Alice Berry v Glass Now Pty Ltd [2023] FWC 1801
1
Fair Work Act 2009
s.394—Unfair dismissal
Alice Berry
v
Glass Now Pty Ltd
(U2023/3014)
COMMISSIONER SPENCER BRISBANE, 21 JULY 2023
Application for relief from unfair dismissal – jurisdictional objection – minimum employment
period – change of contract – sale of shares – employee or independent contractor.
INTRODUCTION
[1] Ms Alice Berry (the Applicant) made an application to the Fair Work Commission (the
Commission) under section 394 of the Fair Work Act 2009 (Cth) (the Act) for a remedy
pursuant to section 392 of the Act, alleging that she had been unfairly dismissed from her
employment with Glass Now Pty Ltd (Glass Now/the Respondent). The Applicant sought
compensation for lost wages in lieu of reinstatement and payment for purchase of her shares in
the Respondent Company. The Respondent filed its Form F3 response to the unfair dismissal
application in which it raised a jurisdictional objection to the application, pursuant to s.382(a)
of the Act, that the Applicant’s employment did not meet the minimum employment period of
six months. The Respondent argued that the Applicant is not a person protected from unfair
dismissal in accordance with s.382 of the Act and is therefore not entitled to pursue relief for
her claimed unfair dismissal under the Act.
[2] The Applicant commenced employment with Glass Now on 27 October 2003 as an
Accounts and Office Manager, on a full-time basis. At that time, the Applicant, in her capacity
as a trustee of the Kvapilova Trust, and her husband, Mr Douglas Berry, were the shareholders
of Glass Now until they sold it to the Applicant’s brother-in-law, Mr Vilem Cerny, on 28 June
2022 (the Share Sale Agreement).
[3] Following its sale to Mr Cerny, on 1 July 2022, Glass Now entered into a contract (the
Consultancy Agreement) with Crownsun Pty Ltd (Crownsun), of which the Applicant and Mr
Berry were equal shareholders. Pursuant to the Consultancy Agreement, Crownsun was to
provide consulting services to Glass Now. These services were provided by the Applicant and
Mr Berry. In December 2022, the Applicant advised the Respondent that the Consultancy
Agreement would not be extended beyond 3 January 2023, and it ended on this date.
[4] After an absence of approximately one month, the Applicant, on 1 February 2023
commenced employment with Glass Now, owned by Mr Cerny. The Applicant was employed
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DECISION
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during this period on a part-time basis until her dismissal on 29 March 2023. Whilst the
Applicant argued that the period of the one-month absence was approved unpaid leave, there
was no connection with Glass Now in relation to the approval or recognition by the Respondent
following the Share Sale Agreement.
[5] The Applicant stated she was dismissed due to unsatisfactory work performance, and
that the dismissal was harsh, unjust or unreasonable.
[6] This Decision deals with the Respondent’s jurisdictional objection only.
Relevant legislative provisions
[7] Section 390 of the Act provides that the Commission may order a remedy if the
Commission is satisfied that the Applicant was protected from unfair dismissal at the time of
being dismissed and the Applicant has been unfairly dismissed.
[8] Section 382 of the Act provides that a person is protected from unfair dismissal if, at the
time of being dismissed:
(a) the person is an employee who has completed a period of employment with his
or her employer of at least the minimum employment period; and
(b) one or more of the following apply:
(i) a modern award covers the person;
(ii) an enterprise agreement applies to the person in relation to the
employment;
(iii)the sum of the person’s annual rate of earnings, and such other amounts
(if any) worked out in relation to the person in accordance with the
regulations, is less than the high income threshold.
[9] In accordance with section 396 of the Act, it must next be determined:
(a) whether the application was made within the period required in subsection
394(2);
(b) whether the person was protected from unfair dismissal;
(c) whether the dismissal was consistent with the Small Business Fair Dismissal
Code; and
(d) whether the dismissal was a case of genuine redundancy.
[10] The parties agreed that the application was filed in the Commission within the statutory
21-day period. It was not in dispute between the parties that the Respondent was not a small
business employer, nor that this dismissal was a termination of employment and not a case of
genuine redundancy.
