared by his doctor
Against
- Respondent contended the real reason for dismissal was unsatisfactory workmanship, particularly defects identified by clients
- Allegations of aggressive and insolent behaviour by Corke-Cox at the 12 April meeting
- Defects list dated 9 February 2010 and complaints from architect Mike Banney regarding the quality of work
- Respondent's argument that WorkCover claim was not an operative reason given the relationship was deteriorating due to work performance issues
- Corke-Cox's admission he had a 'prickly' personality which contributed to workplace tension
Legislation referenced
- Fair Work Act 2009 (Cth) ss.12, 117, 335, 340, 341, 342, 345, 351, 352, 353, 360, 361, 390, 539, 545, 546
- Fair Work Regulations 2009 (Cth) reg.6.04
- Workers' Compensation and Rehabilitation Act 2003 (Qld) ss.11, 232B, 579
- Queensland Building Services Authority Act 1991 (Qld)
- Jurisdiction of Courts (Cross-Vesting) Act 1987 (Cth)
Concept tags · 16
[P]Unfair dismissal (federal)
[P]General protections (FW Act Pt 3-1)
[P]Adverse action
[P]Workplace right (definition + exercise)
[P]Reverse onus — reason for action (s361)
[P]Employee v independent contractor
[P]Compensation for unfair dismissal
[P]Civil pecuniary penalty (FW Act s546)
[S]Dismissal for misconduct
[S]Notice of termination (statutory/contract)
[S]Procedural fairness at dismissal stage
[S]Termination during temporary absence (illness)
[S]Multi-factor / totality of relationship test
[S]Dismissal while injured/on workers comp
[M]Workers compensation claim (WA)
[M]Constitutional corporation test
Principles · 14
articulates para 94
For the purposes of s.335 FW Act (general protections), 'employee' has its ordinary meaning and must be determined by reference to objective criteria including control, mode of remuneration, provision of equipment, obligation to work, hours of work, and other relevant factors, regardless of how the parties have characterised the relationship.
articulates para 132
A workplace right under s.341 FW Act includes a right to claim workers' compensation for injuries sustained during the course of employment, and the Workers' Compensation and Rehabilitation Act 2003 (Qld) constitutes a 'workplace law' within the meaning of that Act.
articulates para 151
Under s.360 and s.361 FW Act, an operative reason for adverse action need not be the sole or dominant reason; it is sufficient that the prohibited reason forms part of the real reasons for the action, and the respondent bears the onus of proving the action was not taken for a s.340 reason.
articulates para 161
Where there is a temporal connection between the exercise of a workplace right (such as making a WorkCover claim) and adverse action (such as dismissal), combined with other evidence of the respondent's unhappiness with the exercise of that right, the inference arises that the right was an operative reason unless the respondent proves otherwise.
articulates para 169
Section 352 FW Act (temporary absence – illness or injury) requires strict compliance with regulation 6.04(2), which mandates provision of a medical certificate to the employer either within 24 hours of absence or within such longer period as is reasonable; verbal notification does not satisfy this requirement.
articulates para 173
Compensation for contravention of s.340 FW Act may include compensation for lost wages (taking into account notice periods and any minimum stand-down periods during medical certification), superannuation contributions, and interest, but general damages for shock, distress or humiliation are excluded under the general protections regime.
cites para 86
The question of whether a relationship is one of employment should be determined by reference to multiple objective criteria including control, mode of remuneration, provision and maintenance of equipment, obligation to work, hours of work, and other relevant factors, with no single factor being determinative.
The determination of whether a relationship is one of employment involves consideration of control, mode of remuneration, provision of equipment, obligation to work, hours of work, provision for holidays, deduction of income tax, and delegation of work.
Parties cannot deem the relationship between themselves to be something it is not; the substance of the relationship must be determined objectively rather than by reference to the parties' characterisation.
cites para 124
A causal nexus is required between adverse action and the alleged attribute or right; the term 'because' in s.340(1)(a) FW Act requires such a causal connection.
cites para 142
The term 'representation' in s.345 FW Act is wider than 'statement' and can include statements of opinion as well as statements of fact.
cites para 151
Under s.360 and s.361 FW Act, a prohibited reason must be an operative or immediate reason for adverse action; the real reason must be 'dissociated from the circumstances' establishing the protected attribute or activity, and the respondent cannot rely on a mere assertion of belief as to the reasons.
cites para 151
Under s.360 FW Act, a prohibited reason need not be the substantial or dominant reason for action; it is sufficient to show that the action was taken for reasons that include the prohibited reason, provided that reason was operative in the decision-making process.
Where an employee is wrongfully dismissed, damages are calculated as equivalent to wages the employee would have earned under the contract from dismissal to its termination, determined on the assumption that the employer would have exercised any termination power in the manner most beneficial to itself.
Cases cited in this decision · 23
Cited
[1999] FCA 1108
(not in corpus)
"…s a consequence” of a workplace right. The requirement that action be taken “because” of a workplace right requires a causal nexus between the alleged action and the alleged attribute or right: Davids Distribution...…"
Cited
(1999) 91 FCR 463
(not in corpus)
"…f a workplace right. The requirement that action be taken “because” of a workplace right requires a causal nexus between the alleged action and the alleged attribute or right: Davids Distribution Pty Ltd v National...…"
Cited
[2011] FCA 333
— Australian Licenced Aircraft Engineers Association v International Aviations...
"…ed action and the alleged attribute or right: Davids Distribution Pty Ltd v National Union of Workers [1999] FCA 1108 ; (1999) 91 FCR 463 at 501; Australian Licenced Aircraft Engineers Association v International...…"
Cited
[2011] FCAFC 14
(not in corpus)
"…ers [1999] FCA 1108 ; (1999) 91 FCR 463 at 501; Australian Licenced Aircraft Engineers Association v International Aviations Service Assistance Pty Ltd [2011] FCA 333 ; Barclay v Board of Bendigo Regional Institute...…"
Cited
[2012] FMCA 487
(not in corpus)
"…matter has been the subject of earlier consideration by this Court. In the absence of a ruling to the contrary by the Federal Court I am satisfied that the WCR Act is a workplace law for the reasons explained in...…"
Applied
[2006] HCA 19
(not in corpus)
"…s. It follows that the question of whether or not the applicant was an employee needs to be determined by reference to the tests provided for by authority. The test to be applied has most recently been considered in...…"
Applied
(2006) 226 CLR 161
(not in corpus)
"…at the question of whether or not the applicant was an employee needs to be determined by reference to the tests provided for by authority. The test to be applied has most recently been considered in Sweeney v Boylan...…"
Applied
[2001] HCA 44
— Gary John Hollis v Vabu Pty Limited
"…ence to the tests provided for by authority. The test to be applied has most recently been considered in Sweeney v Boylan Nominees Pty Ltd [2006] HCA 19 ; (2006) 226 CLR 161 , which approved the High Court’s earlier...…"
Applied
(2001) 207 CLR 21
(not in corpus)
"…s provided for by authority. The test to be applied has most recently been considered in Sweeney v Boylan Nominees Pty Ltd [2006] HCA 19 ; (2006) 226 CLR 161 , which approved the High Court’s earlier decision in...…"
Cited
(1976) 12 ALR 605
(not in corpus)
"…person taking the adverse action means that, to succeed, that person has to establish that he or she was not actuated by the attributes or industrial activity which s.346 seeks to protect. As Mason J said in [General...…"
Cited
[2012] FCA 563
(not in corpus)
"…lt in a finding of contravention, irrespective of the employer’s subjective belief that the activity was unlawful ...” In the context of a dispute under s.340 FW Act, Greenwood J, in Construction, Forestry, Mining...…"
Cited
[2007] FCAFC 197
(not in corpus)
"…dated 24 March 2010 and the email from Lee Crocker to WorkCover dated 5 May 2010. He contended that the term “representation” is wider than “statement” and therefore can include a statement of opinion as well as a...…"
Cited
(2007) 169 FCR 151
(not in corpus)
"…and the email from Lee Crocker to WorkCover dated 5 May 2010. He contended that the term “representation” is wider than “statement” and therefore can include a statement of opinion as well as a statement of fact:...…"
Cited
[1992] FCA 209
— Bostik (Australia) Pty Ltd v Dimitrja Gorgevski
"…the adverse action, thereby entitling the applicant to damages of $5,717.00. The principles of assessment of an employee’s damages for unlawful dismissal are common to those that apply in common law. In Bostik...…"
Cited
(1992) 36 FCR 20
(not in corpus)
"…on, thereby entitling the applicant to damages of $5,717.00. The principles of assessment of an employee’s damages for unlawful dismissal are common to those that apply in common law. In Bostik (Australia) Pty Ltd v...…"
Applied
[2007] FMCA 7
(not in corpus)
"…is also appropriate that a penalty be imposed for the contraventions. The general considerations to be applied in considering the position of a pecuniary penalty are summarised in Mason v Harrington Corporation Pty...…"
Applied
[2007] FCA 1080
(not in corpus)
"…applied in considering the position of a pecuniary penalty are summarised in Mason v Harrington Corporation Pty Ltd t/as Pangaea Restaurant & Bar [2007] FMCA 7. That authority has been cited with approval in the...…"
Cited
[2008] FCAFC 8
(not in corpus)
"…Corporation Pty Ltd t/as Pangaea Restaurant & Bar [2007] FMCA 7. That authority has been cited with approval in the Federal Court in Kelly v Fitzpatrick [2007] FCA 1080 and in the Full Court in Australian Ophthalmic...…"
Cited
[1959] HCA 8
(not in corpus)
"…Cox filed 29 November 2010 Annexure RPC4 – Application for Compensation. [3] T pg 75 ln 3 – 10. [4] T pg 140 ln 33. [5] T pg 180 ln 30 – 37. [6] T pg 181 ln 1 – 9. [7] T pg 147 ln 21, 39. [8] T pg 148 ln 1 – 3. [9] T...…"
Cited
(1959) 101 CLR 298
(not in corpus)
"…vember 2010 Annexure RPC4 – Application for Compensation. [3] T pg 75 ln 3 – 10. [4] T pg 140 ln 33. [5] T pg 180 ln 30 – 37. [6] T pg 181 ln 1 – 9. [7] T pg 147 ln 21, 39. [8] T pg 148 ln 1 – 3. [9] T pg 41 ln 34....…"
Cited
[1986] HCA 1
— Stevens v. Brodribb Sawmilling Company Pty Ltd; Gray v. Brodribb Sawmilling...
"…g 180 ln 30 – 37. [6] T pg 181 ln 1 – 9. [7] T pg 147 ln 21, 39. [8] T pg 148 ln 1 – 3. [9] T pg 41 ln 34. [10] Jones v Dunkel [1959] HCA 8 ; (1959) 101 CLR 298. [11] T pg 149 ln 40. [12] T pg 150 ln 19. [13] Stevens...…"
Cited
(1986) 160 CLR 16
(not in corpus)
"…7. [6] T pg 181 ln 1 – 9. [7] T pg 147 ln 21, 39. [8] T pg 148 ln 1 – 3. [9] T pg 41 ln 34. [10] Jones v Dunkel [1959] HCA 8 ; (1959) 101 CLR 298. [11] T pg 149 ln 40. [12] T pg 150 ln 19. [13] Stevens v Brodribb...…"
Cited
[2010] FCA 399
(not in corpus)
"…T pg 150 ln 19. [13] Stevens v Brodribb Sawmilling Co Pty Ltd [1986] HCA 1 ; (1986) 160 CLR 16 at 24 per Mason J. [14] Hollis v Vabu Pty Ltd supra at [45] – [58]. [15] Affidavit of Richard Perry Corke-Cox filed 29...…"
Archived text (19583 words)
Corke-Cox v Crocker Builders Pty Ltd [2012] FMCA 677 (3 September 2012)
Last Updated: 5 September 2012
FEDERAL MAGISTRATES COURT OF AUSTRALIA
CORKE-COX v CROCKER
BUILDERS PTY LTD
[2012] FMCA 677
INDUSTRIAL LAW – Unfair dismissal –
workplace injury – whether the applicant was an employee – national
system
employee – s.12
Fair Work Act 2009
– adverse action
– exercise of a workplace right –
Workers Compensation and
Rehabilitation Act 2003
(Qld) is a workplace law –
s.340(1)
Fair
Work Act 2009
(Cth) – a claim for WorkCover benefits gives rise to a
workplace right – whether the applicant was injured in his employment
– whether the position of the applicant was altered to his prejudice
– operative reasons for dismissal – false
or misleading
representations about a person’s workplace rights –
s.345
Fair
Work Act 2009
(Cth) – physical disability –
s.351
Fair Work
Act 2009
(Cth) – dismissal while temporarily absent –
s.352
Fair Work Act 2009
(Cth) – right to a guarantee of employment
– s.232B
Workers Compensation and Rehabilitation Act 2003
(Qld)
– damages awarded.
