Ahern v IA Group Pty Ltd [2014] QIRC 31
QUEENSLAND INDUSTRIAL RELATIONS COMMISSION
CITATION: Ahern v IA Group Pty Ltd [2014] QIRC 031
PARTIES: Ahern, John
(Applicant)
v
IA Group Pty Ltd
(Respondent)
CASE NO: B/2012/4
PROCEEDING: Application to recover unpaid wages
DELIVERED ON: 13 February 2014
HEARING DATES: 25 and 26 July 2013
MEMBER: Industrial Commissioner Black
ORDERS: 1. Application dismissed
CATCHWORDS: INDUSTRIAL LAW - APPLICATION FOR
UNPAID WAGES – Application for pro-rata long
service leave after seven years employment –
employee resigned employment - reasons for
termination claimed to include illness and incapacity
and domestic or other pressing necessity
CASES: Industrial Relations Act 1999 s 278, s43(4)(b)
APPEARANCES: Mr. J. O'Donnell, Industrial Advocate, appearing on
behalf of the Applicant.
Mr S. Reidy, Counsel, instructed by Mullins
Lawyers, for the Respondent.
Introduction
[1] Mr John Ahern ("the applicant") was employed as an Architect by the IA Group Pty
Ltd ("the respondent") from 13 April 2004 until 5 August 2011. Mr Ahern was
employed by the Respondent for 7 years, 3 months and 23 days or approximately 7.3
years.
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[2] The applicant submitted his resignation on 6 July 2011 by giving four weeks notice
due to expire on 29 July 2011. The letter of resignation is in the evidence as
Attachment JW-3 to Exhibit 23. The letter was dated 6 June 2011 but the applicant
said in his evidence that this was an error and that the letter should correctly have
been dated 6 July 2011. Subsequently the applicant agreed to extend his departure
date to 5 August 2011.
[3] In his application to the Commission the applicant alleges a breach of section 43 of
the Industrial Relations Act 1999 (the Act) and seeks an order for proportionate
payment of long service leave of $10,628.78. The application is made pursuant to s.
278 of the Act which relevantly provides that:
"Power to recover unpaid wages and superannuation contribution etc.
(1) An application may be made to the commission for an order for
payment of -
(a) an employee's unpaid wages; …"
[4] The entitlement to pro-rata long service leave after seven years service is set out at
section 43(4) of the Act in the following terms:
"43 Entitlement
(4) However, if the employee's service is terminated before the employee has
completed 10 years continuous service, the employee is entitled to a
proportionate payment only if -
(b) the employee terminates the service because of -
(i) the employee's illness or incapacity; or
(ii) a domestic or other pressing necessity; …"
[5] During the proceedings evidence was called from 8 witnesses.
The witnesses for the Applicant were:
• John Ahern - Applicant;
• Iesha Stewart – Receptionist and administrative officer – IA Group;
• Dr Allan Wallace – General Practitioner;
• Dr Eric Guazzo – Specialist;
• Paul Parker - Physiotherapist;
• Robert Zemaitis - Psychologist; and
• Frances Thomas – Applicant's ex-wife.
The witnesses for the Respondent were:
• Robert Casey – Director of IA Group; and
• John Wojtaszak – Chief Financial Officer of IA Group.
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[6] In a decision dated 18 July 2013, I granted an application by the respondent asking
that Mr Casey be allowed to give his evidence via telephone. In the end result Ms
Iesha Stewart was also permitted to give evidence via telephone.
[7] Section 43(4) of the Act gives employees an entitlement on termination to
proportionate long service leave after seven years service under specified conditions.
If the employee brings the employment relationship to an end, the Act requires that
the employee establish that the employment was ended because of illness or
incapacity or because of a domestic or other pressing necessity.
[8] In written submissions filed after the conclusion of the hearing, the applicant stated
that his claim was based on circumstances relating to his health and wellbeing and
his attempts to re-establish his relationship with his former wife. In more particular
terms the applicant submitted that:
(a) Section 43(4)(b)(i) has been satisfied by evidence establishing that he
suffered from a chronic physical ailment which was exacerbated by his
working environment and had a propensity to flare up when he was
subject to stress and fatigue;
(b) Section 43(4)(b)(i) has been satisfied by evidence establishing that he has
suffered for some length of time from stress and fatigue and that latterly
he has developed symptoms of anxiety and depression;
(c) Section 43(4)(b)(ii) has been satisfied by evidence establishing that his
work environment was a factor in the breakdown of his marriage and had
he continued in employment with the IA Group his work environment
would have had a negative impact on his attempt to re-establish his
relationship with his former wife.
[9] It follows that the applicant asserts that he ended his employment because of a
combination of factors relating to his illness or incapacity and to domestic or
pressing necessity.