[11] The minimum employment period is one year for a small business employer and six
months for other employers as set out in section 383 of the Act as follows:
“383 Meaning of minimum employment period
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The minimum employment period is:
(a) if the employer is not a small business employer—6 months ending at the earlier of
the following times:
(i) the time when the person is given notice of the dismissal;
(ii) immediately before the dismissal; or
(b) if the employer is a small business employer—one year ending at that time.”
[12] It was agreed between the parties that the Respondent is not small business employer.
Therefore, the minimum employment period that must have been served by the Applicant is six
months.
[13] Section 384 of the Act defines the period of employment in the following terms;
“384 Period of employment
(1) An employee’s period of employment with an employer at a particular time is the
period of continuous service the employee has completed with the employer at that time
as an employee.”
[14] Section 384(2)(b) goes on to define the circumstances in which an employee’s service
with a previous employer may count towards their service with a new employer where it states
as follows:
“(2) However:
…
(b) if:
(i) the employee is a transferring employee in relation to a transfer of
business from an old employer to a new employer; and
(ii) the old employer and the new employer are not associated entities
when the employee becomes employed by the new employer; and
(iii) the new employer informed the employee in writing before the new
employment started that a period of service with the old employer would
not be recognised;
the period of service with the old employer does not count towards the
employee’s period of employment with the new employer.”
[15] The meaning of continuous service is set out in section 22 of the Act. In the
circumstances of the present case, it appears that sub-sections (5) and (7) may be relevant as
they deal with continuous service where there is a transfer of employment of the employee from
one employer to another. Section 22 relevantly states as follows:
“22 Meanings of service and continuous service
(1) A period of service by a national system employee with his or her national system
employer is a period during which the employee is employed by the employer, but does
not include any period (an excluded period) that does not count as service because of
subsection (2)
(2) The following periods do not count as service:
(a) any period of unauthorised absence;
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(b) any period of unpaid leave or unpaid authorised absence, other than:
(i) a period of absence under Division 8 of Part 2-2 (which deals with
community service leave); or
(ii) a period of stand down under Part 3-5, under an enterprise agreement
that applies to the employee, or under the employee’s contract of
employment; or
(iii) a period of leave or absence of a kind prescribed by the regulations;
(c) any other period of a kind prescribed by the regulations.
(3) An excluded period does not break a national system employee’s continuous service
with his or her national system employer, but does not count towards the length of the
employee’s continuous service.
…
(5) If there is a transfer of employment (see subsection (7)) in relation to a national
system employee:
(a) any period of service of the employee with the first employer counts as
service of the employee with the second employer; and
(b) the period between the termination of the employment with the first
employer and the start of the employment with the second employer does not
break the employee’s continuous service with the second employer (taking
account of the effect of paragraph (a)), but does not count towards the length of
the employee’s continuous service with the second employer.
…
Meaning of transfer of employment etc.
(7) There is a transfer of employment of a national system employee from one national
system employer (the first employer) to another national system employer (the second
employer) if:
(a) the following conditions are satisfied:
(i) the employee becomes employed by the second employer not more
than 3 months after the termination of the employee’s employment with
the first employer;
(ii) the first employer and the second employer are associated entities
when the employee becomes employed by the second employer; or
(b) the following conditions are satisfied:
(i) the employee is a transferring employee in relation to a transfer of
business from the first employer to the second employer;
(ii) the first employer and the second employer are not associated entities
when the employee becomes employed by the second employer.
Note: Paragraph (a) applies whether or not there is a transfer of business from the first employer
to the second employer.”
Permission to appear
[16] The Respondent sought to be legally represented before the Commission. It was set out
that the Respondent did not have in house legal expertise and due to the complexity of the
matter would benefit from the assistance of a lawyer. Directions were set for the filing of
submissions in relation to this matter. The applicant objected to the legal representation. Further
to the filing of submissions, pursuant to section 596 (2)(a), the matter was raised with the
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parties, and the commissioner set out that it was her obligation to provide a fair process between
the parties. After consideration of the matters, to be determined, permission was granted for the
Respondent to be legally represented as this would enable the matter to be dealt with more
efficiently, taking into account the complexity of the matter.
