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Employment Law – Payroll Manager Jailed for Fraud

Employment Law – Background:

A payroll manager has been jailed for three-years after defrauding her employer of more than $737,000.

Employment Law – Facts:

  • Sally Ann Woodall was employed as the payroll manager of international architecture business Hassell Services Pty Ltd between April 2006 and December 2009, and from August 2010 to April 2016
  • Woodall made payroll payments to ex-employees of Hassell utilising bank accounts in her name
  • During her first period of employment, Woodall entered 72 transactions to obtain $126,879
  • In her second period of employment, Woodall obtained approximately $610,554 over 169 transactions
  • Woodall pleaded guilty to charges of obtaining a financial advantage by deception under s82 of the Crimes Act 1958 (charges 1 and 2), and attempting to obtain a financial advantage by deception for failed transactions under s321M of the Crimes Act 1958 (charge 3)

Employment Law – Decision:

Judge Dean in the Melbourne County Court:

  • sentenced Woodall to a total of three years imprisonment for the 3 charges, to be served concurrently.
  • stated that Woodall’s offending was serious in that “took place over a lengthy period” and involved “sustained dishonestly”, and the fact that she “occupied an important position of trust” and exploited this position to defraud.
  • however in sentencing, the seriousness of Woodall’s offending was balanced against her personal circumstances including domestic violence, drug addiction and abuse. Her expression of remorse and guilty plea was also taken into account.

The decision is available for you to read through the hyperlink:

DPP v Woodall [2017] VCC 1143 (18 August 2017)

Employment Law – Tips for Employers

Our Matthews Folbigg Workplace Solutions employment law team recommends employers:

  • review this case decision
  • seek the assistance of an employment lawyer to understand how to address situations of employee misconduct
  • ensure cake is taken when recruiting employees to mitigate against potential risks. This could include conducting mandatory police checks on potential employees.

Employment Law – More Information
Please call the leading employment lawyers in Parramatta, the Matthews Folbigg Workplace Solutions employment law team on 9635-7966 to speak with one of our employment lawyers. [...]  READ MORE →

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Fair Work Commission – Reconsideration of Fixed Term Contract Authority

Fair Work Commission – Background and Facts

The full bench of the Fair Work Commission has taken the rare and serious step of allowing for a reconsideration of a full bench authority on fixed-term contracts. The Fair Work Commission granted the Navitas English Pty Ltd employee leave to appeal a ruling on whether employees on fixed term or “outer-limited” contracts are dismissed when their terms expire.

Fair Work Commission Decision:

The Fair Work Commission:

  • concluded that it was in the public interest to grant the employee’s appeal and reconsider the well-established 2006 decision of Department of Justice v Lunn
  • suggested this was a matter of public interest because Lunn considers old unfair dismissal provisions under the Workplace Relations Act 1996 (Cth), and thus the applicability of the reasoning in Lunn as it applies to the Fair Work Act has not been previously analysed by the Full Bench
  • stated that in their view “the first ground of appeal raises issues of importance and general application in relation to the question of the approach that should be adopted by the Commission in determining whether there has been a termination of employment at the initiative of the employer, particularly in relation to employees who have been employed on a series of fixed term or outer limit contract”

The decision is available for you to read at the following hyperlink:

Mr Saeid Khayam v Navitas English Pty Ltd T/A Navitas English [2017] FWCFB 4092 (16 August 2017) [...]  READ MORE →

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Dismissed Woolworths Worker Denied Legal Representation

Employment Law – Background

In a Fair Work Commission ruling, a warehouse team leader and Woolworths (MLDC) have both had their requests for legal representation denied, on the basis the unfair dismissal claim was “not complex enough”.

Employment Law – Facts

In essence:

  • The team leader was summarily dismissed in May 2017 for apparently engaging in serious safety breaches, such as going underneath a forklifts tyres and failing to take immediate corrective action or follow standard risk assessment procedures for workplace hazards.
  • In applying for unfair dismissal, the employee sought to be represented by a paid agent on the basis he would struggle to argue his own case or cross-examine witnesses.
  • The employee also argued that it was unfair to deny both parties legal representation because MDLC had in-house HR/IR staff with “superior legal and communication skills”. However MDLC disputed this, highlighting that their in house HR were not legally trained or skilled in advocacy
  • MDLC argued that they required legal representation as it “could not properly articulate all the issues”, and that if the team leaders request was granted, it would create an uneven playing field.