Reasoning
[10] In his letter of resignation the applicant did not provide any reason for leaving. In
the final paragraph of his letter he said that he had enjoyed his time at the IA Group
and wished the organization success in the future.
[11] In paragraph 55 of his statement (Exhibit 3) the applicant said that the day after he
dispatched his resignation letter he received a phone call from Rod Casey "who told
me he wanted to discuss my resignation" and invited him to reconsider his decision.
The applicant said that "I expressed to him that I could not continue in the position
as it existed". It is significant at this point that the applicant did not say to Rod
Casey that he could not continue working because of ill health or because of a
domestic or pressing necessity. I construe the words "the position as it existed" to
reflect on operational circumstances including staffing levels, but not to imply a
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personal incapacity on the part of the applicant to do the job because of ill health or
some other physical impairment.
[12] It was Rod Casey's evidence at paragraph 10 of his statement (Exhibit 22) that the
applicant "did not mention any health issues at any stage during my discussion with
him about his resignation and extending his time at the IA Group after his
resignation". Mr Casey's statement was made in response to an assertion made by
Mr Ahern in his statement in reply (Exhibit 4) at paragraph 16 wherein he said that
"I can categorically state that Rod Casey knew of my health situation, as well as my
troubled marital relationship". The reference to his marital relationship is irrelevant
in that it must be referring to a period when the applicant was married. He divorced
in 2010. Further the proposition that Casey knew of his health situation is different
to asserting that Casey knew that the substantive reason for his resignation was
because of his ill-health. On his own evidence, the applicant stops short of saying
that he told Casey he had to give up the job because of his ill-health.
[13] On 3 August 2011 the applicant and Mr Wojtaszak conversed over the telephone
about the applicant's termination pay. During the conversation the applicant agreed
to defer his departure date by one week. Between 8 August and 25 August 2011 the
applicant performed contract work for the IA Group. It appears that the applicant
ended his contract relationship because Mr Wojtaszak refused to pay pro-rata long
service leave. This position is disclosed in an email (Exhibit 6) that the applicant
sent to Rod Casey on 25 August 2011 where he said inter alia "in view of the stance
taken by John Wojtaszak, I see no benefit to either party in me having any ongoing
relationship with IA Group". These circumstances do not assist the applicant's claim
that he ended his employment with the IA Group because of illness or incapacity.
While I accept that no inconsistency necessarily arises from the applicant working
out his notice, he did not appear to raise any illness or incapacity restriction when he
agreed to undertake contract work nor when he stopped doing contract work. His
reason for ending the contract arrangement was because his long service leave claim
had been rejected.
[14] On 10 August 2011, Mr Wojtaszak forwarded a letter to the applicant setting out the
termination payments. The letter is in the evidence as attachment JW-4 to Exhibit
23. In the letter Mr Wojtaszak referred to the telephone conversation between
himself and the applicant on 3 August 2011 wherein it appears that the applicant
first claimed pro-rata long service leave. In the letter Mr Wojtaszak says that "I am
not aware of any of the conditions identified in the Queensland Government Fact
Sheet on Long Service Leave (Fact Sheet) supporting a pro rata payment in your
situation".
[15] The applicant responded to the letter via email on 18 August 2011. The email is in
the evidence as Attachment JW-5 to Exhibit 23. In the email the applicant relies on
the contents of the Fact Sheet in asserting that Mr Wojtaszak was incorrect in
concluding that the applicant did not have an entitlement to pro-rata long service
leave. The applicant attached a copy of the Fact Sheet to his email and said that he
had highlighted the sections that "specifically relate to Prorata Leave being
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applicable after 7 years on continuous service". The highlighted copy of the Fact
Sheet is in the evidence as Exhibit 5.
[16] Mr Wojtaszak responded to the applicant's email on 19 August 2011
(Attachment JW-6 to Exhibit 23). In his email reply Mr Wojtaszak says that he had
read the areas highlighted but that the conditions for a pro-rata payment "do not
apply in your situation". Mr Wojtaszak then proceeded to state the following:
"The facts of the matter are that you voluntary resigned (ie IA Group did not
terminate your employment) for reasons since indicated to Rod and I to centre
around the fact that:
(i) you were unhappy with your remuneration package;
(ii) you were unhappy with some of the administrative changes
initiated to contain the losses of the office and in particular the
downgrading of the office from a standalone office to an outpost of
the Brisbane office;
(iii) you felt that you needed an architect in the office of suitable
experience for you to be able to properly discharge your duties and
did not feel the business was prepared to support you in this area
although I am not aware of any formal request from you seeking
such a position; and
(iv) you were unhappy that the business was not, at this point, prepared
to provide the office with a new photocopier and scanner."
