Gregory v Philip Morris Ltd

In the matter of Gregory v Philip Morris Ltd, the plaintiff, Gregory, sought relief from the Federal Court of Australia regarding the termination of his employment. The defendant, Philip Morris Ltd, argued that the termination was not harsh, unjust or unreasonable. The crux of the dispute lay in the interpretation and application of certain clauses within their employment contract and the relevant award under the Industrial Law of the Commonwealth. The court was tasked with determining whether the termination clause in the employment contract was void for uncertainty and if the employer's conduct amounted to a breach of the award's provisions.

The central legal issue before the court was whether the termination clause in the employment contract was so vague that it rendered the clause void. Additionally, the court had to consider whether the employer's actions constituted a breach of the award's prohibition on harsh, unjust or unreasonable termination of employment. A further issue was the nature and extent of the relief available to the plaintiff if the court found in his favour.

The court held that the termination clause in the employment contract was indeed void for uncertainty, as it did not provide clear and unambiguous terms regarding the grounds and process for termination. Consequently, the court found that the employer's conduct amounted to a breach of the award. The court emphasised that the relief available to the employee in such cases includes not only reinstatement but also compensation for the loss suffered due to the wrongful termination. The appeal was allowed, and the orders made by Gray J were set aside. In their place, the court ordered the respondent to pay a penalty of four hundred dollars and to compensate the appellant with thirty thousand dollars in damages. The other claims for relief by the appellant were dismissed.