Jarrad, Clifford v Nissan Motor Manufacturing Company (Australia) Ltd

Case [1979] FCA 61


IN

FEDERAL COURT O F AUSTF~LIA)

INDUSTRIAL

D I V I S I O N

V I C T O R I A

D I S T R I C T

REGISTRY

B E T W E E N: -

CLIFFORD JAPAAD

Claimant

k

N

D:

N I S S A N PIOTOR iGJaF~.CTLTINC

CO.

(AUSTRALIA) LTD.

R e s p o n d e n t

O R D E R

J U n G E

NUKING

O m R :

S r n l t h e r s

A . C . J .

*

DATE O F ORDER:

26 June 1979

WHERE

IbTADE :

M e l b o u r n e

THE COURT ORDERS THAT:

l.

T h e

s u m m o n s

here ln

be

d l s r n l s s e d .

' I N THE: FEDERAL COURT O F AUSTRALIA )

I k ~ U S T R I A L D I V I S I O N

)

V.

KO.

9

o f

1979

V I C T O R I A

D I S T R I C T

R E G I S T R Y

II'J

T E E NATTEFi

o f

t he C o n c l l l ; . t i o n

:nd

A r b l t r e t l o n A c t 1904

B E

T W E E

N:

C L I F F O R D ,TARR&D

A

N

D:

N I S S A i i TI'IOTOR

PWJWFACTURING

CO.

(AUSTRALIA)

LTD.

R e s p o n d e n t

,

,

S m i t h e r s A . C . J .

26 June 1979

REASONS FOR JUDGi'zENT

SDIITHERS A. C . J .

:

Before t h e Court i s a sumons t o answer a

c l a m f o r

p e n a l t y

i s s u e d

under

s.119

of

t h e

C o n c l l i s t l o n

and

; . r b ~ t r a t l o n

Act 1904.

The c l a n i s based upon t h e 211egatior? t h e t

-

t h e respondent committed a breach o f The Nissan A-ustral la

Vehicle Inciustry Award 1976 ( t h e Awsrd) by fall in^ t o

pay t o c e r z a i n of

i t s named

employees b e ~ n g

members of 'hc

Vehicle

Bu i lde r s

EmployeesrFederation o f

A u s t r a l i a

t h e

r a t e s p r e s c r i b e d by

c l a u s e 20

of

t h e P.x:?rd

f o r w ~ r k

~ e r f o r o e r l

by such

employees on 23 and 24 Xarch 1978 and 24 and 25 A ; 3 r l l 1978.

I n an a f f ~ d a v l t

accompanying

t h e summons

t h e s e c r e t a r y of

thc

Victorian

branch

of

t h e

o r g e n l z a t i o n a l l e g e s

t h a t

t h e

r e l e v a n t employees commenced work

on a s h i f t extending from

6 p.m. on 23 March 1979 and ending a t 2.10 a.m. on 24 I4arch and

a l s o commenced work on a shif tcommenclrg a t

6.00 p.m.

on 21.

A p r l l 1978 and endlng a t 2.10

2.m. on 25 A p r l l 1979.

He

s t a t e s t h a t is respec*

of

t h e work performed on such s h l f t s

t h e employees were

e n t l t l e d t o be

p a i d a t t h e r a t e of

zwo

and one-half

t imes t h e o rd ina ry r a t e pursuanz t o c l ausc 20

*

of t h e Award, "&e

terms of which a r e s e t o u t below.

A doculnent e n t l t l e d ItAgreed Sts tement of

F ~ c t s ' ~

h a s Seen

f l l e d ln

t h e

ma t t e r

and

t h e p a r t l e s havo

n ? t

i t t c o p t e d

t o go beyond i t s terms.

The terms o r t h l s docuncnt a r e a s

fo l lows :

-

"1.

That t h e Vehlcle Bu i lde r s Employees'

Federa t ion of

A u s t r a l l a

i s an organization

of

employees registered

under

t h e

C o n c l l l a t i o n

and

A r b i t r a t i o n

Act

190L.

2.

That Nissan Motor Manufacturing Company

( A u s t r a l l a )

Ltd.

i s and was

a t a l l m a t e r i a l t lmes a company

du ly inco rpo ra t ed pursuant

t o t h e Compenies

Acts

of

t h e S t a t e of

Vic tor ia .

3.   That on the? 23rd and 24th March 1978 and on the

24 th and 25 th A p r l l 1978 r;he

persons named

i n t h e

Summons o u t of whlch t h e s e proceedings a r l s e ( t i le r e l e v e n t employees) were employed by Nissan Motor

Manufacturing Company

(Australia)

Ltd.

p u r s u r n t

t o an

award

of

t h e

A u s t r a l i a n

C n n c l l l a t i o n

and

Arbitration

Commlsslon

e n t l t l e d t h e Nissan

A u s t r d l d

Vehicle

I n d u s t r y Award

1976

( t h e 4-v~ard).

4.

That each of

t h e r e l e v a n t employees was on t h e Z>rd

Varch 1978 and t h e 24th T*!arch

"978 and on t n e ?Ltc

A p r i l

1978 and

25 th A p r i l

1.375 3

f u l l - t u n e

::c-ckly

wage employee employed on s h l f t work.

5.

That Good Fr iday and Anzac

Day,

h c l l d a y s pursuant

t o Clause 2

of t h e Award, -#ere gran ted on t h e

24 th Warch

1978 and

t h e

25th

Apr l l

1978 r e s p e c t l v e l y .