Fair Work Act 2009
(Cth),
ss.12
,
117
,
335
,
340
,
341
,
342
,
345
,
351
,
352
,
353
,
360
,
361
,
390
,
539
,
545
,
546
Fair Work
Regulations 2009
(Cth), reg.6.04
Jurisdiction of Courts
(Cross-Vesting) Act 1987
(Cth)
Queensland Building Services Authority
Act 1991
(Qld)
Workers’ Compensation and Rehabilitation Act 2003
(Qld),
ss.11
,
232B
,
579
Australian Licenced Aircraft Engineers
Association v International Aviations
Service Assistance Pty Ltd
[2011] FCA 333
Australian Ophthalmic Supplies Pty Ltd v McAlary-Smith
[2008] FCAFC 8
Barclay v Board of Bendigo Regional Institute of Technical
and Further
Education
[2011] FCAFC 14
Bostik (Australia) Pty
Ltd v Gorgevski (No 1)
[1992] FCA 209
;
(1992) 36 FCR 20
CFMEU v Hadgkiss
[2007] FCAFC 197
;
(2007)
169 FCR 151
CFMEU v Leighton Contractors Pty Ltd
[2012] FMCA
487
Construction, Forestry, Mining and Energy Union v BHP Coal Pty Ltd
[2012] FCA 563
Davids Distribution Pty Ltd v National Union of
Workers
[1999] FCA 1108
;
(1999) 91 FCR 463
Hollis v Vabu Pty Ltd
[2001] HCA 44
;
(2001) 207 CLR
21
Jones v Dunkel
[1959] HCA 8
;
(1959) 101 CLR 298
Jones v Queensland Tertiary
Admission Centre Ltd (No.2)
[2010] FCA 399
Kelly v Fitzpatrick
[2007] FCA 1080
Mason v Harrington Corporation Pty Ltd t/as Pangaea
Restaurant & Bar
[2007] FMCA 7
Stevens v Brodribb Sawmilling Co
Pty Ltd
[1986] HCA 1
;
(1986) 160 CLR 16
Sweeney v Boylan Nominees Pty Ltd
[2006] HCA 19
;
(2006)
226 CLR 161
Trade Practices Commission v TNT Australia Pty Ltd
(1995)
ATPR 41-375
Applicant:
RICHARD CORKE-COX
Respondent:
CROCKER BUILDERS PTY LTD
File Number:
BRG 771 of 2010
Judgment of:
Burnett FM
Hearing dates:
21 July, 22 July 2011 and 31 August 2011
Date of Last Submission:
31 August 2011
Delivered at:
Brisbane
Delivered on:
3 September 2012
REPRESENTATION
Solicitors for the
Applicant:
Workers First Australia Pty Ltd
Counsel for the Respondent:
Mr J. Allen
Solicitors for the Respondent:
Holding Redlich Lawyers
ORDERS
(1) The respondent pay the applicant the sum of
$7,000.00 by way of compensation for lost wages and $516.00 in respect of
interest
thereon.
(2) The respondent pay to an authorised superannuation fund nominated by the
applicant a sum of $630.00 by way of compensation for
lost superannuation
benefits and $111.00 on account of interest thereon.
(3) The respondent pay a pecuniary penalty assessed at $5,000.00 in respect of
its contravention of
s.340
and that such sum be paid to the
applicant.
FEDERAL MAGISTRATES
COURT OF AUSTRALIA
AT
BRISBANE
BRG 771 of
2010
RICHARD CORKE-COX
Applicant
And
CROCKER BUILDERS PTY LTD
Respondent
REASONS FOR JUDGMENT
Introduction
The
applicant, Richard Perry Corke-Cox (Corke-Cox), commenced his engagement with
the respondent Crocker Builders Pty Ltd (Crocker
Builders) in 2007. In March
2010, Corke-Cox claimed to suffer a workplace injury and he claimed WorkCover
benefits. He claims that
he was dismissed in April 2010. He says that he was
dismissed because he sought to exercise a workplace right, that is, to claim
or
seek to enforce a claim to WorkCover benefits. If this was so, then Crocker
Builders contravened the
Fair Work Act 2009
(Cth) (FW Act) and are liable
to pay Corke-Cox compensation, as well as being subject to pecuniary
penalties.
Summary of Findings
For
reasons which follow, I find and conclude:
Corke-Cox
was an employee of Crocker Builders for the purpose of Chapter 3 Part 1 FW
Act.
The
Workers’ Compensation and Rehabilitation Act 2003
(Qld) (WCR Act)
is a workplace law as defined by the FW Act.
Corke-Cox
was injured in the course of his employment by Crocker Builders on 17 March 2010
at its Eversley Terrace, Yeronga site.
In
purporting to claim benefits pursuant to the WCR Act, including action in
respect of decisions made by WorkCover, Corke-Cox did
exercise a workplace
right.
Corke-Cox
was dismissed from his employment with Crocker Builders on 17 April 2010. The
dismissal was adverse action as defined: s.542(1)
FW Act.
An
operative reason for his dismissal was because Corke-Cox had exercised a
workplace right and/or proposed to exercise a workplace
right in respect of his
entitlement to WorkCover benefits.
The
conduct of Crocker Builders in taking adverse action was:
In
contravention of s.340(1) FW Act;
Did
not otherwise injure Corke-Cox in his employment by defaming or injuring his
reputation to other employees of Crocker Builders
as alleged;
Did
not otherwise injure Corke-Cox in his employment by defaming Corke-Cox to
Crocker Builders’ clients as alleged;
Did
not otherwise alter Corke-Cox’s position to his prejudice as
alleged.
Crocker
Builders not knowingly or recklessly make false or misleading representations
about Corke-Cox’s workplace rights in
contravention of s.345 FW Act in
respect of the statement made on 5 May 2010 but not otherwise.
Crocker
Builders did not take adverse action on account of a physical disability in
contravention of s.351 FW Act.
Crocker
Builders did not dismiss Corke-Cox because he had an injury of a kind prescribed
by regulations in contravention of s.352
FW Act.
At
the time of dismissal from his employment Corke-Cox did not have a statutory
guarantee of employment pursuant to s.232B WCR Act
and the dismissal was not in
contravention of it.
Corke-Cox
suffered damage by the adverse action and is entitled to compensation made up
as:
Wages in lieu of notice,
age loading, early termination $7,000.00
Interest $516.00
Superannuation $630.00
Interest on superannuation $111.00
A
pecuniary penalty of $5,000.00 should be imposed with that sum to be paid to the
applicant.
Background Facts
Corke-Cox
commenced his engagement with Crocker Builders from about 1 June 2007. His
engagement came to a conclusion on 12 April 2010
in circumstances that are
detailed later in these reasons. He was engaged as a painter. The circumstances
concerning the nature of
his engagement are contentious. When first engaged in
2007 he was engaged on a sessional contract basis. At the time of his initial
engagement he was not licensed in accordance with the provisions of the
Queensland Building Services Authority Act 1991
(Qld) (QBSA Act). In any
event, he subsequently obtained the appropriate licence and was engaged on a
periodic basis to undertake
painting works as directed on various projects
undertaken by Crocker Builders.
Mr
Dene Crocker, Director of Crocker Builders, deposed that Corke-Cox would submit
fortnightly invoices to Crocker Builders for payment.
In addition, he stated
that Corke-Cox would supply his own tools as a subcontractor and that from time
to time Crocker Builders would
purchase tools on his behalf, although when that
occurred Crocker Builders would then invoice Corke-Cox for the costs incurred
and
deduct them from invoices as instructed. By way of illustration Mr Dene
Crocker exhibited at Annexure DC3 to his affidavit filed
7 February 2011 a copy
of a tax invoice evidencing such an instance. In respect of that matter it
appears that four drop sheets were
ordered to a value of $152.23. The cost was
debited to an account maintained on behalf of Crocker Builders Pty Ltd. However,
the
purchase order in support of the tax invoice from Dulux Australia, which is
on a Crocker Builder’s purchase order form, shows
that the delivery
address was “Perry Drop Sheets - Personal to Bill.” It is not
entirely plain that the drop sheets were
being purchased by Corke-Cox on the
Crocker Builders account with a charge back to Corke-Cox, although I accept that
the inference
is open. However with that exception most other materials,
particularly paint, were supplied by Crocker Builders. It was with these
facts
in mind that WorkCover Queensland later assessed the arrangement as an
employee/employer arrangement. I do not disagree with
its characterisation of
the arrangement given the facts, a matter which became contentious between the
parties.
It
seems that some time around about September 2009 Crocker Builders was subject to
a quality assurance and quality management process.
That process involved
ensuring that all licences, insurances and contracts were up to date for the
subcontractors, including Corke-Cox.
Crocker Builders’ need for this
process was driven in part by its desire to tender for Queensland government
schools projects.
As part of the tendering process they were required to correct
policies and procedures. It was noted at that time that Corke-Cox
did not have a
licence nor had he signed a contract agreement or provided Crocker Builders with
a copy of his insurance. Accordingly,
Tamara Lyons, an administrative assistant
for Crocker Builders, followed these matters up with Corke-Cox. Although it
appears it
took some urging on her part, Corke-Cox finally signed the period
subcontract agreement on 12 November 2009 which covered off on
the issues
including the matter of completion of the period subcontract agreement,
provision of copies of insurance and BSA licensing.
That agreement was extant at
the time of events the subject of this proceeding.
It
follows that at all material times leading up to and including the date of the
relevant events, prima facie, Corke-Cox was performing
duties for Croker
Builders pursuant to the terms and conditions provided for in a period
subcontract agreement in the Master Builders
form dated 11 November 2009.
The subcontract agreement provided, inter alia, that the subcontractor have
various forms of insurance
including WorkCover in place. In fact, he did not.
This matter appears to have precipitated some of the subsequent difficulties
between
the parties.
In
accordance with that agreement, Corke-Cox would work approximately 40 hours in
any one week in respect of which he would deliver
an invoice at a gross hourly
rate of $35.00 per hour. Corke-Cox remained responsible for his own taxation
affairs and accepted until
these events that he was not on Crocker
Builders’ payroll. Corke-Cox maintains he attended and worked as directed
exclusively
at Crocker Builders sites without any input on his part. He states
that he simply worked as directed by Andrew Tubb, a building supervisor
engaged
by Crocker Builders.
On
17 March 2010 Corke-Cox was employed on a site at Eversley Terrace, Yeronga from
9:30am that day. Earlier in the day he had been
working on another job but had
been unable to finish it because it was threatening rain and he was concerned
that if the exposed
oil floor was wet the colouring would go
“milky.” Tubb says he recalls having a conversation to this effect
with Corke-Cox
at about 9:30am that day. He noted at that time that Corke-Cox
appeared to be flustered and upset by discussions that he had just
had with
Gordon Crocker
[1]
concerning the property he had just left. Tubb noted that Corke-Cox left where
Tubb was working saying that he had to “go and
pick something up”
and that he did not see him after that and particularly after 11:30am, as that
was the time that Tubb left
the site.
Corke-Cox
says that at about 12:30pm he had just completed lunch in the work shed when he
was walking back to where he had been working
at the time. He says that while
walking between some of the townhouses being constructed on the site, down the
only thoroughfare
that was available, his foot got caught in cabling and he
tripped. He says that he lost balance and fell to the right and put his
hand out
to break his fall. He says he fell quite heavily and immediately felt a pop and
pain in his right shoulder. He said he ended
up getting off the ground and
untangling himself before another painter, “Rob,” appeared. He says
Rob asked “what
the hell have you done?” to which he responded that
he had tripped on the cabling. He said his reaction was to laugh and he
just
dusted himself off and returned to where he was working. He says he sat down for
a bit to rest his shoulder before then recommencing
work, which at that time
concerned rolling walls inside a townhouse. He says that although his shoulder
felt sore when he was rolling
he was able to work for the next few hours until
the end of the day. He says that later in the day Nick Hill, the foreman on
site,
was going up a ladder when he saw him stop. He says Hill called out to him
words to the effect “why do I have Gordon ringing
me about staining on a
deck? That’s the painters’ job.” He says that during that
conversation he said to Hill “it
might pay you to clean up your worksite
as I just had a fall over some pipes.” Hill denies that statement, saying
that he told
Corke-Cox that he ought clean up his worksite, that being a
reference to the worksite the subject of the complaint which had been
spoken of
earlier. For reasons which follow, I prefer the evidence of Corke-Cox on this
point.
Corke-Cox
says that by about 2:50pm on that afternoon his shoulder was quite sore and he
thought he ought tell Hill that he was in
discomfort. He says he was looking for
him but that Hill had already left the site. Having missed Hill, he says he saw
the apprentice
Jared Helfert who he says he told he was going to go see a doctor
about his shoulder. Corke-Cox then left work to travel home to
have a shower and
visit his doctor, Dr David Copeland, at the Oxley Medical Centre. He says Dr
Copeland examined his shoulder, told
him it needed to be scanned and suggested
that he return to the surgery the next day. He says Dr Copeland also told him
that he would
not be there to reassess him on the following day because he was
going to be absent for the next 10 days. Accordingly, Corke-Cox
made an
appointment to later see Dr Tut, another doctor at the surgery.
Corke-Cox
says that he attended work the next day, Thursday 18 March, but could only work
for a few hours because his shoulder became
too sore to continue. It is unclear
which site Corke-Cox initially attended but he says that he rang Rob (the other
painter I assume
from the site that he was then at) when he was advised and
directed to go to a job at Sylvia Street. He says he tried to call Tubb
but Tubb
did not answer his phone. He says that at about 12:30pm he left the site and
went home and presented to Dr Tut later that
afternoon. He contends that Dr Tut
advised him to take time off work until 24 March. In the meantime he did not
attend work on Friday
19 March and on that morning received a call from Tubb
enquiring after him. He says he told Tubb that he had been to the doctor and
needed to get radiology because his shoulder was too sore to work and that the
doctor had given him time off. He also told Tubb that
he had made a
workers’ compensation claim.
Corke-Cox
maintains that from the tenor of the conversation conducted between he and Tubb
he believed that Tubb was aware of the incident,
noting that “he did not
ask for any details of what happened.” He says Tubb simply responded with
words to the effect
of “ok, fair enough, let us know what’s
happening.” Tubb denies this conversation.
Corke-Cox
also maintains that shortly after this call he received a call from Dene Crocker
who asked, “what’s going on?”
to which Corke-Cox says he
responded that he had hurt himself at work. He says Dene Crocker’s
response was “bullshit.”
Corke-Cox says that he told Dene Crocker
that he had been to the doctor and deposed that Dene Crocker responded that he
was not covered
by WorkCover. Corke-Cox disagreed, stating that the office
administrator Tamara Lyons and Gordon Crocker had told him otherwise and
that
when he signed his periodic subcontract he had queried whether he was covered or
not, and was told that he would be. He says
that Dene Crocker was angry and said
words to the effect “we’re not covering you.” I note that Dene
Crocker denies
that this conversation occurred.
