Amber McCormick v The Trustee For JJMP1 Trust [2023] FWC 2843
1
Fair Work Act 2009
s.394—Unfair dismissal
Amber McCormick
v
The Trustee For JJMP1 Trust
(U2023/4384)
COMMISSIONER SIMPSON BRISBANE, 27 OCTOBER 2023
Application for an unfair dismissal remedy – Summary dismissal complied with Small
Business Fair Dismissal Code – Application dismissed
[1] On 20 May 2023, Ms Amber McCormick (Ms McCormick/the Applicant) applied to
the Fair Work Commission (the Commission) under section 394 of the Fair Work Act 2009
(the Act) for an unfair dismissal remedy, alleging she was unfairly dismissed from her
employment with The Trustee for JJMP1 Trust (the Respondent).
[2] I listed the matter for an initial directions hearing by telephone on 30 June 2023. The
matter was listed for hearing of the jurisdictional issues and the merits of the application by
video using Microsoft Teams on 18 August 2023.
[3] At the commencement of the hearing, the parties agreed for the matter to be conducted
as a determinative conference. Ms McCormick appeared on her own behalf, and Mr Colin
Mitchell, Director, appeared with Ms Rosalind Mitchell for the Respondent.
[4] Ms McCormick filed written submissions on 28 July 2023. Ms McCormick adopted
this submission as her sworn evidence. Ms McCormick sought to rely on a statement of Ms
Lioni Wilkinson, however Ms McCormick said she was unaware Ms Wilkinson would need to
appear at the Hearing. The Respondent relied primarily on its Form F3 Response filed on 27
June 2023 which was prepared by both Mr and Ms Mitchell. Mr and Ms Mitchell both adopted
the contents of what was said in the Form F3 as sworn evidence. They also both swore to the
contents of what was said in the completed Fair Dismissal Code Checklist. They both said that
the Checklist was prepared by both of them, although Mr Mitchell provided some clarification
concerning what was said on part of the Checklist.
[5] The Respondent also filed an email of 28 July which included reference to the following
issues. Mr Mitchell said he drafted the email and adopted the contents of that email as his
evidence.
“………………
1. 1. Sand for pool not removed ( sat 1 year on powered site )
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DECISION
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2. 2. Lightening strike damages not actioned
3. 3. Termite spraying not actioned - lost cabin 13 to termites
4. 4. Missing equipment- bike, gerney
5. 5. Recycled cans : 4 square bins & 3 regular bins overflowing at camp kitchen not
removed for
12 months
6. 6. Staff said she did not come to the office for 3 weeks when she purchased her
house..”
[6] The Respondent filed a further email with attachments on 11 August 2023 that Mr
Mitchell also adopted as evidence. Thie email included the following in relation to the
allegation of funds going missing:
“Please see the attached statements, in response to section 3 of the ASCListing letter, as
the cash misconduct evidence we have.
1. CamCupid, tennant in Van12, RMS statement showing missing payments. The
Tennant has confirmed that all payments where made using cash or card. Only the card
payments have been recorded in our RMS booking system.
2. Statements showing monthly cash receipts Feb23, Jan23, Mar23 and Feb22. In Feb23
only $174 was recorded vs between $1000 and $4000 during the other months.”
[7] The Respondent raised a jurisdictional objection that it was a small business and it
complied with the Small Business Fair Dismissal Code.
Was the Applicant terminated?
[8] The Applicant identified in her written materials that she had resigned from her
employment with the Respondent, but that she considered she had no choice but to do so. This
created a separate jurisdictional issue as to whether the Applicant was dismissed in accordance
with s.386 of the Act.
Legislation
[9] Section 386 of the Act sets out when a person has been dismissed from their employment
and relevantly states:
“386 Meaning of dismissed
(1) A person has been dismissed if:
(a) the person’s employment with his or her employer has been terminated on
the employer’s initiative; or
(b) the person has resigned from his or her employment, but was forced to do so
because of conduct, or a course of conduct, engaged in by his or her
employer.”
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[10] Section 388 of the Act states:
“388 The Small Business Fair Dismissal Code
(1) The Minister may, by legislative instrument, declare a Small Business Fair
Dismissal Code.
(2) A person’s dismissal was consistent with the Small Business Fair Dismissal Code
if:
(a) immediately before the time of the dismissal or at the time the person was
given notice of the dismissal (whichever happened first), the person’s
employer was a small business employer; and
(b) the employer complied with the Small Business Fair Dismissal Code in
relation to the dismissal.”
[11] The Small Business Fair Dismissal Code states:
“Summary Dismissal
It is fair for an employer to dismiss an employee without notice or warning when the
employer believes on reasonable grounds that the employee’s conduct is sufficiently
serious to justify immediate dismissal. Serious misconduct includes theft, fraud,
violence and serious breaches of occupational health and safety procedures. For a
dismissal to be deemed fair it is sufficient, though not essential, that an allegation of
theft, fraud or violence be reported to the police. Of course, the employer must have
reasonable grounds for making the report.
Other Dismissal
In other cases, the small business employer must give the employee a reason why he or
she is at risk of being dismissed. The reason must be a valid reason based on the
employee’s conduct or capacity to do the job.
The employee must be warned verbally or preferably in writing, that he or she risks
being dismissed if there is no improvement.
The small business employer must provide the employee with an opportunity to respond
to the warning and give the employee a reasonable chance to rectify the problem, having
regard to the employee’s response. Rectifying the problem might involve the employer
providing additional training and ensuring the employee knows the employer’s job
expectations.
Procedural Matters
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In discussions with an employee in circumstances where dismissal is possible, the
employee can have another person present to assist. However, the other person cannot
be a lawyer acting in a professional capacity.
A small business employer will be required to provide evidence of compliance with the
Code if the employee makes a claim for unfair dismissal to Fair Work Australia,
including evidence that a warning has been given (except in cases of summary
dismissal). Evidence may include a completed checklist, copies of written warning(s),
a statement of termination or signed witness statements.”
[12] In this matter, I am first required to determine if Ms McCormick was dismissed pursuant
to s.386 of the Act. If I find that Ms McCormick was not dismissed pursuant to s.386 of the
Act, the application will be dismissed. If I find that she was dismissed, then it is necessary to
determine if the dismissal was in accordance with the Code.
[13] If I determine Ms McCormick’s dismissal was not in accordance with the Code, it is
necessary for me then to determine if the dismissal was harsh, unjust or unreasonable pursuant
to s.387 of the Act, which states:
“387 Criteria for considering harshness etc.