6.

From

t h e 4 t h J u l y 1977 u n t l l t h e 27th November

1978, and including tine

p e r i o d cover lng t h e 23rd

March 1978 and t h e 24th Apr i l 1978, each of t h e

r e l e v a n t

employees

was

r o s t e r e d f o r du ty

on

an

a f t e rnoon s h l f t commencing a t 6.00 p.n.

on T$Ionday,

Tuesday, Wednesday, Thursday, and Fr lday of each week and finishing a t 2.10 a.m. on t h e following morning.

7.

The

r e l e v a n t employees were

n o t r e o u l r e d t o work

by

Nlssan

Motor Manufacturing

Compeny

( A u s t r a l i h ) Ltd.

du r ing t h e

s h l f t s commencing

a t 6.00

p.1~1. on

t h e

24th >larch 1978 and 25 th A p r i l 1978, t h e y being

g ran ted such s h l f t s a s t h e Good

Fr iday and Arlzac

Day ho l idays n t h o u t deduct ion of pay and t h e

r e l e v a n t

employees

resumed

work

on

t h e n e s t

ros t i . red

s h l f t , namely a t 5.00 p.m.

on t h e 27th Karch 1975

and

t h e

25th

Apr i l

1979

r e s p e c t l v e l y .

8. That i n r e s p e c t of

e l l work performed on he

a f t? rnoon

s h i f t s commencing on t h e ; I r d

IiIarch

1973 and on ?;he

24th

Apr i l

1978 and f l n l s h i n g on

t h e

24th iblerc:-L and

25th Apr l l

1978 r e s p e c t i v e l y ,

each

of

t h e

re1evar.r

employees

was

p a l d h i s

o rd lna ry r a t e of

pay

t n g c t h e r

w i t h t h e a p p r o p r i a t e s h i f t penal-cy and was

~

o

ya ld

t

a t t h e r a t e of

tiqo

and one-half

t lmes h i s o rd lnary

r a t e of pay ,

except t h a t f o r a l l t lme worked

dur lng

shuch s h i f z s , namely from n i d x g h t t o 2.10

e . m .

on

t h e 24th Ivlarch

1978 and

25th A p r l l

1978 t h e

r e l e v a n t

employees' pay was made up t o a r a t e of two and

one-half

t imes h l s o rd lna ry r a t e by without

p r e j u d i c e payments made

by Nissan Motor Manufacturing

Company

( A u s t r a l i a ) Ltd.

on

2 1 s t June

1978 and 12 th

J u l y 197e.

9.

That

C l i f f o r d LTarrad i s an o f f i c e r of

t h e Vehlcle

Bui lders Employees' Federa t ion who

i s a u t h o r l z e ~

under

t h e Rules

of

t h e

o r g a n l z a t l o n t o sue

on

beha l f

of

t h e organization.

? O .

That on t h e 23rd March 1978 and t h e 24th I4arch 1979,

24th A p r i l 1978 and t h e 25th Apr i l

1978 each of

rhe r e l e v a n t employees was

a member

of

t h e Vehicle

Bu l lde r s

Employees' Federa t log . l'

The .4ward

provldes f o r two

c l a s s e s of

employees,

namely, day workers and s h l f t workers.

The c3ra1a1, (;rdln=r;l

hours of day v~ork?rs a r e 40 p e r week,

to be vlorked i n

f i v e days and n o t more

t h a n e i g h t hours p e r d.>y i'londay

t o

F r iday i n c l u s i v e

and

n o t

more

then f o u r hours

on

Sa turday ,

o r ,

i n f i v e days

on Monday

t o Fr iday i n c l u s l v e of

e i g h t

hours

each.(Clause

1 5 ( a ) ( i ) ) S h i f t workers or-k

i n consecut ive

s h i f t s

of employees throughout t h e twenty-four hours of each of

a t l e a s t s i x consecutive

days ,

such work

being r e f e r r e d

t o

a s continuous work. (Clause 1 6 ( a ) ( i i ) ) . The o rd ina ry hours of work of a s h l f t worker may n o t exceed, e l g h t i n any one day, 48 i n any one week o r an average of 40 p e r week dur ing

t h e p e r l o d of employment o r 160 i n twcnty-eight consecuzlvc

days.

(Clause 1 6 ( a ) ( l l i ) ) A

s h l f t i s t o c o n s i s t

of

eight

;

hours

i n c l u s l v e of

c r l b t lme.

(Clause

1 6 ( e ) ( l v ) ( l ) . Ercepi. a t

t h e

r e g u l a r

c h e n g e o v ? ~

of

s h i f t s , an employee

s h a l l n o t

b.

r cvu l r ed

t o work more zhan one s h l f t i n each 24 hours .

( C l s ~ z ?

I ~ ( ? ) ( Z J ) ( Z ) ) .

S h i f t

r o s t e r s

s h a l l s p e c l f y t h e

commenclnE

and

P ln l sh lng

t lmes of

o rd ina ry working hours of

t h e respective

s h l f t s

( a a u s e 1 6 ( d ) ) .

Rates f o r s h l f t workers

a r e provided by

c l ause

1 8 of

t h e

.blard.