Employment Law – Fair Work Commission Decision:

The Fair Work Commission:

  • denied both parties requests for legal representation as it may create “unnecessary formality”
  • accepted that whilst that whilst there were conflicting facts, the case was one which did not “contain a level of complexity beyond that which would ordinarily be found in a routine unfair dismissal matter”
  • emphasised that refusal of both applications was necessary because it “will not lead to a situation of unfairness for either party.” It was stressed that a there would be a “significant imbalance” between the parties if one party was granted legal representation over the other
  • maintained that both parties were well equipped to represent themselves, in that whilst MDLC are not “legally trained and experienced with advocacy, they are experienced in dealing with employee relations matters”. Similarly, the former employee is an “experienced team leader who was responsible for the management of a significantly large number of employees”

The decision is available for you to read through the hyperlink:

Christian Guillemain v Woolworths Limited T/A Melbourne Liquor Distribution Centre [2017] FWC 4236 (15 August 2017) [...]  READ MORE →

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FWC: Ruling on Out-of-Hours Work

Employment Law – Background

In Shea Munro v Wilmar Australia, the Fair Work Commission ruled that whilst working out of hours during carers leave was not a valid reason for dismissal, a refusal to follow a lawful and reasonable direction to provide information about the out of hours work justified termination.

Employment Law – Facts

In essence:

  • Munro was employed by Wilmar Australia, a sugar cane operator, across a range of roles including fort lift operator, engineer’s assistant, general mill worker and roving driver.
  • Munro also operated his own business offering cane harvesting and slashing, lawn mowing and agricultural equipment repairs.
  • When he was hired, Munro assured Wilmar that he could safety work for them whilst running his own business, by employing a casual employee to fulfil his duties when he was rostered on at Wilmar.
  • In August, Munro was granted a week’s paid carer’s leave as his wife had been hospitalised. However, Wilmar discovered that Munro has been working in his own business harvesting cane during that time.
  • Munro was issued with an Intolerable Breach Notice and a list of conditions to comply with, such as submitting weekly time sheets indicating the time he spend working in his own business.
  • However, Munro refused to accept Wilmar’s terms, claiming that it was an attempt to make him resign and that he cared for his family in the evenings and had only worked on his business during his free time.
  • Wilmar argued that Mr Munro had engaged in serious misconduct by undertaking work on his paid leave days and that he had also failed to follow a reasonable direction by refusing to disclose the extent and timing of his activities when working for his business. They claimed they needed this information to manage potential fatigue and safety issues.

Employment Law – Fair Work Commission Decision

The Fair Work Commission:

  • held that Mr Munro’s claim for carers leave was genuine as he cared for his partner during the evenings, when he was normally rostered on for work
  • established there was no misconduct on the basis that where other activities “occur outside the worker’s ordinary hours of work, and there is adequate care for the ill or injured family member, this should be of no concern to the worker’s employer”
  • found that Munro’s refusal to provide the information was a valid reason for dismissal. This was because Wilmar had a duty of care to ensure Munro was not fatigued, and therefore was sought for an “appropriately legitimate purpose”
  • ruled the termination of Munro was not harsh, unjust or unreasonable

The decision is available for you to read through the hyperlink:

Mr Shea Munro v Wilmar Australia Pty Ltd  [2017] FWC 2493 [...]  READ MORE →

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Termination of Employee on Sick Leave “Illogical”

Employment Law – Background

In the recent case of Bennett v Colin Joss & Co P/L t/a Joss Facility Management, the Fair Work Commission ruled that an employer’s reason for dismissing a cleaner on sick leave was “intemperate, illogical and devoid of compassion”.

Employment Law – Facts

In essence:

  • Ms Bennett was employed as a cleaner by Joss Facility Management for approximately 5 ½ years on a permanent part-time basis
  • In 2014 she took 10 weeks unpaid sick leave for foot surgery. Again, in August 2016 she took unpaid sick leave for surgery on the other foot which required a long recovery period
  • Ms Bennett provided ongoing medical certificates which stated she was unfit for work for fixed periods of time
  • In December, the company required Ms Bennett to complete a Functional Job Description. In January her treating doctor also did so, and provided a certificate stating she was unfit for work until 13 February
  • Ms Bennett was contacted by the company on 16 January, where she stated she had a doctor’s appointment on February 10 where she expected that her return to work date would be clarified
  • However, on 6 February, before the scheduled doctor’s appointment, the company’s injury department manager and legal counsel, phoned Ms Bennett informing her that her employment was terminated as she could not perform the inherent requirements of her position. They had no medical advice to support this decision.
  • Three days later, Ms Bennett attended her scheduled doctor’s appointment and was given a certificate of fitness to resume her duties on 14 February.