In considering whether it is satisfied that a dismissal was harsh, unjust or unreasonable,
the FWC must take into account:
(a) whether there was a valid reason for the dismissal related to the person’s
capacity or conduct (including its effect on the safety and welfare of other
employees); and
(b) whether the person was notified of that reason; and
(c) whether the person was given an opportunity to respond to any reason related
to the capacity or conduct of the person; and
(d) any unreasonable refusal by the employer to allow the person to have a
support person present to assist at any discussions relating to the dismissal;
and
(e) if the dismissal related to unsatisfactory performance by the person—
whether the person had been warned about that unsatisfactory performance
before the dismissal; and
(f) the degree to which the size of the employer’s enterprise would be likely to
impact on the procedures followed in effecting the dismissal; and
(g) the degree to which the absence of dedicated human resource management
specialists or expertise in the enterprise would be likely to impact on the
procedures followed in effecting the dismissal; and
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(h) any other matters that the FWC considers relevant.”
Background
[14] The Applicant had been employed by the Respondent to manage the Kookaburra
Holiday Park in Cardwell, North Queensland. At the time of termination, the Applicant was
receiving remuneration at $94,500 per annum inclusive of superannuation.
[15] The parties described a sequence of events leading to the ending of the employment
relationship included the following events.
19 March 2023
[16] Ms McCormick said she had a discussion with Mr Mitchell on 19 March 2023 for an
hour and a half and it was agreed she could send a park map to the local council.
20 March 2023
[17] Ms McCormick said on 20 March she sent an email to the Council Environment Health
Officer and within 20 minutes Mr Mitchell had called her and was verbally abusing her.
21 March 2023
[18] On 21 March 2023, Ms McCormick stated that she found her role with the Respondent
advertised online. Ms McCormick said the following day on 21 March 2023 she saw on
Facebook that her job was advertised. Mr Mitchell said he did not recall exactly when the job
was advertised. Mr Mitchell said they live in regional Victoria and their manager Ms
McCormick lives in North Queensland running the park, and they were getting big alarm bells
ringing with Ms McCormick not answering calls, and not answering customers calls and
customers were telling them there were a lot of things wrong and they were not staying at the
park because of the condition of the park, and they felt they were in a very precarious position.
[19] Mr Mitchell said they tried two things, one to try and find a way to get Ms McCormick
to do the things she was refusing to do, and second as a backup, to get an advertisement out to
try and find an alternative manager if the worst comes to the worst, which subsequently
happened.
22 March 2023
[20] Ms McCormick said the following day being 22 March 2023, Mr Mitchell sent her an
email that included a statement to the effect that following recent events it was clear she no
longer wanted to do the job, that it was hoped she would work for them in the future, however
that if she continued her non cooperative stance she would need to be terminated.
[21] On 22 March 2023, Mr Mitchell raised several concerns with Ms McCormick by way
of text message in relation to the performance of her duties in her role as the Manager of the
Park. Among Mr Mitchell’s allegations were that Ms McCormick did not answer telephone
calls, refused to manage permanent tenants and backpackers, and did not assist in dealing with
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a tenant’s deceased estate. Mr Mitchell described Ms McCormick’s conduct as “serious
misconduct or wilful neglect in [her] employment duties”. Mr Mitchell said Ms McCormick
would respond on google chat. Mr Mitchell said they just wanted to talk to Ms McCormick
about problems they were having to try and fix them.
[22] Ms McCormick said that Mr Mitchell had said to her to transfer the phones to him so
she could respond to him, however Ms McCormick said she was in the office dealing with
customers. Ms McCormick said she did transfer the phones to him and started working on an
email to respond to issues but it didn’t stop the fact that she was still at work and face to face
customers.
23 March 2023
[23] On 23 March 2023, Ms McCormick responded to the concerns raised by the owners in
an email addressed to Mr Mitchell. Ms McCormick rejected many of Mr Mitchell’s allegations
regarding the non-performance of her duties, and provided examples of the various actions of
tenants that disrupted the operations of the Park and posed a risk to her safety. Ms McCormick
denied that she was telling staff not to listen to him.
[24] Mr Mitchell gave examples where he said that a person had died in the park and he
needed to put together documentation associated with that, including a picture of the car, and
he just asked for someone to take a picture and Ms McCormick refused. Mr Mitchell said he
then called ‘Leone’, a cleaner to take the picture and ‘Leone’ also refused. Mr Mitchell said he
surmised that this would have been because ‘Leone’ did not want to cross Ms McCormick. Mr
Mitchell provided another example of when they wanted to put new cabins in the park and they
needed a picture of one of the villas because he wanted to get quotes for more of the same. Mr
Mitchell said that again Ms McCormick just refused to do it. Mr Mitchell said again when he
asked the other staff to do it they just said no. Mr Mitchell said he inferred that was either
intentional refusal to do it, or the other staff had discussions with Ms McCormick about the
topics and were sympathetic to Ms McCormick and that is why the request was refused.
24 March 2023
[25] Mr Mitchell responded to Ms McCormick’s email, in an email sent to Ms McCormick
at 8:51am on 24 March 2023, claiming that disruptive tenants had been removed, and asking
whether Ms McCormick intended to carry out certain duties associated with her employment.
Ms McCormick replied on the same day, at 3:53pm, refuting Mr Mitchell’s suggestions that all
disruptive tenants had been removed. Ms McCormick stated that she felt the Respondent was
not treating her safety concerns seriously. The final paragraph of her response stated as follows:
“I’m still at work and don’t know whether or not to keep working. Do you still want me
to continue working at this time despite your allegations of serious misconduct or wilful
neglect”.
[26] Mr Mitchell responded at 5:28pm, stating:
“Dear Amber
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Your welfare and safety is way more important than anything work related. I would like
to keep working.
We do need to talk about the items you are refusing to do and find a solution or
the…business will simply fail.
Regards
Colin”
[27] The Respondent submitted that Ms McCormick did not respond to Mr Mitchell’s
communication nor address the concerns he raised with her. On 26 March 2023, Mr Mitchell
sent the following message to Ms McCormick:
“Hi Amber, we can’t resolve this together if you don’t answer my calls.
Not responding to my questions means that I must assume that your answers have not
changed from no.
If you continue like this then you giving me no option other than to find someone else
to resolve this.”
29 March 2023
[28] Ms McCormick provided evidence of a text message exchange with Mr Mitchell from
29 March 2023, in which Mr Mitchell stated that the Respondent could only address current
concerns with backpacker behaviour. In response, Ms McCormick stated that her concerns were
current. She submitted that she had reported concerns as they arose, but that Mr Mitchell refused
to acknowledge this.
