Municipal Officers Association v Shire of Yalgoo

Case [1978] FCA 79


Industria1,Law - Alleged Breach

o f Award - Employee's r i g h t

to sa la ry dur ing suspens ion

- Alleged inconsistency

between

State Act and Federal

A m r d - Terms

of

Award

incorpora t ing

S t a t e Act,

- Conciliation and Arbi t ro t ion Act 1904

s.119

Local GG-Jernmen-c Act

- 1960-1975

( V e A o ) s.158(2) I (5) ,

( 6 ) ,

( 7 1 ,

(10) -

1

I

IWNiCIP!AL

OFFICERS'

ASSOCIATION v. SHIE OF YALGOO

SI4ITISERS J.

8 SEPTENBER l978

ICELBOURNE

.'

-

IX THZ FEDER4L COURT OF AUSTRALIA

YESTERN AUSTRALIA DISTRICT REGISTRY

V 0 A a NO- 2 of 1978

IIDUSTRIAL DIVISION

I

I N THE MATTER OF THE CONCILIATION

AND ARBITRATION ACT 1904

B E

T

17 E E N:

THE MUI\IICIPAL OFFICERS I

ASSOCIATION OF AUSTFALIA .

C l a i m a n t

A N D:

S H I M OF

YALGOO

! I .

R e s p o n d e n t

I

!

,

I

:

8

1

O R D E R

JUDGE ?.'IAKING ORDER :

SMITHFRS

J D

DATE OF ORDER

8

S E P T E T E R ,

1978

l;!HERX MADE

IELBOURI'E

TEE COURT ORDERS:

l

~

T h a t the summons hereill be dismlssed.

THE FEDERAL COURT OF AUSTRALIP,

VZSTERii

AUSTRALIA

DISTRICT

REGISTRY

W.A. No. 2 of 1978

I

DIVISION

INDUSTRIAL

1

I N THE DL4TTER OF THE CONCILIATION

llRrD ARBITRATION ACT 1904

B E T 1'1 E E N:

THE I"IUNIC1P: T , OFFICERS f

-

I

i

ASSOCIATION

OF

AUSTRkLI.4

Claimant

A N D:

SHIRE

OF

YALGOO

!

I

Respondent

,

l

SMITHERS

J .

8 SEPTEMBER 1978

I

I

FZASOPJS FOE JKOGiviEiTT

The

c lamant seeks the impos i t ion

of

a

pena l ty upon

the respondent pursuant t o s.119 of The Conciliation and

Arbi t ra t ion Act 1904

a l l eg ing that between 15 October

1975

I

and 29

November 1975 It d ld f a i l t o observe 'the

provis ions of

clause

6

o i the Lccal Govermmt Off icers ' (Vestern Austral ia)

Award

1975 (the award)

by

f a i l i n g t o pay t o Wllliam Jarnes Lapham,

2

the Shire Clerk

of

the respondent , the minimm sdary prescr iLed

by

the c l ause appropr i a t e

t o h i s c l a s s i f i ca t ion .

The

sum

a l leged

to have been payable

but

not paid

was

$1,984.22 ,

be ing in r e spec t

of six weeks and three days

-.t t h e r a t e of $300.64 per

week and

t h i s was

not disputed.

B u t the respondent contends

that by reason of the terms

of the

award it was

under no

l i a b i l i t y t o pay a

sa l a ry to

M r Lapham

i n L h e circumstances prevail ing

a t the re levant

time.

Those

circumstances

were

that

purporting

to

act under

s . l58(5) (a) of the Local

Government Act 1960-1975 (W.A.)

( the Act)

the

respondent suspended

M r .

Lapham on October 15

1975,

that on the same day , pursumt

tc s . l58(6) (b j

o f

3 I

the A c t Mr.