Corke-Cox
maintains that there was further discussion between he and Dene Crocker with him
stating, “Hey Dene, hang on if this
is going to affect my job, just forget
and I’ll get back to work somehow.” The conversation finished on the
basis that
they would meet the following Monday.
The
following Monday, Corke-Cox called Dene Crocker and further conversation ensued.
He says Dene Crocker told him that he would not
be covered by WorkCover and that
the claim would be denied. Corke-Cox says that he said words to the effect of,
“fair enough
I just want to get back to work.” This conversation is
denied. In any event, what is agreed is that the meeting did not proceed
on the
Monday but was rescheduled for 3:00pm on the Friday.
When
the Friday arrived the meeting was again rescheduled to the following Monday.
That meeting too did not proceed before eventually
the parties were able to meet
at about 3:00pm on Monday 12 April 2010.
In
the meantime, the applicant continued consulting medical practitioners for
further treatment and the issue of further medical certificates.
On
Monday 12 April 2010, Corke-Cox attended at the offices of Crocker Builders and
met with Dene Crocker. He says that when he went
into Dene Crocker’s
office, Crocker said words to the effect of, “we’re not too happy
with you mate.” When
Corke-Cox queried why, Crocker responded, “You
put in a workcover claim.” Corke-Cox contends he responded, “Tamara
told me I was entitled.” He contends that Dene Crocker said that she had
not said that. Corke-Cox says he suggested that Tamara
be invited into the
office to see what she said but Dene Crocker refused to do this. He said Dene
Crocker said, “We haven’t
paid levies for you.” He says Dene
Crocker continued with words to the effect, “I’ve got reliable
information that
you never hurt yourself on the job, we have witnesses.”
He says Dene Crocker continued, “That’s not what I want
to talk
about. We’ve had a lot of complaints.”
Corke-Cox
says that at about this time Dene Crocker left the room to come back with a
letter which he contended was a letter from
Mike Fanning, an architect. It
concerned a job on which Corke-Cox had done some work. Corke-Cox says that Dene
Crocker commenced
“having a go” at him because Corke-Cox had
complained to Tubb about another painting contractor who had also worked on
that
job. Corke-Cox contends that not only did Dene Crocker make that observation but
he concluded by noting, “Not only that,
your work’s crap.” He
said that Dene Crocker highlighted with a yellow pen about three or four lines
in the letter and
said words to the effect, “drop sheets should have been
used.” Corke-Cox complains that he was never shown the letter
during this
conversation.
Corke-Cox
says that at about this point he stated, “come on, everyone knows his
game.” He says that he challenged Dene
Crocker to show him one job where
he had had to go back and fix anything up. He says Dene Crocker said,
“We’ve had a
gutful, you’re gone.” Corke-Cox contends
that in response he said, “You’re full of shit, Dene. I put in a
Workcover claim and you’re sacking me because of that.” He says Dene
Crocker responded, “Piss off,” and that
in turn Corke-Cox said,
“If it’s about workers comp don’t worry about it, I
won’t pursue it.” He says
Dene Crocker said in response to that,
“No don’t worry about it, you’re gone.” He contends that
he then said
to Dene Crocker words to the effect of, “I know the drill.
I’ve never been called into your office, no one has ever complained
about
me.” He says he left the office and complains that in effect, at that
point, he was summarily dismissed. Needless to
say, Dene Crocker has a different
recollection of this conversation.
While
Dene Crocker does not agree with some of the detail preceding the meeting of 12
April as deposed to by Corke-Cox, nothing of
substance turns upon the points of
difference between those parties. Dene Crocker says that on 9 April 2010 he
phoned Corke-Cox and
requested that he attend his office. He says that in
essence that was all that was discussed at the time. Dene Crocker said that,
as
it was his intention to call Corke-Cox in to discuss the unsatisfactory
workmanship, he did not inform Corke-Cox of the reason
for calling the meeting.
That accords with commonsense. I accept that it is far more likely that Dene
Crocker said nothing for that
reason than that he would have made the alleged
statements concerning WorkCover and then have invited Corke-Cox in for a
meeting.
Neither party made contemporaneous notes of these events and the
discussion, although there is one exception which addresses part
of the
conversation, namely the words used on termination. However, I have significant
reservations about the general reliability
of Dene Crocker and the
respondents’ principals generally for reasons which follow. Accordingly, I
am not prepared to give
this isolated self-serving note any weight.
Dene
Crocker contends that Corke-Cox attended his office at about 3:00pm at which
time he had before him Mr Banney’s email of
4 March 2010 (Exhibit 7) and
his defects list dated 9 February 2010. Various defects had been highlighted on
the list. Dene Crocker
denies that there was any conversation concerning the
subject of WorkCover except at the very end, after there had been a heated
exchange between him and Corke-Cox concerning the defects identified in the
Banney email. Dene Crocker says that during that conversation
Corke-Cox became
quite aggressive and ultimately stood up from his chair and began pacing about
in front of him saying that he was
“not going to put up with this
shit” and that there was “no problem with the work” and that
he would not
fix it. He says Corke-Cox walked out of his office and then
returned a short time later very agitated and asked, “is this because
I
put a WorkCover claim in?” Dene Crocker says that he responded, “No.
Besides, you did not advise anyone that you had
an accident, and you are not
covered by us anyway.” He says that Corke-Cox’s response was that he
had reported it to
Nick Hill. Dene Crocker said that he had made enquiries of
Nick Hill who claimed not to know anything of it. He says Corke-Cox angrily
said
words to the effect “shove your job” and that he stormed out.
Corke-Cox
denies that the conversation occurred as alleged by Dene Crocker or at all.
The
conversation of 12 April is significant. From the applicant’s perspective
it is contended that the conversation evidences
the respondent’s operative
intention for his termination. That is, the applicant was terminated for an
adverse reason being
his intention to prosecute his rights to claim compensation
under WorkCover, a matter which was within the knowledge of respondent
and had
been so since at least late March, following its receipt of WorkCover’s
letter of 25 March. The respondent contends
to the contrary. That is, that
Crocker Builders had no knowledge of the applicant’s purported injury and
that not only was
any actual or prospective WorkCover claim not an operative
reason in Corke-Cox’s termination but that in fact Corke-Cox had
resigned
in a fit of pique following a disagreement concerning the quality of his
workmanship on a particular project.
Ultimately,
the disagreement between the parties can only be resolved upon a consideration
of the reliability and credit of the competing
witnesses. For reasons which
follow I prefer the evidence of Corke-Cox as being more reliable on these issues
than the evidence of
the Crocker Builders witnesses, as I have serious concerns
about their general reliability.
Given
my assessment of them I have rejected their evidence in preference to evidence
of Corke-Cox except where otherwise stated.
A
number of material issues arose which have led me to this conclusion. Those
issues are:
Nature
of the original WorkCover claim;
Circumstances
surrounding Corke-Cox’s application for work in Faux
Finishes;
Circumstances
surrounding a telephone call alleged to have been made between Rob Hauser and
Dene Crocker of 31 March 2010;
Circumstances
surrounding a chance encounter between Dene Crocker and Robert
Hauser.
Workplace Injury
Corke-Cox
claims he was injured when he tripped over piping on the worksite on 17 March
2010. Crocker Builders does not accept this
occurred. They believe he was
injured by some other means. For instance, they rely upon the evidence of Hauser
that Corke-Cox said
that he injured himself at home. They also generally rely
upon the evidence of Hauser that Corke-Cox stated that he was going to
“stitch up” Crocker Builders by making a false claim, the inference
being that the injury was unrelated to any workplace
event. The scepticism of
Crocker Builders was evident in their dealings with WorkCover Queensland. It was
evidenced by the diary
note maintained by WorkCover of a conversation between
Lee Crocker and an officer of WorkCover Queensland following on 5 May 2010.
The
officer, in the course of the conversation with Lee Crocker, asked if Crocker
Builders were satisfied that the injury had occurred
as stated. Lee Crocker was
reported to have asked the officer if Corke-Cox had any proof that the workplace
incident did occur. The
officer explained that Corke-Cox had reported that he
had attended a GP who confirmed that the injury was consistent with the stated
cause. She noted that “unless he had any proof to the contrary then WCQ
would be accepting the claim.” It is noteworthy
that approximately one
hour after this conversation Lee Crocker forwarded an email to the relevant
officer at WorkCover Queensland
stating:
“Could
you please give a call regarding this claim before proceeding any further. I
remembered I had a phone call from Rob
Hauser of Faux Finishes(Painting Company)
regarding Richard. Richard rang Rob approx 4-5 weeks ago looking for work.
Robert rang
me after his call with Richard to advise me what Richard had said to
him about our company and his injury claim. Basically Richard
told Robert that
the injury was done at home (not on our site) but he was going to go after us
for the claim. I have spoken to Robert
again this morning and he has stated that
he is more than happy to speak to you about the conversation with Richard and
put something
in writing if necessary.”
The
fact that Lee Crocker omitted to recall this seminal event in the course of his
conversation an hour earlier causes some concern.
As discussed below, I am not
satisfied that this conversation occurred in March as alleged. Lee
Crocker’s failure to recall
such a significant conversation in this
context a little over a month later troubles me. That is particularly so because
the respondent’s
evidence of the alleged conversation and its
circumstances were also so unusual as to make it improbable that it would be
overlooked
in that context.
Corke-Cox
asserts that following the injury which occurred at about 12:30pm on 17 March he
immediately reported it to his supervisor
Nick Hill. Nick Hill was the foreman
on the site. Hill denies that the injury was reported to him. He says he became
aware of the
injury the next day when another worker, Robert Jeschonek, informed
him that Corke-Cox had had a fall and suffered an injury.
I
am in some doubt as to whether Corke-Cox did in fact inform Hill as he said he
did. However, I do not consider this matter critical
because irrespective of
whether he did or did not inform Hill of his injury I am satisfied by reason of
the temporal sequence of
relevant events that he did in fact sustain an injury
as he deposed.
The
evidence is that he attended his doctor later that day and on the subsequent day
to complain of a “right shoulder soft tissue
injury” caused when he
“tripped over pipes and
fell.”
[2]
A
medical certificate was issued by Dr Tut on 18 March 2010. It diagnosed
“soft tissue injury right shoulder.” The certificate
noted that he
was first seen at the practice on 17 March in respect of that injury. The
description was “fall at work - slipped/foot
tangled.” Generally the
report made to the general practitioner and noted in his certificate issued on
18 March was consistent
in terms of the injury complained of. It also confirmed
the applicant’s evidence concerning the initial presentation to the
practice on 17 March in respect of that injury.
It
follows in my view that there is a sufficient temporal connection between the
events of 17 March and 18 March to justify the conclusion
that an injury
occurred in the manner described in the absence of any other cause or factor.
The only other witness who possibly
could have assisted on this point was his
co-worker, Robert Jeschonek. He gave evidence that on a date in March 2010 he
could recall
he came around a corner on the building site at Eversley Terrace
when he heard Corke-Cox “... yelling and carrying on, swearing
and as he
came walking around the corner I said to him, “What have you done
now?” ... He said, “I tripped –
tripped over a pipe” ...
he came around the corner just holding his shoulder and – with concrete
dust on him...”
[3]
I have no reason to disbelieve this evidence. Mr Helfert’s evidence does
not assist the respondent because it simply denies
a later complaint allegedly
made by the applicant. Nothing turns on that matter. No other cause or factor is
in evidence.
WorkCover
Queensland accepted that the injury occurred on that day, although by reason of
its later investigations it concluded that
the injury was simply a temporary
aggravation of a pre-existing degenerative condition. That assessment was made
by Dr Gavin Ballenden
an independent medical practitioner engaged by WorkCover
to undertake assessment.
In
this case it is also worth noting that WorkCover Queensland’s records note
that Crocker Builders’ original basis for
denial was that Corke-Cox was an
independent contractor. Not that the injury did not occur. As I have earlier
noted, it is also troubling
to me that a seminal matter such as the alleged
conversation between Dene Crocker and Hauser could have been overlooked in the
manner
Dene Crocker says it was in the course of his conversation with the
relevant officer at WorkCover on 5 May.
While
Corke-Cox’s condition was complicated by other injuries, those matters are
simply a distraction from the issue here. Here
the issue is whether or not he
sustained an injury on 17 March as he asserts. It is of little moment whether
the effects of the injury
were temporary or otherwise. Plainly, on the
assessment of Dr Ballenden, the effects of the injury were merely a temporary
aggravation.
However, that matter is irrelevant to the question of the initial
injury and the initial acceptance that there was a basis for the
symptomology
complained of. Those matters do not appear to be in contention.
It
follows that I am satisfied that Corke-Cox did suffer an injury as alleged and
that throughout the material period he was suffering
the effects of the
aggravation of his pre-existing shoulder condition. Indeed it is quite plausible
that given Corke-Cox himself
recognised his condition was merely an aggravation,
he was anxious to return to work notwithstanding the discomfort his condition
may have been causing him when presented with the alternative of being
dismissed. That matter has significance in the context of
the events of 12
April.
Corke-Cox’s application for a job with Faux Finishes
In
about late March 2010, that is at a time after Corke-Cox’s injury but
shortly before these events, Faux Finishes, a paint
contracting and decorating
company placed an ad in the Courier Mail Trades and Technical Employment section
in its Saturday and Wednesday
editions advertising a position for a painter. The
ad in the Courier Mail for the weekend of 27 – 28 March 2010 was expressed
in these terms:
“PAINTERS
wanted for ongoing work – must be tradesperson. Ph 3216 0876 or 0418 887
158.”
Those numbers were telephone numbers for
Faux Finishes.