Employment Law – Decision

The Fair Work Commission:

  • Held that the reason given for the dismissal was “erroneous, capricious, unsound, unfounded, fanciful, ill-considered, illogical, intemperate and devoid of compassion”
  • Believed that the falsity of the employer’s decision to dismiss Ms Bennett was “blatantly exposed by the medical clearance to return to work provided four days after the dismissal” and that this decision was “extraordinarily hasty”
  • Stated that the dismissal included “very regrettable procedural deficiencies” which denied Ms Bennett “natural justice”, as Ms Bennett was not provided the opportunity to respond
  • Noted that termination of employment by telephone or other electronic means should be strenuously avoided
  • Concluded reinstatement was an appropriate remedy

The decision is available for you to read through the hyperlink:

Bennett v Colin Joss & Co P/L t/a Joss Facility Management U2017/1880 [2017] FWC 3669 [...]  READ MORE →

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Fair Work Commission: Compensation Awarded for Underpaid Employee

The recent Fair Work Commission decision Sebastien Mezino v Baia the Italian Pty Ltd , where a French restaurant worker was awarded compensation after being unfairly dismissed for raising underpayment concerns, serves as a reminder of the importance of employers being aware and complying with industry awards.

The Case

In essence:

  • Mr Mezino, a French national, was employed as a floor supervisor at an Italian restaurant in Darling Harbour from November 2015 until his dismissal in April 2017
  • He was initially paid $20 per hour. However, after 3 weeks Mr Mezino raised concerns about his pay rate with the restaurant manager, Mr Stauder. He was informed that it was too early to discuss pay changes, and was assured there were opportunities for visa sponsorship
  • By June 2016, his pay rate hadn’t changed, despite being rostered as a manager, and undertaking various managerial and recruitment responsibilities. However, he was offered the opportunity for sponsorship by the manger
  • In November 2017, Mr Mezino again questioned his pay rate, yet was assured that his pay would increase once sponsorship was approved
  • After suffering a work-related injury and inquiring about sick leave in March 2017, Mezino was told he couldn’t accumulate leave until his sponsorship was approved
  • After an 11 day absence, Mr Mezino met with Mr Stauder to advise him he was ready for work and presented him with research he had undertaken on his award rate. Stauder stated that restaurant owner would likely respond to Mezino’s research by cancelling Mezino’s visa application and firing him. Stauder also claimed that the company wasn’t covered by Fair Work
  • On the same day, Mezino sent correspondence to Stauder seeking a back payment of wages totally $25,124
  • On 20 April, Mr Mezino was removed from the work Facebook group with a post appearing that announced he had resigned. His name then disappeared from the roster and he received a letter from Solicitors stating they were no longer acting in the matter of his 457 visa. He never received a termination notice.

The Decision

The Fair Work Commission:

  • held the dismissal was harsh, unjust and unreasonable
  • labelled the actions of the employer in utilising its 457 visa-related leverage to underpay an employee and dismissing an employee when they sought to assert their lawful entitlements as behaviour of the “shabbiest type”
  • awarded Mr Mezino $15,000 in compensation

The decision is available for you to read through the following hyperlink:

Sebastien Mezino v Baia the Italian Pty Ltd T/A Baia THE ITALIAN [2017] FWC 3692 (14th July 2017) [...]  READ MORE →

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Redundancy Consultation Cannot be ‘Hollow’

In Belinda Lee v Mission Australia, the Fair Work Commission warned against “hollow” consultation in redundancy, emphasising that it cannot be conducted for mere show and must have value.

Facts

In essence:

  • A program manager at Mission Australia alleged that she was made redundant without consultation whilst she was on parental leave
  • Mission Australia wrote to the manager stating she was going to be made redundant as they were no longer delivering their Skills for Education and Employment course and Adult Migrant English Program after Federal Government funding cuts. They stated they failed in their search for redeployment opportunities for her
  • The manager’s request to delay her retrenchment and redeployment period until after she returned from parental leave to see if any further opportunities arose, was rejected by Mission Australia

The Decision

The Fair Work Commission:

  • granted an interim order which prevented Mission Australia from retrenching the manager
  • emphasised that consultation must have a purpose, stating that “if the consultation does not provide [the program manager] the opportunity to influence the decision, it is of no value and the requirement to consult and the consultation is hollow”
  • in determining whether redundancy was undertaken without consultation, Mission Australia needed to address three main issues, including whether it had engaged in meaningful consultation, had done all it could do to mitigate any adverse effects of the redundancy and had made all reasonable redeployment efforts.
  • highlighted the importance of making interim orders as the dismissal could only be undone with significant litigation
  • The parties reached a confidential settlement after conciliation

The decision is available for you to read through the following hyperlink:

Belinda Lee v Mission Australia [2017] FWC 3557 (4 July 2017)