Such

r a t e s

i nc lude

a d d l t l o n s t o

t h e enployee ' s

o rd lna ry r a t e according

t o va r ious

circum-

s-cances,such a s t h e

seauence

of

n l g h t

s h i f t s and

a f t e rnoon

s h i f t s worked.

It

LS

provlded

by

c l a u s e 1 8 ( g ) thatVlh.~here ;.

s h l f t worker ' s

normal

f o r t y hour

r o s t e r r e q u l r e s

t h e

employee

t o work

a f t e rnoon o r n i g h t s h l f ~

on a Saturday, Sunday

o r p u b l i c ho l lday ,

t h e

employee

s h a l l be

p a l d

an

a d d l t l o n a l

$3 f o r each such s h i f t provlded he works a compleze

s h l f t .

Afternoon

s h i f t i s a

s h i f t commenclng n o t l a t e r than 6.00p.m.

on any day.

Nigh-c s h l f t i s a s h i f t commenclng a t any time

a f t e r 6.00 p.m.

on any day (Clause ' ?R(a ) ) .

It 1s provlded by c l ause 2 3 ( e ) of t h c Award tiia-c a wc.?kly

wage

employee

s h a l l be

g ran ted c e r t a l n specified ho l idays

: i i thout

deduc t ion of pay.

Good F r lday and Anzac

Day

a r e

s p e c i f i e d holidays.

In

1-378 Good

Fr lday f e l l on {.larch 24

and Anzac Day on A p r i l 25.

Clause 20 of t h e Award i s headed: "Holiday Work and Rates

Thci-ef o r e

( s i c ) . l'

The

r e l e v a n t p a r t s a r e i n t h e

following

terms :-

" ( a ) h

employee who

works

on a h o l i d a y s h a l l be

p a i d

t h e r e f o r e ( s i o )

a t t h e r a t e of

two

and

one-half

t lmcs

h i s

o rd ina ry

ra te .

( b ) A

sh1f-c commencing be fo re 10.45pm

on a ho l ldzy s h a l l

be

regarded a s a ho l iday s h l f t and a l l work

done

thereon

s h a l l be

p a l d f o r a-c t h e r a t e of

t v o and

one-

h a l f

tlrnes

-che

o rd lna ry r a z e .

( c ) 3:ccept

a s provlded i n sub-clause

( e ) hereof

2

s h i f ' t

conrnenclng a t 10.45 p r o r Setwecn 10.45 pn and r n l d w g h ~

on

a

h o l i d a y s h a l l n o t be

regarded a s a

ho l iday

s h l f t

and work

done

thereon s h a l l n o t e n t i t l e an zmployee

t o t h e

ho l iday

r a t e .

( d ) Except a s provlded i n sub-clause

( e ) hereof a shift

commencing before a i d n i g h t on t h e day preceding

a

h o l i d a y

and

ex tending

I n t o

t h e

h o l l d a y

s h a l l be

regarded a s a h o l i d a y s h l f t and a l l work

done

thereon

s h a l l be p a i d f o r a t t h e

r a t e of

two

and

one-half

t imes

t h e

o rd ina ry

r a t e .

( e ) Notwitnstanding sub-clauses

( c ) and

( d ) hereof where

an employee

i s r o s t e r e d f o r a

s h i f t which

t e rmina t e s

on a ho l iday and a s h i f t which commences

on t h e same

ho l lday ,

one

s h i f t on ly s h a l l be

regarded a s the

h o l i d a y s h i f t and

such s h i f t s h a l l be

t h e one,

t he

major p o r t i o n of

which

f a l l s on

the ho l iday .

( f ) An

employee,

o t h e r t h a n one

on s h i f t work,

r equ l r ed

t o work

on a ho l lday s h a l l be p a l d f o r a

rnlnlmvri

of

f o u r h o u r s t work

a t t h e appropriate

ra-ce.

5.

( j ) For t h e purposes

of

t h l s c l ause

' h o l i d a y '

means

a

day

r e f e r r e d t o i n c l a u s e 23 of

t h l s award.

(k)

Payments

prescribed

by

t h i s c l ause

s h a l l s t a n d a lone ana

s h a l l n o t be

lnc luded f o r any o t h e r purposes

of

t h i s

award.

It was s a l d by Miss

Hlckey,

counsel for3 t h e c le lment ,

t h a t t h e s h i f b which

commenced a t 6.00 ? . m .

on 2:

Yarch end

21,

k p r l l ,

being

s h i f t s which commenced before mlclnlght on

those deys enc.

e x t e n d e d ' i n t o

t h e

holiday,

t h e

r a t e

of

pay

f o r t h e work

performed

i n those s h l f t s was

t h a t provlded

f o r such

s h i f t s

i n c l a u s e 20(d) .

But

of

course i f i t be

t h a t t hp employees

i n ques t lon were

r o s t e r e d f o r t h e

sh l f t swh ich commenced

a t

6.00p.m.

on 2h March and 25 A p r l l t hen by reason of c l a u s e 20(e) ,

t h o s e

s h i f t s on ly were

t o be

regarded

a s ho l lday

s h i f t s . T h e

presence

of

t h e word

"onlyn i n c l a u s e 20 (e ) removes

any amblgulty i n t h a t

r e s p e c t .

