Butcher v Scanmaze Pty Ltd trading as Harvey World Travel, Tully [1993] QIRC 510 (1993) 144 QGIG 969
968 QUEENSLAND GO VERNMENT INDUST RIAL GAZETTE (24 December, 1993 24 December, 1993] QUEENSLAND GOVERNMENT INDUSTRIAL GAZETTE 969
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QUEENSLAND INDUSTRIAL RELA TIONS COMM ISSION
Indu strial Relations Act 1990
s. 174 - appl ication for rei nst areme nt
Frances Anne Butcher
AND
Scanmaze Pty. Ltd. trading as Harvey Worl d Travel, Tully
(No. 8289 of 1993)
CLERICAL EMP LOYEE S AWARD - STATE
COMMISSIONER BLOOMFIELD
10 December 1993
Termination of Emp loymen t - Dismi ssa l - Reinstatement -
Manager of Travel Agency - Termination due to financial and
economic circumstances - Se lection criteri a for Redundancy -
Notice Period - Union Membership - Preference of Em pl oyment
Termina ti on Change and Redundancy Provisions
Consultation pri or to changes - Arbitrated Matter - Dismi ssa l
was har sh, unjust and unreasonable - Re instatement ordered
from date to be determined - A pp licant Pregnant - Choice to
return to employment after birth of chi Id.
DEC ISIO N
This is an application by Ja m es O'Donnell on behalf of
Frances Anne Bu tcher for he r re i nstatemen t as Offi ce Supervi sor
wi th Scanmaze Pty. Ltd. tradi ng as Harvey World Travel, Tully.
Mrs Butcher commenced em pl oyment on 7 January 1985
with Wandover Pty. Ltd., trad ing as Tully Realty, wo rking in both
the rea l esta te and Harvey World Travel operations of that
company. On 9 January 1989 her employment was transferred to
W i ngs Travel as a travel con su ltant ra ther rhan as a
cler k/recepti onist in rhe combined operations although she was
sti ll paid by Tu lly Rea lty. On 31 Ma rc h 1991 ownership of
Wings Travel changed to Scanmaze Pty. Ltd. and her services
were transferred to that employer.
On t he morning of Saturday 9 May 1993 Mrs Butcher's
services we re term inated by payment of one week's pay in li eu of
noti ce. Mr Don Tay lor (who represented Scan maze Pty. Ltd.
trad ing as Harvey World Travel) accepted "the facr that you were
there for eight and a-half years under the same umbrella of the
sa me person" and that rhere was no di spu te that serv ice was
regarded as con tinuous between Jan uary 1985 and May 1993.
The employer's evidence was that it had te rmi nated M rs
Butcher's servi ces because the travel agency was l os ing money
and that it cou ld not affo rd to pay h er waies. This decision was
sta ted to have been arrived at as a result ot a board m ee ti ng some
one month pri or to the termi nation being communicated. The
deci sion was also sa id to have been arri ved aI after considering
other op ti ons 10 reduce costs wi th in the business - including the
poss ible term ination oi other emplovees - with the decision
being taken to termi n ate Mrs Butcher;s services ah ead of others,
fo r a variety of reasons including:-
• The level of Mrs Butcher' s salary ($600} compared to
other staff
• Verbal comments from clients about the wor k
performance of M rs Butcher and her attitude towards
them
• The fac t that Mr and Mrs Don Tayl or found it difficu lt to
wo rk wirh Mrs Butcher
The Commi ss ion has found this a mos t difficu lt case 10 deal
with. Mu ch of the material produced as "evidence" was
immaterial to the proceedi ngs and served only to add seve ral
layers of viewpoin t, assert ion and conjecture to what was already
a confused set of "non-ag reed " fa<.1 S.
From what h as been put 10 i t, the Commi ssion has been ab le
to unravel the fol lowing as the history of this matter:-
• M rs Butcher commenced employment in January 1985
as a clerk/recep ti onist with Wandover Pry . Ltd . -
tr ad ing as Tul ly Realty - a company owned by Ken
Tay l or who al so owned a travel agency known as
Wi ngs Travel. M rs Bu tcher wo rk ed in both sides of the
business.
