Koljibabic v WMC Resources Ltd

The High Court of Australia considered an appeal by Koljibabic from a decision of the Full Federal Court concerning the interpretation of a notice of termination issued by WMC Resources Ltd. The dispute centred on whether the notice validly terminated Koljibabic's employment under the terms of his contract and relevant legislation.

The primary legal issue before the High Court was whether the notice of termination provided by WMC Resources Ltd to Koljibabic was effective to terminate his employment. This required the Court to determine the proper construction of the notice itself, in light of the contractual provisions governing termination and the requirements of the *Industrial Relations Act 1988* (Cth).

The High Court, in a joint judgment, held that the notice of termination was ambiguous and therefore ineffective. Their Honours reasoned that for a notice of termination to be valid, it must be clear and unequivocal. The notice in question contained a statement that Koljibabic's employment would terminate on a certain date, but also included a condition that this termination was subject to the company's discretion to require him to continue working until that date. This internal inconsistency rendered the notice uncertain and incapable of creating a definitive end to the employment relationship. The Court applied the principle that ambiguity in a notice of termination is construed against the employer.

Consequently, the High Court allowed the appeal and ordered that the appeal to the Full Federal Court be dismissed, with costs.