30 March – 5 April 2023
[29] Ms McCormick took a week of personal leave from 30 March 2023 to 5 April 2023.
21 April 2023
[30] Ms McCormick said a day or two before 21 April 2023 she sent Mr Mitchell and Ms
Mitchell a screen shot of some death threats against herself and her daughter. Ms McCormick
said on 21 April 2023 Mr Mitchell told her to report the death threats to the police, and Mr
Mitchell said to her that he takes the threats seriously and genuinely cared about her and her
daughter’s safety and he wanted to let her know that he had reported it to the police at 10.30am
that morning. Mr Mitchell said that the police would get in contact with her and Ms Mitchell
will be flying up to support her. Mr and Ms Mitchell both agreed this had occurred and that the
police had advised them to tell Ms McCormick that she needed to report it herself.
[31] Ms McCormick said the police attended the park on 21 April 2023 because Mr or Ms
Mitchell had contacted them. Ms McCormick said she received a message saying take a couple
of days off.
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[32] I asked Ms Mitchell if the death threat was the reason for her travel and Mr and Ms
Mitchell’s evidence was to the effect that there were a number of reasons including that.
23 April 2023
[33] Ms Mitchell said as they live 5 hours outside Melbourne, it takes 2 days to travel up and
just before she left, they stood down Ms McCormick and phone calls were redirected to Mr
Mitchell, and other staff were working on the weekend. Ms McCormick said she was confused,
and she was told to take the next 2 days off and think about whether she wanted the job. There
was a text message on 23 April from Mr Mitchell to Ms McCormick that included the following:
“You’ve been off your normal duty since Friday to think about this. Please take today
and Monday off as well in order to think about and compile your response. Will organise
the meeting on Tuesday or Wednesday to discuss this face to face.”
[34] The evidence is that Ms McCormick was paid for the four days that she did not work
during this period.
24 April 2023
[35] On 24 April 2023, Ms McCormick sent an email at 8.08pm to Mr Mitchell, which stated:
“Hi Colin,
Please accept this email as notice of resignation.
Regards
Amber McCormick”
[36] Ms Mitchell said she flew up from Victoria and arrived on 24 April 2023 and the
resignation was sent around the same time she arrived.
[37] Ms McCormick agreed that she did not intend to resign on 24 April with immediate
effect and that she was intending to give notice of her intention to resign in accordance with
notice period of three months in her contract of employment. Ms McCormick said after events
of 21 April 2023 and prior events, she decided resigning was the best way forward and it was
the most fair on both parties, as the owners had time to find a new manager, and she would have
time to find a new place to live. Ms McCormick said she was concerned that her daughter was
affected being unsure of whether they had certainty or would have to move at short notice.
25 April 2023
[38] Mr Mitchell responded on 25 April 2023 at 10.18pm as follows:
“Hi Amber
Your resignation is accepted and we’ll waive the notice period.
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Let’s discuss the way forward tomorrow. I hope that you and Tiarna will still join us on
the Gold Coast and that you will consider managing a tourist park near Harvey Bay if
we purchase one in the future.
Best Wishes
Colin & Ros”
[39] Mr Mitchell said during his oral evidence that Ms Mitchell had ticked yes, in answer to
question 10 on the Checklist where it says “Did the employee voluntarily resign or abandon his
or her employment?, and had also written “Resignation was received on 24 April after she was
stood down on 21 April due to refusal to communicate and attend to major parts of her job”.
[40] Mr Mitchell said that he was under the impression that the resignation was waiving the
notice period, and that was the condition he said he accepted it. Mr Mitchell said subsequently
they decided on the basis of more information that came through, that it was a lot more serious
than they thought, and there were allegations of funds going missing, and they found additional
information on breaches with Council, and on the back of everything else that had happened,
Mr Mitchell said they decided it was better to formally dismiss Ms McCormick immediately
under clause 9.5 of her employment contract.
26 April 2023
[41] Ms Mitchell said there were two telephone calls with Ms McCormick after she had put
in her resignation. In one call, after the tender of the resignation Ms Mitchell said that Ms
McCormick told her that her resignation was not intended to have immediate effect, and Ms
Mitchell said the response from the employer was, “okay we will go back to the drawing board
and let you know what is happening.” Ms McCormick’s evidence at the hearing was that she
was in no position to leave with immediate effect. Ms McCormick said that Ms Mitchell said
they needed to get some new managers in, and she needed to speak to Mr Mitchell. Ms Mitchell
said once she understood that Ms McCormick did not intend to resign with immediate effect,
she knew they would need to get further advice.
[42] The notice period under the employment contract is reasonably lengthy at three months
in accordance with clause 9.1 of the employment contract. Ms McCormick said that was what
she discussed with Ms Mitchell on 26 April, and they had discussed negotiating the notice
period, and Ms McCormick said Ms Mitchell would get back to her. Ms Mitchell said a second
meeting was organised to discuss the issues found when she arrived on site.
27 April 2023
[43] Mr Mitchell sent a subsequent email to Ms McCormick on 27 April 2023, which stated:
“Dear Amber
We need to postpone your resignation acceptance due to new information that has come
to light. We need to discuss the following items before we can make an informed
decision on your resignation and notice period:
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1. Has the Guest in Van 13 being paying rent every week since Dec?
2. Has the pool testing log been kept updated?
3. Is the $174 cash recorded in RMS in Feb 23 correct as every other month ranges
between $1200 and $6000 and Feb 22 was $300.
4. Has council requested an immediate fix on the broken panels of the pool fence?
Please take another day off to compile your response and attend a meeting at 5:45pm in
the Office on Friday 28 Apr. If you don’t attend (by phone should be ok) a decision will
be made in your absence.
Regards
Colin”
28 April 2023
[44] Ms McCormick stated on 28 April 2023, she discovered that she was unable to access
emails and financial and banking records. Accordingly, she argued that she was unable to
respond to the Respondent’s accusations of theft that followed.
29 April 2023
[45] On 29 April 2023, the Respondent issued Ms McCormick with a termination letter,
advising that her employment contract was terminated with immediate effect. The termination
letter reads as follows:
“We’ve given you an opportunity to respond to our concerns first raised with you on 24
Mar. You did not provide an acceptable response and instead chose to be argumentative
and obstructive.
You are not carrying out your duties, you refuse to follow our direct instructions and
don’t answer our calls and after-hours customers calls. Our business relationship has
broken down to the extent that we have no trust or confidence in you to continue
representing the Kookaburra Holiday Park, so your resignation is not accepted as we are
immediately terminating your contract.
