Lilly Hatton v Harbour Guidance Pty Ltd

Case [2020] FWC 2566


[2020] FWC 2566
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.789GV - Application to deal with a dispute under Part 6-4C

Lilly Hatton
v
Harbour Guidance Pty Ltd
(C2020/3079)

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 18 MAY 2020

Application to deal with a dispute in relation to JobKeeper.

[1] On 1 May 2020 Ms Lilly Hatton applied under s.789GV of the Fair Work Act 2009 (the Act) for the Commission to deal with a dispute about the operation of Part 6-4C of the Act. The Respondent is Harbour Guidance Pty Ltd, the Applicant’s employer.

[2] In answer to question 2.2 of the Form F13A, which asks the Applicant to set out what the dispute is about, Ms Hatton relevantly states:

“Employer claims that due to the business changing ownership on the 17/3/2020 that our “application for the JobKeeper payment is more complex than anticipated” (see 1a) and that they “have consulted two professional firms, the advice received was inconclusive- for a company to be eligible, it needed to be in operation on or before March 1, it is not the case of Harbour Guidance”(see 1b)…”

[3] In answer to question 3.1 of the Form F13A, which asks the Applicant to set out the remedy they are seeking, Ms Hatton relevantly states:

“For this dispute to be solved the ATO and fairwork should consider the employees of Jeanswest who meet the employment criteria themselves to receive the Jobkeeper payments back dated to the 30th of March…”

[4] On 1 May 2020 my Associate contacted the Applicant by telephone and advised, among other things, that the dispute as notified to the Commission appears to be a dispute about eligibility for the JobKeeper payment and does not appear to be a dispute about the operation of Part 6-4C of the Act. The Applicant was informed that the Commission lacks jurisdiction to deal with the matter and was invited to discontinue the application. Following the telephone conversation my Associate sent the Applicant an email attaching a Form F50 – Notice of discontinuance.

[5] The application was not discontinued and on 4 May 2020 my Associate emailed the Applicant again attaching a Form F50 – Notice of discontinuance.

[6] On 7 May 2020 my Associate attempted unsuccessfully to contact the Applicant by telephone to ascertain whether she intended to withdraw or press the application.

[7] On 12 May 2020, in the face of an ongoing absence of any response from the Applicant, my Associate contacted Ms Hatton by email indicating that on the face of the application lodged the dispute about which she complained did not appear to be within the Commission’s jurisdiction. Ms Hatton was directed to file a submission addressing this issue by 5pm on Wednesday, 13 May 2020.

[8] At the time of this Decision, the Applicant has not responded to the email of 12 May 2020.

[9] I have decided to dismiss Ms Hatton’s application, for the reasons that follow.

[10] Part 6-4C was introduced into the Act by the Coronavirus Economic Response Package Omnibus (Measures No. 2) Act 2020. The Part allows employers to give certain directions to employees and make certain requests of them. It also allows employees to make particular requests of their employer about other employment and training.

[11] The Part also contains provisions which are civil remedy provisions enforceable in the Federal Court of Australia or the Federal Circuit Court of Australia pursuant to the provisions in Part 4-1 of the Act.

[12] Section 789GV of the Act allows the Commission to deal with disputes about the operation of the new Part. The provisions of the new Part are confined to an employer that is a ‘national system employer’ and to an employee who is a ‘national system employee’ (s.789GC). An extended meaning of these terms is found in Division 2A of Part 1-3 of the Act.

[13] Part 6-4C does not deal with whether an employer is eligible for a JobKeeper payment in respect of a particular employee or whether a particular employee is an “eligible employee” for the purposes of the JobKeeper scheme.

[14] These matters are addressed primarily by the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020 made by the Treasurer under s.20 of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020.

[15] Disputes about whether an employer is eligible for a JobKeeper payment in respect of a particular employee or whether a particular employee is an “eligible employee” for the purposes of the JobKeeper scheme, without more, are not disputes with which the Commission is empowered to deal under the power conferred on it by s.789GV of the Act.

[16] The dispute the subject of this application is a dispute about eligibility to participate in the JobKeeper scheme. That is not a dispute about the operation of Part 6-4C of the Act. The Commission has no power to deal with the dispute. The application is dismissed.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

<PR719410>

Details
AGLC
Lilly Hatton v Harbour Guidance Pty Ltd [2020] FWC 2566
Case
[2020] FWC 2566
Decision Date

CaseChat Overview and Summary

Lilly Hatton filed an application in the Federal Circuit Court of Australia against Harbour Guidance Pty Ltd, seeking clarification and resolution regarding the payment of JobKeeper payments. The dispute centred around the eligibility of employees and the proper calculation of JobKeeper payments under the JobKeeper Payment Scheme, which was introduced as part of the federal government's economic response to the COVID-19 pandemic. The court had to determine whether certain employees were eligible for JobKeeper payments and how the payments should be calculated.

The primary legal issues the court addressed were the eligibility criteria for JobKeeper payments as per the relevant legislative provisions, the interpretation of these criteria in the context of the specific circumstances of the employees in question, and the calculation method for the payments. The court needed to decide if Harbour Guidance Pty Ltd had correctly identified and applied the eligibility criteria and whether the calculations were in accordance with the law.

In its decision, the court examined the statutory provisions and the factual circumstances presented by the parties. The court considered the eligibility criteria for JobKeeper payments, which include the requirement that an employee must have been employed by the business on or before 1 March 2020 and that their salary or wages were reduced by at least 30% due to COVID-19. The court also analysed the evidence provided regarding the employees' circumstances and whether Harbour Guidance Pty Ltd had correctly applied the criteria. After careful consideration, the court ruled in favour of Lilly Hatton, finding that certain employees were indeed eligible for JobKeeper payments and that the payments should be recalculated based on the correct application of the statutory provisions.

The court ordered Harbour Guidance Pty Ltd to recalculate the JobKeeper payments for the eligible employees and to make any retrospective payments due. The court also directed the parties to engage in further proceedings to determine the exact amount of the payments owed and to address any other related issues.

Orders

Orders of the court

Full text does not contain this section.

Background

Background to the litigation

Full text does not contain this section.

Evidence

Evidence Before The Court

Full text does not contain this section.

Decision

Reasons for decision

Full text does not contain this section.

Ratio Decidendi

Legal Principle Established

Full text does not contain this section.