The

agreed

s ta tement

of

f a c t s records t h a t t h e employees

were r o s t e r e d f o r du ty f o r t h e s h i f t commencing a t 6.00p.m. on Monday, Tuesday, Wednesday, Thursday and Fr iday of eech veek du r ing a p e r i o d extending from 4 Culy 1977 u n t l l

27 Novembsr

1978 and inc lud ing t h e p e r l o d cover ing 2 3 iblarch

'"378

and 24 Ap\pril 1978.

Prima

f a c l e t h e r e f o r e

c l ause 2 0 ( e ) ;:<S

;

a p p l i c a b l e -CO -these

employees.

Yo\~ev.;r, b l i s s Hlckey coni;enas

t;?a< i n

c l ause 2O(e)

of

t h e Award and para .6

of

t h e agreed s ta tement

of

f a c t s t h e

r e f e r e n c e

t o an

employee

being

r o s t e r e d

f o r a

s h i f t

i s t o be

cons t rued a s a

r e f e renc?

t 3 an employee 7 . ~ 1 1 0

i s bo th r o s t e r e d f o r end

r e q u l r e d t o work

on

t h a t s h l f t .

It

fo l lows ,

s o she argued,

t h a t because

t h e employees were n o t

r e q u i r e d t o work

on t h e s h i f t s commencing a t 6.00

?.m.

on

24 March

1978 and 25 Apr i l 1978 ,as s t a t e d i n pa ra .7

of

t h e

a greed Sta tement

of

f a c t s , t h e y were

n o t

r o s t e r e d

f o r

those

sh i f - t rw l th in t h e

meanlng

of

c l ause

2 0 ( e ) .

I am

unable t o accep t t h i s argument.

Clause 20 i s

obvious ly Intended t o l a y down guidelines i ~ l t h

r e s p e c t

t o

t h e implementation,

i n r e s p e c t of

s h l f t workers,

of tkic

requi rements of

c l ause 27

t h s t t h e employees

s h a l l 5c t:ranted

a h o l i d a y on each of

c e r t a l n specified

cleys.

Such gnlde1,nec

were e s s e n t i a l because particular

s h ~ f t s

may

a~:a

a p p a r e n t l y

f r e q u e n t l y do

extend from

one

day i n t o t h e nex t .

For a day worker it i s c l e a r t h a t he i s t o be

g ran ted

t h e day o f f .

That means

i n subs tance t h a t he v 1 1 1 1 n o t work

du r ing t h e hours

i n r e s p e c t

of

vrhich

he was

r o s t e r e d

or!

f o r

t h a t day bu t w i l l be

p a d o rd ina ry r a t e s i n r e s p e c t of

t hose

hours .

The day of a day worker does n o t extend beyond midnight on

any p a r t i c u l a r day.

He

1s t o be g ran ted t h e day o f f and i f he is

r e q u i r e d t o work

on

t h a t day c l a u s e 2 0 ( a ) w i l l e n t i t l e hlm

t o pay-

merrtat two and one-half

t lmes t h e o r d ~ n e r y

r a t e .

S i m i l a r l y

t h e s h i f t worker must be al lotred a day o f f .

The obvious vray

t o do

t h i s i s t o designate

a

s h l f t ,

211 o r p a r t

of

t he

d u r a t l o n

of

which

f a l l s i n t h e h o l i d a y ,

a s t h e

s h l f t i n r e s p e c t

of' which

t h e ho l lday entitlements

s h a l l apply.

Once

it 1s l d o n t l f l c d

b

t h e

eup loye r ' s

ob l lgax ion

i s t o pay

o rd ina ry

r a t e s

f o r t h a t

s h i f t a l though no work 1s done o r t o pay two and one-helf

t imes h i s o rd lna ry r a t e i f -che

employee

i s r e q u i r e d t o \ror!<

t h e r e i n .

That

c l ause 20

conternplates t n a t t h e ho l idey pay

of

a s h i f t worker who

t a k e s h i s ho l iday w i l l be

f o r one

s h l f t

i s supported by

c l ause 2 3 ( e ) .

Thereby t h e s h i f t worker whose

r o s t e r e d o f f

shift

f a l l s on

a

h o l i d a y

s h a l l ,

u n l e s s it

f a l l s on

a

Sa turday o r Sunday,

be

p a i d

" f o r t h a t dayt1 a t h i s o rd ina ry

r a t e .

I n o t h e r words

h i s r o s t e r e d s h i f t f o r t h a t day,

a l though

a

r o s t e r e d off

s h l f t , 1 s h l s p a i d ho l iday .

I

would

a l s o n o t e ,

a s M r .

Brown,

counsel f o r t h e respondent

contend?d,and

I thi:&

c o r r e c t l y ,

t h a t t h e r e was

cons lds rab l e

s i g n i f i c a n c e

i n t h a t

c l zuse

X ( e ) 1 5 ,

i n c o n t r a s t witin

sub-clauses

( b ) ,

( c ) and

( d ) , s l l e n t ? S

t o whether

work

i s done on any ? a r t i c u l a r s h i f t and concprns i t s ~ l f

only wi th

whether

o r n o t t h e r e l e v a n t

employee

was

r o s t e r e d

f o r a

p a r t i c u l a r

s h i f t .