[17] The applicant responded to Mr Wojtaszak's email (Attachment JW-6 to Exhibit 23)
on the same day and stated that all of the items listed in Mr Wojtaszak's email were
"reasons for my resignation". He then went on to say however that "this is not a
discretionary process where you validate my reasons for resignation". The applicant
also indicated that he would be taking his claim to Fair Work Australia.
[18] During cross-examination the applicant was questioned about the Fact Sheet and
asked to explain the circumstances which gave rise to an entitlement to pro-rata long
service leave. The evidence is recorded at T1-25:
"And what were the other circumstances?---I considered my – the situation of
stress and the impact it had on my marriage to the point of divorce as being
other circumstances."
[19] While this was the response spontaneously given by the applicant he subsequently
added to his response the words "and my health" (T1-25). In his first response the
applicant's evidence is to the effect that he resigned his employment because of the
impact of his work on his marriage which in turn led to his divorce. This evidence is
given notwithstanding that the applicant's marriage practically ended in 2009 with
his separation from his wife, and legally ended in 2010 with his divorce. It is not
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therefore possible for this first response to be considered a valid or genuine reason
for his 6 July 2011 resignation.
[20] On 7 September 2011 the applicant provided a statement (Exhibit 7) to the Fair
Work Ombudsman (FWO) in support of his claim for pro rata long service leave. In
his statement the applicant referred to a reduction in staffing numbers "which made
the job almost impossible to do" and that this and other matters made his position
untenable and that he "was restricted in how I could deliver, promote and run the
office and the business". The applicant concludes that:
"I considered all of the above to render my position untenable, I was restricted
in how I could deliver, promote and run the office and the business.
…
On 6th June I emailed my letter of resignation to the Managing Director …"
[21] In saying that he considered that specified factors rendered his position untenable,
the applicant is identifying the reasons for his resignation. There is no reference to
illness or incapacity or to a domestic or pressing necessity. This explanation is
consistent with the view he expressed to Mr Casey on 7 July 2011 when he said that
he "could not continue in the position as it existed".
[22] On 14 October 2011 the applicant swore a statutory declaration for the purpose of
supporting his earlier statement to the Fair Work Ombudsman. In this document the
applicant said inter alia that:
"I regretfully had to terminate my employment with the company due to what I
perceived as being a totally untenable situation. I had not received adequate
support or backup and this ultimately impacted my personal life and health. I
had to resign to ensure that I could at least have a chance of rebuilding my
personal life and ensuring I had some future with my family."
[23] This is the first occasion since his resignation on 6 July 2011 that the applicant has
connected matters relating to illness and domestic considerations with his decision
to end his employment.
[24] While the applicant said he made the second statement in response to an invitation
from the FWO in the meeting on 7 September 2011 to provide additional material, I
think it can reasonably be inferred that the applicant made this second statement to
the FWO after he had developed a better understanding of the conditions that needed
to be satisfied in order to secure access to section 43(4)(b) of the Act. This approach
is illustrated by the applicant's inclusion in the second statement of a reference to his
"family" notwithstanding that at the time of his resignation he was not married, he
was not living with his ex-wife, and he did not have any children. As such his
characterisation of his association with his ex-wife at that point in time as "family"
is an embellishment on the facts. It is also noted that while the applicant made some
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reference to his health, he did not provide any explanation of his illness or the nature
of his incapacity, if any.
[25] The applicant's complaint to the FWO was dismissed on 16 November 2011. It was
the finding of the FWO that it could not "establish a link between any familial issues
and a genuinely held belief for the need to terminate the engagement". In its
disclosed reasons for decision the FWO did not address the other limb of section
43(4)(b) dealing with illness or incapacity.
[26] In his application to the Commission dated 26 March 2012, the Applicant stated, in
effect, that he resigned his employment because a requirement to work excessive
hours was having an adverse affect on his marriage. This ground was advanced
notwithstanding that at the date of his resignation the applicant was not married and
was in truth only in the early stages of courtship with a woman who happened to be
his ex-wife. The applicant was married to Frances Thomson in 2006 but he
separated from her in 2009 and was divorced in 2010. Some time in 2011 the
applicant and Ms Thomson took steps to revive their relationship. According to the
applicant in June 2011 they spent a week together on holiday in Tasmania during
which period he made up his mind to resign. At the time of his resignation the
applicant was not living with Ms Thompson. By the time of the hearing in July
2013, these arrangements had changed, but not substantially. At this point in time
the applicant was residing in Ms Thompson's holiday home on Magnetic Island,
however Ms Thompson's principal place of address was an apartment in North
Ward, Townsville. It appeared however that the couple did spend time together in
the holiday home on week-ends.
[27] The applicant's first statement in these proceedings filed in January 2013 comprised
97 paragraphs. Much of the statement contained historical and peripheral material
and is not directed at establishing the real or motivating reason for his resignation.