You’ve engaged in serious misconduct by refusing to work with tenants and
backpackers, not answering calls, not cleaning the backpacker area after Seafarms
resulting in a council non-conformance, not maintaining the gardens, not following
direct managerial instructions and coercing staff not to follow owner instructions. This
has brought the park into disrepute and resulted in financial losses of more than
$100,000.
Consequently, we have no alternative but to terminate your employment immediately
as per Section 9.5 of your employment contract. You are directed to not act in any
capacity for the Kookaburra Holiday Park, and your services are terminated upon receipt
of this advice. Your final payment, including your remaining annual leave, will be
calculated to 29 April.
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Legally you needed to vacate the house and returned all company property in your
possession on 29 April and are directed to immediately hand over keys, credit cards and
all company equipment in your possession. Please drop these off in the key box outside
reception.
We will, however, allow you to stay free of charge in the house until 24 May. Once
keys, credit cards and all company equipment in your possession are received, you will
also receive two weeks’ pay.”
Was the Applicant dismissed?
[46] Ms McCormick argued that the end of the employment relationship was not by
resignation, and if it was a resignation then the Respondent’s course of conduct was such that
she was constructively dismissed. Ms McCormick submitted that the advertisement of her job
by the Respondent, along with threats and accusations made by Mr Mitchell, and an
unreasonable workload created an “intolerable and untenable environment” such that she had
“no choice but to resign”.
[47] It is apparent on the basis of the evidence that neither the Applicant or Respondent
intended for the employment to end with immediate effect, and for the three-month notice
period to be paid in lieu of notice. The Applicant’s proposal was to give notice of a resignation
under the contract which is a period of three months, and she intended to work the notice period.
The Response from Mr Mitchell misconstrued Ms McCormick’s email, and I have concluded
to accept Mr Mitchell’s evidence, that it was his intention in his email reply to accept Ms
McCormick’s offer to resign on the basis no notice in lieu would be paid. Despite Mr Mitchell
using the expression “waive the notice period”, which is commonly understood to mean notice
will be paid and the notice period is not required to be worked, it is clear from the evidence he
was intending to accept the resignation on the basis that the notice period would not be worked
or paid, and it was that understanding of what he believed was being agreed to, that would be
discussed the following day.
[48] It is clear there was no meeting of the minds about the notice period, and on that basis,
I have concluded that the employment did not end at the initiative of Ms McCormick, and
instead ended at the initiative of the Respondent by the termination letter on 29 April 2023. On
that basis it is unnecessary to consider the Applicant’s submissions concerning constructive
dismissal.
Did the Respondent satisfy the Small Business Fair Dismissal Code?
Missing Money
[49] The Respondent submitted that it complied with the Small Business Fair Dismissal Code
in dismissing the Applicant. It was stated that Ms McCormick was dismissed because the
Respondent believed, on reasonable grounds, that the Applicant had engaged in serious
misconduct in the form of theft and serious breaches of occupational health and safety
procedures. The Respondent also submitted that the Applicant committed serious misconduct
in the form of “wilful neglect of her duties”. Furthermore, the Respondent stated that it
dismissed Ms McCormick due to unsatisfactory conduct, performance or capacity.
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Van 13 Cam Cupitt
[50] The Respondent argued that it had reasonable grounds to believe Ms McCormick
engaged in theft. The Respondent submitted a payment summary in relation to one of its long-
term clients, Mr Cam Cupitt, which demonstrated several periods in which payment had not
been recorded for the client. The Respondent stated that Mr Cupitt had informed Mr and Ms
Mitchell that he had continuously paid for his accommodation in Van 13. Although there were
intermittent periods where Mr Cupitt was absent from the park, the Respondent said that Mr
Cupitt understood that the property was being rented for the duration of his total stay, and that
payment was therefore required during brief absences. Given the anomalies in the payment
summary, the Respondent stated it formed a view that Ms McCormick had been keeping
missing payments for herself.
[51] Mr Mitchell said they interviewed the resident in Van 13 and he said he had been making
continuous payments. Ms Mitchell said that when they spoke to Mr Cupitt, he confirmed that
he hadn’t moved out, and that his furniture had been there of all of time, and he rented it for the
whole time and he told Mr and Ms Mitchell that he paid rent for the whole time. However, the
booking records show periods when he wasn’t paying, and there was not even a record of a
booking in the records.
[52] Ms McCormick said in response that Mr Cupitt was not a tenant he was a customer. Ms
Mitchell said the other receptionist ‘Patti’ also said to them that Mr Cupitt was renting his site
for the whole time and that was her understanding and Mr Cupitt’s. Ms Mitchell said that ‘Patti’
had told them that Ms McCormick had told Mr Cupitt he didn’t have to pay when he wasn’t
staying at the park.
[53] Ms McCormick said that other customers also came and went and paid when they were
on site. Ms Mitchell said the staff were told to go in and clean the Van 13 site every week, and
that is not a service they would offer if he wasn’t a tenant. Ms McCormick said they didn’t
always know when he would be there so they would clean his van after he departed and that is
how they did it for all guests. Ms McCormick also said it was not always her that was in the
office. Ms McCormick stated that it was her understanding that Mr Cupitt was not required to
pay for periods in which he was not residing at the park. She stated that her recollection was
that Mr Cupitt always paid as required and that she had no concerns with him as a client. Ms
Mitchell said she understood the shortfall between the amount shown as paid by Mr Cupitt and
the amount that would have been shown in the records if it was recorded as paid continuously
was in the order of $1000 to $1500.
Very low cash intake in February 2023
[54] In further support of its allegations concerning missing money, the Respondent
identified anomalies in its cash intake records. The Respondent provided cash transaction
reports that showed its cash intake for February 2023 was $174.00. Reports from January 2023
and March 2023 indicated a cash intake of $1,429.00 and $1,221.98, while the report from
February 2022 indicated an intake of $3,879.00. The Respondent also referred to an incident
involving a client who had made a booking with the park using Booking.com. It was argued
that the client informed the Respondent that they had made a cash payment, but that this
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payment was not recorded in the system, and that Ms McCormick was the only person trained
to perform office duties.
[55] Mr Mitchell said it also made no sense that so little cash was taken in the month of
February 2023. Ms Mitchell said that every month the Respondent takes 4 to 5% of its sales
in cash, and in February 2023 they only took 0.5% of sales in cash, and the percentage of sales
in cash, and the percentage of cash receipted was so low, that it appeared money was taken and
not entered into the system.