[17] Accordingly, the Applicant was self-represented, and the Respondent was represented
by Mr Connor McManus, Lawyer of Ellem Warren Napa Lawyers.
BACKGROUND
[18] In summary terms, the Applicant set out that she commenced full-time employment with
Glass Now (when the company was then owned by her husband and her) on 27 October 2003
until 28 June 2022. She argued that from 1 July 2022 until 3 January 2023 she was engaged by
the Respondent (the new owner) as a consultant, but she stated that this was effectively akin to
a full-time employment relationship. The Applicant stated that from 3 January 2023 to 31
January 2023, she took a period of agreed unpaid leave. From 1 February 2023 until her
dismissal on 29 March 2023, the Applicant submitted that she was a part-time employee of the
Respondent. On this basis, the Applicant contended that her employment with the Respondent
was continuous and unbroken for a period of approximately 20 years.
[19] The Applicant stated that her employment with Glass Now involved her working for her
husband, Mr Berry’s business. In 2021 the Applicant stated that Mr Berry expressed his wish
to sell the Respondent’s business, and that in 2022 the Applicant’s brother-in-law, Mr Cerny,
expressed interest in buying the business.
[20] Prior to the sale of the business, the Applicant submitted that Mr Cerny indicated that
he wished for the Applicant to remain employed with the Respondent in order for her to assist
with the transition of ownership to Mr Cerny. Following the sale, the Applicant contended that
she was engaged by the Respondent with her husband under a consultancy agreement.
[21] The Applicant stated that from 1 August 2022, an agreement had been put in place
whereby the Applicant would work four days per week. The Applicant stated that throughout
the period of the Consultancy Agreement she invoiced the Respondent for her services, and she
initially worked between 25 and 30 hours per week, until Mr Berry stopped consulting, when
the Applicant’s hours significantly increased.
[22] The Applicant submitted that in December 2022, she advised the Respondent that she
would not continue to work pursuant to a consultancy agreement and instead wished to be
engaged as an employee from 1 February 2023. The Applicant submitted she made this request
as she had been treated as an employee throughout the duration of the consultancy agreement,
but did not receive the entitlement of an employee, such as annual leave. The Respondent stated
that the consultancy agreement concluded on 31 December 2022.
[23] The Applicant submitted that on 3 January 2023, she commenced a period of unpaid
leave, which continued until 31 January 2023. The Applicant stated she then commenced work
for the Respondent pursuant to an employment contract from 1 February 2023 until her
dismissal in March 2023.
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[24] The Respondent submitted that the Applicant resigned her employment with the Glass
Now business upon the sale of the Respondent’s business. The Respondent stated this sale
occurred on 28 June 2023, by way of a Share Sale Agreement in which the Applicant and Mr
Berry sold 18 of the 20 shares in the Respondent to Mr Cerny. The Applicant retained the two
remaining shares of the Respondent. Clause 16.8 of the Share Sale Agreement states:
“This agreement constitutes the entire agreement between the parties in connection with
its subject matter and supersedes all previous agreements or understandings between the
parties in connection with its subject matter.”
[25] In the alternative, the Respondent submitted that the execution of the consultancy
agreement effected the termination of the Applicant’s employment.
[26] The Respondent characterised the Applicant’s status, in relation to the Respondent,
during the period of the consultancy agreement was that of a contractor. The Respondent argued
that the Applicant was an employee of Crownsun throughout this period, and that no direct
relationship between the Applicant and Respondent existed. The further engagement of the
Applicant as an employee is dealt with below.
SUMMARY OF THE EVIDENCE AND SUBMISSIONS
[27] Directions had been set for the filing of evidence and submissions for the jurisdictional
matter. Accordingly, the parties filed their material in compliance. Determinative conferences
were also held with the parties. After these conferences, the parties requested the matter be
determined on the papers.
Applicant submissions and evidence
[28] In support of her application for an unfair dismissal remedy, the Applicant provided
written submissions on why she satisfied the minimum employment period.