Lapham requested an inqu i ry , t ha t

one Daniel

John

O'Dea

having been appointed pursuant

t o s0158(6) (b)

to

hold

the

inquiry

held

such

inquiry

and

the repor t

was made to

the

r spondent

on

19 November

1975

pursuant

to

S. 15S(6)

(d)

and WLS read at

a

meeting of

the respondent

on 29 November

1975,

t h a t at

the

sa id

meeting the respondent, pursuant

to

s.158(7)

resolved

to

terminate

the

service

of

Mr.

Lapham a t that date.

The sa id

Mr

O'Dea determined that

Mr.

Lapham should not be paid his

salary

o r

any

par t thereof for the per iod

o f

his suspension.

I t i s apparent tha t ,

i f pursuant t o the

terms of the

r

award, the provis ions

o f S. 158 of the

Act were applicable

t o

the employment r e l a t ionsh ip between

the respondent

and Er.

3

Lapham with

r e spec t t o the pe r iod

01

suspenslon then the

respondent commltted no breach

o f

t h e

award. Clause

6( 1)

( a )

of

the award provides:-

"The

minimum annual ra tes of

s a l a r i e s t o be paid

t o o f f i c e r s

of

theunder-mentioned

c l a s s i f i c a t l o n s

s h a l l be

as s e t o u t i n this clause1'.

Clause 22 provides:-

IIPayment

of s d a r i e s s h a l l be

made

a t l e a s t

fo r tn igh t ly du r ing

working hours

e

.-

The amount payabl-e t o ? P r o Lephain under. these clauses

I

i n respect of the per iod

of

suspension vas the

sum

of $1,984.22.

But the award must be

read as a whole and

it was

argued f o r

t he r e sponden t t ha t the gene ra l p rov i s ions

of

c lause

6

and Clause

22 had no application t o t h e employment of Mr.

Lapham wi th respec t

t o t he

pe r iod

of suspension

because

clavse

21

lntroduced

a

spec ia l p rov i s ion r e l a t ing to tne t e rms

and

condl t lons appl icable vhere an authori ty proposed to

terminate

the employment

of

i ts c l e rk and had

i n connection with such

proposal suspended

him pursuant t o so158(5 ) (a ) o f The

Act,

Clause 21 provides as follows:-

'!(l)

Sub jec t

t o

the p rov i s ions

of

the

Local

Government Act, 1960-1973, as amended

and t h e

Health ACT;, 1911, as amended,

the per iod of

n o t l c e t o

be given by a Local Authorlty

t o an

o f€ icer

o r by

a n o f f i c e r t o

a

Local Authority

t

o

te rmina te the cont rac t o f se rv ice sha l l be :

5

( a ) i n t h e c a s e

of

TOTM o r Shjre

Clerk,

Tovn

o r Shire Engineer (other

thlcn

E l e c t r i c a l )

o r Profeselonal Engmeer covered

by Clause

10

of

t h i s awz-6,

f o u r weeks;

4

and

no

o f f i c e r s h a l l l e a v e h i s

employment

u n t i l

he has given not lce in wrl t ing

02

h i s i n t e n t i o n

t o do

s o

and

tha t per iod has expi red .

( 2 )

In the

event

of

the

appropriate

period

of

no t i ce

n o t

be ing g iven , then the ra te

of

s a l a r y

f o r t h e p e r l o d

of no t lce sha l l

be

pa id

by

t h e

Local Authority

o r f o r f e i t e d by

the o f f i ce r .

(3)

P rov lded

tha t

t h i s c l ause sha l l no t app ly

to

an o f f i ce r

who

has been just i f iably dismissed

€or

misconduct

~

T h l s

c lause

was

considered by this Court

i n the Municioal Officers '

Association of Aus t ra l ia v. Shire of Yalgoo (unreported B. NO. 190

of 1976

de l ivered on Apri l 6 1977) wherein

the

respondent

vas

subJected to

a penal ty f o r f a l l i n g t o pay t o Mr.

Lapham his

s a l a r y f o r a

per lod of four

weeks

a f t e r t e r m i n a t i n g h i s s e r v i c e

I

without no-cice on

29 November

1975.