Mr
Robert Hauser is the proprietor of Faux Finishes. He said that he recalled that
in late March 2010 a call was passed through to
him from his accounts manager,
Annette Cox. The office procedure was that when employment enquiries were made
they would be vetted
by the accounts manager who would ask several standard
employment questions relating to previous employers, references and previous
experience. Hauser says the call was passed through to him because Cox had
concerns about certain things allegedly stated by Corke-Cox
to her. From the
evidence I was given the impression that the office was an open plan office and
that Hauser could largely overhear
what Cox was saying in the course of
telephone conversations she conducted. He says that when he took the call he
spoke to Corke-Cox
who told him, among other things, that he was making a
workers compensation claim against Crocker Builders and then stated words
to the
effect of “I am going to stitch up Crocker Builders by putting in a false
claim; They were going to sack me and now
I will make them pay for it because
they’ve stuffed me around; I am going to cash in and give them some
grief.”
Hauser
says that these statements were made gratuitously and that he was plainly
nonplussed by their content. He says he was concerned
as an employer who pays
workers’ compensation insurance and was puzzled as to why Corke-Cox felt
compelled to inform him of
these matters. He says he had no previous knowledge
or dealings with Crocker Builders but because of this conversation felt
compelled
to call Crocker Builders to inform them of these matters. He says he
subsequently did so. Upon calling Crocker Builders he says he
was put through to
Lee Crocker. He says that he informed him of what Corke-Cox had said to him
noting that he would be willing to
provide a statement to WorkCover Queensland.
In fact, on 28 May 2010, he made a statement to WorkCover to similar effect.
Lee
Crocker agrees with the substance of Hauser’s evidence. In particular he
affirmed the time and date of the conversation,
that is, about 7:00am on 31
March 2010. Lee Crocker said that on that occasion Hauser had told him he had
received a call from a
person called ‘Perry’ (Corke-Cox’s
nickname); Perry was looking for work and had told him he had done himself an
injury at home and not at the site. Hauser said Corke-Cox had said words to the
effect that he was going to “stitch up”
Crocker Builders over a
compensation claim, saying the injury did not occur on site and that he was
doing it for payback.
The
exchange between Hauser and Corke-Cox is denied by Corke-Cox. He admits to
having called Faux Finishes but says that occurred
on or about 14 April in
response to an ad which had been placed in the Courier Mail for that weekend
calling for experienced painters
and he spoke briefly with someone about a job
but no other conversation took place.
Corke-Cox’s
mobile telephone account records confirm that a phone call was made from
Corke-Cox’s telephone on 14 April
which is also the date upon which an
advertisement appeared in the Courier Mail under the heading “Painters
Wanted.”
That call went for 1 minute 39 seconds. His mobile telephone
account does not demonstrate any call made from his mobile phone to
a Faux
Finishes telephone number at any other time and in particular in late March of
2010.
There
are a number of puzzling features about the evidence on this subject generally.
Firstly, Hauser’s evidence is expressed
in the past tense, suggesting that
when Corke-Cox spoke to him, the event of termination had already occurred. This
was clearly not
the case in late March 2010, as the events surrounding
termination did not occur until 12 April. That suggests that their conversation
occurred on 14 April as Corke-Cox contends.
Furthermore,
Hauser says the conversation between Corke-Cox and he and his staff member took
about 10 minutes. That appears to be
an inordinately lengthy period having
regard to the matters that were discussed, even allowing for the short question
and answer
session that may have preceded such a conversation, even if it did
occur. Unquestionably, a conversation took place on 14 April 2010
which took 1
minute and 39 seconds. That seems a more realistic and reliable timeframe for
the nature of conversation being undertaken,
in the ordinary course, having
regard to the sort of matters that one would expect to be discussed including
experience, references
and previous employers. When compared to 10 minutes, even
allowing for an alleged rant, Hauser’s estimate seems wholly
unrealistic.
That
conversation was to a mobile phone. Corke-Cox says he spoke personally to Hauser
on 14 April. It was put to him that he never
spoke to Hauser on 14 April.
However, the record is plain; someone using Corke-Cox’s mobile phone
phoned a mobile phone number
associated with Faux Finishes on 14 April and spoke
for 1 minute and 39 seconds. Common experience suggests that mobile phones are
also personal, so it is more likely than not that Corke-Cox spoke with Hauser,
especially since it has not been suggested that someone
else did or may have
answered Hauser’s phone. It is also unlikely that someone would have
phoned a mobile number and have been
‘put through’ in the manner
which is suggested by Mr Hauser.
While
it is not to say that Corke-Cox could not have called Hauser from a landline,
that does not appear to be entirely consistent
with the other calls made from
Corke-Cox’s phone, although he did admit to having a landline at his home.
Corke-Cox was cross
examined at length about the calls made in response to other
advertisements seeking painters. Those calls were not only made from
his mobile
phone but also in at least one instance made to a mobile number notwithstanding
the ad providing both a fixed line and
mobile service number.
On
balance, I accept that Corke-Cox made a call to Hauser on 14 April and spoke
with him for approximately 1 minute and 39 seconds.
However,
accepting that fact does not resolve three other issues. The first was whether
there were one or two calls made to Faux Finishes.
Secondly, Hauser’s
evidence was that he only ever spoke to Corke-Cox once, that being in late March
when he says a call was
put through to him by his accounts manager Annette Cox.
Thirdly, that a conversation between Lee Crocker and Hauser in late March
2010
was overheard by an employee of Crocker Builders, Andrew McPike, and the
circumstances of that.
Hauser
was insistent that he only ever spoke with Corke-Cox on one occasion, that being
the occasion at the end of March. Unless he
is mistaken as to the date of his
conversation (which he denies) and he did speak with Corke-Cox at the end of
March, then he must
have had two conversations with Corke-Cox, for I am
satisfied that they spoke on 14 April. Alternatively, whilst Corke-Cox recalls
only speaking with Hauser once, he may have phoned Faux Finishes twice and not
been aware of the fact that he spoke with Hauser on
that occasion, or
alternatively he did not speak with him but only the person manning the phone,
who would probably have been Ms
Cox. Given that the March ad also advertised a
landline and mobile, it is not inconceivable that Corke-Cox phoned from his
landline
to the Faux Finishes landline number. If he had done so then in that
instance it would be possible that Corke-Cox could have been
‘put
through’ by Cox to Hauser. As I have earlier noted, I am satisfied there
was a conversation between Corke-Cox and
Hauser on 14 April. Whether Hauser is
mistaken on that detail of an earlier call or not is I feel to be answered in
part by considering
whether a conversation of the kind alleged to have occurred
in late March actually occurred. For reasons that follow I am satisfied
that
there were two calls made by Corke-Cox to Faux Finishes, the second call being
the call which occurred on 14 April 2010 but
the first being a call taken by Ms
Cox.
Telephone call between Hauser and Lee Crocker of 31 March 2010
Until
the first day of trial, this issue was left to be resolved by reference to
matters of credit between Hauser and Lee Crocker
on the one part and Corke-Cox
on the other. For the respondents it was contended that, given Hauser had no
material interest in the
proceeding, I ought prefer his evidence to the arguably
self-interested evidence of Corke-Cox. However, late on the second day of
the
trial Counsel for the respondent sought to open evidence from another witness,
Andrew Craig McPike, who was and remains an employee
of the respondent.
His
evidence was opened on the basis that by reference to records of his mobile
phone he recalls that on 31 March 2010 he was travelling
to a site at
Murwillumbah and that on that occasion he had with him as a passenger in the
vehicle Lee Crocker. He says that in the
course of the drive from Brisbane to
Murwillumbah, Crocker received a telephone call which he overheard. The evidence
as opened was
that “the other person was advising Mr Crocker that he had
spoken to someone who was looking for a job with the other person,
and that that
person had said that they were going to stitch up Crocker
Builders.”
[4]
In
an affidavit subsequently filed in the application, McPike related the matters
overheard as follows:
“6. I
heard the caller introduce himself, although I did not hear the caller’s
name at this time. The caller then told
Lee something to the effect that he had
been contacted by one of Crocker’s past sub-contractors looking for work.
He then explained
how this guy was going to prepare a case against Crocker
Builders. I don’t recall the exact words.
7. When the
call was over, Lee discussed the conversation with me, advising that the
caller’s name was Rob Hauser from a business
called Faux Finishes and that
it was Richard Corke-Cox (whom I know as “Perry”) who had contacted
the caller looking
for work and bagging Crocker Builders. He (Perry) told Rob
that he was going to make a claim and sue Crocker
Builders.”
Although
not the subject of direct evidence, it would appear that McPike was not called
upon to recall these matters and commit his
recall of them to writing until
about the time of his affidavit dated 26 July 2011. That is approximately 15
months after the material
events. In the circumstances, it is not surprising
that his affidavit was a little vague although it would be expected that the
unusual
nature of the subject matter would no doubt have occasioned some basis
for recollection. In any event, cross examination revealed
McPike to be equally
vague in respect of the detail and overall I am troubled by his evidence,
particularly when considered against
the evidence of Hauser, who noted after
having had his conversation in late March 2010:
“After
I got off the telephone to Perry I immediately looked up the contact details of
Crocker Builder [sic] called Crocker
Builders and asked to speak to the
director. I was put through to Lee Crocker and told him what Perry said to me as
I thought it
would be worthwhile him knowing. I told him that I would be willing
to provide a statement to Workcover Queensland.”
Accepting
Hauser’s evidence, it appears that he called Crocker Builders on a
landline as it seems improbable that he would have
called a mobile telephone
number and then had been ‘put through’ as he says occurred.
The
evidence of these witnesses simply does not withstand scrutiny. First, McPike
claims to have recalled the date following a review
of his telephone records. I
gather that by reference to his records he was able to confirm he was in
Murwillumbah on that date. In
his affidavit he stated that the
phone call
was loud enough for him to be able to hear the caller’s voice. He was
careful not to state that the phone in the
vehicle was equipped with speaker
phone, and when asked in cross examination regarding this he affirmed that the
phone was not a
speaker phone. His evidence concerning his recollection was
extremely vague. He stated:
“I
can’t recall exact words and I’m not going to lie and say I remember
a conversation exactly. The conversation
was that the guy, now who I know his
name is, Rob [Hauser] rang up saying that Perry was going to make a claim
against Crocker Builders.
The exact words, I don’t – I can’t
say that. It was 18 months ago. I’m not going to lie and say I remember
them
exactly.”
[5]
As
I have noted, it seems he had only been called upon to recall these events for
the first time in the days preceding his evidence.
In his evidence he
continued:
“
When
did you first find out who the caller was
?”
A.
“
Straight after Lee hung up and we spoke about it
.”
Q. “
And he told you, did he, that it was Rob Hauser
?”
A. “
As I said, it was 18 months ago. I don’t remember, until
recently, when it came about, that the name was brought back up, and,
yes, that
was his name, yes. He had a painting company
.”
Q. “
So you say recently his name was brought back up; when was
that
?”
A. “
When I was asked to come in to do
this
.”
[6]
I
am satisfied that his recollection of these matters is far too vague to be
reliable. However, other details are also puzzling. It
was always Lee
Crocker’s evidence that he received a phone call from Hauser on 31 March.
McPike’s evidence affirms evidence
that a phone call occurred. McPike also
recalls that Lee Crocker had told him it was Hauser. While it is conceivable
that McPike’s
memory of this has been assisted by Lee Crocker’s
reminding him of the conversation, it is more than serendipitous that Lee
Crocker and Hauser are correct on the date of their exchange. The date accords
with McPike’s record. Accepting that to be the
case, Hauser must have had
some contact with Corke-Cox prior to 31 March in order to be armed with
knowledge of his employment by
Crocker Builders.
Plainly,
Hauser advertised for painters in the weekend Courier Mail of 27-28 March. 31
March was the following Wednesday.
It
is not inconceivable that Corke-Cox spoke with someone at Faux Finishes on or
before 31 March, he possibly having made a call to
Faux Finishes’ landline
number from his landline at home. Had he done so and had he provided information
of the kind Hauser
says Ms Cox ordinarily requested, Hauser could have come to
know that Corke-Cox had been previously engaged by Crocker Builders and
that he
was at the time off work on workers’ compensation.
Armed
with that information, Hauser then could have phoned Crocker Builders as he
says. Given Hauser’s evidence that only once
he spoke with Corke-Cox,
which I accept, and that Hauser phoned Crocker on 31 March reporting
Corke-Cox’s contact with Faux
Finishes, an event I find occurred, I think
it is more probable than not, and find on the balance of probabilities, that
Corke-Cox
phoned Faux Finishes sometime between 28 March and 31 March. I find
that in doing so he spoke with Ms Cox and provided her with detail
such as
Crocker Builders being his last employer and that he was off on WorkCover.
Indeed,
under cross examination Hauser confirmed that the mobile telephone number in the
newspaper was his mobile number and the other
number his office number. He
confirmed that when his mobile was called he would deal with it but otherwise if
a call was made to
the office landline number a call would be put through to
him. Concerning the call he made to Lee Crocker, he swore that he phoned
directory assistance and had them place the call to Crocker Builders. When asked
whether he immediately spoke to Crocker he said
“No, I was put through to
the office and I spoke to – I think it was the girl on the switch or
somebody there at the
time. And I asked to speak to the director.” He said
he was subsequently put through to “the
director.”
[7]
He
said when put through the Director identified himself as Lee Crocker. He was
also asked a number of questions concerning the quality
of the call,
particularly with respect to it having the quality of a call made on a speaker
phone for instance in a motor vehicle.
Hauser responded “No, I can’t
remember if anything like that was happening. As far as I knew I was put through
to the
office.”
[8]
Hauser
gave no other evidence of any other instance when he spoke with Lee
Crocker.
Hauser’s
evidence gives rise to serious concerns about whether or not a conversation
occurred in the vehicle on 31 March as
deposed to by McPike and Lee Crocker.