It would have been a conceivable way of p rov ld lng a

h o l i d a y f o r s h i f t workers

on

s p e c l f l e d holld.2ys

t o s t a t e s l ~ > l y

t h a t

t h e r e should be

a paid

r e s p l x e from work,

o r ~ ,?yr ;nn t

31;

t i ~ o

and one-half

t lmes o rd ina ry r a t e s f o r work

done,

du r ing t h a t p s r t of

a

h o l l m y ~ h l c h

f e l l w i t h l n

s h i f t s f o r v~hich

t h e employees .).ere r3sterc.d on.

such

simplicity

was

a p p a r e n t l y regarded

a s u n s a t i s f a c t o r y

no

doubr. because of

t h e way s h l f t s might f a l l on a ho l lday .

According t o t h e time s l o t s of

va r ious s h i f t s it could

occur t h a t

t h e h o l i d a y p a i d t ime

o f f

of

a

s h i f t worker would

be

l e s s t h a n

one whole s h i f t .

Thus i f a s h i f t endpd a t 2.00 a.m.

on themornlng of

t h e h o l l d a y and t h e nex t

d i d n o t commence mtl l s a y 8.00

p.m.

on

t h e evening of

t h e ho l iday t h e

s h i f t workers t ho l iday would

be

on ly s l x hours long.

But

day workers r e c e l v e pay i n respect

of

e l g h t hours

o f f work

on t h e ho l lday .

I t would

be u n f a l r

-chat

s h i f t workers

should r ece ive l e s s and i n any event t h e

h o l i d a y concept

i s

t h e t of

a

"day

of f" .

.L

p r o v l s l o n t h e r e f o r e ,

t h a t t h e

s h i f t worker

should r ece lv?

a

f u l l s h l f t ho l lday was

r a t l o c z l

;and

f a i r .

I n a d d i t i o n ending endcommenclng

s h i f t s a t m l d n l g h ~

s o 2s

t o a l l ow a s t r i c t twenty-four

hour ho l lday f o r s h l f t workers

could w e l l have been inconvenient both f o r employer and employee.

Accordingly t h e b a s l s of

t h e concept of

a ho l lday s h l f t can

be seen.

But

i f t h e ho l iday was

t o be f o r a

shift t h a t s h i f t had

t o be

i d e n t i f i e d so t h a t employers and employees would ltnow

which

s h i f t t h e employees were t o t a k e o f f . The r e s u l t was

t h a t f o r

s h i f t workers

a

p a r t i c u l a r

s h l f t i s

s o e c i f l e d

t o be

t h e

h o l i d a y

s h i f t .

The

system i n s t i t u t e d by

c l ause 20 has

some

advantages f o r t h e employee.

Thus L;r

an enployw?

working f o r i n s t a n c e on a

s h l f t cornmenclng before

l0.'15p.n.

on

a

h o l i d a y t h e

t ime

du r lng which

ho11dqy

b e n e f l t s

e r e

a p p l i c a b l e

on

t h e b a s l s

t h a t he

may

p o s s l b l y work

on

the

ho l iday

ou+side any

o t h e r r o s t e r e d

s h l f t may

extend

i r o n

jus t

a f t e r midnight

on t h e mornlng

of

t h e ho l iday u n t l l

some hours l n t o t h e nex t day.

But %here he does work on

t h e h o l i d a y

on

ano the r r o s t e r e d

s h l f t ,

a s d i d t h e

employees

i n

t h i s c a s e , i t i s a consequence of

sub-clause

( e ) t h a t he s h e l l work

t h e r e i n and work

a t o rd lna ry r a t e s .

This

o t h e r

s h l f t i s n o t

a

h o l i d a y s h i f t .

When

sub-clause

( e ) d e c l a r e s t h a t t h e

o t h e r

s h i f t i s n o t

a

h o l l d a y

s h i f t t h e

implication

is

t h z t

it i s a

s h i f t i n r e s p e c t of

which

ho l iday entitlements,

such as, n o t t o work and y e t be p a i d ,

o r t o work

e t two and

one-half

t lmes

o rd ina ry r a t e s ,

do n o t

ap;lly.

Thls

a spec t

of

c l a u s e 20

1s a n a t u r a l i n c i d e n t

of

t h e conccpt

of

t h e

ho l iday s h l f t .

It msans t h a t from sub-clause

( e ) t h c r e

+

a r i s e s a

p rov l s lon

t h a t

t h e ho l lday

b e n e f l t s

do

n 3 t

epply t o w2r l c

performed

l n t h e

s h l f t which

i n t r u d e s inxo t h e ho l iday

but

which i s n o t t h e ho l lday s h l f t .

When sub-clause

( e )

provides

t h a t t h a t s h l f t ,

t h e major p o r t i o n of

vihich

f a l l s

on t h e h o l i d a y be

regarded

a s t h e ho l lday

s h l f t and

t h a t

one

s h i f t on ly s h a l l be

s o regarded it i s say ing t h a t

t h e employee

must

work

t h e o t h e r s h i f t on

o rd lna ry terms.

There

i s l i t t l e p o i n t

i n say ing t h a t zhe

o t h e r s h l f t i s n o t

a

h o l i d a y s h i f t u n l e s s

i t means

t h a t t h e

employee

must

work

t h e r e i n a t o rd ina ry r a t e s .

The

on ly distinction

between

h o l l d a y

s h i f t s and

s h i f t s t h a t a r e n o t

ho l iday

shifts

i s

t h a t i n r e s p e c t of

a non-hollday

s h i f t t h e employee musx

work

t o be

p a i d h i s o rd lna ry pay.