[56] Ms McCormick said this issue is difficult, and she could see only $174 was recorded for
February however it was difficult for her to give an answer on what the cause of this was
because she was cut out of the system. Ms McCormick said every three months Ms Mitchell
and herself would meet up and go through transactions for the Business Activity Statement
(BAS), however this time was different, and she was cut out of the system. Ms McCormick
said one tenant had learnt to use internet banking, another had gone to New Zealand, and she
would have liked to have looked into this. Ms McCormick disputed cash was even missing,
and said it could have been explained if she had a chance to investigate. Ms McCormick also
refuted the Respondent’s assertion that only her and another employee were trained to perform
office work and access the Respondent’s booking systems. Ms McCormick argued that a
number of other employees had access to the systems, but that Mr Mitchell did not question
any other employee about the alleged theft. Ms McCormick submitted that the Respondent had
not properly investigated the matter, nor allowed her an appropriate opportunity to respond.
[57] Ms Mitchell responded that because it is a normal part of the business that a certain
amount of cash was received each month, it raised serious concerns. Ms Mitchell said she did
know that Ms McCormick was purchasing a property that month and the office was rarely
opened. Ms Mitchell said that it was difficult for the other staff. Ms Mitchell said that Ms
McCormick was always at the premises as she lives upstairs at the office, however she said it
was normal for the office to be closed at different times such as doing things out of on the
grounds like mowing, or repairing taps or putting silicon in showers. Ms Mitchell said that in
the two months Ms McCormick was purchasing a property of her own, there were a lot of times
that she was doing things other than then working in the business.
Missing Booking.com payment
[58] Mr Mitchell said they also followed up with Booking.com the booking that hadn’t been
paid and called to ask the person why they hadn’t paid for the booking. Mr Mitchell said the
person came back to them and said they paid in cash, in which case there was a situation where
a cash payment had not been recorded in the system. Ms Mitchell said when she arrived on
site, she ran the debtor’s ledger which shows all the bookings where payments haven’t been
made. Ms Mitchell said this particular one stood out to her because she did ring the client and
the client said that she handed cash to a young lady and she remembered it because it was the
first night of her big trip. Ms Mitchell said however this was not the only one that wasn’t paid,
and there were numerous other bookings that weren’t paid, and she has just had to write them
off. Ms Mitchell said she did not have evidence on them but there was at least a dozen more
that were in a similar pattern where there was no payment recorded when people had stayed
there.
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[59] Ms McCormick said it is very difficult for her to respond when no details were given,
such as the date of the name of the customer or the amount. No details were given other than
that it was booking.com. Mr Mitchell said Ms McCormick was the only young person that they
could have been referring to, and it wasn’t only this one, but there were others.
Occupational Health and Safety
[60] The Respondent submitted that Ms McCormick also committed serious breaches of
occupational health and safety procedures by failing to clean the hostel kitchen and failing to
maintain the swimming pool and records relating to the pool. It was contended that the hostel
kitchen had not been cleaned since its last use in January or February 2023, which led to an
assessment by the Council that it was non-compliant with hygiene standards. The Respondent
also argued that Ms McCormick failed to maintain swimming pool records and failed to action
an urgent request received from the council to repair the pool fence.
[61] Ms McCormick denied that the hostel kitchen area had not been cleaned since January
or February of 2023 and was in poor condition. She stated that in February 2023, she and other
employees thoroughly cleaned the hostel area of the park and that Mr Mitchell was informed
of the work that had been completed. Ms McCormick argued that the Council inspection of the
kitchen area was conducted while work was being completed on the area, meaning the kitchen
was not yet of a compliant standard. The Applicant provided evidence that, despite this, the
Council report indicated that the Park was “overall in good condition”, and that she had been
congratulated by Mr Mitchell for her efforts in maintaining the Park.
[62] Ms McCormick said that Mr Mitchell contacted her saying he had just found out that
the council had issued a non-compliance for the hostel, and none of the back packers had been
cleaned and the kitchen was filthy. Ms McCormick said they had just done a deep clean of all
of the park, and all the rooms had been done, and due to the wet season, it takes a bit longer.
Ms McCormick said the kitchen had been done partially but it hadn’t been completed and she
hadn’t painted in that area yet. Ms McCormick said that Mr Mitchell had cut the staff numbers
down, and all she needed was to be allowed to keep doing what she was doing. Mr Mitchell
said this all happened in January 2023, when the back packers area had been let out to a
company called Seafarms and normally after guests have been in the area it is cleaned up
straight away. Mr Mitchell said that the conversation he had with Ms McCormick about staffing
reduction did not happen until February 2023.
[63] Ms McCormick rejected the Respondent’s argument that the swimming pool records
were not maintained and an urgent council request to repair the pool fence was not actioned.
Ms McCormick referred to the Council inspection report, which confirmed that the swimming
pool maintenance records were compliant. She also submitted that the request to repair the fence
was made by the pool safety inspector (and not the Council) on 12 January 2023 and that the
relevant repair was completed by the following day. Ms McCormick then referred to an email
from the pool safety inspector which confirmed that the fence was suitable and provided the
Pool Safety Certificate, dated 13 January 2023.
[64] Mr Mitchell said when he got to site after Ms McCormick had left, he found an entire
panel of rotten fence posts that a child could easily have crawled under, and so he got a
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maintenance person to fix it. Mr Mitchell said the fence was in a state of serious neglect, there
were holes in it, and it needed to be fixed.
Neglect of Duties
[65] Finally, the Respondent submitted that Ms McCormick wilfully neglected and refused
to carry out her duties. The Respondent stated that Ms McCormick was warned several times
in relation to these issues and given a number of opportunities to respond but failed to respond
and failed to rectify the concerns. The Respondent submitted that Ms McCormick failed to:
“• Manage existing Tenants;
• Manage or engage backpackers;
• Follow direct managerial instructions and encouraged staff not to respond as well;
• Talk to the owners since the show cause process was started in March;
• Answer customer calls after 6pm or at all after March;
• Reasonably maintain the Gardens (Guests reported knee-high grass and unkept and
overgrown gardens). Palm fronds were piled up to 2 metres high across three caravan
sites;
• Implement any COVID regulations;
• Do daily booking reconciliations;
• Arrange repairs for simple items, like faulty smoke detectors, and instead blocked out
these rooms resulting in several weeks of list revenue;
• Reset tripped circuit breakers in the Office, resulting in unnecessary Electrician callout
fees”.
[66] The Respondent submitted that the Applicant’s neglect resulted in $100,000 of lost
revenue for the Respondent as compared to the previous year.
