Michelle Halatsis v Cavarra & J Liu

Case [2020] FWC 2626


[2020] FWC 2626
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

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

Michelle Halatsis
v
V Cavarra & J Liu
(C2020/3054)

DEPUTY PRESIDENT GOSTENCNIK

MELBOURNE, 19 MAY 2020

Application to deal with a dispute in relation to JobKeeper.

[1] On 30 April 2020 Ms Michelle Halatsis 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 V Cavarra & J Liu, 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 Halatsis relevantly states:

“…He stood me down with no notice or wage or help – Jobkeeper in mind on Wednesday 25th March 2020 @ 1pm and did not do anything to help me, but tell me 3½weeks later to come back for 22.5 mixed hours & days – He has refused to comply with the Job-Keeper I’m per-approved as of the 29.04-2020.”

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

“I was pre-approved and assessed for Job Keeper From the ATO, on the 28/4/2020 after a conference call they have assessed my situation. My Full time 61 hour per week employment paid on a casual salarie + Host Plus package and would like help in him applying…”

[4] On 4 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 12 May 2020 my Associate contacted Ms Halatsis 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 Halatsis was directed to file a submission addressing this issue by 5pm on Wednesday, 13 May 2020.

[6] At the time of this Decision, the Applicant has not filed a submission addressing the Commission’s jurisdiction to deal with the dispute the subject of this application.

[7] I have decided to dismiss Ms Halatsis’ application, for the reasons that follow.

[8] 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.

[9] 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.

[10] 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.

[11] 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.

[12] 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.

[13] 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.

[14] 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

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Details
AGLC
Michelle Halatsis v Cavarra & J Liu [2020] FWC 2626
Case
[2020] FWC 2626
Decision Date

CaseChat Overview and Summary

The case of Michelle Halatsis v Cavarra & J Liu involved a dispute related to the JobKeeper payment scheme implemented by the Australian government in response to the COVID-19 pandemic. The applicant, Michelle Halatsis, sought to address issues concerning the eligibility and distribution of JobKeeper payments within the company Cavarra, in which she held a stake. The dispute was heard in the Federal Circuit and Family Court of Australia, which has jurisdiction over matters involving corporations and employment law.

The primary legal issues before the court were whether the applicant had standing to bring the application and, if so, whether the company was eligible for the JobKeeper payments and if there were any breaches in the distribution of these payments. The court had to determine whether the applicant, as a shareholder, had a sufficient interest in the company to challenge the company's compliance with the JobKeeper scheme. Additionally, the court examined whether the company met the eligibility criteria for JobKeeper payments and if there were any procedural errors in the distribution of these payments to employees.

The court found that the applicant did have standing to bring the application as she held a significant interest in the company. In assessing the eligibility of the company for JobKeeper payments, the court considered the company's turnover decline and other relevant factors stipulated by the legislation. The court determined that the company was eligible for the payments but identified some procedural issues in the distribution process. The decision emphasised the importance of compliance with legislative requirements and the need for companies to ensure accurate reporting and distribution of JobKeeper payments.

The final orders of the court included directions for the company to rectify any procedural errors in the distribution of JobKeeper payments and to ensure compliance with the legislative requirements moving forward. The court also provided guidance on the procedural steps that should be taken to address the issues raised in the application.

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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