Tips for Employers

Our Matthews Folbigg Workplace Solutions employment law team recommends employers:

  • ensure that when making an employee redundant employers have:
    • engaged in meaningful consultation
    • mitigated against any adverse effects of the redundancy
    • made all reasonable deployment efforts
    • ensure compliance with all employment laws including Fair Work Commission decisions, Awards and enterprise agreements
    • draft new/changes to employment law policies with the assistance of an employment lawyer
    • raise any employment law questions with an employment lawyer

    More Information

    Please call the leading employment lawyers in Parramatta, the Matthews Folbigg Workplace Solutions employment law team on 9635-7966 to speak with one of our employment lawyers. [...]  READ MORE →

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Personal Leave – Are Certificates from Pharmacists Acceptable?

A common area of confusion among employers is medical certificates. Many employers have the misconception that proof of an employee’s illness must always come in the form of medical certificate by a registered medical practitioner. However, this is not always the case and sometimes employers may accept certificates issued by a pharmacist.

The Law

Under s 107(3) of the Fair Work Act 2009 an employee must, when requested by an employer, provide the employer evidence that would satisfy a reasonable person that leave has been taken for the appropriate reason. According to the Explanatory Memorandum of the Fair Work Bill 2009, the main types of evidence are medical certificate or statutory declaration. [...]  READ MORE →

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Employment Law – Dismissal for pornographic emails

Employment Law – Background

In B v Mid North Coast Local Health District [2017], the NSW Industrial Commission found that despite a woman’s sacking for amassing thousands of sexually explicit emails on her work computer being valid, the dismissal was still harsh.
Facts
• The woman was working with Mid North Coast Local Health District as an assistant to the district manager of Mental Health Services
• She was found to have received, stored and sent a large amount of emails which were “pornographic, graphic (violence) and generally inappropriate in nature”
• She was sacked for inappropriately using the workplace email system, breach of the code of conduct and communications policy and serious misconduct
• She argued that her employer’s email system should have had a filtering system in place to prevent inappropriate emails
• It was also argued that she was unaware of the communications policy, despite the fact that [...]  READ MORE →

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Employment Law – Ex-Employee Restraint Clause Unenforceable    

Employment Law – Background

The Victorian Court of Appeal reaffirmed a decision that an employer was unable to enforce a restraint clause against an employee. The accounting firm’s breach of an employment contract consequently ended its right to enforce a restraint clause against the accountant. The case highlights the importance of carefully assessing any differing views between the employee and employer in employment law.

Employment Law – Facts

In essence:

  • the employee-accountant signed an employment contract in 2012
  • the contract contained a restraint clause that operated for 12 months. Notably, the terms were found to be reasonable by judges in earlier cases
  • the accounting firm expanded its business over 2015-16
  • the accounting firm denied the accountant certain bonuses he believed he was entitled to
  • as a result, the accountant requested payment to which the employer refused
  • the accountant took a week’s leave. A few days after he returned, he informed the employer he considered the refusal to pay the bonuses as a repudiation of the employment contract
  • especially relevant, the account set up his own business. Consequently, the employer sought to enforce the restraint clause

Employment Law – Decision

The Victorian Court of Appeal:

  • concluded that the accountant-employee’s interpretation of the bonus clauses was correct
  • held that the organisational changes could not justify the refusal to pay hence he should have been paid the bonuses
  • found that in conclusion, the refusal to pay was a breach of the employment contract. Consequently, the right to enforce the restraint clause ended

Employment Law – Tips for Employers

Our Matthews Folbigg Workplace Solutions employment law team recommends employers: [...]  READ MORE →

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Employment Law – Modern Awards Reductions

Employment Law – Background

In June this year, the Fair Work Commission (FWC) announced the reductions of public holiday penalty rates for the hospitality, retail, fast food and pharmacy sectors. The reductions were decided as part of the FWC’s four-yearly review of modern awards.

As of 1 July 2017, public holiday penalty rates were reduced while Sunday rates will reduce over three to four years. Although the unions argued for the delay in reductions, the FWC agreed with employer organisations. As a result, the first transition step is smaller than later transitions. Furthermore, the retail and pharmacy sectors will have longer transition periods due to their reductions being more significant. [...]  READ MORE →

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Employment Law – The Need for Proper Workplace Investigations

Employment Law – Background

Employment claims like bullying and unfair dismissal continually on the rise in employment law. Consequently, employers are increasingly required to take pro-active steps to investigate suspected workplace incidents and disputes before they lead to such claims.

A workplace investigation is a formal investigative process into an alleged workplace incident or dispute and it may be necessary to undertake same even if the complainant objects to it (ie, because they only wish to make an informal complaint). [...]  READ MORE →