Clause 2C)(e) 1s

identifying

t h e

s h l f t i n r e s p e c t

of

~v~h lch

accordlng t o sub-

c l a u s e s

( b ) ( c ) and

( d ) two

and one- h a l f

t lmes ordin'ary rat1:s

a r e t o be pa ld l f work

i s performed rh- rein.

It

i s an e s s e n t i a l q u a l i t y of

a

ho l lday

s h l i t i d e n t l -

f i a b l e i n accordance wi th

c l ause 2O(e) z h a t it be

a

s h i f t

i n r e s p e c t

of

which

t h e employee

i s r o s t e r e d

on

accord lng t o

a previously established r o s t e r .

It is apparen t from t h e

agreed

s t s t emen t

o f

f a c t s t h a t ,

a s viulould

be

e q e c t e d ,

r o s t e r s

a r e e s t a b l i s h e d w e l l i n advance.

And

i n t h i s case loolcing

a t t h e

r o s t e r it was

c l e a r t h a t t h e ho l lday

s h i f t accord lng

t o sub-clause

( e ) was t h a t commencing a t 6.30 ?.m.

on t h e

evenlng of

each ho l lday .

That ho l iday s h i f t vdas

t r e a t e d a s

p a i d t ime o f f by bo th employers and employees.

This was

t h e inevitable

r e s u l t of

c l a u s e s

20

and 2 3 of

t h e Award.

.

That

s h i f t could n o t cease

t o be

t h e r o s t e r s d on

s h l f t f o r

t h e purposes of

sub-clause

( e ) by

reason of

thar s u b - c l a u ~ e belng

implemented

by

t h e employees n o t being

r e q u l r e d t c work

t h e r e l n i n accordance w i t h

t h e Axard.

I t was

suggested by

Mlss

Hlckey,

a t l e a s t i m p l i e d l y , t h a t rhe

c ~ d l t l o t l a l

b e n e 2 i t s vrhich

>.rould 2 : c r ~ t o a

s h l f t worker

i f

t h e

construction of c l a u s e 20 f o r which she contends were adopted

should be

viewed

a s b e n e f l t s compensating

f o r t h e lnconvenience

and burdens

of

working o r t a k l n g a h o l i d a y a t unusual

hours .

But

such

conpensat lon i s a l r e a d y provided

i n t h e h lghe r

r a t e s f o r s h i f t work

and t h e

d i f f e r e n t l a i

r a t e s f o r

v a r l o u s s h l f t s .

So

f a r a s ho l idays

a r e concerned

such

compensation i s r e f l e c t e d i n t h e r p t e s payable

i n respec-,

of

t h e employee's

t ime

o f f

o r t h e h g h e r p e n a l t y r a t e s

i n

r e s p e c t

of

t lme

worked

on

t h e

ho l lday

s h i f t .

I

am

s a t i s f l e d t h e r e f o r e t h a t f o r t h e purpose

of

t he

Award,ln r e s p e c t of

t h e employees who

worked

on t h e s h i f t s

commencing a t 6.00p.m.

on 23 March and a t 6.00 p.m.

on

24 Apr i l

1978,

t n e r e l e v a n t ho l lday

s h i f t s were

those

commencing

a t 6.00

p.m.

on 24 March and 25 Apr i l r e s p e c t i v e l y .

Accordingly

t h e i r ho l lday

b e n e f l t s

pursuant

t o c l euse

20(b)

and

( e ) were

t hose

a p p l i c a b l e

t o t hose

s h l f t s .

It remalns

t o cons ide r whether

i n t h e even t s t h a t

happened

those

employees were

e n t i t l e d t o payment

i n r e s p e c t

of t h e t ime worked by t h e n from midnight t o 2.10

a.m.

on

.

24 I4arch and 25 April 1978 a t two and one-hal' I rimes

o r d i n a r y r a t e s pursuant

t o c l ause

2 0 ( a ) .

They

c e r t e l n i y

were e~llployees who worked on a ho l iday .

Accordingly pursuanz

t o t h e l i t e r a l meanlng

of

sub-clause

( a ) t h e y were

e n t l t l e d

t o payment i n accordance ~;herevl+J~.

But sub-clsuse

( a )

must

be

r ead i n t h e

con tex t of

t h e

o t h e r p rov i s ions

of

t h e

Award.

And

s o f a r 2s

s h i f t workers a r e concerned I

t h i n k

t h e

con tex t

r e q u l r e s

t h a t t h e

l l t e r a l meanlng

of

sub-

c l ause

( a ) g ive way

i n r e s p e c t of

time

worked by

s h l f t

workers on a ho l iday bu t i n a s h i f t which pursuant t o sub-

c l a u s e

( e ) i s n o t

a

ho l iday

s h i f t .

Clause

2 0 ( a ) a p p l i e s

c l e a r l y enough

t o a

day vwrker'.

According t o t h e A m r d he would

n o t

w d l n a r l l y do

a

y

work

on t h e day designaxed a s a ho l iday .

The r e s u l t 1- t h a t he

r e c e i v e s t

~

and one-half

o

t lmes r a t e s f o r any work he does

do a t any t lme on + h a t day.

But

t h e

s h i f t v ~ o r k e r ' s

ho l iday i s i n a

sense a

s h i f t i n g a f f a i r .