1. Alleged failure to manage existing Tenants.
[67] In relation to the first dot point Mr Mitchell said the Respondent had about 10 permanent
tenants when they started, and they are now down to 5 or 6. Mr Mitchell said Ms McCormick
had managed about half of the tenants out, and for good reason that they were misbehaving,
and given multiple warnings. Mr Mitchell said the problem was the Respondent lost half its
revenue from the tenants and Mr Mitchell claimed that’s Ms McCormick said to him that she
refused to put in new tenants, and it was something she was no longer prepared to do and Mr
Mitchell had to do it. Ms McCormick said to Mr Mitchell she would no longer deal with tenants
that were a risk to her safety. Ms McCormick said she was still dealing with some tenants who
she got on well with, but there were a couple where there was serious issues and it got to the
point where her safety was at risk, and she was not prepared to do that.
2. Alleged failure to manage or engage backpackers.
[68] In relation to the second dot point, Mr Mitchell explained that when the business was
acquired it had three income streams; permanent tenants, tourists, and backpackers. Mr
Mitchell said when they acquired the business during the Covid 19 epidemic there no
backpackers around. Ms Mitchell clarified that this was referring to European backpackers.
Mr Mitchell said an interim solution to this was to put Sea Farms workers from Vanuatu into
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the backpackers, and there were a handful staying there. Mr Mitchell said there were some
complaints about the behaviour of this group and they were asked to leave. He said when the
Covid 19 epidemic ended enquires were coming in from backpacker groups and backpacker
organisations, and they needed co-ordination with farms to place these backpackers into jobs.
Mr Mitchell said this was always intended to be part of her role, and Ms McCormick just refused
to do that work.
[69] In response to the Respondent’s claims that Ms McCormick did not manage tenants
and backpackers, Ms McCormick stated that she attempted to manage customers to the best of
her ability but had difficulty doing so at times due to safety concerns. Ms McCormick said there
was some trouble with Sea Farms workers however the company was very good to deal with,
and a whole group was not thrown out however she did ban one person. Ms McCormick said
she gave one example of an incident where she had to get up at 4am in the morning to deal with
an incident, and the Police came and advised her it was not safe for her to be doing this, and
they would handle such issues in the future. She stated that she did not receive training in
relation to the management of tenancies and was instead instructed to seek external assistance.
Ms McCormick further stated that she successfully managed behavioural issues relating to
backpackers throughout 2022. She stated she raised concerns about the management of
backpackers for 2023, but that these concerns were either not acknowledged or dismissed by
Mr Mitchell. Ms McCormick said that she did look after backpackers. Ms Mitchell said that
when she took over the phones at a time when Ms McCormick was sick, they were receiving 5
to 10 enquiries from backpackers a day and they were trying to get Ms McCormick to get the
backpacker area ready for this demand and they could not get her to do it. Ms McCormick said
she did raise the issue of not having vehicles to transport backpacker workers. Ms Mitchell
said 25% of backpackers have their own transport and Ms McCormick was just telling
backpackers who enquired about staying that the backpacker area was closed. Ms Mitchell said
Ms McCormick must have been getting phone calls from backpackers because as soon as she
took the phones over from Ms McCormick she was getting 10 phone calls a day from
backpackers.
[70] Ms McCormick also said one of the banana farms closed down and another farm was
providing dongas on site. Mr Mitchell said these issues were challenges however Ms
McCormick just didn’t want to deal with it.
3. Alleged failure to follow direct managerial instructions and encouraging staff not to respond
as well.
[71] In relation to the third dot point Ms McCormick denied she had encouraged staff not to
respond to Mr Mitchell. Ms Mitchell claimed that one of the staff sent photos to them of a
cabin they had requested, after Ms McCormick had not done so after being asked to do this by
Mr Mitchell for two weeks. Ms Mitchell said that another staff member, ‘Patti’, sent the photos
from the work email address, and then went and deleted the email sent. Ms Mitchell inferred
that ‘Patti’ did this for fear of repercussions from Ms McCormick if Ms McCormick found out
that ‘Patti’ had been assisting Mr and Ms Mitchell. Ms McCormick said she had never heard
this allegation before, and she had a good relationship with ‘Patti’, and ‘Patti’ would have had
no reason to fear any repercussion from her. Mr Mitchell also claimed that Ms McCormick had
dismissed other staff who had cooperated with Mr Mitchell by providing requested information.
Mr Mitchell identified Mr Peter Burrows, the husband of ‘Patti’ as an example, and he was
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dismissed the day after he assisted Mr Mitchell. Ms McCormick denied this saying Mr Burrows
was not dismissed, and said he got a job in Tully. Mr Mitchell said in response that he received
an SMS message from Mr Burrows telling Mr Mitchell he had just been terminated by Ms
McCormick.
4. Alleged failure to talk to the owners since the show cause process was started in March.
[72] In relation to the fourth dot point, Ms McCormick denied the Respondent’s contentions
that she had not engaged with the owners since March 2023.
5. Alleged failure to answer customer calls after 6pm or at all after March.
[73] Mr Mitchell said the issue with the fifth dot point concerning answering calls after 6pm,
or at all after March 2023, was that 80% of the revenue comes via phone calls, and if the phone
is not answered they will just call the next company. Mr Mitchell said aside from himself and
Ms Mitchell calling, and the phone not being answered, he would call from anonymous numbers
as well, and he found out that the phone calls were just not being answered and this was a direct
loss of revenue. Mr Mitchell said there is a facility to leave a message however generally
customers need an answer as they are driving past, and do not leave a message. He said if the
phone is not answered they just call the next place. Ms Mitchell said the phone can be diverted
to a mobile, but Ms McCormick would leave it in the office.
[74] Ms McCormick submitted that she was always available by telephone for customer
emergencies arising outside of business hours. She stated that she disputed with Mr Mitchell an
expectation that she be always available to respond to customer bookings, despite her
employment contract stating that the office closed at 6:00pm. She also stated that Mr Mitchell
failed to consider her family responsibilities in seeking to impose this requirement. Ms
McCormick said that when the phone was diverted to a mobile, she carried that mobile phone
with her at all times when she was on the grounds or working. Ms McCormick said the phone
did get answered. Ms McCormick said there would be an occasion where she might be on a
ride on mower or up a ladder repairing something where the phone did not get answered right
away and she would get back to them if a message was left. Ms McCormick said that they were
in Victoria and couldn’t know if she left the phone in the office. Ms Mitchell responded that
both Ms McCormick and ‘Patti’ had told them that Ms McCormick left the mobile in the office
after 6pm. Ms McCormick said she left the work mobile in the office, as the phone were
diverted to her personal mobile phone which she had with her upstairs after hours. Ms
McCormick said she found it easier to use her personal phone as it was linked to the work
emails, whereas the work mobile was just on a sim card.