In t h a t c a s e

it vas said:-

"Quest ions vere ra lsed

as t o the meaning of

the

clause and the effect

of

the vords

' subject

to

the

provis lons o f the Local

Government Act, 1960-1973

a s amended I .

That Western Austral ian s ta tute provides

a

method whereby

an

of f icer , inc luding Shi re Clerk ,

may be removed from an offlce

D

In our view

it

provides an exclusive

method

of doing

t h i s and

under the s ta tute an ofTicer can only have his services terminated In accordance with the

provis ions of

s.158

and par t lcv lar ly sub-sec t lons

5,

6 and 7.

The r e s u l t i s t h a t 11̂ It i s proposed t o

terminate the services of

tin

o f f l c e r f o r

any reason,

the Council

must

e i the r o rde r an lnqu l ry

o r suspend

him,

s t a t ing

the

r easons

fo r

h l s

suspens ion .

The

o f f i c e r may

wi th ln

a

perlcjd apply to the Councll

f o r a n l n q u i r y

and

i f

he does, the Council

must

o rder

the

inqui ry .

The

person hold ing

the

inqury

makes

a

reDort

In

writ ing to the Counci l , which,

l n t e r a l i a - ,

i s t o be read

as

soon as p rac t i cab le

i n open

council.

Where

.m

lnqui ry is ordered,

the

dec is ion of

the Councll

i s n o t t o <be glven until

a f t e r t h e

reading of the

repor t .

In

t h i s p a r t i c u l a r c a s e ,

-&e Clerk vas

suspended. He then soL1ght an inquiry

Irhlch was

held.

The r epor t vas r e a d i n

open Council

and

a

decision then reached

-c0

dismiss h i m .

5

The Associat lon argued that

jIf an inquiry was

car r led out pursuant to the provis ions of

s.158

an

of f lcer could not

be

dismissed summarily

f o r

mlsconduct

On

the other hand,

It vas argued for the Councll

t h a t

S. 158

overrode and rendered nugatory the

provis ion of c lause

21

of the

award because of

t

t h e

presence

in

the clause of

the

words

SubJect

t o the

provis ions of tne Local

Government

ACT;

1960-1973s

as amended'

?le

t h m k

it

c l ea r t ha t ne i the r o f t hese

submissions i s well-founded.

In

our view the effect of c lause

21

and

S. 158

o f the Ves te rn Aus t ra l ian s ta tu te

is

t h a t an

imployer

wishing to discharge

o r termlnate t h e s e r v x e s

of

a n o f f i c e r e i t h e r

by

dismlssal

f o r mlsconduct

o r

by any

o ther

method

of termmation of the contract ,

must

carry out the provis lons of

s.158

inc luding

t hose

r e l a t ing

t o suspension

and

inquiry.

It is

n o t e n t i t l e d t o r e a c h

a

dec is ion until

the r epor t

has been made and read

m

open c o u n c ~ l .

,

If

af ter

these procedures have been carrled

o u t

t he se rv i ces a re t e rmlna ted o thenr i se than ju s t l f i ab ly

I

for r@isconduct, one

o f

the per lods

o f

no t ice spec l f ied

i n sub-clause

l must

be

given o r one of

the sums

o f

money

specif ied in sub-clause

2 pa id .

If

ultimately

a n o f f i c e r

i s

jus t i f lab ly d ismlssed for misconduct he

obta ins no r i g h t s a t a l l under clause

21 of the

award

and must

look elsewhere f o r any r i g h t s 'I

Sect ion 158 of the Act

is i n te rms appl lcable to the

employment

of

iYra Lapham.

So fa r a s ma te r i a l

1

t provides:-

"Section 158

(l)ono

(2 )

The

counci l may,

but

only

i:~

accordance with

the terms and conditions cf the agreement under vhich

he i s appointed to

the o f f i c e ,

remove

an o f f i ce r

from

an of f ice

and appoint a successor l n his place.

( 3 1 0 . *

( 4 ) .