[29] In addition to those matters set out in the ‘background’ above, in summary, the
Applicant submitted that an employment relationship between herself and the Respondent was
created in September 2022, when the Respondent engaged the consultancy services of another
service provider in addition to Crownsun. The Applicant stated that clause 1.5 of the General
Terms and Conditions of the consultancy agreement precludes the Respondent from engaging
other services providers, but that the Respondent engaged a personal acquaintance as an IT and
business consultant. Clause 1.5 of the consultancy agreement relevantly states:
“1.5 No exclusivity & conflicts
The Services are exclusively provided by the Service Provider [Crownsun] to the Client
[the Respondent] for the Consultancy Term. The Client may not engage other service
providers to provide similar services for the Consultancy Term.”
[30] It is contested, between the parties, where the other service providing similar services.
The Applicant further submitted that the Respondent also breached the terms of the consultancy
agreement in relation to the retention of records and intellectual property matters.
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[31] The Applicant described her consultancy role as materially similar to her previous role
when she and her husband had owned the business. She submitted that she performed the same
duties in both roles and referred to Mr Cerny as her “boss”, which she says evidenced an
employment relationship. The Applicant further stated that in October 2022, she and Mr Cerny
had a mutual verbal agreement in which the regular working hours of the Applicant were set.
[32] In December 2022, the Applicant stated that she had a discussion with Mr Cerny in
which she explained that aside from one aspect of her role which involved the training of
another staff member, she did not feel that she was providing consultancy services, but instead
was carrying out the functions of her previous Accounts and Officer Manager role. The
Applicant submitted that Mr Cerny agreed with her assessment, and on that basis the Applicant
put forward an employment proposal with identical conditions to the working arrangements
that had been in place since October 2022, save for a minor adjustment to ordinary working
hours. The Applicant stated that Mr Cerny accepted her proposal without any suggested
amendments.
[33] The Applicant set out that from 1 February 2023 she commenced employment with the
Respondent in the function of Accounts and Office Manager.
Respondent submissions and evidence
[34] In addition to those matters set out in the ‘background’ above, the Respondent submitted
that the termination was for a valid reason and was not harsh, unjust or unreasonable.
[35] In summary, the Respondent submitted that upon signing the Share Sale Agreement, in
accordance with clause 16.8, the Applicant and Mr Berry resigned their employment with the
Respondent, or that by executing the consultancy agreement, the Applicant terminated her
employment with the Respondent.
[36] The Respondent submitted that the Applicant had removed herself as an employee from
Xero, the Respondent’s bookkeeping software.
[37] The Respondent set out what it considered to be the salient features of the consultancy
agreement that demonstrated the Applicant’s status as that of a contractor, and not an employee.
These features were set out as follows:
• A minimum weekly commitment by the Respondent to engaging Crownsun to supply:
(i) The Applicant for 30 hours per week; and
(ii) Mr Berry for 25 hours per week.
• Crownsun was permitted to “engage other professionals to assist with providing the
services”;
• Payment is to be made to Crownsun within 7 days of the presentation of an invoice;
• The right to charge interest on unpaid invoices;
• Crownsun was liable for all its own insurance and licencing costs in respect of the
servicers it provided the Respondent;
• All incidental expenses of providing the services were payable by Crownsun;
• The agreement was for a fixed term of 1 July 2022 to 31 December 2022;
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• The fixed term could only be extended on the Respondent’s request;
• Crownsun was entitled to suspend work where invoices were outstanding for more
than 14 days;
• The agreement could be terminated by either party on 30 days’ notice;
• Crownsun was liable to the Respondent for a breach of the agreement by Crownsun;
• Crownsun was obliged to maintain its own QBCC licence for providing its services;
and
• The Respondent was liable to pay Crownsun GST for the services supplied by
Crownsun.
[38] The Respondent stated that in December 2022, the Applicant advised the Respondent
that the fixed term of the Consultancy Agreement would not be extended and instead offered
for her to commence employment with the Respondent on 1 February 2023. Accordingly, the
Applicant commenced part-time employment with the Respondent on this date.