6. Alleged failure to reasonably maintain the gardens (guests reported knee-high grass and
unkept and overgrown gardens). Palm fronds piled up to 2 metres high across three caravan
sites.
[75] In relation to dot point 6 it was said by the Respondent that guests reported knee high
grass, and unkept and overgrown gardens and palm fronds piled two metres high across three
caravan sites. Mr Mitchell said once Ms Mitchell got to the site, they had to hire a guy with a
truck and a guy with a bobcat to clear the three sites with palm fronds piled metres high,
meaning those sites couldn’t be rented out or produce income, and also it looked really unkept
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and the park was in a really bad way. Mr Mitchell said in relation to the grass issue he had
people call him and tell him they would have checked into the park, however when they saw
how completely overgrown and unkept it was they didn’t. Ms McCormick denied that she did
not reasonably maintain the gardens. She provided evidence of a post from the park Facebook
page on 27 March 2023 in relation to garden work that had been undertaken.
[76] Mr Mitchell said the other issue in relation to this matter was that the pool was renovated
about a year ago and there was a pile of sand on one side of the pool area. Mr Mitchell said
over a period of time the sand was supposed to be redistributed elsewhere by using a
wheelbarrow, and this never happened, and the pile of sand stayed there for a whole year. Mr
Mitchell said both the reviews they received, as well as the feedback he received was that the
park was not being maintained, and that was consistent with what Ms Mitchell found when she
arrived on 24 April 2023.
[77] Ms McCormick said the claim in relation to there being long grass was not true as the
lawn was mowed every week. Ms Mitchell said she was on sick leave from 30 March to 5
April. Ms McCormick said there was a pile of green waste, and the trailer was full. Ms
McCormick said it was an exaggeration to say that it was metres high, and that they did not
have a vehicle to take the trailer to the tip and she was having trouble getting reliable locals.
Ms McCormick said it was probably across two sites. Ms McCormick agreed there was sand
left over from the pool project. Ms McCormick said the pool project was completed in July or
August 2022, and she had got some quotes to repair some driveways in the park and she
intended to use the sand for that and had received some quotes to have that work done however
Mr Mitchell did not like any of the quotes and instead he was telling ‘Patti’ to move the sand
with a wheelbarrow and Ms McCormick said ‘Patti’ is an older lady and small, and she could
not carry the sand in a wheelbarrow.
7. Alleged failure to implement any COVID regulations.
[78] Mr Mitchell said that Ms McCormick is anti-vaccination and is very up front about that,
and refused to have anything to do with Covid-19. Mr Mitchell gave examples of putting up
signs or doing scans or whatever the Government mandated they had to do as a business. Mr
Mitchell said they had to take on that task, and it is an example of Ms McCormick refusing to
do things. Mr Mitchell said the signs included the number of people allowed in rooms, that
they had to communicate to customers they could not enter the park if they had Covid, and that
people had to wear masks and the requirement to scan the QR Code to show where people were.
Mr Mitchell said all these things Ms McCormick refused to have anything to do with it. Ms
McCormick said she was confused over this as Mr Mitchell did not give her specific directions
and Ms McCormick said she was unaware of any Covid-19 regulations she was required to
implement at the time.
8. Alleged failure to do daily booking reconciliations.
[79] Mr Mitchell said that daily reconciliations must be done to ensure the money taken in
and the money in the bank is the same as the money in the system on a daily basis. Mr Mitchell
said this is another example of Ms McCormick just not doing it. Ms Mitchell said that she had
been trained to do this and had done it before in another park where she worked previously. Ms
Mitchell said that Ms McCormick did do it for the first year and a half however when they
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questioned her about discrepancies, she would say she hadn’t reconciled that bit yet, and it
would be a month period at a time where Ms McCormick hadn’t reconciled so they couldn’t
trace whether there was an issue or not.
[80] Ms McCormick said between herself and ‘Patti’ they did do daily reconciliations. Ms
McCormick said she did not do it personally everyday because she was required by the contract
to try and have two days off a week which never ended up happening. Ms McCormick said the
ones that were not done for months properly would have been a couple in xero, and she was the
only one responsible in the xero-accounting program. Ms McCormick said a specific account
was set up by Ms Mitchell through the Accountant, and if there were one or two things at the
end of the BAS period she would put them there. Ms Mitchell said that was a different process
to the RMS booking system. Ms McCormick replied that it was done by herself and ‘Patti’ and
it was done every day. Mr Mitchell said they knew it was not done because every time they did
a BAS statement every three months there were issues with the reconciliations, and Ms Mitchell
had to go back and do heaps of reconciliations to track down missing payments.
9. Alleged failure to arrange repairs for simple items, like faulty smoke detectors, and instead
blocked out these rooms resulting in several weeks of lost revenue.
[81] Mr Mitchell said in just one example when he got to the park in May, motel unit 1 had
been blocked out for several weeks because of a faulty smoke detector. Mr Mitchell said
initially he called an electrician to look at it, and the electrician at first simply replaced the
battery. He said it played up again and the electrician the replaced it the following day. Mr
Mitchell said it took two phone calls to the electrician to fix the issue, however the particular
site had been out of actions for weeks and weeks causing lost revenue. Ms McCormick said
she did block out the room with a faulty smoke detector. Ms McCormick said she had tried to
change the battery, and she also tried to clean it. Ms McCormick said that was all she could
do, and she needed an electrician. Mr Mitchell said that all she needed to do was call an
electrician. Ms McCormick said that she had called, and the electrician was very busy, but it
was put on his job list. Mr Mitchell said the room was out of action for six weeks, and when
he got to site the issue was fixed in 2 days and the room was available again. Ms McCormick
said she thought it was only unavailable for a couple of weeks. She submitted that she arranged
for repairs as required, and that at times, this required her to restrict access to rooms while
awaiting the completion of repairs. She stated that electrician costs were necessary in relation
to electrical repairs that she was unable to perform herself.
10. Alleged failure to reset tripped circuit breakers in the office, resulting in unnecessary
Electrician callout fees.
[82] Mr Mitchell said because Ms McCormick was not managing the tenants, one of the
tenants rang him because the tenant had no power. Mr Mitchell said Ms McCormick was not
responding to him and he couldn’t get hold of her, so he told the tenant to look at the power
board on the side of the unit and it was okay. Mr Mitchell said the next place where the power
could have been tripped was inside reception, however the tenant could not get into the
reception because it was locked. Mr Mitchell claimed the tenant said to him that they couldn’t
go to reception if Ms McCormick was there because Ms McCormick would just tell her to get
out. Mr Mitchell said the tenant had no power for several hours and he could not do any more
to try to diagnose the problem, so he was forced to call an electrician, and the electrician came
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and got access to the office and the power was being tripped in the office. Mr Mitchell said the
electrician call out fee was completely unnecessary as all Ms McCormick had to do was to walk
down stairs to the office to flick the trip switch but she refused to do it.