• In Ja nuary 1989 her servi ces we re ful ly t ra nsferred to
W i ngs Travel as a travel con su ltant rather th an as a
clerk/receptionist wi th Tully Rea lly, although she
continued to be paid by Tully Realty.
• O n 31 March 1991 ownership of the travel agency
cha nged from Mr Ken Taylor to Scanmaze Pty. Ltd., a
company owned by Mr and Mrs Don Tay lor's parent£.
At about this time Mrs Butch er was the sen ior travel
consu ltant.
• Mr Do n Tay lor, alt ho ugh genera lly working in England
on a full-time bas i s, regularly returned to Austral ia
around September to prepare financi al and other da ta
for h is parent's busi ness(es).
•
•
•
•
•
•
At rhe time of his return around September 1991 M rs
Butcher al erted him to the fac t that the then m anageress
of W ings Travel Tully was planning to open her ow n
agency in lnnisfail. So me di sc us si ons then occurred
w ith that manager about taking ouI equity in the Tully
agency.
Following a break-down in rhose discussi ons the
manager ceased employment on 28 October 1991 and
shortly thereafter Mrs Butcher was appointed as act in g
manager by M r Dud ley Tay lor, the agency's pri ncipal.
In around December 1991 M rs Bu tcher was appoin ted
as the manager of Wings Travel wit h r espo nsibility ior
both the Tul ly and Mission Beac h offi ces .
In abou t August 1992 Mr Don Tay lor permanently
returned to Aus t ra lia and indicated to Mr s Butcher that
he was to become more invol ved in the bu siness .
M rs Ju li e Tayl or (D on Tay l or 's wife) als o com menced
employment in the business at this time at the M i ss i on
Beach agency.
The financial report for the year ended 30 June 1992
showed a loss of $1,500 whic h was of some surpri se to
t he Tay lor f am ily.
In October 1992 the previous manager of W ings Travel
opened a new agency in Tully and a sen ior consultant
of Wi n gs Tra vel left to j oin that agency.
The Tay lor fami ly de termined to tack le this new
competitor and decided to join the Harvey World
Tr ave l fra nchi se in October/November 1992 and
changed th ei r name from W i ngs Travel to Harvey
World Travel.
In di scuss ions between M r Tayl or and M rs Bu tcher a
decision was ta k en to re place t he sen i or travel
consultant, who had resigned, wi th a j un i or travel
consultant.
Beginning wit h his return from overseas M r Don T ay lor
took over an increasing amount of the book work for
t he agency and several mon ths later bega n to fi nd that
the agency was experiencing financial probl ems with
bank accounts being regu l ar ly overdrawn.
The Tay lor's arranged for draft financi al accounts to 31
December 1992 at about th i s time which showed a loss
for the h al f yea r of j ust over $31 ,500. (There is confl i ct
between the employer's evi dence and subm issions as to
why t hese accounts were prepared)
-- 1 of 3 --
970 QUEENSLAND GOVERNMENT INDUSTRIAL GAZETTE [24 December, 1993
•
•
•
•
•
•
•
In early 1993 the Taylor's arranged for the agency to
transfer bank accounts and took the opportunity to
delete Mrs Butcher's name from the list of signatories.
Upon her return from holidays in the UK Mrs Butcher
met with Mr and Mrs Don Taylor on 23 February to
discuss this change and a number of other concerns
about which of Mrs Butcher or Mr Taylor was
responsible for undertaking certain bookwork.
Mrs Butcher also gave evidence that she had requested
of the employer in December - before her departure
on leave - to provide a duty statement because of
confusion as to which of Mr Taylor or herself was
responsible for undertaking certain bookwork. This
evidence was not contested by Mr Taylor.