While I am prepared to accept that a telephone conversation was had, I am not
satisfied that
the conversation progressed as Hauser and Lee Crocker swore it
did. I generally considered their evidence to be selective and unreliable.
The
evidence concerning these matters as detailed above illustrates the basis for my
concerns and conclusions on this point.
Undoubtedly,
as an employer Hauser’s suspicion would have been aroused if he was
informed that an enquiry had just been received
by Cox from someone who
identified themselves as enquiring after work yet stating that they were on
workers’ compensation.
I
am satisfied that this is most probably what occurred. To that end, I do not
accept that Corke-Cox made only one call to Faux Finishes.
I am satisfied that
he made two calls, however he probably had no reason to recall to whom it was
made and without a telephone record
to assist his recollection I accept this
oversight as reasonable. Given that he spoke with Ms Cox on the first occasion
and Hauser
on the second, he would have had no occasion to draw the association,
which I would consider explains his recollection of only one
conversation with
Hauser.
Generally,
I considered the evidence of Hauser and Lee Crocker to be selective and
unreliable. The evidence concerning these matters
as detailed above illustrates
the basis for my concerns and conclusions on this point.
It
follows that I am satisfied that Hauser’s source of knowledge was not
Corke-Cox but what he was told by his accounts manager,
Ms Cox. In my finding it
was by reason of inferences drawn from what he was told that he subsequently
made a call to Crocker Builders
on 31 March and spoke with Lee Crocker.
However,
I do not accept that Corke-Cox stated the matters alleged against him by Hauser.
It defies commonsense. While Corke-Cox did
not generally impress me I did not
consider him to be completely foolish. As Corke-Cox stated he was not
“insane.”
[9]
Such a statement would only be made by someone acting irrationally and I had no
basis to form that view of Corke-Cox. The observation
that Corke-Cox wanted to
effect a pay back is, in my finding, more a matter of conclusion drawn from the
background facts including
that he was making a WorkCover claim against Crocker
Builders and at the same time looking for alternate employment given relations
had begun to sour between Corke-Cox and Crocker Builders over Corke-Cox’s
work performance.
It
is important to observe at this point that Ms Cox was not called. I comment upon
that matter below. However, the failure by the
respondent to call her on these
issues lends support to my conclusion that I ought reject the respondent’s
evidence on the
manner in which they say these events unfolded.
Only
the evidence of Cox can link the statements alleged by Hauser against Corke-Cox
on 31 March. If Cox did not put the call through
then the only information
Hauser would have had was the basic information initially provided to Cox by
Corke-Cox. That would possibly
have been enough to permit Hauser to jump to the
conclusion that an employee of another builder, then off work on compensation,
was
looking for other work. Accepting those basic facts, his source for alarm
was understandable.
It
follows I find Corke-Cox made two calls to Faux Finishes but he only spoke with
Hauser once. On that occasion he informed him he
had been employed by Crocker
Builders and that at the time he was no longer so employed. I do not accept that
he said the words attributed
to him by Hauser. I do not accept that the
conversation between Lee Crocker and Hauser was overheard by McPike. Hauser may
well have
told Lee Crocker the words attributed to him, but if he did, they
constituted a reconstruction of the information provided to him
by Cox and did
not accurately reflect the information provided to Faux Finishes by Corke-Cox. I
find the conversation between Hauser
and Lee Crocker occurred on the morning of
31 March. Following Corke-Cox having spoken to Annette Cox, Corke-Cox only spoke
with
Hauser on 14 March.
Notwithstanding
those matters, another matter of concern in the context of this issue relates to
the non-calling of Annette Cox. While
Annette Cox’s evidence was
introduced as relevant background material to Hauser’s call to Lee
Crocker, she was not called.
Indeed, it seems apparent from the statement
prepared by Hauser for presentation to WorkCover and which was attached to his
affidavit
that Annette Cox had more significant dealings on these matters with
Corke-Cox than Hauser did. Annette Cox continues to be employed
by Faux Finishes
as its accounts manager. No evidence was led to suggest that she was not
available to give evidence at the proceeding
and indeed the respondent’s
conduct of the proceeding confirms that it was content to introduce evidence
late in the proceeding
if it was considered helpful such as the evidence of
McPhee. No explanation was provided for the absence of evidence from Annette
Cox. Having regard to the highly contentious issue which would have been
assisted by her evidence I am compelled to infer that she
was not called because
her evidence would not have been helpful to the respondent’s
case.
[10]
The chance encounter
Perhaps
one of the most intriguing passages of evidence in the trial concerned evidence
of the chance encounter between Hauser and
Lee Crocker in Brisbane traffic at
about this time. Hauser said that he had seen Lee Crocker in traffic one day and
called him on
his mobile. In cross examination Hauser acknowledged that he had
never met Lee Crocker before this occasion and that despite not
knowing what he
looked like he “took a punt” to call and say “good
day.”
[11]
He
said he rang a number on the side of the vehicle. He subsequently
stated:
“We
pulled up beside each other in the traffic and said good day and I believe it
was at East Brisbane Woolloongabba on Ipswich
Road.”
[12]
It
should be noted that he contended that each person’s vehicle was
especially visible to the other because they each carried
their respective
business logos.
The
matter was initially raised by Hauser in evidence in chief and subject to
further cross examination. Hauser had said that he had
no prior dealings with
Crocker Builders prior to the events of 31 March.
Curiously,
when Lee Crocker was cross examined about later conversations he omitted to
mention this instance although, in fairness,
the focus of cross examination was
directed to a conversation he ultimately accepted he had with Hauser on 5
May.
Generally,
the recollections of conversations following the initial contact of 31 March
appeared entirely unsatisfactory. Evidence
of those matters was vague on the
part of both Hauser and Lee Crocker. Additionally, it had an extraordinary and
unrealistic air
about it. It also simply did not hang together on the
detail.
For
instance the evidence of Ms Lyons, Crocker Builders’ Administrative
Assistant, was that the telephone numbers on the Crocker
Builder vehicles was
the office number i.e. the landline. Yet Hauser says he saw a mobile number and
called it to find Lee Crocker
at the other end. Given the evidence presented, it
seems that two possibilities are open. However, irrespective of which I accept,
each is inconsistent with the version proffered by Hauser and Lee Crocker, and
by extension gainsays the evidence given by them on
this issue.
The
first is that they did see each other at Woolloongabba. However, if that is a
fact, Hauser must already have had Lee Crocker’s
mobile number to be able
to call him because Lee Crocker’s mobile number was not the number on the
vehicle that Lee Crocker
was driving. However, if that was the case, how was
Hauser to know Lee Crocker was the driver? The alternative proposition is that
the event simply did not occur.
Adopting
the most favourable scenario, that is that Hauser and Lee Crocker pulled up in
traffic at Woolloongabba, one noticed the
other and decided to call up, one is
left to wonder why there would be a need to concoct part of the story. For
instance, if the
vehicles only had landline numbers on them why was there no
reference, perhaps to Hauser, phoning Crocker Builders and being provided
with
his mobile number. It appears to me that the witnesses have either been less
than candid or alternatively are just simply unreliable.
In either case, it
lends support to my general view that the evidence of these two witnesses was
unreliable and ought not be preferred
to the evidence of Corke-Cox where their
evidence materially differs. I have generally preferred the evidence of
Corke-Cox to their
evidence as being more reliable where it
differs.
Summary of credit findings
In
this case there were aspects of Corke-Cox’s evidence with which I was
uncomfortable. However, I have concluded that his recollection
and evidence of
the critical issues is to be preferred to the evidence led from the respondents
and particularly the evidence of
Dene Crocker and Lee Crocker. Lee Crocker and
Hauser were particularly unimpressive. Even adopting a charitable approach to
their
evidence I had deep reservations concerning their candour and consider the
evidence they gave to be quite selective. I have no confidence
in their evidence
when compared to that of Corke-Cox who I also considered to be unimpressive.
However, he was less so than the principal
witnesses for the respondent.
Generally concerning the other witnesses for the respondent, that is the
evidence of Tubb, Hill, Helfert,
Lyons and Banney, the points of difference
between them and Corke-Cox were mostly minor and within the bounds of what could
be expected
given the events in question. Nothing turned on the points of
difference and I have made findings only on those matters I considered
necessary. McPhee’s evidence was based on a recollection first called to
account so long after the relevant events and his
recall, when pressed, was so
vague as to be almost of no real utility except that by reference to his records
he was able to pinpoint
the date an alleged conversation
occurred.
Contravention of s.340 FW Act
The
applicant claims that he had a workplace right being a claim to workers’
compensation for injuries suffered during the course
of his employment on 17
March 2010. That right was one prosecuted by him by making application for
workers’ compensation on
18 March 2010 pursuant to the provisions of the
WCR Act. For reasons given earlier I accept that the applicant suffered an
injury
while working for the respondent at its worksite at Eversley Terrace,
Yeronga. The injury was an aggravation injury being a soft
tissue injury to his
right shoulder.
Following
an exchange between an officer of WorkCover Queensland and the respondents, and
in particular advice that the applicant
was not an employee of the respondent
but rather a subcontractor, WorkCover decided on 26 March 2010 to reject the
applicant’s
application for compensation. That decision was subject to
review by Q-Comp, which in its decision of 4 May 2010 set aside the decision
by
WorkCover to reject the applicant’s application for compensation. Q-Comp
found that the applicant was a “worker”
for the purposes of the WCR
Act, that being the basis upon which the initial decision to refuse compensation
had been based. The
application for review of that decision had been made on 13
April 2010.
As
at the date of termination, the applicant had a decision from WorkCover which
was accompanied by a bundle of rights, particularly
a right of review. He was
proposing to exercise a workplace right in relation to his workers’
compensation claim by prosecuting
his application for a review of the decision
to refuse him compensation. He did this on 13 April 2010, the day after
termination.
The
applicant contends that the respondent took adverse action against him “as
a consequence of” his having a workplace
right or alternatively proposing
to exercise a workplace right. He contends that by reason of the adverse action
taken as a result
he thereby sustained loss and damage.
The
respondent contends that the applicant was not entitled to protection of the FW
Act as he was not a national system employee.
The respondent noted that the
applicant alleged contravention of s.340 because the respondent allegedly took
“adverse action
as a consequence of the Applicant having or exercising the
workplace right” pleaded, that is his right to claim workers’
compensation for injuries suffered during the course of or arising out of his
employment with the respondent; and/or, the respondent
took adverse action
“as a consequence of the Applicant having exercised or proposing to
exercise the workplace right to apply
to QComp.”
The
respondent contended that the relevant test under s.340(1)(a) FW Act is whether
adverse action was taken “because”
of a workplace right rather than
“as a consequence” of a workplace right. The requirement that action
be taken “because”
of a workplace right requires a causal nexus
between the alleged action and the alleged attribute or right:
Davids
Distribution Pty Ltd v National Union of Workers
[1999] FCA 1108
;
(1999) 91 FCR 463
at 501;
Australian Licenced Aircraft Engineers Association v International Aviations
Service Assistance Pty Ltd
[2011] FCA 333
;
Barclay v Board of Bendigo
Regional Institute of Technical and Further Education
[2011] FCAFC 14.
The
respondent correctly noted that the terms of s.340(1)(a) FW Act provide that a
person must not take adverse action against another
person “because”
the other person has a workplace right. It does not say “as a consequence
of” a workplace
right. It appears tolerably apparent that the language
employed by the drafter of the statement of claim was intended to convey the
same meaning as provided for in s.340(1)(a) FW Act. It is unfortunate that the
language of the Act was not adopted in the pleading
but in my view nothing turns
upon it in this instance. The evidence sought to be adduced by the applicant was
that the respondent
took adverse action against him because he made and/or
sought to prosecute his entitlements to workers compensation. It is upon that
basis that I have considered the applicant’s evidence.
The
other matter contended for by the respondent in respect of s.340(1)(a)(i) is
that the WCR Act is not a workplace right within
the meaning of that term as
defined by s.341 of the Act. That matter has been the subject of earlier
consideration by this Court.
In the absence of a ruling to the contrary by the
Federal Court I am satisfied that the WCR Act is a workplace law for the reasons
explained in
CFMEU v Leighton Contractors Pty Ltd
[2012] FMCA 487
at
[37]
to [63].
National system employee
At
the outset, the respondent submits that the applicant is not a national system
employee within the meaning of that term under the
FW Act. It submits that the
relationship between the applicant and the respondent at the relevant time was
one of principal/contractor
and not employer and employee. In particular, the
respondent submits that the fact of a principal contractor relationship is not
inconsistent with the determination by Q-Comp of 4 May 2010, notwithstanding
that the applicant was found to be a worker within the
meaning of the WCR Act.
The
characterisation of the relationship between the applicant and the respondent is
important and accordingly warrants some consideration.
Section
12 of the Act provides that “employees” are as “defined in the
first Division of each Part (other than Part
1-1) in which the term
appears.” Section 335 FW Act provides that, for that Part dealing with
general protections, “employee”
and “employer” have
their ordinary meanings. It follows that the question of whether or not the
applicant was an employee
needs to be determined by reference to the tests
provided for by authority. The test to be applied has most recently been
considered
in
Sweeney v Boylan Nominees Pty Ltd
[2006] HCA 19
;
(2006) 226 CLR 161
,
which approved the High Court’s earlier decision in
Hollis v Vabu
Pty Ltd
[2001] HCA 44
;
(2001) 207 CLR 21.
Both cases considered the question of independent
contractors and vicarious liability, although in
Sweeney
the focus of the
Court’s judgment was on the issue of benefit received by a principal from
a contractor and the bearing that
had upon the question of vicarious liability.
From
first principles it is accepted that a significant criteria by which to gauge
whether a relationship is one of employment is
the question of control. It is
accepted that it is one of a number of issues which must be considered in the
determination of that
question. Other matters include but are not limited to
“the mode of remuneration, the provision and maintenance of equipment,
the
obligation to work, the hours of work and provision for holidays, the deduction
of income tax and the delegation of work by the
putative
employee.”