It

1s c l e a r t h a t an

i d e n t l f l e d ho l iday

s h i f t may,

and

f r e q u e n t l y w i l l . e i t h e r commence

before

t h e day of

t h e

des igna ted h o l i d a y beg ins

o r

extend

l n t o t h e

fo l lowing day.

It fo l lows t h a t , depending upon t h e time-

s l o t and

d u r a t i o n

of

t h e h o l i d a y s h l f ~ , t h e

p e r l o d

dur ing

which t h e s h i f t worker v a l l be

o f f work

o r e n t i t l e d t o two

and

one-half

t lmes

o rd lna ry ra tes , t h a t i s t h e per lod

i n

r e s p e c t

of

whlch

holiday

o b l i g a t i o n s of

t h e

employer

and

e n t i t l e m e n t s of

t h e

employee

v111 p e r s i s t , w

~

l

vary.

l

T!ms

I n t h e case of

t h e enployees t h e s u b j ~ c t

of

t h e s e

proceedings

t h e l a s t s h l f t which

commenced

before

z h e h o l l d a y ended

a t 2.10

a.m.

on

t h e ho l lday .

A f t e r a l a p s e of

almost

s l x t e e n hours

t h e h o l i d a y s h l f t commenced 1 .e .

a t 6.00

p.m.

ar.d

contlfiued f o r

e i g h t hours

and

t e n minutes.

I n t h a t ca se

t h e ho l lday

o b l i g a t i o n s

and

e n t i t l e m e n t s

p e r s i s t e d

f o r

twenty-four

hours .

Had

t h e

s i t u a t i o n been

t h a t t h e e a r l i e r s h i f t s had

ended a t 12.10 a.m.

on t h e ho l iday and t h e nex t

s h i f t had

s t a r t e d a t 8.10

p.m.

on t h e ho l iday ,

t h e ho l iday

o b l i g a t i o n s and

en-citlements vrould

have

cont inued

dur lng

twenty hours

and

e l g h t hours

t h e r e a f t e r ,

namely

f o r

twenty-eight

hours i n a l l .

Had

t h e e a r l l e r s h i f t ended a t

L4.00

a.m.

on t h e ho l iday and t h e n e x t

s h l f t s t a r t e d

f o u r t e e n hours l a t e r a t 6.00

p.m.

and continued f o r e l g h t

hou r s u n t i l 2.00

a . m .

t h e nex t mornlng,

t h e ho l lday

o b l i g a t i o n s would have persisted

f o r on ly twenty-two

hours .

Thls

p e r i o d .would

vary

s i m i l a r l y ,

i f

f o r

i n s t a n c e ,

as Miss

Kickey

sugges t s

i n r e l a t i o n t o t h i s l a s t example,

t h e

f o u r hours

worked on t h e mornlng of

t h e ho l lday .were

inc luded i n t h e

h o l i d a y

pe r iod .

Havlng r ega rd t o t h e discussion above concerning t h e

i d e n t i f i c a t i o n of

t h e

ho l iday

s h i f t ,

t h e provisions

of

c l a u s e

20

a r e

seen n o t

on ly t o i d e n t l f y t h e

shif t vhlch

i s

t h e ho l iday

s h l f t ,

f o r ~vhlch

s p e c l a l r a t e s apply i f

work

1s

done

t h e r e i n ,

bu t

a l s o t o p rov lde

t h a t work

done

i n any o t h c r

s h l f t , a l though on t h a t day,

i s n o t work

t o whlch t h e

ho l iday

o b l l g a t l o n s apply.

Pursuant

t o c l ause

2 0 ( e ) t h e r e

i s ,

i n t h e

c l r c u ~ n s t a n c e s

of

t h e employees concernpd i n t h l s ca se ,

1

on ly one

such s h l f t .

Sub-clause

( e ) i s t h e r e f o r e

i n conf l . lc t

w i th t h e l i t e r a l terms of

sub-clause

( a ) s o f e r a s i t s terms would

ex tend t o work

done

on t h e ho l iday bu t i n a

s h i f t which

accord ing t o sub-clause

( e ) i s n o t

a

ho l iday

s h i f t .

A s a

m a t t e r

of

c o n s t r u c t i o n it

appears

t o me

t h a t

i n t h l s c o n f l i c t

sub-clause

( a ) of

c l ause 20 must be

regarded a s q u a l l f l e d by

t h e o t h e r sub-clauses

of

c l ause 20

end i n p a r t i c u l a r by

t h e

p a r t i c u l a r p rov l s lon

f o r s h i f t workers

f o r whom

sub-clause

( b )

t o ( e ) a r e

s p e c i a l l y designed and

i n rp spec t

o f

wnoiil

t h e y prov ide

a

degree

of

e q u l t y i n a

complicated

a l t u e t l o n .

It fo l lows t h a t i n a case such a s t h a t of

t h e employees

concerned

i n t h i s case t h e i r Anzac

Day

h o l l d a y s t a r t e d a t

2.10 a.m.

on 25 A p r l l and continued u n t i l 2.10 a.m.

on

26 A p r i l ,

a p e r i o d of

twenty-four

hours .

Had

t h e i r s h l f t s

been

different

t h e

d u r a t i o n of

t h e a c t u a l hours

of

ho l lday

would

have

v a r i e d a s i n d i c a t e d above.

