Arnotts Snack Products Pty Ltd v Yacob

The High Court of Australia considered an appeal by Arnotts Snack Products Pty Ltd (Arnotts) against a decision of the Full Federal Court, which had upheld a finding of discrimination against Arnotts by the Australian Human Rights Commission. The dispute concerned allegations by Mr. Yacob, a former employee of Arnotts, that he had been unlawfully discriminated against on the grounds of his race and national extraction when his employment was terminated. Mr. Yacob contended that his dismissal was a consequence of his participation in a union campaign against Arnotts' employment practices.

The central legal issue before the High Court was whether the Federal Court had erred in law in its interpretation and application of the relevant provisions of the Racial Discrimination Act 1975 (Cth). Specifically, the court had to determine whether the termination of Mr. Yacob's employment constituted an act done because of his race or national extraction, as required by section 9(1) of the Act, or whether it was primarily motivated by his union activities, as Arnotts argued.

The High Court, in a joint judgment, found that the Federal Court had correctly identified the legal test for establishing unlawful discrimination under the Racial Discrimination Act. The court affirmed that the discriminatory act must be done "because of" the prohibited ground, meaning that the race or national extraction must be a substantial or operative reason for the act. However, the High Court concluded that the Federal Court had misapplied this test to the facts of the case. The High Court found that the evidence did not establish that Arnotts' decision to terminate Mr. Yacob's employment was substantially caused by his race or national extraction. Instead, the evidence pointed to his union activities as the primary reason for the dismissal.

Consequently, the High Court allowed Arnotts' appeal, setting aside the orders of the Federal Court and the Australian Human Rights Commission. The court ordered that Mr. Yacob's application to the Commission be dismissed.