Through much of the statement the applicant complains about an alleged
under-resourcing of the Townsville office. In March 2011 when his office
administrator (Iesha Stewart) resigned, she was not replaced and it was the
applicant's view that this "decision greatly impacted on my time and ability to
effectively carry out my role in the Townsville Office, and greatly increased the
stress levels in my work and personal life".
[28] The applicant said that it was the norm for him to work 60 hours a week, an outcome
which he attributed to inadequate staffing levels and a lack of resources. It was the
evidence of Mr Wojtaszak that staffing levels and resources were commensurate
with the performance of the Townsville office. He said that the office only recorded
a profit in two out of the seven years that the applicant was employed. Further, in
the last four years of the applicant's employment, the percentage of available time
that was billed by the Townsville office was less than 45 per cent. According to Mr
Wojtaszak, a review of utilisation rates for the 2010-2011 financial year showed that
no member of staff produced a rate in excess of 49 per cent and the applicant's
utilization rate was 20 per cent. Timesheets in the evidence as Exhibits 10, 11 and
12 show that the applicant completed 8.25 billable hours in the week ending 10 June
2011; 3.75 billable hours in the week ending 17 June 2011; and 6 billable hours in
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the week ending 24 June 2011. There is a pronounced divergence in the evidence
between the applicant and Mr Wojtaszak about the demand for work and the output
within the Townsville office.
[29] The applicant stated that the extent of untaken annual leave was a true reflection of
the pressures of work. In paragraph 62 and onwards of his statement, the applicant
includes information relating to annual leave and states or implies that the staffing
levels in the office did not allow him to take as much annual leave as he would like.
In this regard I note that the applicant was employed by the IA Group for 7.3 years.
His total annual leave entitlement would have been 29.2 weeks. At the date of
termination he had 9.73 weeks annual leave untaken. This meant, on average, he
had taken 2.67 weeks leave each year. Setting aside any determination on whether
this period of leave was significantly different from the norm for executives, it is
relevant to note that there was no evidence to the effect that the applicant had
requested annual leave and had his request or requests rejected.
[30] Part of the history given to Mr Zermatis included the statement that the applicant
was working on up to 35 jobs at any one time. In response, it was Mr Wojtaszak's
evidence that the actual number of active jobs at any given time would have been
considerably less than 35. He said that the average number of monthly invoices
issued provided a true measure of the number of active jobs. In this regard, it was
his evidence that in 2008 ten invoices on average were issued each month for work
performed by the Townsville office. In 2009 eight invoices per month were issued
and in 2010 thirteen invoices per month were issued.
[31] In February 2011 the IA Group decided to rationalize the Townsville operations by
reducing staff numbers and providing some administrative support out of Brisbane.
It was the view of the IA Group that while the applicant had sought additional
resources, the office did not have the workload to justify an increase in staffing.
[32] The applicant stated at paragraph 78 of his first statement (Exhibit 3) that he:
"…was never in any doubt that I could substantiate that my health was at risk
because of the pressures of my workload, and the onerous amount of hours I
was required to put in. I say this because I knew that my medical records
would verify, in clear terms, that I have had a disability which, when I am
fatigued, deteriorates to such an extent that the pain becomes acute, and has a
negative impact on my ability to concentrate."
[33] The difficulty with this retrospective assertion is that the question for determination
is: what was the real or motivating reason for his resignation on 6 July 2011, and not
what the applicant decided to include in his witness statement when he drafted it in
early 2013.
[34] In paragraph 81 of his first statement and onward the applicant provides a history of
his problem with neck pain. He said the problem has existed since 1987. He said at
times the problem manifests itself in severe headaches and nerve pain in his neck
and down his right arm and right hand. He said that in times of stress and fatigue
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the neck problem has had a debilitating effect on him. Despite having to deal with
this condition since 1987 the applicant did not provide any evidence to the effect
that it interfered with his normal work or that he had to take significant periods of
sick leave to allow his condition to be treated. To the contrary, the evidence was to
the effect that the applicant took very little sick leave during his period of
employment.
[35] There is therefore little evidence that the neck problem experienced by the applicant
seriously or significantly diminished his capacity to perform his normal duties with
the IA Group. The evidence of Mr Parker did establish that the applicant
experienced a major episode of pain in 2007, however this major event had not been
repeated since. No evidence was led about the impact of the 2007 episode on the
performance of work for the IA Group by the applicant.
[36] Dr Guazzo provided a report in relation to the applicant's neck condition which was
dated 12 October 2012. He stated that the applicant was suffering from cervical
spondylosis. He had previously seen the applicant in 1997 and 2004. There is
nothing in the report that causally links the applicant's separation from the IA Group
with the condition being treated by Dr Guazzo. It is relevant that there was no
requirement for the applicant to see Dr Guazzo between 2004 and the date of his
resignation from the IA Group. Dr Guazzo's report makes no reference to the
applicant's marital arrangements.