Bul:

t h e r o s t e r s appear

t o be

e s t a b l i s h e d w e l l

i n advance,

by

r e f e r e n c e

one

w ~ u l d

t h i n k ,

t o c o n s i d e r a t i o n s

o t h e r

t h a n

t h e

ho l iday

entitlements

which t h e y may

a f f e c t

and t h e t lme s l o t of

s h l f t s which

may,

a s

demonstrated,

favour t h e employer o r t h e employee.

But

t h l s does n o t throw doubt on '&-e

e s s e n t i a l validity

of

t h e

conc lus ion t o which I have come.

The adjustments t o t h e

l e n g t h of

t h e ho l iday a r e merely a

consequence

of

o t h e r

practical

considerations

by

which

r o s t e r s

a r e e s t a b l i s h e d .

So

f a r a s s h i f t workers

a r e concerned t h e i r ho l lday

s h i f t s

a r e t hose des igna ted

i n sub-clauses

( b ) t o ( e ) of

c l ause

20.

The work

performed

on a ho l iday i n any s h i f t n o t d e s i e a t e d

as

a

ho l iday

s h l f t i s n o t performed

dur lng

a ho l iday

s h i f z .

Within t h e meaning of

c l ause 2 0 ( a ) work performed by

a s h l f t

wor::er

i n a

s h i f t o t h e r t h a n a

ho l lday s h l f t i s n o t 7,rork

performed on a ho l lday .

Mlth r e s p e c t t o s h i f t worlters

sub-

c l a u s e s

( b ) t o

( e ) must

be

regarded a s particular

p rov l s lons

concerning t h e ho l iday b e n e f l t s of

shlft workers.

For work

performed by

a s h i f t worker

on

a ho l lday o t h e r t h a n i n

r o s t e r e d on s h i f t t ime sub-cleuse

( 2 ) srould be

applicable

and t h e employee would

be

e n t i t l e d

t o t h e r a t e s provlded

f o r t h e r e i n .

But

t h a t i s n o t

t h i s case .

14.

Clause

20(b) r a i s e s some

ques t ions n o t answered

i n t h e

d i s c u s s i o n h e r e i n ,

b u t

f o r p r e s e n t purposes ,

it

1s

unnecessary t o endeavour t o cope w l t h them.

It i s t o be

observed t h a t t h e

r e l e v a n t

employees

a r e s a i d i n pa ra .

7 of

t h e agreed statemer.t

of

f a c t s t o have

resumed a f t e r E a s t e r a t 6.00 p.m.

on 27 Karch 1978.

Thax day

was

E a s t e r Nonday,

one

of

t h e s p e c i f i e d days

i n c l ause

2 3 ( a )

o f

t h e Award.

It would

seem p o s s i b l e t h e r e f o r e

t h a t t h i s

s t a t emen t a s t o t h e t ime of

resumption may

be

i n e r r o r .

Even

s o however,

t h e r e s u l t of

t h e s e proceedings v,oula

n o t be

a f f e c t e d .

For t hose reasons t h e summons must be dismissed.

!l I vclrlfy t!l.lt tlus and the 1 3

prececin,g page,

ale a t ~ u c

c . 0 1 7 ~ 01

the

1

Rmsons

101

J U ~ ~ ~ I I I C I I L

l ~ c r r ~ n

of the

I Io~~ou~nble

hIr. Jurtlcc c-'-

I

--TL*A.,~M~

A

s

w

~

a

t

e

/

1 '

:

'

Dated: 26 'TNLL

1777

"--

-

-

..-

--

-

Details
AGLC
Jarrad, Clifford v Nissan Motor Manufacturing Company (Australia) Ltd [1979] FCA 61
Case
[1979] FCA 61
Decision Date

CaseChat Overview and Summary

The case of Clifford Jarrad v Nissan Motor Manufacturing Company (Australia) Ltd involved a claim by Jarrad, on behalf of the Vehicle Builders Employees' Federation of Australia, against Nissan for breach of the Nissan Australia Vehicle Industry Award 1976. The claim alleged that Nissan failed to pay certain employees the correct rates for work performed on Good Friday and Anzac Day in 1978. The crux of the dispute lay in the interpretation of Clause 20 of the Award, which outlines the rates for holiday work for shift workers. The court had to determine whether the employees were entitled to higher pay rates for the hours they worked on these public holidays.

The court examined the facts as agreed upon by both parties, which established that the employees were shift workers and were not required to work on the shifts that commenced at 6.00 p.m. on Good Friday and Anzac Day. However, they did work on subsequent shifts that extended into these holidays. The primary issue was whether the subsequent shifts were considered holiday shifts under Clause 20(e) of the Award.

The court found that Clause 20(e) aimed to specify the shift that would be regarded as the holiday shift for shift workers, ensuring that they received a full shift holiday. The court reasoned that the Award's intent was to provide a "day off" for shift workers on holidays, similar to day workers, but adjusted to accommodate shifts that might span across holidays. The court concluded that the holiday benefits applied only to the specified holiday shift, and work performed on other shifts on the holiday was not entitled to holiday pay rates.

Given the established rosters and the specific provisions of Clause 20, the court held that the employees were not entitled to the higher holiday pay rates for the hours worked on the subsequent shifts. The court's interpretation of Clause 20 provided a degree of equity for shift workers, ensuring that their holiday benefits were aligned with the Award's intent while accommodating the practicalities of shift work.

The court dismissed the summons, finding no breach of the Award by Nissan in its payment to the employees for the work performed on the specified dates.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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