0 0

(5) ( a )

Whel*e the

counci

l

proposes

to

terminate

.L

Lhe se rv ices of a person hol.ding

aily o f those

offzces except where they are terminazed by reason

of

111s

ret i rement under subsect ion

( 3 ) of

t h i s s e c t i o n

6

it

sha l l e i t he r o rde r an inqu l ry unde r

th i s

sec t ion

o r suspend him.

(b)

...

(6) (a) Within seven days after suspenslon the officer

may, i f the inquiry has not a l ready been held, apply

t o t h e c o u n c i l

f o r an

inquiry and thereupon the

counci l sha l l o rder

an

inqui ry , bu t

i f

t i e o f f i c e r

does not

s o apply the counci l

may

proceed to

determine

the

matter.

!

(b)

A person appomted

by

the Governor

sha i l ho ld

the inqui ry .

(c )

The

person

ho ld ing

the

inqul ry

sha l l

make

a

r e p o r t i n w r l t i n g

on

the matters inquired into.

(d)

The

or igir?al of

t h e

r e p o r t

s h a l l

be

sen t by

him

to the counc i l

and coples

of

t h e r e p o r t s h a l l a t

the

same

time

be

s o sen t

to

the Minis te r and the of f icer

i n r e s p e c t

of

uhom

the inqu i ry

was

made.

( e )

The

r e p o r t

s h a l l

be

read

as

oon

as

p r a c t i c a b l e i n

open

co-mci i ,

I

(7) Where an 1nqu.ir-y is ordered

the decis ion

of

the

counc i l sha l l no t

be

given untll

a f t e r t h e r e a d i n g

o f

t he r epor t .

( lO) (a )

The person holding

the lnqui ry

may award cos t s

and expenses

( including the

ex enses r e fe r r ed to

i n

subsect ion

( 9 ) of

t h i s s e c t i o n P

t o a n

amount

assessed by

him

aga ins t

e i t he r

t he

counc i l

o r

t h e

o f f i c e r

and

any coats

o r eAxpenses s o awarded may be recovered

as a

d e b t i n

a

cour t o€

competent

Ju r i sd i c t ion .

(b)

The person hold ing

the

inqui ry sha l l a l so

determine whether the off icer shal l

o r

s h a l l n o t

be

paid

h i s s a l a r y

o r any

pa r t t he reo f fo r t he pe r lod

of

his

suspenslon.

It was sald tha t c l ause

21

i s concerned only with the

per iods of not ice to be given

by

a

local authori-cy to

an

o f f i ce r .

It was

conceded

t h a t t h e e f f e c t

of

c lause 21

vas tha t t e rmina t ion

of

employnent could not occur

u n t i l

the

procedures prescr ibed in

s.158

of

t h e Act had been observed. But

It was

contended that

7

clause 21 did not ope ra t e to app ly

the

terms of

s.158

of

t h e

Act

t o t h e r e l a t i o n s h i p

between the claimant and the respondent

s o

t h a t t h e r i g h t s

and obligations concerning remuneration of

14r- Lapham during the t ime

that the procedures prescr ibed

by

S. 158 were i n the course

of

lmplementatlon were determined

by

the provis ions

thereof .

It was

acknowledged tha t the provis lons

of t h e Act

cannot

p reva i l

aga ins t

the

arrard

because

of s.65 of the

I

,

Conci l ia t ion

and

Arbi t ra t ion

Act

1904.

The

i ssue must

therefore

be

I

r e so lved acco rd ing to the p rope r in t e rp re t a t ion

of clause

21.

The

quest ion i s vhe ther tha t c lause

is t o be

u n d e r s t o o a s i t s e l f

l.

?

providing that during the per iod

when

the procedures under

s.158

are be lngmrr ied out the remunera t lon of the

employee

concerned

i s t o depend upon

t h a t s e c t i o n ,

i n o ther words

does the

award

say -chat t h e empl6yee’s enti t lement to

remuneratlon during suspension

1s something t o be determined by

I

t h e a r b i t r a t o r p u r s u a n t t o

S. 158( 10) (b)

As

I

s a i d In

MciYanus v.