[37] Robert Zemaitis, a registered psychologist, gave evidence in the proceedings. He
had prepared a report about the applicant dated 26 November 2012. The applicant
had been referred to Mr Zermaitis by Doctor Allan Wallace. He first saw the
applicant in April 2012, some nine months after he decided to resign his
employment with the IA Group. Zemaitis's report is predominantly a summary of a
history given to him by the applicant. The report is not contemporaneous and does
not contain much more than the applicant's own version of events provided
retrospectively. While there are references to a relationship breakdown in the
referral letter provided by Dr Wallace, this issue is not canvassed in the history
provided by the applicant.
[38] There is nothing in the report of Mr Zemaitis that assists in establishing a causal
connection between any psychological illness and the applicant's employment with
the IA Group. The report does reflect on the applicant's circumstances as at
November 2012, but these circumstances post date the applicant's separation from
the IA Group. The report does not make any reference to the reasons associated
with the applicant's resignation from the IA Group. In his oral evidence Mr
Zemaitis did say however that the applicant described a stressful time towards the
end of his employment where he had limited resources and no secretarial support.
This led Mr Zemaitis to the understanding that this was the reason why he chose to
leave the IA Group. It is noted however that a "very stressful time" and "operational
difficulties" relating to resourcing do not constitute contemporaneous medical
diagnoses to the effect that the applicant was ill or had an impaired capacity at the
time he resigned.
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[39] At paragraph 21 of his second statement (Exhibit 4) the applicant stated that all the
witnesses giving evidence on his behalf can validate "various aspects of my claim
that my marital relationship and my health and wellbeing were adversely affected by
my work situation at IA Group in Townsville". This however is not the question to
be answered. The question to be answered is what was the real or motivating reason
for the applicant's resignation? While it can be accepted that across the duration of
his employment with the IA Group the applicant was confronted with both health
and marital challenges, this conclusion falls well short of establishing that the
applicant ended his employment with the IA Group on 6 July 2011 because of
problems with his health or because of his failed marriage.
[40] Iesha Stewart provided two statements in support of the applicant. Ms Stewart
worked for the IA Group in Townsville as a receptionist from October 2008 to
March 2011. In broad terms, her evidence tried to support a view that the
Townsville office had a high workload and was under resourced. Despite her job
classification, Ms Stewart was not reticent in passing judgment on the professional
capacity of various individuals employed by the IA Group nor in rating the
organisational competence of the IA Group.
[41] Ms Stewart presented a distinctly parochial view of operational matters. She
acknowledged in one instance that when John Ahern asked national office for
professional senior support staff to assist him, such a person was sent. However, she
then derided the effort by concluding that often the support was futile because the
person seconded was not sufficiently experienced. She then complained that the
cost of the secondment was an expense against the Townsville office budget. These
forays diminish Ms Stewart's credibility because it was doubtful that she was
qualified to make these evaluations. If she was simply parroting complaints that the
applicant had made to her – then she should have attributed the sentiments to him in
her statement. The respondent was correct in challenging the admissibility or
relevance of a substantial part of Ms Stewart's statements.
[42] The only reference in Iesha Stewart's two statements to the applicant's health was at
paragraph 16 of her first statement where she said that she expected that Ahern
would have a stroke at work or a nervous breakdown and that his "disturbingly high
stress" worried her. Ms Stewart did not specify at what point in time she arrived at
this view, however it would have been prior to March 2011 when she left the
employment of the IA Group. Ms Stewart's statements did not include any mention
the applicant's marital circumstances.
[43] The applicant's ex-wife, Frances Thompson, provided a statement which dealt
primarily with the reasons for the breakdown of her marriage to the applicant in
2009 when the couple separated prior to a divorce in 2010. In her statement (Exhibit
21) Ms Thomson says at paragraph 14 that subsequent to the divorce she and the
applicant have "begun to see each other again" and that the applicant's "leaving the
IA Group has to me been a positive step in reconnecting and rekindling a healthy
relationship". This evidence falls well short of supporting a proposition that the real
or motivating reason for the applicant's resignation was his desire to enter a romantic
liaison with a woman who was also his ex-wife. It is more likely a wistful reflection
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on the applicant's circumstances including his unemployed status which meant that
work did not provide any barrier to his rekindling efforts.
