Johnson v Finance Sector Union of Australia

In Johnson v Finance Sector Union of Australia, the Full Bench of the Fair Work Commission considered the application of the Finance Sector Union of Australia to deal with a dispute between Johnson and ANZ Bank. The dispute centred on the interpretation of a superseded enterprise agreement and the employee's entitlement to paid parental leave while on unpaid leave. Johnson argued that she was entitled to paid parental leave while on unpaid leave, which the union contended was not a ‘service benefit’ as defined in the superseded agreement. The union also argued that the Commission lacked jurisdiction to hear the dispute under the superseded agreement.

The legal issues before the Full Bench were whether the Commission had jurisdiction to deal with the dispute under the superseded enterprise agreement, and if so, whether the entitlement to paid parental leave while on unpaid leave constituted a ‘service benefit’ as defined in the agreement. The Full Bench needed to interpret the relevant provisions of the superseded agreement to determine whether the entitlement fell within the definition of a ‘service benefit’. Additionally, the Commission had to consider whether the dispute resolution provisions in the superseded agreement conferred jurisdiction on the Commission to hear the dispute.

The Full Bench found that the Commission did have jurisdiction to deal with the dispute under the superseded agreement, as the dispute resolution provisions in the agreement conferred such jurisdiction. In interpreting the definition of ‘service benefit’ in the agreement, the Full Bench held that the entitlement to paid parental leave while on unpaid leave did not fall within the definition of a ‘service benefit’. Consequently, Johnson was not entitled to paid parental leave while on unpaid leave. The Full Bench emphasised the importance of interpreting agreements according to their ordinary and natural meaning, and in accordance with the context in which the terms were used.

The Full Bench dismissed the union's application to deal with the dispute. The Full Bench ordered that the application be dismissed with costs. The Full Bench also ordered that the union pay Johnson’s costs of the application, which were assessed at $12,000.