Genera l Elec t r ic

Co.

of Australia Ltd.

(1971)

18 F.L.R.

374 a t 381 :-

11

.e..o.

D it is competent Tor a Commonwealth award t o

prescr ibe by

re ference there to

that the p rov i s ions

of

a

S t a t e law

which applies to persons and

SltUatlOnS

s p e c l f i e d t h e r e l n s h a l l o p e r a t e r r l t h r e s p e c t t o

pa r t i cu la r pe r sons and s i tua t lons wl th in the

j u r i s d i c t i o n of

t h e avard-maklng

au thor i ty .

If

It

does

t h i s t h e n r i g h t s

and

du t i e s s imi l a r

l i l n- t

a

ure

and extent to those conferred and

imposed by

the

provis lons

of

t h e S t a t e

law

i n r e l a t l o n t o t h e

p a r t i e s t h e s u b j e c t

of

t he %a te

law

are thereby

conferred and imposed

by t h e award i t s e l f upon the

p a r t i e s s p e c l f i e d i n t n e

award.”

That

i t should be the effect

of

a

qual i fy ing provis ion

such as

the

Y

i

8

opening vrords of

clause

21 t h a t it

should

cause

the

whole

c l ause to enac t

a

pos i t lve provis ion a f fec t ing the te rms

of

the

employment

and making

tk.2 p rovis ions

o f

S t a t e l a v a p p l i c a b l e

may seem unusual.

The problem of interpreting clause

21 has i n it a

degree of silmilarity with

that dea l t w i th

by

Stephen J.

I n

R.

v.

kustral iar , Conci l la t ion and Arbj t ra t ion

-

Commission;

ex parte Transport

Workers Union

of Aus t ra l ia

(1977)

17 A.L.R.

367

where the re vas under

consideration a c lause

i n a

l o g

o f c l a lms to the e f f ec t t ha t ce r t a in

work

s h a l l

"be

performed by

members of the

IWU and such

work s h a l l n o t be

!

a l loca ted to cmcaloyees members

of -che TWU

o r the FEDFA"

D

,

The

quest lon was

whether

on

i t s p rope r in t e rp re t a t lon the

clause expressed

a

demand

tha t ne l ther nod-unlonis t s nor

members of more thm- one of

the w-ions referred to should

be

I

employed.

His Honour s a i d a t page 372:-

"The

first

demand

i s expressed , success ive ly ,

in

the aff i rmat lve and in the negat ive, each l inked

t o

t h e o t h e r

by t h e word

'and

D

The

af f i rmat lve

1

demands

agreement

t h a t i n t h e

performance

of

I

work by

employees

. e . a l l such ~s?ork

shall

be

performed by

o r sha l l con t lnue to

be performed by

I

members

of

the

i'MJ',

the nega t lve

tha t such

vork

s h a l l n o t

be

a l l o c a t e d t o

emDloyees members

of

t h z TVW

o r the FEDFA'

D Neither

shouid,

I th ink , be r e a d i n

l s o l a t l o n

from

the other.

Not

only are they

l inked

grammatically but their

subject matter,

the arrangement

of the paragraph

and the general

mode o f expresslon

requi res ,

I th lnk ,

tha-c they should

be read togetner

as express ing

one

ent i re concept .

They

provide

an

example

of

the

ccmmon

devlce of using afflrmatlve and ncga tive

s t a t e m e n i x , i n p a r a l l e l c l a u s e s , t o e q r e s s t h e

one

concept ifl tvo ways. approaching

i;t from opposite

poles .

The

concep L; h2re i s tha t cGr ta in

work

s h a l l be

the prcserve

of

cer ta in persons, exclusive

o f

c e r t a l n

o t h e r s ;

t h i s

i s eqcpressed, first affirmatively

and

then nega t ive ly , i n t he

tlvo

successive clauses.

Mr.