Mr Taylor asserted that in January or February he and
his wife had taken an opportunity to talk to Mrs Butcher
about their working relationship. This was disputed by
Mrs Butcher.
Mr Taylor gave evidence that he had had a staff meeting
in March at which time he spoke to all employees
about financial pressures facing the business and about
the need for employees to increase sales. He also
asserts that he spoke to employees about "complaints"
being received from customers. Mrs Butcher does not
dispute that this meeting took place but disputes that
there was mention of complaints from customers or that
the financial position of the employer was spoken about
in other than general terms.
In April 1993 the Taylor family discussed the financial
position of the agency and discussed means of
controlling costs. After considering avenues to reduce
the normal costs of doing business the family decided to
reduce staff and agreed to terminate Mrs Butcher's
services for the reasons stated above. Mr Taylor says
that the decision as to timing was left to him.
Notice of termination was finally communicated to Mrs
Butcher on Saturday 9 May 1993 in a conversation
about which there is considerable dispute as to what
was actually discussed. Mrs Butcher was due to travel
to Fiji on the Monday with other Harvey World Travel
travelagents on a familiarisation tour.
At the time of her termination, and for a number of
years beforehand, Mrs Butcher was a member of the
Federated Clerks' Union of Australia, North Queensland
Branch, Union of Employees.
One of the travel consultants employed at 9 May 1993
has subsequently left and not been replaced, with Mr
and Mrs Taylor increasing their respective roles in the
business above the level in existence at 9 May.
On the whole the Commission prefers the evidence of Mrs
Butcher to that of Mr Taylor where points of difference occurred.
Mrs Butcher seemed calm, assured and assertive in the witness
box whereas Mr Taylor frequently appeared pressured, defensive
and, at times, evasive.
Because of the confused nature of this case - with neither
party providing witness statements prior to the hearing as per the
Commission's directions in the preliminary hearing - and with
evidence being produced in an uncoordinated, and often
unrelated, way, the Commission took it upon itself to attempt to
get to the heart of the matter by asking a number of questions of
various witnesses.
Despite its own best endeavours to get to the heart of the
matter the Commission is concerned that the real, or underlying,
reason for Mrs Butcher's termination has not come to the fore.
This is despite Mr Taylor's continual assertion in evidence
and in submissions that the termination was because of the
financial circumstances facing the travel agency. A number of
points lead the Commission to still have concerns about the
termination, and the reasons behind it, as follows:-
• Mrs Butcher was never informed of any "complaints"
that were allegedly being made about her by clients of
the agency.
• A number of the "complainants" mentioned by Mr
Taylor in the proceedings were not clients of Mrs Butcher.
• Apart from broad comments to Mrs Butcher about the
financial affairs of the business the evidence does not
indicate that she was ever spoken to about how the
business was actually going.
• Although Mr Taylor said that he had concerns that the
staff were not doing enough to increase sales there is no
evidence of him having raised this concern with Mrs
Butcher in a direct way other than the very general
meeting which is stated to have occurred in March
1993 .
• The decision to terminate Mrs Butcher's services was
said to have been taken at a board meeting about a
month before the termination (upon the
recommendation of Mr Don Taylor) but the actual
termination did not occur until 9 May 1993.
• The reason behind Mr Don Taylor's claim that he had
not communicated the termination advice earlier, that
he needed to talk to Mrs Butcher alone, does not stand
up to scrutiny by a reasonable person.
• The al legation that losses of $800 to $1,000 per week
was the reason for termination, yet the decision to delay
termination continued to exacerbate this loss.
• The fact that the conversation in which Mrs Butcher was
terminated commenced with a question by Mr Don
Taylor as to why Mrs Butcher had withheld a letter that
had been addressed to him and, when Mrs Butcher
volunteered to help him find it, went on to indicate that
it was "an irrelevancy".
• The fact that in his evidence and submissions Mr Taylor
continued to labour the point (on 9 or 10 occasions)
that the issue of the letter was an "irrelevancy" to the
decision to terminate.
