Brennan v Kangaroo Island Council

In the matter of Brennan v Kangaroo Island Council, Ms Brennan, the plaintiff, sought damages from the Council for the termination of her employment on account of redundancy. The Council, the defendant, denied any breach of contract and contended that Ms Brennan had no entitlement to damages. The primary issue before the court was whether a term requiring the employer to give reasonable notice of redundancy was implied into the employment contract. The court had to consider the operation of the Municipal Officers (SA) Award 1998 and determine if the award's provisions for notice of termination and severance pay could be implied into the contract.

The court examined the terms of the employment contract between Ms Brennan and the Council, which did not expressly address termination on account of redundancy. However, the contract stipulated that it was governed by the Municipal Officers (SA) Award 1998. The court considered the award's provisions for notice of termination and severance pay, as well as the test for implying a term into a contract, as established in BP Refinery (Westernport) Pty Ltd v Hastings Shire Council. The court held that the test for implying a term requiring reasonable notice of redundancy was not satisfied, as it was not necessary to give business efficacy to the contract and was not so obvious that "it goes without saying." Consequently, the court found that the plaintiff was entitled to one week's pay for which the Council was liable under clause 3.2.1.2 of the SAMSO Award.

The court awarded judgment to the plaintiff in the sum of $2,290.10 plus interest from 5 April 2002. The court found that Ms Brennan had taken all possible steps to mitigate her loss by exploring employment opportunities and starting a consultancy business, although it did not yield an income. The court also noted that the plaintiff had already been paid the entitlements due to her from the Council, except for the one week's pay for which the Council was liable. The court will hear the parties regarding costs.