Commissioner

Portus expressed the sense

of'

th? thing

9

succ inc t ly when,

on the flrst d ispute T i r s t coming

before him,

he

remarked

t h a t

' i f work i s t o be allocated

t o a

pa r t i cu la r un ion

as

aga ins t t he

members

of other

unions

it

fo l lows tha t t he

work

s h a l l n o t

be

a l l o c a t e d t o

members of su.ch other unlons

D

The

c l auses a re no t pe r f ec t ly co r re l a t ed s ince

one

r e f e r s

to

performance of work, the other to

I ts

a l locs t ion ;

however

they a re , subscant ia l ly ,

the a f f i rmat ive

and

negative

aspects

of

the

one concept. So understood

each

clause

adds

meanmg

to

the

other,

the

affirma-cive

c lause be ing qua l i f ied in scope

by

the terms

of

i ts

negat ive

par tner .

The

vhole

seeks no absolute

monopoly f o r MW

members, but only

a monopoly a s

regards members o f the o ther

two unions.

It follows

t h a t I do not regard the

first demand a s a t a l l

c o n c e r n i n g i t s e l f m t h t h e q u e s t i o n

of non-union

labour

Clause

21

does not say,

but

assumes

tha t the procedure

by which

the employment of a c l e rk will

come to an end

is t h a t of

the giving of

a

not ice

by

one

p a r t y t o

t!le

other. This

assurnptlon is reasonable

and

may 'be taken as sound.

In

that

s l t ua t ion c l ause

21

declares the length of not ice vhich

is

t o be

given by

t h e l o c a l

government

a u t h o r i t y t o t h e c l e r k

as

an

e f f ec t ive p rocedure fo r l ega l ly t e rmina t ing the c l e rk ' s

employment.

It

d e c l a r e s a l s o t h a t

that

procedure shal l

be

i n s t i t u t e d o n l y

subjec t

t o the provisions of

the Act.

So

seen

the clause,

read

a s a whole, expresses

"one ent l re concept"

namely the terms

and

condl t iom governing termmation of the contract of

employment.

The

in t roductory qua l i fy ing

words and

t h e p r o v i s i o n s a s t o t h e

per iod of no t ice a re %ot per fec t ly cor re la ted" s ince the former

r e f e r s t o p r o v i s i o n s t h a t t h e

authority's

r i g h t

t o Terminate the

i

c l e r k ' s

employment

d o e s n o t a r i s e u n t i l a f t e r

a

perlod of

suspension

on

cer ta in prescr ibed terms and condi t ions,

and

the

l a t t e r r e f e r s m e r e l y t o t h e p e r i o d

of

a

l ega l ly e f f ec t ive no t i ce

*

of

terminat3.on.

So

understood each part of the clause

"adds

meanxg

to the o ther ' !

and t h e whole i s effec-cive to operate

as a

composite

provis ion enac t ing

o r awarding

tha t t he t e rms

and conditlons of

terminat ion of the contract

of

a

c l e r k ' s

employment

a r e

thoe" contained in the provls ions

of

t h e

Act

r e l a t i n g t o t e r n i n a t i o n

toge ther with

fou r weeks

not ice given

when

permisslble , in accord-

ance

therewith.

The

introdu.ction of

f o u r weeks

not ice when

so

pe rmis s ib l e r e f l ec t s t he dec i s ion

of

t h l s

Court

I n NuniciDal

l

Off icers ' Associat ion

of Australia v. Shire of Yalgoo (supra) . The

in t roduct ion of the provis ions

o f

the

Act

1 s wrapped

up

i n t h e

no t ion tha t c l ause

21

dea ls wi th the subjec t

of

terminat ion

of

employment as an ent i re concept .

An

i n t e r p r e t a t i o n of

c lause 21

as

a

posi t ive provis lon of the

award

introducing the terms of

the Act

i n t o t h e

employment

is therefore not

t o be denied, simply

because

i t

i s

expressed

i n q u a l i f y i n g

words.