[13]
The observations of the Court in
Stevens v Brodribb Sawmilling Co Pty Ltd
were cited with approval in
Hollis v Vabu Pty Ltd
, a case that has been
reaffirmed in
Sweeney v Boylan Nominees Pty Ltd
per Gleeson CJ, Gummow,
Hayne, Heydon and Crennan JJ at 167 and Kirby J at 184.
I
have addressed some of the critical characterisation factors earlier in this
decision. The facts of this case demonstrate significant
elements of control.
Corke-Cox only worked for the respondent; he worked largely set hours per week;
he worked as directed in terms
of worksites and duties; and, principal
materials, namely paint, were supplied by the respondent such that he largely
provided labour
only. However, against that the principal agreement advanced was
that their relationship was generally by contract.
A
review of the subcontract agreement demonstrates that it is an agreement which
is more apposite to the engagement of a subcontractor
for a specific project
rather than on an ongoing basis. An examination of its standard terms and
conditions indicates that the subcontractor
agreed to “complete the Works
described in the Work Order;” it provided for a date for commencement and
completion of
works; it provided for liquidated damages and for a right for the
principal to recover other damages in the event of loss occasioned
by breach of
the contract; it permitted for variations and made provision for “Head
Contract Determination.” In other
words, the contract was one which was
plainly designed for the engagement of a subcontractor on a project by project
basis. That
was not the case here.
Here
the applicant was treated very much as an employee. While it is correct that he
may well have been able to vary his hours, he
seems to have worked a 40 hour
week at a set hourly rate. In doing so, he worked under the direction of the
respondent and attended
various work sites and performed duties as directed.
There seems little question that he was subject to the express control and
direction
of the respondent in the performance of those duties.
In
his tax returns he noted that he was employed as a “labourer.” His
source of income was not identified but the applicant
says he only worked for
the respondent. The expenses claimed were principally motor vehicle expenses and
home office expenses. No
doubt the arrangement which had been put in place
between he and the respondent suited him by permitting him some small advantage
in the management of his taxation affairs. In any event, as has been noted on
many occasions, “parties cannot deem the relationship
between themselves
to be something it is
not.”
[14]
Putting
aside the question of whether or not I am bound by the decision of Q-Comp, I
have in any event reached the same general conclusion,
notwithstanding the
structure of the arrangement and the expression of the parties. The fact remains
that by reference to the objective
criteria applicable in this instance,
particularly when regard is had to the element of control; the mode of
remuneration; the provision
and maintenance of equipment and the obligation to
work the hours of work, the applicant was an “employee” within its
ordinary meaning and, accordingly, one for the purpose of s.335 and Part 3-1,
the general protections part of the FW Act.
In
coming to the conclusion that the applicant is an employee for the purposes of
the FW Act, it is important to note that while Q-Comp
examined the issue and
appears to have come to a similar conclusion, the conclusion is not identical.
Q-Comp was considering the
definition of “worker” as provided for
under the WCR Act which includes “a person who works under a contract of
service.” The question in issue before Q-Comp was slightly different to
that which is relevant to this application.
Each
of the applicants claims against the respondent are in respect of rights
provided for under Part 3 of the FW Act and accordingly,
in my view, the
applicant is an employee entitled to the benefit of those provisions. In that
respect I generally reject the respondent’s
contention that the applicant
was engaged by the respondent pursuant to a contract for service and accordingly
has no recourse against
the respondent under those
provisions.
Adverse Action
The
applicant contended adverse action was taken on four bases:
Dismissal
from his employment or alternatively terminating the contract between the
applicant and the respondent;
Injuring
the applicant in his employment or in relation to the terms and conditions of
his contract by defaming or injuring his reputation
to other
employees;
Injuring
the applicant in his employment or in relation to the terms and conditions of
his contract by defaming the applicant to the
clients or the respondent;
and
Altering
the position of the applicant to his
prejudice.
Dismissal
The
applicant contends that the respondent took adverse action against him by
dismissing him as an employee: s.342(1) Item 1(a) FW
Act. I have earlier
determined that, notwithstanding the existence of the periodic subcontract
agreement, the relationship between
the applicant and the respondent was one of
employer and employee and, accordingly, I will proceed to examine each claim
solely by
reference to that relationship.
For
reasons which I have outlined above, I do not accept the evidence of Dene
Crocker where it is not in accord with that of Corke-Cox
concerning the meeting
of 12 April. Corke-Cox was ready willing and able to return to work. On 23 March
2010, Andrew Tubb, Crocker
Builders’ supervisor, sent a text to Corke-Cox
enquiring of his welfare. He says that in response to the text Corke-Cox phoned
him to tell him he was right to go back to work. He says he told Corke-Cox that
he would need to provide Crocker Builders office
with a medical certificate
certifying that he was fit to return to work before he could come back.
Corke-Cox says that Tubb told
him that in any event he had to see Dene Crocker
first. He says that he told Tubb that he thought it was unusual and that he was
concerned he might lose his job. He says Tubb responded that he was unsure but
told him to “see Dene on
Friday.”
[15]
I
accept some of this concern was directed to workmanship but Corke-Cox’s
then current claim for WorkCover benefits was also
alive.
A
series of telephone calls and rearranged meetings occurred between that date and
12 April. In any event, in the meantime the applicant
attended upon Dr Copeland
on 26 March who issued a further certificate until 23 April. It follows that at
the time of the meeting
the applicant was certified unfit for work by reason of
his earlier injury. Furthermore, I am satisfied that the applicant intended
to
return to work as soon as the recovery from his injury permitted.
It
is agreed that not only was the matter of the applicant’s WorkCover claim
raised at the meeting but also the matter of his
workmanship particularly at Mr
Banney’s premises.
It
is submitted by the respondent that if the applicant was dismissed it was not
because of his workplace injury but rather because
of his unsatisfactory
workmanship. The respondent submits that in the event the Court accepted the
applicant’s contract was
terminated, as I have, then it was on the basis
of:
Aggressive,
uncooperative and insolent behaviour of the applicant at the meeting of 12 April
2010;and
The
defects and/or complaints regarding the services rendered by the applicant to
the respondent.
The
respondent contended that in the event the applicant could establish (as I am
satisfied he has done) that his engagement was terminated
by the respondent,
then the respondent can prove that the prescribed reasons identified by the
applicant were not the reason or one
of the reasons for the termination of the
applicant’s employment: s.360 FW Act.
Accepting
that the WCR Act was a workplace law giving rise to a workplace right, and that
adverse conduct was taken by Crocker Builders
against Corke-Cox, the substantive
question remains as to whether it was because of Corke-Cox’s claim for
WorkCover benefits.
Section
340(1)(a)(i) (ii) and/or (iii) when applied in the circumstances of these
particular workplace rights provides that Crocker
Builders must not take adverse
action against Corke-Cox because he has exercised his workplace right (by making
a WorkCover claim
for compensation) and proposes to exercise a workplace right
(by exercising his review rights from an adverse WorkCover decision).
At
this point, the reverse onus created by s.361(1) FW Act attracts significance.
Relevantly, s.361 FW Act provides:
“[361]
Reason for action to be presumed unless proved otherwise
(1)
If:
(a)
in an application in relation to a contravention of this Part, it is alleged
that a person took, or is taking, action for a
particular reason or with a
particular intent; and
(b)
taking that action for that reason or with that intent would constitute a
contravention of this Part;
it is
presumed, in proceedings arising from the application, that the action was, or
is being, taken for that reason or with that
intent, unless the person proves
otherwise.”
As
Baker J in
Australian Licenced Aircraft Engineers Association
(supra)
observed, the reversal of the onus does not alleviate the evidentiary evidence
of establishing objective facts supporting
the
contraventions.
[16]
His Honour observed with approval the remarks of Collier J in
Jones v
Queensland Tertiary Admission Centre Ltd (No
2)
[17]
at [10],
noting:
“[331]
... Collier J considered it was not sufficient for the applicant simply to
allege that she had a workplace right and
that she was the subject of adverse
action. Rather, on the assumption that she was able to prove those allegations,
the burden was
then cast on the respondent to prove that the adverse action was
not taken because of a workplace right.”
Here
the facts contended by the applicant have been objectively established and from
there it is open to find that Crocker Builders
contravened s.340 FW Act in
relation to the exercise of the workplace right when it took the adverse action
identified above.
In
my view, both the temporal connection between the workplace rights contended for
and the adverse action, together with the subject
matter association, unless
answered, would lead to a conclusion that there had been a contravention. It
follows therefore that the
remaining question to be resolved is whether the
adverse action was taken because of Corke-Cox’s workplace rights. By
operation
of s.361 FW Act, Crocker Builders bears the onus to prove otherwise,
that is that the adverse action was not taken because of Corke-Cox’s
workplace rights.
The
operation of s.360 and s.361 FW Act have recently been considered by the Full
Court in
Barclay v Board of Bendigo Regional Institute of Technical and
Further Education
(supra). At [30], the majority stated:
“Section
360 continues the long-standing position that, where adverse action is taken
against a protected person, culpability
will be established if the reasons for
that conduct include a reason for conduct that is within the ambit of s.[340].
The reason
must be an operative or immediate reason and need not be the sole or
dominant reason ... But the drawing of distinctions between
proximate or
immediate reasons for conduct ... or between the cause of conduct and the reason
for conduct ... is not helpful. Those
distinctions fail to give sufficient
attention to whether or not the reason was operative, and they also draw
distinctions between
a reason and a factor in a reason.
...
[32] The
onus cast by s.361 on the person taking the adverse action means that, to
succeed, that person has to establish that he
or she was not actuated by the
attributes or industrial activity which s.346 seeks to protect. As Mason J said
in [General Motors
Holden Pty Ltd v Bowling
(1976) 12 ALR 605]
at 617, that
objective will not be achieved unless the evidence establishes that the real
reason for the adverse action lies outside
the ambit of the provision – in
this case s.346. The real reason or reasons for the taking of the adverse
action must be shown
to be “dissociated from the circumstances” that
the aggrieved person has or had the s.346 attribute or has or had engaged
in or
proposes to engage in the s.346 industrial activity.”
Further,
at [34], their Honours continued:
“...
a failure by the employer to establish that the real reason for the taking of
the adverse action was dissociated from
the circumstance that the employee was
promoting a lawful activity for or on behalf of an industrial association will
result in a
finding of contravention, irrespective of the employer’s
subjective belief that the activity was unlawful ...”
In
the context of a dispute under s.340 FW Act, Greenwood J, in
Construction,
Forestry, Mining and Energy Union v BHP Coal Pty Ltd
[2012] FCA 563
,
summarised the position as follows from [57]:
“...
Section 360
of the
Fair Work Act
provides that a person takes action for a
particular reason if the reasons for the action include that reason. It is
therefore sufficient,
in order to establish a contravention of
ss.340
or
346
to
show that the dismissal of the employee occurred for reasons that include a
prohibited reason under those sections. The prohibited
reason need not be the
substantial or dominant reason ... The prohibited reason must be an operative
reason ...
...
[60] As to
the
real reasons
for taking adverse action, the Full Court of this court
has held in Barclay, by majority, that the decision-maker cannot in a
determinative
or
decisive
way simply, in effect, swear the issue
by asserting a belief (even a genuinely held belief) that the reasons for taking
the action
were particular reasons. The forensic search for the real reasons is
said to involve a
characterisation
of the reason or reasons of the person
who took the adverse action and whilst the subjective intention of the
decision-maker will
be “centrally relevant,” it cannot be decisive
of the question. The search at trial is for the factors that
actuated
the conduct of the person, not a search for the factors the person
thinks
actuated him or her. The majority observed that, “[i]t is not open to the
decision-maker to choose to ignore the
objective connection
between the
decision he or she is making and the attribute or activity in question
...””
In
this case I am satisfied that the applicant’s exercisable workplace right
was an operative reason, if not the dominant reason,
for the respondent’s
conduct. Not only is there the temporal relationship between the difficulties
that arose between the applicant
and respondent, culminating in the meeting of
12 April, but I am also mindful of other background factors which clearly
indicate
that the respondent was unhappy with the applicant exercising a
workplace right by pursuing his claim for workers’ compensation.
The
respondent’s unhappiness is evidenced by its initial insistence that the
applicant was not covered by WorkCover because
he was required to make his own
arrangements pursuant to the period subcontract agreement. That unhappiness was
amplified by the
respondent’s response to WorkCover Queensland in its
letter of 24 March 2010 essentially denying any responsibility for the
applicant
on the basis that he was self employed. Having assessed the character of the
respondent’s witnesses, I have difficulty
accepting that Dene Crocker
would have been most upset at the prospect of the applicant seeking to make a
WorkCover claim. Undoubtedly
that would have impacted the respondent’s
claim record and potentially future premiums. His annoyance would have been
exacerbated
because of his misguided view that he had managed to contract this
responsibility away.
It
follows that the respondent has not discharged the onus of demonstrating that
the action was taken for a reason other than the
operative reason or part of the
reason as I have determined.
Injuring the applicant in his employment by defaming and/or injuring the
reputation of the applicant to other employees
The
applicant’s allegations in support of this contention are that the
respondent injured him by telling other employees that
he was not a good worker;
that he had falsely claimed workers’ compensation that he was not entitled
to because he was not
a worker within the meaning of the WCR Act; and telling
other employees that the applicant had fraudulently claimed workers’
compensation and that he was not entitled to because he had not been injured at
work. While it is probable that the statements were
made, the fact remains that
they were made by Crocker Builders in good faith. That is they were made by
Crocker Builders incorrectly
believing the facts to be that the applicant was
not entitled to workers’ compensation because he was a contractor and not
an employee and that the applicant was not injured at work because there had
been no formal report to it of injury. In that regard,
although I accept that
the applicant may have made a statement to Andrew Tubb, the manner of his
reporting the incident fell well
short of what would be regarded as reasonably
acceptable in the workplace. Where the blame lies for this failure was not
considered
by the parties in the context of this dispute. It could be that the
respondent did have reasonable systems in place for monitoring
and reporting of
such events and that the applicant did not appropriately report his injury.