• The inconsistency between Mr Taylor's evidence and
his later submissions as to the reason for the preparation
of the trading results to December 1992, with the
evidence indicating that he had prepared accounts
because of concerns about the trading performance and
his later submissions revealing that the accounts had
been taken out at the request of a real estate agent in
relation to the possible sale of the travel agency.
(Note: The Commission has some concern that the
trading and profit and loss accounts for the year ended
30 June 1993 tabled as exhibit 4 were asserted by Mr
Taylor to be audited yet the auditor's statement is very
specific in its qualification that the documents are not
audited and that the accountants express no opinion as
to whether the accounts present a true and fair view of
the state of affairs of the company. However, the
Commission is prepared to accept the correctness of the
figures presented.)
• The failure of Mr Taylor, an accountant, to address the
claimed underlying problem earlier including the
reasons why liquidity would have been increasingly
tight and the failure to fully address the turnaround of
$100,000 between the results for the year ended 30
June 1991 (profit $70,000) and the results for the six
months to 31 December 1992 (loss $30,000).
• The failure of Mr Taylor to satisfactorily answer, when
under cross-examination, why he had failed until the
day of the hearing to indicate to either Mrs Butcher, the
Federated Clerks' Union or the Commission the basis
upon which a decision had been made to terminate Mrs
Butcher's services.
The Commission is also concerned that Mr Taylor, an
accountant, could not satisfactorily explain reasons for the loss to
30 June 1993. Although the figures contain an "unknown"
trading account comprising 46% of the sales this was not apparent
at the time of the hearing. In the document tabled as exhibit T4 it
appears quite evident to the Commission that the substantive
reason for the loss for the year ended 30 June 1993 was the
$40,000 turn-around in gross profit from trading. Mr Taylor
estimated at page 67 of the transcript that by eliminating $21,000
in expenses that were not related to the normal course of the
business (associated with the involvement of Mr and Mrs Taylor
and the decision to join Harvey World Travel) the business made
a loss of $42,500. This is almost explainable by the turnaround
in gross profit.
24 December, 1993] QUEENSLAND GOVERNMENT INDUSTRIAL GAZETTE 971
If the extraordinary expenses of $21,000 are removed the
difference between total expenses in year 1992 to year 1993 is
only $3,000. The differences in expenses between Tully on a
year to year basis is only $4,000 which is inclusive of the
extraordinary items. With these abnormals removed Tully's
expenses performance was better in 1993 than in 1992. The
difference between expenses for Mission Beach is $20,000 which
is made up through increases in wages and salaries of $14,000
and abnormals associated with the decision to join Harvey World
Travel such as advertising, franchise fees, and license fees.
In answer to a specific question from the Commission as to
why there would have been such a significant turnaround in gross
profit margin on a year to year basis Mr Taylor could not provide
a satisfactory answer.
On any analysis it is clear that from the figures produced the
total expenses associated with the running of the business has not
varied greatly from 1992 to 1993, with the exception of the
abnormal items in 1993 and the high wage and salary component
at Mission Beach. The item which a trained accountant would, or
should have, focused on would have been the significant
turnaround in gross profit from trading which indicates some
fundamental change in the business, or the nature of the conduct
of the business. This should have become the first priority for
attention but it appears not to have been addressed nor to have
been an item considered by Mr Taylor.
There are several other concerns in the mind of the
Commission about the decision to terminate and the manner of its
conduct.
These other concerns relate to the failure of the employer to
observe the requirements of clause 2.2 - "Introduction of
Changes, Termination of Employment in Cases of Redundancy" of
the Clerical Employees Award - State and apparent failure to
observe clause 2.5 - "Preference of Employment" of the Award.
In April 1993 the employer, through the evidence of Mr D.
Taylor, claims to have made a decision to terminate an employee
because of the loss-making situation. Because of reasons outlined
above the decision was taken to terminate Mrs Butcher.