[39] Referring to Tebble v Rizmas (Tebble),1 the Respondent argued that by the Applicant
entering into the consultancy agreement after the sale, the Applicant was not engaged as a new
employee with the new company. Tebble relevantly stated:
“The period between a resignation and reemployment cannot be characterised as a period
during which the employee is ‘employed by the employer’ unless the employer
specifically agrees to regard it as such”.2
[40] The Respondent described the Applicant’s obligations under the Consultancy
Agreement as “entirely antithetical to her ongoing employment”.3 On this point, the Respondent
cited Karam v Varga,4 which provided:
“To establish that the earlier contract had been terminated and replaced by the later
contract, the later contract must be entirely inconsistent with the former contract or, at
least, inconsistent with it to an extent that goes to the root of it.”5
[41] The Respondent argued that such inconsistency lies in the fact that the Consultancy
Agreement required that Crownsun provide the Applicant’s services to the Respondent for a
minimum of 30 hours per week, that Crownsun issued invoices to the Respondent, that a right
to suspend work and engage other consultants existed, and that that the Agreement stated that
Crownsun was the corporate entity engaged to provide consultancy services. This
demonstrated, in the Respondent’s opinion, that there was no direct relationship between the
Applicant and the Respondent throughout the period of the Consultancy Agreement. Instead,
the Respondent submitted that the relevant contracting relationship was between Crownsun and
the Respondent.
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CONSIDERATION
[42] The issue for determination in this matter is the length of the Applicant’s period of
employment for the purposes of s.383 of the Act as at the time of dismissal. This issue requires
a consideration of the effect of both the first and second periods of employment, and whether
they, along with any other purported period of employment throughout the intervening period,
constitute a period of continuous service, that meets the minimum employment period of six
months, for the purposes of ss. 22, 383 and 384 of the Act.
[43] There was no dispute that the Applicant was employed by the former Respondent
company from 27 October 2003 to 28 June 2022, and from 1 February 2023 to 29 March 2023.
It must therefore be considered whether the Applicant was an employee of the Respondent for
any time during the period between her resignation on 28 June 2022 and her commencement of
the part-time employment on 1 February 2023, being the period of the Consultancy Agreement.
[44] In determining this issue, I will first address the Respondent’s contention that upon the
execution of either the Share Sale Agreement or the Consultancy Agreement, the Applicant’s
employment with the Respondent ended. In their respective submissions, the Respondent
submitted,6 and the Applicant conceded,7 that the Applicant resigned her employment with the
Respondent immediately after signing the Share Sale Agreement. The Applicant further agreed
that the execution of the Consultancy Agreement operated to terminate her employment with
the former business, as owned by herself with her husband.8 Therefore, the Applicant’s
employment with the Respondent ended on 28 June 2022.
[45] It must now be considered whether, despite the termination of the Applicant’s
employment with the Respondent on 28 June 2022, a subsequent employment relationship was
created at any point following the execution of the Consultancy Agreement.
[46] The Respondent submitted that that for the period of the Consultancy Agreement, the
Applicant was not employed by the Respondent, but instead was a contractor. In Hollis v Vabu
Pty Ltd,9 it was held that “the distinction between an employee and an independent contractor
is rooted fundamentally in the difference between a person who serves his employer in his, the
employer’s, business, and a person who carries on a trade or business of his own”.10
[47] More relevantly now, Construction, Forestry, Maritime, Mining and Energy Union v
Personnel Contracting Pty Ltd (Personnel Contracting)11 considered the principles for
distinguishing between employment and independent contracting relationships. It provides that
a contract-focused approach to determining the issue must be used, and that the performance of
the contract and the course of dealings between the parties are not to be examined.12
[48] The contract must be examined to determine whether the worker is engaged to work in
the business of another.13 The Consultancy Agreement provided that it was the corporate entity
Crownsun that was engaged under the consultancy contract, and not the Applicant in an
individual capacity. As set out by the Respondent, no direct relationship existed between the
Applicant and Respondent in relation to the Consultancy Agreement, as evidenced by the
unilateral decision taken by Mr Berry to cease providing consultancy services in October 2022.