Alternatively, there were no systems
in place and the applicant simply adopted a
casual approach to informing Crocker Builders of his injury. In any event, where
the
blame lies on this point was not explored and I do not make any
finding.
However,
accepting the basic premise that the statements were made and even accepting
that at its highest the statements were false
and intentionally so, that conduct
did not in my view constitute adverse action within the meaning provided for in
s.342(1). The
applicant contends it did because it said to “[injure] the
employee in his or her employment.” However there was no evidence
to
support that contention. No evidence was adduced from any other employee to
state that in effect by reason of those statements
they treated the applicant
differentially, for instance by discriminating against the applicant in the
workplace by avoiding or shunning
him or treating him differently to the manner
in which he had been previously treated. It is plain from the definition of
adverse
action that there are two elements to “adverse action.” The
first is injury to the employee and the second is injury
in the context of the
employee’s employment. Whilst the applicant might have demonstrated injury
to himself in the sense that
his feelings may have been hurt or offended by the
statements, the applicant has failed to adduce any evidence that the injury or
hurt to his feelings by the statements has impacted on his employment. This
ground fails.
Injuring the applicant in his employment by defaming the applicant to clients of
the respondent
The
complaint by the applicant in this instance is that the respondent told its
clients, in particular Mr Banney, that the applicant
was not a good worker; that
he had falsely claimed workers’ compensation when he was not entitled to
it because he was not
a worker within the meaning of the WCR Act; and told
clients of the respondent that the applicant fraudulently claimed workers’
compensation when he was not entitled to it because he had not been injured at
work. Irrespective of the truth of the allegations,
this claim fails for the
same reasons as the claim in the preceding section
above.
Altering the position of the applicant to his prejudice
The
applicant contends that respondent represented to WorkCover Queensland that he
was not entitled to compensation; that he was not
a worker within the meaning of
the WCR Act; that he had been instructed on a previous occasion to rectify
defective work when it
was not true; that he had supplied his own tools of trade
when that was not true; on 24 March 2010, that the applicant determined
the
hours and days on which he worked when that was not true; and, on 5 May 2010,
that the applicant had injured himself at home
and not at work when that was not
true. It is argued that each of these representations constituted action
altering the position
of the applicant to his prejudice and was thereby adverse
action within the meaning of s.342(1) Item 1(c).
It
must first be noted that the conduct pertaining to the alleged representation on
5 May cannot be relevant to this application.
It postdates material events and
accordingly even if it were adverse action it could not in the circumstances of
this case be adverse
action taken because of a workplace right, as at the time
of this purported action the employee/employer relationship between the
parties
had ceased.
Concerning
the remaining particulars alleged by the applicant against the respondent, they
too suffer the same difficulty identified
in the two preceding sections above.
That is, even if the allegations are true, save for the matter of dismissal, it
cannot be said
that any of those matters led to an altering of the position of
the employee to the employee’s prejudice. There may have been
some scope
for argument in relation to those matters had for instance the applicant
received a clear certificate from his medical
advisor permitting his return to
work and the respondent had not permitted a return to work despite that matter.
However, the evidence
is unequivocal. Between the date of the injury and the
date of termination on 12 April, the applicant was off work on advice from
his
consulting medical practitioner and indeed was not required to return to work
until later in April. In that event, and in the
absence of any evidence to
demonstrate other prejudicial behaviour, the only conduct which can be seen to
be causally linked to the
matters alleged was the applicant’s dismissal.
In that sense this particular adds nothing to the applicant’s claim which
has been dealt with in the first section above.
Contravention s.345 FW Act
The
applicant complains that the respondent contravened s.345 FW Act. Relevantly,
s.345 provides:
“Misrepresentations
(1) A
person must not knowingly or recklessly make a false and misleading
representation about :
(a) the
workplace rights of another person; or
(b) the
exercise, or the effect of the exercise, of a workplace right by another
person.
...
(2) Subsection
(1) does not apply if the person to whom the representation is made would not be
expected to rely on it.”
The
applicant contended that the respondent knowingly and recklessly made a false
representation about a workplace right of the applicant,
that being his right to
claim workers’ compensation for injuries suffered during the course of or
arising out of his employment
with the respondent pursuant to the provisions of
the WCR Act. In particular, the applicant relied upon the matters alleged above
being the matters alleged in paragraph 15(d) of the statement of claim. It was
contended that by reason of the misrepresentation
in breach of s.345 the
applicant suffered loss and damage which was of the kind also contended to
arise by reason of the breach
of s.340(1).
In
essence the applicant pleads this cause of action for the same relief.
In
his submissions, the applicant relies upon the letter from Dene Crocker to
WorkCover dated 24 March 2010 and the email from Lee
Crocker to WorkCover dated
5 May 2010. He contended that the term “representation” is wider
than “statement”
and therefore can include a statement of opinion as
well as a statement of fact:
CFMEU v Hadgkiss
[2007] FCAFC 197
;
(2007) 169 FCR 151.
He
contended the false representations were that:
the
applicant did not inform Nick Hill of injury;
the
respondent was unaware of the injury until it made inquiries of the applicant as
to when he would be next coming to work;
the
applicant had been instructed on the previous occasions to rectify defective
work;
the
applicant determined his own hours and days in which he worked; and
the
applicant supplied his own tools for trade.
It
was further contended that the representation that the applicant had signed a
period subcontract agreement on 12 November 2009
which made him liable for
defects was misleading because the document was not reflective of its true
situation; the document was
signed 2 years and 5 months after the applicant
commenced work for the respondent; and the clause quoted had never been enforced
by the respondent. It was submitted that in the absence of a request for
information from WorkCover the representations made on 24
March 2010 were made
intentionally and designed to and did prejudice the applicant because his
WorkCover claim was subsequently rejected.
It was also contended that the
representations made on 5 May 2011 were unsolicited and clearly designed to
discredit the applicant
in an attempt to block his workplace right to
workers’ compensation.
The
respondent contended that the relevant test is not whether the statements were
true but rather whether the respondent had the
requisite state of mind as well
as whether the statements were false or misleading. It rejects the allegations
that it knowingly
or recklessly made false and misleading representations to
WorkCover Queensland about the workplace rights of the applicant in
contravention
of s.345 because:
The
respondent did not provide any information to WorkCover Queensland that was
either false and misleading regarding the workplace
rights of the applicant;
and
At no
time throughout the course of its correspondence with WorkCover did the
respondent make a representation it knew to be false
or misleading, nor has the
applicant offered evidence substantiating an allegation that the respondent
ought to have known that the
alleged representations made were false and
misleading, thereby rendering their disclosure to WorkCover
reckless.
In
particular, the respondent contended concerning the representation relating to
the applicant’s entitlement to workers’
compensation that it did not
make a representation to WorkCover that the applicant was not entitled to
compensation.
The
question of whether or not the applicant was entitled to workers compensation is
a mixed question of fact and law. In its letter
of 24 March 2010, Crocker
Builders in response to an enquiry from WorkCover provided information to it
which no doubt was considered
by WorkCover in its ultimate decision of 26 March
determining not to accept Corke-Cox’s application on the basis that he was
not considered to be a “worker” based on s.11 of the WCR Act.
I
accept the respondent’s submission that at the time the representations
were allegedly made by the respondent the applicant
was not entitled to
workers’ compensation as that was a matter to be assessed by WorkCover
with reference to the WCR Act. As
can be seen by reference to WorkCover’s
letter of 26 March 2010, the question of whether or not the applicant had
informed
Nick Hill of his injury or indeed when the respondent first became
aware of the injury was not seen to be material by WorkCover.
What was material
however was the period subcontract agreement. In its letter of 26 March the
decision maker detailed the terms of
that agreement before proceeding to
note:
“Following
review of the terms and condition [sic] of your contract I am not satisfied that
you are deemed a worker as I do
not consider you were employed under a contract
of service, but more a contract for service.”
While
that view may have accorded with the view of the respondent and was plainly
incorrect as subsequently determined by Q-Comp,
and implicitly in these reasons,
the fact remains that none of the alleged false representations appear to have
been material to
the determination by WorkCover to refuse the claim. WorkCover
refused the claim because of the terms of period subcontract agreement.
In
my view, the respondent is correct in its submission that whilst the alleged
workplace right pleaded at paragraph 3 of the points
of claim was identified as
the applicant’s right to “claim workers compensation,” none of
the alleged representations
pleaded at paragraph 15(d) address whether the
applicant had a right to claim workers’ compensation, a matter to be
determined
by WorkCover.
I
accept that the respondent had a reasonable basis upon which to believe the
essential statement made to WorkCover that the applicant
was a contractor and
not an employee. Plainly its statement was misconceived, but the basis for that
misconception is largely founded
in the highly technical nature of the
arrangement and a lack of appreciation of that technicality by the respondent.
Given employment
practices in the building industry, its views in that respect
were not unreasonable.
However,
insofar as the respondent made its representations on 5 May, the circumstances
are entirely distinguishable. As I have found,
at best the respondents had no
proper foundation for any statement alleged to have been sourced from the
applicant that he intended
to “stitch up” Crocker Builders by
putting in a false claim or that he had injured himself at home and not at work.
As
I have earlier determined on balance, these comments were based upon
speculation and inferences drawn from conversations had between
the applicant
and Ms Cox of Faux Finishes. In any event, I do not accept that the applicant
made the statements attributed to him.
Accordingly, I am satisfied that on 5 May
2010 the respondent did recklessly, if not knowingly, misrepresent the
applicant’s
position to WorkCover both orally in the conversation between
Lee Crocker and Sheridan dos Remedios of WorkCover and subsequently
by an email
by stating to WorkCover:
“Could
you please give a call regarding this claim before proceeding any further. I
remembered I had a phone call from Rob
Hauser of Faux Finishes(Painting Company)
regarding Richard. Richard rang Rob approx 4-5 weeks ago looking for work.
Robert rang
me after his call with Richard to advise me what Richard had said to
him about our company and his injury claim. Basically Richard
told Robert that
the injury was done at home (not on our site) but he was going to go after us
for the claim ...”
The
allegation was a serious allegation involving potentially criminal conduct. Even
a layman ought appreciate the significance of
fraud which in essence was what
was being alleged against Corke-Cox. Had this case merely involved an instance
of the respondent
passing on to WorkCover information received by it, I may have
had a more sympathetic view as to whether or not the respondent knowingly
or
recklessly misrepresented the applicant. However the circumstances surrounding
not only the manner in which the respondent’s
director, Lee Crocker, says
he came to this information but also the curious course of events following, in
particular the chance
encounter, trouble me. As I have earlier observed, I was
not satisfied with the candour of either Hauser or Lee Crocker and I am
satisfied that the presentation of their evidence was selective in the omission
of material matters. There was more to their association
than they were prepared
to concede. Their association was highly suspicious and on balance I am
satisfied that Lee Crocker knew or
ought reasonably have known that the
information provided to him by Hauser was suspect. It follows that Lee
Crocker’s conveyance
of further transmission of this information to
WorkCover was done recklessly, not caring whether the representations be true or
false.
The
statement made on 5 May 2010 orally and later in writing was one in respect of
the workplace rights of the applicant and/or the
exercise of a workplace right
by the applicant. Plainly, the intent of the representation was for it to be
relied upon by WorkCover.
It follows that I am satisfied the respondent breached
s.345 FW Act.
Contravention s.351 FW Act
The
applicant further complains that the respondent contravened s.351 FW Act. He
contends that the injury he sustained is a “physical
disability”
within the meaning of that term as used in s.351 FW Act and that, by reason of
the conduct earlier described, the
respondent took adverse action against him
because of that injury.
Relevantly,
s.351 provides:
“Discrimination
(1) An
employer must not take adverse action against a person who is an employee ... of
the employer because of the person’s
... physical or mental disability
....”
A
threshold question exits concerning the existence of a disability within the
terms of s.351 FW Act. The term “employee with
a disability” is
defined within s.12 FW Act to mean:
“...
A national system employee who is qualified for a disability support pension is
set out in
section 94
and
95
of the
Social Security Act 1991
, or who would be so
qualified but for paragraph 94(1)(e) or 95(1)(c) of that
Act.”
In
this case there is no evidence to establish that the applicant satisfies the
definition. The disability complained of by the applicant
is the effect of an
injury subject to the WorkCover claim. By any measure it was a minor injury in
the nature of an aggravation injury.
In
my view it follows that this claim fails.
Contravention s.352 FW Act
The
applicant complains that the respondent contravened s.352 FW Act by dismissing
him whilst he was temporarily absent from his employment
as a result of the
injury. Section 352 of the Act relevantly provides:
“Temporary
absence – illness or injury
An
employer must not dismiss an employee because the employee is temporarily absent
from work because of illness or injury of a
kind prescribed by the
regulations.”
Relevantly,
regulation 6.04(2) provides that:
“A
prescribed kind of illness or injury exists if the employee provides a medical
certificate for the illness or injury, or
a statutory declaration about the
illness or injury, within:
(a) 24
hours after the commencement of the absence; or
(b) such
longer period as is reasonable under the
circumstances.”