Coincidentally, Mrs Butcher happens to be in receipt of a wage
rate which makes her "partially exempt" from the Award. Clause
2.1 - "Contract of Employment" and clause 2.2 - "Introduction
of Changes, Termination of Employment in Cases of Redundancy"
are shown as not relating to partially exempt employees.
Nonetheless, the provisions of the Termination of
Employment, Introduction of Changes, Redundancy ("TCR")
decision of the Commission (125 QGIG 1119-1121, as amended
by 125 QGIG 1377 and 126 QGIG 188) are relevant to the
employer on the basis that other employees would be affected by
the change in manning of the establishment. Consequently, the
employer had a duty under the TCR decision "to discuss with the
employees affected or their union or unions, inter alia, the
introduction of the changes . the effects the changes are likely
to have on employees and measures to avert or mitigate the
adverse affects of such changes on employees". The TCR decision
goes on to require these discussions to commence as early as
practicable after a definite decision has been made by the
employer to make any of the changes referred to in the TCR
decision (Clause B - 1 (a) and 2(a)).
Had such discussion taken place the employees, particularly
Mrs Butcher, might have agreed arrangements with the employer
to "avert or mitigate the adverse affect of such changes". In
addition, such discussion would have enabled Mrs Butcher to
appraise the employer of the fact that she was a union member
and required the employer to take account of the Preference of
Employment clause in its deliberations.
The fact that no such consultation was undertaken gave Mrs
Butcher (and possibly her union) no opportunity to explore with
the employer measures by which the dilemma facing the
employer could be addressed. Further, it meant that Mrs
Butcher's entitlement to have the preference clause brought into
play was denied to her.
The failure of the employer to consult, and the consequent
failure to take account of the Preference of Employment clause
cast doubt on the process used to arrive at the decision to
terminate Mrs Butcher. This is particularly so when considered
against the background of the concerns held by the Commission
about the whole circumstances of the termination which are
outlined above.
Apart from the above concerns there is also the method of
selection of Mrs Butcher ahead of other employees in
circumstances where the termination is claimed to have been one
of redundancy caused by the inability of the employer to continue
to operate at its current level of expenses .
On the evidence Mrs Butcher was the most experienced
employee of the employer at the time of her dismissal. She was
also the manager of the travel agency and the certificates and
licenses held by her enabled the employer to receive other
government and industry controlled licenses which allowed it to
legally operate as a travel agency. The decision to terminate such
employee would not be one normally made lightly and it is the
fact that such a decision was made which should cause it to be
well thought out and have a firm, solid, basis of support.
The Commission can find little in the evidence which would
provide a firm base to support the employer's decision to
terminate Mrs Butcher. The principal ground relied upon by the
employer was the level of the wage rate paid to Mrs Butcher
when compared to other employees. There is also the assertion
that unfavourable comments about Mrs Butcher had been
received from customers and an assertion that Mr and Mrs Don
Taylor found Mrs Butcher difficult to work with.
The question to be answered is whether the criteria used for
selection, the amount of notice provided, the timing and manner
if its communication, the failure to consult and the apparent
failure to consider the preference clause constitute a dismissal
which is sufficiently harsh, unjust or unreasonable for the
Commission to interfere in the employer's decision to terminate.
In McLean and D'Angelis v David Jones (Australia) Pty. Ltd.
(60 SAIR 62) the Full Commission held that failure to consult with
the employee and/or the union does not of itself make the
dismissals harsh, unjust or unreasonable. However the Full
Commission went on to indicate:-
"lf consultation, as required by an award does not occur, and
it can be shown that the person or persons have been
selected for redundancy either by reasons of an unfair or
unjust criteria being utilised, or that the person or persons
were not selected in accordance with an established fair and
just criteria, or that there are other circumstances which
demonstrate that some other person should have been
dismissed such dismissal may well be adjudged to fall within
the statutory criteria. See Corkrey v C.M.H. (1986) 53 SAIR
531 at 538-9 and Hemmings, Chandler, Biebrick and
Kennedy v C.P.5. Credit Union (1991) 58 SAIR 421 at 426." .