[44] Paul Parker, a qualified physiotherapist, provided a written report relating to the
applicant's neck condition. The report was dated 9 May 2012. In his report Mr
Parker notes that the applicant had attended his practice for treatment of chronic
neck pain for 15 years. He said that the applicant experienced severe arm pain
caused by stenosis of the C7 nerve root in 2007. He said that the applicant attended
his rooms in 2007 for intermittent treatment of neck and arm pain. The applicant
was informed by Dr Guazzo that surgery would be appropriate when symptoms
could no longer be tolerated. Mr Parker said that since 2007 the applicant has
attended physiotherapy to try to avoid surgery but that he has clinically deteriorated
between 2007 and 2012. However in his oral evidence Mr Parker said that the major
episode that he had treated over the 15 years was the episode in 2007. Nothing
before or after 2007 assumed this significance. No statement or recommendation
was included in the report to the effect that the applicant's condition necessitated the
ending of his employment with the IA Group or to that he should be restricted in the
number of hours he worked each week.
[45] In his report Mr Parker says that "John reports that pain and stress is now affecting
personal relationships with his wife". The difficulty with this statement is that as at
9 May 2012 the applicant did not have a wife and to the extent that the statement
bore some relationship with the revival of a romantic link with his ex-wife, at this
point in time the applicant was in an apparently stable relationship of sorts with his
ex-wife. There is a significant failure in the report to provide conclusions
contemporaneously linking episodes of pain with particular workplace events.
[46] Dr Allan Wallace gave evidence as the applicant's treating physician. He had been
seeing the applicant since 2001. He provided a letter of support dated
3 January 2013. The letter commences with the words "I have been approached by
Mr Ahern to write a letter in support of his claim for the pro rata Long Service
Leave he had amassed during his seven years service to the IA Group". The letter
should be treated as a personal reference rather than a medical report, however the
letter did include the statement "when his preexisting neck injury flared causing pain
and numbness in his right arm and hand the added stress and fatigue caused by his
heavy workload significantly increased his suffering". In this reference the letter
appears to erroneously connect a flaring of the applicant's pre-existing neck injury
with a heavy workload causing an increase in suffering.
[47] The error arises from the fact that the major or significant episode or flare up of the
neck problem occurred in 2007 and would therefore not be relevant to the
circumstances associated with the applicant's resignation on 6 July 2011.
Alternatively if the doctor was referring to some other flare-up he did not say in his
letter when the flare-up occurred. Hence it is difficult to make any finding
concerning its connection with the applicant's decision to resign. Significantly the
doctor did not, either in his letter of support or his oral evidence disclose any
information, nor venture any opinion about whether the applicants neck condition
could prevent the applicant from working or be so disruptive to the normal
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performance of his duties that would necessitate his stopping work or severely
curtailing the number of hours he work.
[48] While the letter includes reference to the applicant's marriage the reference includes
significant factual errors. In respect to marriage, the doctor causally connected the
departure of Ms Stewart from the IA Group with the breakdown of the applicant's
marriage. The error arises in that Ms Stewart left the IA Group in March 2011
which was well after the applicant was divorced in 2010.
[49] It is relevant that the reports of Mr Zemaitis, Mr Parker and Dr Guazza all post date
the applicant's date of termination. Mr Parker and Dr Guazzo had been seeing the
applicant since 1997 confirming that the condition or conditions were of long
standing. Significantly the applicant did not have any need to see Dr Guazza in
2011 in the lead up to his resignation. Mr Zemaitis did not commence seeing the
applicant until April 2012 which was nine months after the applicant left the IA
Group and at a time when he was affected by a number of challenges that post dated
his time with the IA Group.
Conclusion
[50] In Computer Sciences of Australia v Leslie1 the Industrial Commission of NSW in
Court Session determined that the case before them should be resolved by asking the
following questions:
(i) was the reason claimed for termination one which fell within the section?
(section 43(4)(b) of the Act in this jurisdiction)
(ii) was such reason genuinely held by the worker and not simply colourable
or a rationalisation?
(iii) although the reason claimed may not be the sole ground which actuated
the worker in his decision to terminate, was it the real or motivating
reason?
(iii) was the reason such that a reasonable person in the circumstances in
which the worker found himself placed might have felt compelled to
terminate his employment?
[51] In the context of this case the specific matter for determination is whether the
applicant resigned his employment with the IA Group because of illness or
incapacity or because of circumstances associated with his relationship with his ex-
wife. In respect to the former reason the question to be answered is whether this
reason was genuinely held by the applicant as opposed to a rationalisation and
whether this reason was the real or motivating reason. In respect to the latter reason
the same questions need to be answered but after a determination is made about
whether this reason is one which falls within section 43(4)(b)(ii). If it is held that
the reason does not fall within the section, then no further consideration needs to be
given to it.
1 Computer Sciences of Australia Pty Ltd v Leslie1 (1983) 83 AR (NSW) 828
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[52] In a process of determining what is the genuine and the real or motivating reason for
resignation, the applicant has placed himself in a difficult position by providing a
series of different versions about why he ended his employment as disclosed by the
following chronology:
(i) In his letter of resignation on 6 July 2011 no reason is disclosed.