I
have earlier addressed the question of dismissal. I am satisfied that the
applicant was dismissed. Furthermore, I am satisfied that
at the time of his
dismissal he was subject to a certificate not requiring his return to work until
26 April.
However,
while I am satisfied that the applicant had an illness or injury and I am
satisfied that he had attended various medical
practitioners and obtained
certificates which would have addressed the statutory requirement provided for
by the Regulations, the
fact remains that he did not satisfy the regulation in
terms of providing the medical certificate for the injury to the employer
either
within 24 hours after the commencement or at any other time. Indeed, in
submissions made on his behalf, the applicant’s
case, at its highest, is
that he verbally advised Andrew Tubb on 19 March of his incapacity for work and
verbally advised Dene Crocker
on 19 March of his incapacity for work. Verbal
advice does not constitute the provision of a medical certificate as required by
regulation
6.04(2). Plainly, the applicant had medical certificates issued in
his favour. However to claim the benefit of s.352 including the
prospect of
successful contravention proceedings I consider it is necessary to strictly
prove the matter of contravention. In this
case the applicant has failed to
prove that the medical certificates were provided as required by regulation
6.04(2) and accordingly
this ground fails.
Contravention s.232B WCR Act
The
applicant contends that at the time of dismissal from his employment he had a
right to a guarantee of employment pursuant to s.232B
WCR Act for the period 17
March 2010 up to and including 17 April 2010. Section 232B of the WCR Act
relevantly provides:
“Dismissal
of injured worker only after 12 months
(1) Within
12 months after a worker sustains an injury, the employer must not dismiss the
worker solely or mainly because the worker
is not fit for employment in a
position because of the injury.
Maximum
penalty – 40 penalty units.
(2) This
section applies to a dismissal after the commencement of this section even if
the worker became unfit before the commencement.”
The
applicant contends that the provision stands alone and is subject to a penalty
of breach. He contends that the Court has jurisdiction
to impose the penalty
contemplated by the provision pursuant to the cross vesting powers contained in
the
Jurisdiction of Courts (Cross-Vesting) Act 1987
(Cth).
The
respondent contends that the allegation that the applicant had a right to a
guarantee of employment pursuant to s.232B of the
WCR Act for the period 17
March 2010 up to and including 17 April 2010 is misconceived. Respectfully, I
agree. While s.232B gives
rise to the entitlement of a penalty for
contravention, it of itself does not enliven any guarantee of employment.
Further
and more substantially, the applicant does not have standing to bring a claim
under s.232B of the WCR Act. Section 579 of
the WCR Act provides that such an
action can only be taken by complaint of:
The
Chief Executive Officer of the Authority; or
A
person authorised for the purpose by the Chief Executive Officer of the
Authority; or
The
Attorney-General.
This
complaint is prosecuted by none of the above parties and accordingly is
dismissed.
Compensation
The
applicant claims for compensation totalling $32,894.00 made up as
follows:
General Damages $15,000.00
Interest $450.00
Past economic loss $5,717.00
Interest on past economic loss $286.00
Past loss superannuation $515.00
Interest thereon $26.00
Future economic loss $10,000.00
Future loss superannuation $900.00
The
applicant also seeks pecuniary penalty in the order of $10,000.00.
Each
of s.340(1), s.351(1), s.352, and s.353(1) are civil remedy provisions as
provided for in s.539(1) FW Act. Section 545(1) provides
that the Court make any
order it considers appropriate if it is satisfied that the person has
contravened a civil remedy provision.
Specifically, s.545(2) provides that the
Court may make an order including an order awarding compensation for loss the
person has
suffered because of the contravention.
General Damages
The
applicant claims $15,000.00 general damages for the dismissal. In oral
submissions it was contended that despite the paucity of
evidence on the matter
this sum should be allowed on the basis of “hurt and
humiliation.”
The
terms of s.545(2)(b) are broad. They provide that the Court may make an order
“awarding compensation for loss that a person
has suffered because of the
contravention.”
The
broad terms of s.545(2)(b) are to be distinguished from the remedies for unfair
dismissal provided in Division 4 of Part 3-2 which
provides that Fair Work
Australia (FWA) may order compensation (s.390(3) FW Act) but which must not
include a component by way of
compensation for shock, distress or humiliation,
or other analogous hurt.
Where
civil remedies only are sought, the applicant is first required to make
application before FWA and obtain a certificate before
proceeding to Court.
Accordingly, it appears counter intuitive that the basis of relief to be
afforded by way of compensation by
the Court would be materially difficult for
that to be got from FWA. Where a contravention is alleged the matter must
proceed to
court. However, the pecuniary penalty order is separate and distinct
from the compensation order: see s.545 and s.546.
It
follows that I consider that general damages can only be awarded in respect of
those matters which are not excluded under s.390
and which would not be awarded
under s.546.
In
this case, hurt and humiliation are excluded under s.390(4) and do not form a
basis for an award of general damages.
In
the event I am in error in my analysis, I will assess such damages. In my view,
the circumstances surrounding the applicant’s
termination were egregious.
As I have earlier observed, the conduct of the principal members of Crocker
Builders has left me with
a considerable degree of unease. There is clearly more
to this case than the parties were prepared to place before the Court. Corke-Cox
presented as a prickly character. Perhaps it is the nature of the painting trade
but it is fair to say that his demeanour and attitude
were not generally
endearing. In any event, I am satisfied that he did not deserve the treatment
which was meted out to him by the
respondent. My impression is that the injury
was the straw that broke the camel’s back in terms of the relationship
between
the parties, and once the relationship had deteriorated to that point a
parting of the ways was inevitable. On the other hand, Crocker
Builders was an
organisation not to be trifled with and in my view they plainly had a cavalier
attitude towards the applicant as
an employee. With that in mind he was
summarily dismissed. Although plainly not unexpected by the applicant, the
respondent’s
conduct towards him was entirely disrespectful and its later
efforts to justify its conduct amplified that disrespect. In the circumstances
I
consider an assessment of $5,000.00 as appropriate for hurt and humiliation
which may have been occasioned by the manner of
dismissal.
Past economic loss
The
average earnings of the applicant prior to dismissal were $1,252.00 gross per
week.
[18]
That is
approximately $60,000.00 per annum. He gave evidence that in the 2011 financial
year he earned $46,000.00 or approximately
$333.00 per week less than when he
was employed by the respondent. On the applicant’s contentions the
difference over the 72
weeks between dismissal and the time of hearing had a
value of $28,584.00, which it contended ought be discounted by 80% to reflect
the impact of the injury and any other matters other than the adverse action,
thereby entitling the applicant to damages of $5,717.00.
The
principles of assessment of an employee’s damages for unlawful dismissal
are common to those that apply in common law. In
Bostik (Australia) Pty Ltd v
Gorgevski (No 1)
[1992] FCA 209
;
(1992) 36 FCR 20
at 32, Sheppard and Heerey JJ, with whom
Ryan J agreed, stated:
“...The
contract in question is a contract of employment which is terminable by either
party on giving to the other the applicable
period of notice provided for in the
award. Where an employee is wrongfully dismissed, he is entitled, subject to
mitigation, to
damages equivalent to the wages he would have earned under the
contract from the date of the dismissal to the end of the contract.
The date
when the contract would have come to an end, however, must be ascertained on the
assumption that the employer would have
exercised any power he may have had to
bring the contract to an end in the way most beneficial to himself; that is to
say, that he
would have determined the contract at the earliest date at which he
could properly do so.”
In
this instance, the term of the arrangement between the applicant and respondent,
irrespective of how they may have characterised
it, was governed by the terms of
the period subcontract agreement. The agreement was dated 11 November 2009 and
provided for a period
of 12 months from that date. The applicant’s
employment was wrongfully terminated on 12 April.
However,
this agreement was, for the purposes of the arrangement between the parties,
largely illusory. The schedule in the agreement
provided it covered “works
yet to be agreed” for 12 months from the date of the agreement. Work was
to be undertaken
by “Work Order signed by the Builder for each
project” which would “be issued from time to time during the term
of
this contract.”
The
periodic subcontract agreement was merely ‘an agreement to agree.’
It offered no security of employment and permitted
the respondent to bring it to
an end by simply no longer issuing work orders. Of course, in practice, no
formal work orders ever
were produced. The terms of the agreement were waived in
that respect. The applicant had no formal right to ongoing employment. In
reality the contract was one terminable at will.
However,
as a common law employee the applicant was entitled to notice. He had been in
employment since 1 June 2007. Accordingly,
he was entitled to two weeks:
s.117(3) FW Act. Further, he could not have been terminated whilst still off
work on a medical certificate.
He was not certified fit to return to work until
23 April, that is two weeks after his dismissal. He could not have been given
notice
until then.
Finally,
because he was over 45 he was entitled to an extra week’s work: s.117(4)
FW Act.
It
follows that I assess his entitlement to part loss at $7,000.00 made up
as:
Notice for
termination
[19]
(2
weeks) $2,800.00
Age loading (1 week) $1,400.00
Allowance for earliest date for work (2 weeks)
$2,800.00
$7,000.00
The
applicant also claims for a future economic loss. The basis of his claim is that
it ought be expected that he would suffer continued
insecurity in his employment
given his injury and age. The approach of the applicant in its submissions on
this point is consistent
with an approach taken in an award for compensation in
a negligence action. As I have earlier noted, this action is founded in
contract.
Given the nature of the arrangement between the parties there is no
basis for any award of future economic loss.
Superannuation
The
applicant is entitled to an allowance for superannuation on the assessed loss of
gross income. I assess that figure at $630.00
made up as 9% x $7,000.00 to be
paid into his nominated authorised superannuation
fund.
Interest
The
applicant is also entitled to interest in respect of past loss of wages and past
loss of superannuation contribution. I assess
those sums as $516.00 and $111.00
respectfully.
[20]
Penalty
In
addition to compensation, it is also appropriate that a penalty be imposed for
the contraventions.
The
general considerations to be applied in considering the position of a pecuniary
penalty are summarised in
Mason v Harrington Corporation Pty Ltd t/as Pangaea
Restaurant & Bar
[2007] FMCA 7.
That authority has been cited with
approval in the Federal Court in
Kelly v Fitzpatrick
[2007] FCA 1080
and
in the Full Court in
Australian Ophthalmic Supplies Pty Ltd v
McAlary-Smith
[2008] FCAFC 8.
They identify a number of factors that ought
be taken into account in deciding whether particular conduct calls for a penalty
and
the quantum of such a penalty. While those cases identify a convenient
checklist of matters, they do not prescribe or restrict the
matters which may be
taken into account in the exercise of the Court’s discretion. Generally,
it should be noted, as was observed
by Burchett J in
Trade Practices
Commission v TNT Australia Pty Ltd
(1995) ATPR 41-375, that:
“It
cannot be denied that the fixing of the quantum of a penalty is not an exact
science. It is not done by the application
of a formula and, within a certain
range, Courts have always recognised that one precise figure cannot be
incontestably said to be
preferable to another.”
Generally,
I have taken into account the circumstances surrounding the contravention and
the nature and extent of damage suffered
by Corke-Cox. I also take note of the
fact that there are no previous complaints against Crocker Builders and that his
business is
a relatively small operation, although that matter of itself is not
decisive. I also take into consideration the deliberateness of
the breach,
noting that the breach has arisen by reason of Crocker’s indelicate
approach to a matter which was probably inevitable.
That is to say that by
reason of the deteriorating relationship between the parties arising from his
WorkCover claim, his prickly
personality and his attitude to Crocker’s
customers, their relationship was coming to an end. I also take into account
that
in this instance no contrition has been expressed on the part of Crocker
Builders. It has contested the application and in doing
so has overreached in
some matters raised in its response.
Overall,
having regard to all of the circumstances both individually and cumulatively I
come to the view that an appropriate penalty
for the breach of general
protection contravention is $5,000.00.
Orders
Given
my findings I order as follows.
The
respondent pay the applicant the sum of $7,000.00 by way of compensation for
lost wages and $516.00 in respect of interest thereon.
The
respondent pay to an authorised superannuation fund nominated by the applicant a
sum of $630.00 by way of compensation for lost
superannuation benefits and
$111.00 on account of interest thereon.
The
respondent pay a pecuniary penalty assessed at $5,000.00 in respect of its
contravention of s.340 and that such sum be paid to
the
applicant.
I certify that the preceding 185185one
hundred185185eighty-fiveeighty-twoone hundred and eighty-five (185) paragraphs
are a true copy
of the reasons for judgment of Burnett FM
Date: 31 August 2012
[1]
Gordon Crocker
was the founding director of Crocker Builders. By the time of these events he
had retired from the business but maintained
an interest by helping out his sons
Dene and Lee who had assumed control of the business.
[2]
Affidavit of
Richard Perry Corke-Cox filed 29 November 2010 Annexure RPC4 – Application
for Compensation.
[3]
T pg 75 ln 3 –
10.
[4]
T pg 140 ln
33.
[5]
T pg 180 ln
30 – 37.
[6]
T
pg 181 ln 1 –
9.
[7]
T pg 147 ln
21, 39.
[8]
T pg 148
ln 1 – 3.
[9]
T
pg 41 ln 34.
[10]
Jones v Dunkel
[1959] HCA 8
;
(1959) 101 CLR
298.
[11]
T pg 149
ln 40.
[12]
T pg
150 ln 19.
[13]
Stevens v Brodribb Sawmilling Co Pty Ltd
[1986] HCA 1
;
(1986) 160 CLR 16
at 24 per
Mason J.
[14]
Hollis v Vabu Pty Ltd
supra at [45] –
[58].
[15]
Affidavit of Richard Perry Corke-Cox filed 29 November
2010.
[16]
At
[329].
[17]
[2010]
FCA 399.
[18]
$60,112.00 ÷ 48 weeks = $1,252.00 (allow 3 weeks for builders’
Christmas stand-down and annual public
holidays).
[19]
40
hr week x $35 x 2 weeks = $2,800.00 – no allowance for taxation because
the respondent had made no group tax deductions.
The applicant retains a duty to
declare his taxable
income.
[20]
Calculations: $7,000.00 x 7.5% x 859 days/365 = $516.00
$630.00 x 7.5% x 859 days/365 = $111.20