In Corkrey v General Motors-Holden 's Limited Mr Justice
Stanley (at page 538-9) identified five basic principles to be
followed when an employer sought to retrench or make
redundant part of his workforce. After deciding those basic
principles His Honour stated:-
"The intent is that where redundancies or retrenchments
must unfortunately occur, the impact should, as far as is
humanly possible, be minimised, so that the employees
directly concerned can see that the selection process has
been carried out fairly. A departure from those principles
without good and just reasons may well lead to the
conclusion that the dismissal should be regarded as harsh,
unjust or unreasonable, even if economic or other valid
considerations make the redundancies necessary.".
Included in the five basic principles were that the employer
would give as much warning as possible to the employee(s)
affected; and that "in attempting to decide the criteria to be
applied attention should be paid to such matters as length of
service, efficiency, experience and attendance records where such
matters can be objectively checked, and do not depend solely on
the opinion of the person making the selection.".
In a more recent South Australian ,ecision, White v Douglass
Diagnostic (I. 31/1993) Commissioner G.M. Stephens found that
the decision of the employer to terminate Ms White, and the
manner of its conduct, was sufficiently harsh, unjust or
unreasonable to warrant the Commission's intervention.
After identifying a number of deficiencies in the employer's
conduct Stephens C. stated:-
"Although award free, the employer then relied, and still
relies upon the termination change and redundancy
standards of this Commission with respect to notice period
and severance payments in establishing a total termination
payment. That is quantified in her case by a payment of
-- 2 of 3 --
,...
972 QUEENSLAND GOVERNMENT INDUSTR IAL GAZETTE [24 December, l 993
three weeks in lieu of notice and six weeks' seve rance pay, a
to ta l of nine weeks' pay in al l.
Wh il st t he authorities suggest t hat the te rmination change
and redundancy standards for awa rd employees be taken as
a gui de (see for exa mple Morris v Southern Farmers Limited
58 S.A.I.R. 86), it is al so a mane, for assessment in each
individual case having reg ard to the particular circumsta nces
of that case (see Jackson v. Atco Limited 53 S.A .I.R. 95 at
111).".
Whi l st it is acknowledged t ha t t he above cases have been
wri tten in South Australia and crea te precedent only in 1h a1 State,
they are nonethe less of some re levance. In the instant case the
employer did not pay the quantums set oul in the TCR decision
on t he basis of advice that ii claimed to have received from an
employer assoc iation that as a partia lly exempt employee Mrs
Butcher was not entitled lo anything more than one week's
notice, or wag es in lieu.
Strictly, under the Award, there is apparently no entitlement
10 any notice (or red undancy entitlement) for partially exempt
employees. Accord ingl y, t he common law concept of "reasonable
notice" would be re levant. One week's pay in lieu of notice
could ha rd ly be considered "reasonable" in the case of Mrs
Butcher given her length of serv ice, experience, pos ition and the
l ikelihood of finding su itabl e, equi va lent, employment in, or near
to, Tully.
After consid ering all of the evidence, su bmi ssio ns and cases
referred to in these proceedings t he Commi ss ion has determined
that the decision to term inate Mrs Butcher's serv i ces by the
employer was ha rsh, unjust and unreaso nable.
This is particul ar ly so in light of:-
• The length of servi ce, experien ce and position occupied
by Mrs Butcher;
•
•
•
The l ess than objective method of assessment of Mrs
Butcher as the employee to be terminated;
T he fa ilure of the employer to consu lt with employees
(es pecia lly Mrs Butcher) about ways to mitigate or avert
the poss ible redundancy;
The l ack of any warnings to M rs Butcher as to any
d issat i sfact i on on t he employer' s beha lf as to her alleged
unsati sfactory performance insofar as her deali ngs w ith
clients were concerned;
The less than convincing position advanced by the
employer that although the decision was made in Apri l
to termin ate Mrs Butcher for economic reasons this was
not actua lly carried out until 9 May with the reas on for
the delay appeari ng, on the surface, to be spu rious;
The inadequate no ti ce period notwithstanding that Mrs
Bu tcher was a partially exempt employee; and
• Finally, the doubt in the Commission 's own mi nd as to
the adequacy of the identification of the underlying
causes of the financial l oss claimed to have been
suffered by the empl oyer and th e required acti on to
correct the situation.