[83] Ms McCormick said the switch in the office did trip sometimes, and it would cut her
power as well and it was later found by the electrician that there was a water leak causing the
problem. Mr Mitchell said the electrician had told him that is not what happened on this
occasion as he said all he had to do was flick the switch.
CONSIDERATION
[84] To assess whether the Respondent has satisfied the Small Business Fair Dismissal Code
in cases of summary dismissal involving serious misconduct, a Fair Work Commission Full
Bench in Pinawin v Domingo (2012) 219 IR 128, the Full Bench explained the following two
steps as follows:
“[8] For an employer to believe on reasonable grounds that the employee’s conduct is
sufficiently serious to justify immediate dismissal, it is firstly necessary for the employer
to establish that the employer did in fact hold the belief that as a matter of fact that (i)
the conduct was by the employee; (ii) the conduct was serious; and (iii) that the conduct
justified immediately dismissal. This is to be contrasted to the provisions of s.387(a)
where FWA, in determining whether there was a valid reason for the dismissal, must
find whether the conduct in fact occurred.
[9] Secondly, it is necessary for the employer to establish that there are reasonable
grounds for the employer holding the belief. It is thus necessary for the employer to
establish a basis for the belief held which is reasonable. In this regard it would usually
be necessary for the employer to establish what inquiries or investigations were made
to support a basis for holding the belief. It would also ordinarily be expected that the
belief be put to the employee, even though the grounds for holding it may not be. Failure
to make sufficient enquiries or to put the accusation to the employee in many
circumstances might lead to a view that there was no reasonable grounds for the belief
to be held.”
[85] I have considered all of the evidence as set out above and I am satisfied that the evidence
supports the conclusion that the Applicant had over a period of time been neglecting a range of
important parts of her role, and was failing to respond to the owners of the business in a timely
way or at all when they raised concerns about issues that they were becoming aware of through
other sources. It is also apparent that towards the end of the employment relationship the
working relationship had completely broken down.
[86] The Applicant did not take steps to implement the directions to revive the backpacker
part of the business when the effects of the Covid pandemic were reduced and international
backpackers were returning to the area. The evidence also supports the conclusion that the part
of the business related to permanent tenants had fallen away, and the Applicant was not
cooperating with the owners of the business to address these issues.
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[87] I am satisfied that both Mr and Ms Mitchell did in fact hold the belief that as a matter
of fact Ms McCormick was deliberately avoiding having contact with them for an extended
period prior to her dismissal, was not answering customers calls, and was wilfully neglecting
her duties by allowing the park to fall into a poor state. Mr and Ms Mitchell also held the belief
that Ms McCormick was not managing the permanent tenant or backpacker parts of the business
and was taking money out of the business when payments were made in cash and not
reconciling these payments. Mr and Ms Mitchell also held the belief that Ms McCormick was
responsible for serious safety breaches including concerning not maintaining the kitchen in the
backpacker area such that it failed a council inspection, and not maintaining the pool fence. I
am also satisfied that Mr and Ms Mitchell held the belief that Ms McCormick’s conduct in these
areas was serious, and the conduct justified immediate dismissal.
[88] I am satisfied that the Respondent has established on the evidence that there are
reasonable grounds for the employer holding these beliefs. The repeated failure of Mr and Ms
Mitchell to be able to contact Ms McCormick and to be able to discuss the concerns they held
with her that had been raised well before her termination on 29 April, supports the conclusion
that there is a reasonable basis for their belief that Ms McCormick was avoiding efforts to
engage with her over the serious concerns. There was also a reasonable basis for the belief that
Ms McCormick was not answering many calls made to the park, because for the period of time
when calls were diverted to the Mitchells the proportion of phone enquiries was much higher
than the business was reflecting in its performance. The evidence also tends to support a
reasonable basis for the belief that Ms McCormick had been neglecting important parts of her
role as the evidence concerning the poor state of the park was coming from a range of sources
independent of Mr and Ms Mitchell, but these reports were consistent with what Ms Mitchell
found when she arrived at the park on 24 April.
[89] The reduction in the number of permanent tenants, and the failure to develop the income
stream from the backpacker part of the business despite evidence of a significant increase in
demand from overseas backpackers also supports the view that the Respondent’s beliefs in
regard to the conduct of Ms McCormick concerning these issues was reasonable. The anomaly
concerning cash income in the month of February 2023, the direct advice from Mr Cupitt about
him having made regular payments, and the advice from the customer who booked through
booking.com and made a cash payment, taken together support the view that cash was missing
from the business, and given Ms McCormick’s specific role in regard to the control of these
areas of the business, the belief that she was responsible for money being missing was
reasonable. Having said this, it should not be taken as a positive conclusion that Ms McCormick
did take cash from the business, only that the belief that she was responsible for money being
missing, was a reasonable belief. To be clear this is not a finding that Ms McCormick did take
any money. The backpacker kitchen failing a council compliance check also supports the
Respondent’s belief that Ms McCormick was failing in relation to an important safety issue.
[90] The concerns referred to were raised with Ms McCormick and she was given an
opportunity to respond to them. The exception to this is the concerns the Respondent held in
relation to missing money as Ms McCormick did not have access to the Respondent’s financial
records on its information technology system from 28 April. It may be arguable that on this
basis the holding of the belief that Ms McCormick was responsible for money being missing
was not reasonable as she did not have an opportunity to respond by interrogating the evidence
that may have led to an explanation for these beliefs. In my view the issue is moot, because the
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other issues on their own are sufficient to establish that the employer had a reasonable basis to
believe that the other conduct was wilful and deliberate and inconsistent with the continuation
of the employment contract, and was also causing a serious and imminent risk to the reputation,
viability or profitability of the business.
[91] For the reasons set out above, I am satisfied that the Respondent has complied with the
Small Business Fair Dismissal Code, and on that basis the application is not within jurisdiction
and is dismissed. An order to this effect will be issued separately and concurrently with this
decision.
COMMISSIONER
Appearances:
Ms Amber McCormick on her own behalf.
Mr Colin Mitchell and Ms Rosalind Mitchell for the Respondent.
Hearing details:
2023
By Microsoft Teams Video
18 August
Printed by authority of the Commonwealth Government Printer
<PR767724>
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Official source: https://www.fwc.gov.au/documents/decisionssigned/pdf/2023fwc2843.pdf