This fact was also evidence of the Applicant’s (and Mr Berry’s) right to exercise control over
their activities.14 While the Respondent did engage the Applicant and Mr Berry for a minimum
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weekly number of hours, the Applicant and Mr Berry had the right of control over the nature of
the services provided. While the existence of specified regular hours of work might suggest an
employment relationship, this is merely “a starting point”.15
[49] It was held in Personnel Contracting that any “label” the parties may choose to attach
to the relationship is not determinative or relevant in the classification of the relationship. It is
not for the parties to characterise the relationship.16 The Applicant, in arguing that she remained
an employee of the Respondent, submitted that she felt her role under the Consultancy
Agreement was, for all practical purposes, that of an employment relationship. In accordance
with Personnel Contracting, the Applicant’s subjective characterisation of the relationship in
this manner does not have a bearing on the true legal nature of the relationship. Furthermore, if
the Applicant’s characterisation of the relationship (that there was no material difference in the
work performed as compared to the former employment relationship) were accepted, the
Consultancy Agreement would have then had little work to do, other than to provide for the
cessation of the employment relationship.
[50] In ZG Operations Australia Pty Ltd v Jamsek,17 it was stated:
“…the character of the relationship between the parties in this case was to be determined
by reference to the rights and duties created by the written agreement which
comprehensively regulated that relationship”.18
[51] As was raised by the Respondent, the Consultancy Agreement did not create rights and
duties for the Applicant on a personal level. Such rights and duties were exercisable by
Crownsun, pursuant to clause 2.1 of the Consultancy Agreement, which obligated the company
to ensure that services were “provided by qualified and competent personnel (including sub-
contractors appointed in writing)”. This term weighs against a finding that an employment
relationship existed between the Respondent and the Applicant personally.
[52] The Applicant submitted that the Respondent breached the terms of the Consultancy
Agreement by engaging a separate consultant, and as a consequence, the Applicant argued this
alleged breach somehow dissolved the Consultancy Agreement and established an employment
relationship between herself and the Respondent. The basis upon which the Applicant made
this argument appears to be that, by engaging a separate consultant, Mr Cerny repudiated the
terms of the Consultancy Agreement, meaning that the relationship between the parties must
have defaulted to an employment relationship. The Respondent was however, under the
Consultancy Agreement, able to engage other consultants but not have them provide similar
services. There was no specific evidence on this matter, but it cannot be determined that the
contract transitioned to an employment contract.
[53] Even if the Applicant is correct that the Respondent breached the Consultancy
Agreement, the breach could not have established a new employment agreement or varied the
Consultancy Agreement such that it transformed to an employment agreement, without any
express intention of the parties to do so.
[54] If the Applicant’s argument was that, by the Respondent engaging another consultant,
the Respondent started performing the contract as though it were an employment agreement
and on that basis an employment relationship commenced, this must also be rejected. The
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Respondent’s characterisation of the relationship, and any adoption of that characterisation by
the Applicant, is inconsistent with Personnel Contracting,19 on the basis that the parties “cannot
by a mere consensual label alter the inherent character of the relations they have actually called
into existence”.20 Instead, the “rights and duties created by the written agreement” remain
applicable.21
[55] Therefore, in the absence of a direct employment relationship between the Applicant
and the Respondent, given the written terms of the Consultancy Agreement, I find that the
Applicant was not an employee of the Respondent at any time during the term of the
Consultancy Agreement from 1 July 2022 to 3 January 2023, and instead she was a contractor.
Transfer of employment
[56] Neither party provided submissions in respect of whether a transfer of employment
occurred, pursuant to s.22 of the Act. However, for completeness, the issue is to be considered
in determining the Applicant’s period of service.
[57] A transfer of employment in accordance with s.22(7) of the Act has not occurred in
these circumstances, as the Applicant’s engagement with the Respondent following the Share
Sale Agreement was not as an employee, but was, as previously discussed, as a contractor.
While the Applicant was eventually engaged as an employee on 1 February 2023, this occurred
more than three months after the termination of her employment that resulted from the Share
Sale Agreement. The precondition to a transfer of employment in s.22(7)(a) of the Act was
therefore not met.
[58] As a transfer of employment did not occur in accordance with s.22(7), the Applicant’s
first period of service does not count towards her service with the Respondent following the
Share Sale Agreement, pursuant to s.25(5) of the Act.
Periods of service
[59] In accordance with ss.383 and 384 of the Act, the period of continuous service that the
Applicant completed with the Glass Now at the time of dismissal must be determined.