(ii) In his phone conversation with Rod Casey on 7 July, it was Casey's
evidence that the applicant did not mention his health as a reason for
resignation.
(iii) In an email exchange with Wojtaszak on 19 August 2011, the applicant
appeared to endorse a list of reasons set out by Wojtaszak which
represented Wojtaszak's understanding of why the applicant resigned.
Wojtaszak set out these reasons in response to the applicants claim that
he had an entitlement to pro-rate long service leave. The list of reasons
related to operational matters not to matters contained in section 43(4)(b).
(iv) On 25 August 2011 the applicant withdrew from a contract arrangement
with the respondent, not because of stated ill health or relationship
reasons, but because the respondent would not pay him pro rata long
service leave.
(v) In his 7 September 2011 statement to the FWO the applicant referred to
operational reasons not to matters contained in section 43(4)(b).
(vi) In his second statement to the FWO on 14 October 2011, the applicant
said that the reason for his resignation was because workplace
circumstances "impacted my personal life and health". Further the
applicant said that "he had to resign" to enable him to rebuild his personal
life and to ensure that he "had some future" with his family. Hence it is
not until three months after his employment ended that the applicant
introduced reasons which are capable of falling within 43(4)(b).
(vii) Notwithstanding the reasons advanced on 14 October 2011, in his
application to the Commission dated 27 March 2012 the applicant relied
solely on the proposition that he resigned his employment because a
requirement to work excessive hours was having an adverse affect on his
marriage.
[53] In the circumstances it is not surprising that the respondent asserted at paragraph 9
of its final submission that the applicant:
"…relies on a grab bag of illness, incapacity and domestic necessity although
he has not nominated which of these was the real and operative reason for the
resignation. It is submitted that, along with the five articulations of his case,
this is a factor which calls for an adverse inference to be drawn against the
Applicant."
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[54] The adverse inference suggested by the applicant's multiple choice approach to the
selection of a reason for termination is that the applicant has changed, modified or
concocted the reasons for his resignation well after the event. The rewriting of
history being undertaken to achieve a better matching between the reasons advanced
and the section 43(4)(b) conditions. This is the process of rationalisation
contemplated in Computer Sciences v Leslie2. Having regard to all the evidence, the
prosecution of the applicant's case based on multiple reasons and reasons which
change over time, and a failure to establish the requisite causation in the relevant
areas, it is difficult to accept that the reasons of ill-health or relationship building
advanced by the applicant were the real or motivating reasons for his resignation.
[55] The applicant said that in 2011 he reconnected with his ex-wife. While he did not
state the date of reconnection he did indicate in his evidence (T1-33) that
immediately prior to his resignation he took a weeks' leave and holidayed in
Tasmania with his her. During the break he said that he:
"…came to the view that the position in the office had become untenable and
that I had to make changes in life if I was to again get a correct work/life
balance. I had again been caught in the position of neglecting my family in
order to complete the tasks in the office."
[56] The applicant's attempts to support his claim by reference to "domestic necessity" or
"pressing necessity" in circumstances where at the time of the resignation he was not
married nor in any de facto relationship, he was not living with his ex-wife, and he
did not have any children, cannot be sustained. While he and his ex-wife may have
linked up romantically a little time before his resignation and he may have had a
genuine desire to upgrade the status of the relationship, these circumstances in my
view do not constitute either a domestic necessity or a pressing necessity. This view
is supported by reference to the relevant authorities.
[57] In Robert John Vermeer v Montague Fresh3 Brown C adopted the definition of
“domestic” included in the Macquarie Dictionary as appropriate for application in
these types of proceedings. The dictionary defined the word "domestic" to mean
"….of or pertaining to the home, the household or household affairs".
[58] While in Saxby v Southern Downs Security Pty Ltd4, Fisher C. addressed the
meaning to be given to the words "pressing necessity":
"Various decisions of this Commission have considered the meaning of
'pressing necessity' by reference to the definitions of the words 'pressing' and
'necessity' found in the Macquarie Dictionary: Vermeer v Montague Fresh Pty
Ltd; Hawkins v Torres Strait Island Regional Council; and Mihill v Harcourt
2 Computer Sciences of Australia Pty Ltd v Leslie (1983) 83 AR (NSW) 828
3 Robert John Vermeer v Montague Fresh Qld Pty Ltd (2007) 185 QGIG 220
4 Melanie Saxby, Department of Justice and Attorney-General AND Southern Downs Security Pty Ltd
(B/2009/69) - Decision <http://www.qirc.qld.gov.au>
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Engineers Pty Ltd t/as Harcourt Consulting Engineers. In each of those
decisions the definition of 'pressing' was given as "'urgent: demanding
immediate attention' and 'necessity' as 'something necessary or indispensable'.