The Commission records that in reach i ng its concl usion th at
the dismissal was harsh, unju st and unreasonable the last
mentioned po int (above) was an additio na l fac tor to support t he
decision already reached by it on the ear lier grounds.
Any breach, or poss ible breach, oi the Preierence clause was
al so not requi red to be decided.
It is a wel l es tabli shed principle of this Commission th at i t
wi ll not inte rfe re with the decision of an employer to te rm inate an
employee except wh ere "i ts intervention is necessary to protect an
employ ee aga in st an unjust or un fai r exercise of the employer's
right of dismissal, a right w hich is as iundament al in the
re lation sh ip of employer and employee as is the right of an
employee to le ave his employm en t." See Barrett v Women's
Hospital, Crown Street (1947) AR 565 at 566- 567 cit ed w ith
approval by Sheahan A.P. in Local Authorities (Excluding
Brisbane) and Main Roads, Etc. Award - State 98 QGIG 12 86 at
1288. See al so North West County Council v Dunn (1971) 126
CLR 247 cited with approval by Sh eaha n A.P. (above) and in Re.
Sugar Industry Award - State 98 QG IG 1288 at 1289.
In the i ns tant case the Commission is of the view t hat th e
exercise of i ts right to termin ate Mrs Bu tcher's services by the
employer was so suffici en tly harsh, unj ust and un reaso nable th at
the Comm is sion 's intervention is warran ted .
The question for determination then is what is to be the level
of the Co mmi ss ion's interven tion. Sect i on 1 75 provides that if the
Comm iss i on considers that a di sm issed employee should be
re i nsta ted or re-employed the Commi ss ion may order accordingly.
If th e Commi ssion is of the view th at an order for rei nst atement or
re-employment is inappropriate the Commission may award an
amount of compensation as determined by the Comm ission.
In Achal v Electrolux Pty. Ltd (1 43 QGIG 144 at 145) Hall
C.C. stated :-
,. . . . reinsta te ment should on ly be ordered where the
dismissa l was so harsh and oppressive as to be an abuse of
power. It is settled t ha t the power to re instate is a power to
be exercised with caution. In Slonim v Fellows (198 4) 154
CLR 505 at 515 W ilson J (with whom Mason and Dea ne JJ
agreed) said:
'fD he power to direct that A employ B i s a very drastic
one . .. i t will al ways be a power to be exerci sed with
caution having regard to th e circum stances of the case.
The re will be many cases whe re the work ing
relationship of employer and employee i s so close that
to impose suc h a relationship by an award wo uld be
quite destructive of industrial harmony.'.".
In Achal Hall C.C. determined that he wou ld no t order
reinstatement or re- employment b eca u se of an appr ehens ion that
"no more t han a po i so nous work environment can be created by
an order for re instatement". In Mrs Butcher's case there was also
no ne of the co lourful language which was in evidence in Simpson
v PO Resorts (Heron Island) (see decision of Hall C.C. 7
De ce mber 1993).
Although Harvey Wo rld Travel at Tu ll y is a sma ll workplace
there is nothing in the evidence to suggest that there has been the
occurrence of any of the type of events referred to by the Chief
Commi ssio ner in Achal or Simpson. Indeed, from the
Commi ss io n' s own observations of Mrs Bu tch er and M r Don
Taylor dur ing the course of proceedi ngs t he re i s nothing to
suggest that a proper re l ationship could n ot be re-created. Ap art
from so me slight tes ti ness with each other du ring po ints of
con tes ted evi dence there was no apparent hostility or enmi ty
between them an d nothing which wo uld otherwise ca use the
Commission to have reservations about th e successful re-creation
of an acceptable employer/employee relationship.
