FEDERAL COURT OF AUSTRALIA
Ledger v Stay Upright Pty Ltd [2016] FCA 659
File number: NSD 1171 of 2014 Judge: BUCHANAN J Date of judgment: 6 June 2016 Catchwords: INDUSTRIAL LAW – whether employees engaged on a casual basis – where employees provided services to employer over a long period of time – employees’ contracts stated engaged on a casual basis – employees’ engagements varied – employees required to submit availability in advance – employees argued regular and systematic employment – evidence does not discharge onus to prove permanent employment Legislation: Fair Work Act 2009 (Cth), ss 12, 67, 67(2), 86, 95, 111, 111(1)
Workplace Relations Act 1996 (Cth), ss 172(2), 173, 227, 239(1)
Annual Holidays Act 1944 (NSW), ss 3, 3(1), 4, 4(3)(a), 4(3)(b)(ii)
Long Service Leave Act 1955 (NSW), ss 4, 4(11)(a)
Long Service Leave (Amendment) Act, 1985 (NSW), Act No. 54, Sch 1
Educational Services (Post-Secondary Education) Award 2010 (Cth), cll 3, 3.1, 4, 4.1, 4.3(a), 10, 10.1, 10.2, 10.3, 10.3(b), 10.4, 10.4(a), 10.4(b), 10.4(c), 10.5, 10.6, 10.7, 14, 14.3, 14.5, 14.5(a), 21, 21.3, 25, 25.1, 26, 27, 28, 28.1, 29, 29.1
Cases cited: Cameron v Durning [1959] AR (NSW) 142
In re Private Hospital Nurses (State) Award [1962] AR (NSW) 446
Reed v Blue Line Cruises Limited (1996) 73 IR 420
Thompson v Big Bert Pty Ltd t/as Charles Hotel [2007] FCA 1978; (2007) 168 IR 309
Date of hearing: 22 and 23 March 2016 Registry: New South Wales Division: Fair Work Division National Practice Area: Employment & Industrial Relations Category: Catchwords Number of paragraphs: 73 Counsel for the Applicants: Mr J Phillips SC Solicitor for the Applicants: Hugh & Associates Lawyers Counsel for the Respondent: Mr J Darams Solicitor for the Respondent: FCB Workplace Law ORDERS
NSD 1171 of 2014 BETWEEN: AARON LEE LEDGER
First Applicant
LESLIE THOMAS REYNOLDS
Second Applicant
AND: STAY UPRIGHT PTY LTD (ACN 002 099 069)
Respondent
JUDGE:
BUCHANAN J
DATE OF ORDER:
6 JUNE 2016
THE COURT ORDERS THAT:
1.The application be dismissed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
REASONS FOR JUDGMENT
BUCHANAN J:
The respondent (“Stay Upright”) is a company which provides motorcycle training services. The first and second applicants were employed by Stay Upright. The overall periods (or individual periods) of employment are not at issue. Stay Upright contends that each was employed during those periods on a casual basis. That is the central question in the proceedings.
Mr Aaron Ledger was engaged as a “senior instructor” and Mr Leslie Reynolds was engaged as an “instructor”, although in each case the base rate of pay as at 21 January 2014 was $32 per hour. Mr Ledger’s first engagement relevant to the present proceedings commenced on 7 October 2007 and he continued (and continues) to be engaged thereafter, or was engaged from time to time, as explained hereunder. Mr Reynolds’ first engagement commenced on 21 October 1996 and his engagements ceased on 19 May 2015.
During the…
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- Case
- [2016] FCA 659
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the employees, who were engaged on a casual basis, were in fact in a regular and systematic employment relationship with the employer. The employees argued that despite the casual nature of their contracts, their engagements over a prolonged period, along with the requirement to submit availability in advance, indicated a permanent employment relationship. The court was required to determine whether the employees had discharged the onus of proving their employment was not casual.
The court found that the employees had not discharged the onus of proving that their employment was not casual. It held that while the employees had provided services over a long period, the contracts clearly stated that they were engaged on a casual basis. Additionally, the requirement to submit availability in advance did not necessarily indicate a regular and systematic employment relationship. The evidence presented did not sufficiently demonstrate that the engagements were regular and systematic to warrant a finding of permanent employment. Consequently, the court dismissed the application.
The court ordered that the application be dismissed, as per Rule 39.32 of the Federal Court Rules 2011. The decision reinforces the importance of clear contractual terms and the necessity for employees to provide compelling evidence to shift the burden of proof in establishing a permanent employment relationship.
Orders
Orders of the court
1. The application be dismissed.
Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.
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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