[60] There is no dispute that the Applicant completed a period of service with the business,
when owned by the Applicant and Mr Berry, from 27 October 2003 until the execution of the
Share Sale Agreement on 28 June 2022.
[61] From 1 July 2022 to 3 January 2023, the Applicant was engaged as a contractor by Glass
Now, owned by Mr Cerny. As discussed earlier, the Applicant was not employee of the
Respondent throughout this period, meaning the period was not a period of service. As the
Applicant ceased to be an employee, this period as a contractor broke the Applicant’s continuity
of service. Therefore, this period from 1 July 2022 to 3 January 2023 cannot be included in any
consideration of the Applicant’s continuous service at the time of her dismissal.
[62] Then, from 3 January 2023 to 31 January 2023, the Applicant did not perform work for
Glass Now. The Applicant contended that she was on a period of agreed unpaid leave during
this time. She stated that this had been agreed before the Share Sale Agreement. The Applicant
argued that this period was an excluded period,22 and therefore, without being considered a
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period of service, did not break her continuity of service. Even if this were so, the Applicant
had already ceased being an employee of Glass Now at this time, and her continuity of service
had already been broken by the execution of the Consultancy Agreement. Further, the old
employer, after selling the business, had no authority to approve leave. This period was
therefore not a period of service.
[63] There is no dispute that, after the one-month absence, the Applicant completed a new
period of service with the Respondent from 1 February 2023 to 29 March 2023, a period of 56
days.
[64] As the Applicant was not an employee of the Respondent throughout the period of the
Consultancy Agreement and the following one-month absence, this period, from 28 June 2022
to 31 January 2023, does not constitute a period of service in accordance with s.22 of the Act.
The transfer of employment provision in s.22 of the Act also prevents the Applicant’s initial
period of service before the Share Sale Agreement from contributing to this second period of
service. Accordingly, the period from 28 June 2022 to 31 January 2023 is required to be
excluded, meaning the totality of the Applicant’s employment with the Respondent was not
continuous service.
[65] Therefore, in accordance with s.384(1) of the Act, the Applicant’s total period of
continuous service, as an employee, with the Respondent as at the date of her dismissal, lasted
from 1 February 2023 to 29 March 2023, being a total of 56 days.
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CONCLUSION
[66] Accordingly, in considering the facts and circumstances of this matter, the Applicant’s
employment did not meet the minimum employment period of six months of continuous
service, in accordance with s.383 of the Act, at the date of the Applicant’s dismissal.
Consequently, the Respondent’s jurisdictional objection must be upheld, as the Applicant,
having not met the minimum employment period, is not a person protected from unfair
dismissal, in accordance with s.382 of the Act.
[67] Therefore, the Applicant’s Application made pursuant to s.394 is jurisdictionally barred
and must be dismissed.
[68] I Order accordingly.
COMMISSIONER
Printed by authority of the Commonwealth Government Printer
<PR764476>
1 [2011] FWA 6853.
2 Tebble v Rizmas [2011] FWA 6853 at [6].
3 Respondent’s Submissions on Jurisdiction at [22].
4 [2019] QCA 82.
5 Karam v Varga [2019] QCA 82 at [23].
6 Ibid at [6].
7 Applicant’s Response to Respondent’s Submission on Jurisdiction at [6].
8 Ibid at [7].
9 [2001] HCA 44.
10 Hollis v Vabu Pty Ltd [2001] HCA 44 at [40].
11 [2022] HCA 1.
12 Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 at [40]-[62],
[172]-[178] (‘Personnel Contracting’).
13 Ibid at [39], [180]-[183].
14 Ibid at [113]-[114]
15 ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 at [106] (‘Jamsek’).
16 Personnel Contracting at [58], [63]-[66], [79].
17 [2022] HCA 2.
18 Jamsek at [8].
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[2023] FWC 1801
14
19 Personnel Contracting at [58], [63]-[66], [79].
20 Curtis v Perth & Fremantle Bottle Exchange Co Ltd [1914] HCA 21, 18 CLR 17 at [39].
21 Jamsek at [8].
22 Fair Work Act 2009 (Cth) s.22.
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Official source: https://www.fwc.gov.au/documents/decisionssigned/pdf/2023fwc1801.pdf