Accordingly, pursuant to the powe rs gi ven to it under section
175(1)(al of the Act the Commission ord ers t he employer to
reinstate Mrs Frances Anne Bu tcher into he r previous position as
office supervisor without prej udi ce to th e former em pl oyment
conditi ons from a date to be determi ned in consu ltation with Mrs
Bu tch er or, in the event that there is no agreemen t, to be
determin ed by the Commission.
The Commission mak es thi s unusually fr amed order for the
foll ow ing reasons . Shortly after her termination by Scanmaze Pty.
Ltd. M rs Butcher discovered that she was pregnant. This
p regnancy followed a nu mber of u ns uccessful attempts an d
severa l miscarri ages. The t im ing of M rs Butcher's pregnancy i s
such th at she is likely to give birth ear ly in the new year and i t
wou ld be inappropriate in all of the circumst ances for the
Commi ssion to determine a d ate upon which Mrs Butcher should
r esu me employment because t he Commission cannot place itself
in th e mind of M rs Bu tcher as to how she woul d have
app roached the issue of her con ti nued full-time employment
and/o r an applic at i on for matern ity l eave under the Commission's
Maternity Leave decision dated 12 March 1980 and publi shed in
the Queensland Government Industrial Gazette dated 22 March
1980, No. 25 , folios 698-700 .
Had she not been unfairly term i nated, M rs Butch er would
have been able to continue in empl oyment an d to make a
consider ed d ec ision as to w he ther or not she chose to re sign - in
order to start he r f am ily - or apply for materni ty l eave. Such
occurren ce could have occurred at any time and it i s not poss ible
for either the employer or the Co mmi ssion to d ete rm ine which of
t hese cour ses of action Mrs Butcher might have determin ed to
follow, nor the timing of such occurrence. Inde ed , any qu es tion
to Mrs Butch er about thi s i ssue and wh at she would have done
had she remained in employment wo uld only have invi ted
conject ure on her part. It is simply not poss ible to re-create
history.
24 December, 1993] QUEENSLAND GOVERNMENT INDUSTRIAL GAZETTE
However, having regard to the Maternity leave decisio n,
there can be some certainty as to the final date upon which Mrs
Bu tcher wou ld have been required to resume duty after t he birth
of h er child.
Acco rd ingly, the Commi ss ion indi cates to bo th parti es that in
the event that Mrs Butcher determines th at she does not w i sh 10
r esume employment w ithin twelve (1 2) months from the date of
the birth of her child she may elect instead to recei ve twe l ve (12)
weeks of pay at the ra te of $598.95.
Such amount has been determi ned wi th no sc ientific
precisenes s. II is simply designed to be a reasonable recompense
to Mrs Butc he r for lo ss of wages between t he date of dismissal
and the date of he r possi ble resumption of employment in
circu mstances where no-one could ha ve determined when she
might have cho sen, or have been advise d, to proceed on
mat ern i ty leave or to have resigned her employment.
In the even t that Mrs Butcher d oes decide to return to
employment within twelve months from t he date of the birth of
her chi ld the pe riod between 9 May 1993 and 9 December 1993
sha ll be rega rded as continuous service for all pur poses.
The Commiss ion orders accordingly.
A. L. BLOOMFIELD, Commissioner
Appearances:-
Mr J. O'Donnell, of the Federated Clerks' Union of Austr al ia,
North Queensland Bran ch, Union of Employees for Mrs F.
Butcher.
Mr D. Tay lor for Scanmaze Pty . Ltd. trading as Harvey World
Travel, Tu lly .
Operati ve Date: N/A
Decision - Rei ns tatement
Re le ased: 13 December t 993
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Official source: https://www.sclqld.org.au/caselaw/QIRC/1993/510