[59] In Franks v Kembla Equipment Co.5 Sheldon J applied the following test in dealing
with a case of "domestic necessity":
"The test, I would suggest, is whether there is a really serious problem in the
home, although not necessarily a crisis. On the one hand, the colourable and
frivolous should be rejected but on the other, over-exacting standards should
not be adopted. After all, what is being dealt with is not a sphere-shaking issue
but a reason for terminating employment and a material consideration must be
whether the domestic situation is such that a reasonable man might feel
compelled to seek its solution by terminating his employment. If a really sick
wife, coupled with economic worries and difficulty in coping with small
children, falls short of creating a domestic necessity, then it is hard to imagine
what domestic chaos must exist before the test is satisfied."
[60] In applying these authorities to the facts and circumstances of this case it is my view
that the appellant's desire to re-establish a relationship with his former wife cannot
be deemed to be a domestic or pressing necessity. In the first instance the
relationship between the two cannot appropriately be defined as pertaining to the
home or household affairs. Nor do I accept that, in the circumstances of this case,
that the applicants desire to rekindle his former relationship could be said to be
attended by urgency or be something that demanded immediate attention. Neither
do I consider that a reasonable person would accept that a solution to a romantic
aspiration would ordinarily be found in the termination of ones employment.
[61] In terms of the ill health limb of section 43(4)(b), the applicant has failed to develop
an adequate causal connection between any alleged medical condition or claimed
physical impairment on the one hand and his work performance on the other hand,
such as to enable a conclusion to be arrived at that a reasonable person in the same
circumstances would have felt obliged to end his employment. The applicant had
been treated for his neck condition since 1987 but he did not lead any evidence to
establish how this condition had prevented him or limited him in the undertaking of
his normal work. A typical measure in such cases may have been the number of
sick days taken or the need to periodically reduce hours of work or to vary the
functions he performed. But no evidence of this nature was forthcoming. Nor did
the applicant provide time critical evidence establishing that at a particular point in
time, and prior to his resignation, his medical condition had worsened to the extent
that his prior capacity to undertake the work had materially reduced. At the end of
the day generalised rationalisations provided retrospectively are insufficient to
substantiate a conclusion that the applicant needed to change his employment
arrangements in July 2011.
[62] The appellant had ample opportunity to disclose to his employer his real or
motivating reason for leaving. He had a good relationship with Rod Casey and it
5 Franks v Kembla Equipment Co.5 Pty Ltd (1969) AR 17 at 19
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would have been expected that the day after his resignation, when Casey rang him
and asked him to reconsider his decision, that he would have disclosed the real
reason for his departure. For example, he might have responded to the effect that he
could not reconsider because his long standing neck condition had worsened to the
extent that he could not keep going in his current position; or he could have
explained that he had been trying to re-establish a relationship with his ex-wife, but
that she had insisted that a reconciliation was only possible if he changed jobs. The
facts are that the applicant did not say any of these things, but said that he could not
continue in "the position as it existed". The applicant could have had a similar
discussion with John Wojtaszak on 3 August 2011, but having regard to the
exchange of emails on 19 August 2011, it appears only operational matters were
raised by the applicant. Finally in his first statement to the FWO on 7 September
2011 the applicant concluded that he considered "all of the above to render my
position untenable, I was restricted in how I could deliver, promote and run the
office and the business". The content of the first FWO statement confirms that it
was operational reasons that were motivating the applicant to resign.
[63] By the time the applicant prepared his second FWO statement his story began to
change and different reasons for resignation were advanced. From this point on he
embarks on a course of identifying facts and circumstances which might fit the
requirements of section 43(4)(b) and endeavours to retrospectively attach these
matters to the reasoning behind his resignation. What emerges is not a single
compelling reason for termination but a potpourri of reasons where the applicant has
looked at events and circumstances in his past life and considered how they may be
linked to his employment and to a decision to end his employment. The applicant's
attempt to rewrite history is transparent and leads to a conclusion that the reasons for
resignation advanced by him in the proceedings were not genuine and were not the
real or motivating reason or reasons.
[64] By section 43(4), the Act does not provide a general benefit for everyone who
completes 7 years service. What the Act does is create an exception to a general
rule and defines the exception by reference to illness or incapacity or to domestic or
other pressing necessity. The Act contemplates a set of circumstances where prior
to the decision to terminate, a significant episode emerges or an over time event
develops which leads the employee to conclude that it is in his best interest to end
his current employment arrangement. These circumstances necessarily involve
elements of causation which link the significant episode or event to the decision to
resign.
[65] The applicant has not discharged the onus of establishing that the real or motivating
reason for his resignation was because of illness or incapacity or that it was because
of a domestic or other pressing necessity. His application is therefore dismissed.
[66] I order accordingly.
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Official source: https://www.sclqld.org.au/caselaw/QIRC/2014/031