Such

an in t e rp re t a t ion

,

reads more

in to c l ause

2 1 than was

perhaps contemplated

in c e r t a i n

dicta of Dunphy J. and Joske .L in Re Municipal Officers (V~ctoria) Ak-ard

-

1959 (1962) 4 F.L.B.

4 2 G at 441 and h45 but of course the submissions

msde t o me

were n o t considered in depth

i n t h a t case i t being

unnecessary for that to be

done.

It is t o be obserwd tha t

clause 21 does much more than

merely

f i x a

per iod of not ice to be given to

the

employee

on

te rmina t ion

of

h

i

s

se rv ice .

The SUbJeCt matter of c lause 21

i s e s s e n t i a l l y t h a t

of termination of

employment

broadly

considered,

it i s headed

I'Resignations

and

Dismissal

S" D

There

i s no

o ther provis ion

i n the award provlding f o r terminat ion.

It

dea ls

with

termination by either the employing authority

o r t h e

employee.

It provides -chat each par ty may terminate

the

employment

by

givi l ig not ice ,

l n the case

of

the Shire Clerk of

.1

four veeks.

The

c l e rk

may

no t l eave h i s

emplogment

until

he has

g i v e n n o t i c e i n w r l t i n g

of

h i s i n t e n t i o n t o

do

so

and

"that perlod'l

has

expired. Tnus,

s o

f a r a s t h e a v a r d

i s

concerned

the authority's

11

on ly r igh t t o t e rmina te

the

c l e r k ' s

employment

is

by

g iv ing four

weeks

not lce and tha t

right

is

s t a t e d t o

be

sub jec t t o the p ro -

v i s ions

of

the Act.

In

o ther

words

t emina t ion unde r the

award

may

on ly t ake p l ace sub jec t t o the p rov i s ions o f t he

Act

s o fa r a s t hey dea l

with

t h a t m a t t e r .

They

do

deal with

that matter

by providing that where

t h e r e is an inqui ry pursuant to

s.158

(5 ) (a ) t he re

is t o be no termination

of

t h e c l e r k ' s

employment

except pursuan-t

t o t h e p r o v i s i o n s

of

s.158(7),

a f t e r a

report has

been received

by and read

by the Council

of the Shire . /

The

provis ions of the

Act

dea l wit? the ques t ion of te rmnat ion not

on ly wi th r e spec t t o the tme

when

the Council

may

terminate the

ernployment

but

x r i t h respect to remunerat ion of the clerk during

,

the per

lod of

his

suspension.

The

provls ion states t h a t i t

shall be determined

by

t h e a r b i t r a t o r

who

held the inquiry.

In

this case the arbi t ra tor determined there should

be

no

such

remuneration.

I t is contemplatedbyclause2L that before notice

of

termination

i s

given thereunder the s ta tutory modif icat ions

o f

the

terms

of

l

the cont rac t o f

employment

which

a re lnevi tab ly involved

i n the

implementation of those procedures according to

s.158

during

the period of suspermion

will.

have applied and have taken effect

In

the pa r t i cu la r ca se .

It

is

subject

to

the operat

ion of

those

modl f ica t lons tha t t e rmmat ion pursuant to c lause

21

i s ,

according

to

the

te rms of

that

c l a u s e i t s e l f ,

t o proceed.

It

i s n o t t o

v

,

be Thought

t h a t it i s to proceed subJe ct tp

some

only of

those

modif icat ions,

so t h a t f o r i n s t ance

t he

p rov i s ions

of

s.158

I

concernirlg the remuneration

payable

during

suspension

might

I

12

be

exc

:epted.

Such

a

not ion woul d

be

i n c o n f l i c t VI 4 t h t h a t

general contemplat ion inherent in c lause

21

tha t be fo re

terminat lon thereunder the provis ions of

s.158

concerning terminat-

i on T v i l l have been

implemented.

Suspension

and

arbitration

are

i n t e g r a l

components of

the provls ions dea l ing wi th te rmina t ion .

Th i s s i t ua t ion

s o

es tabl ished accords wlth the object ive of

c lause 21 tinat

employee

1s t o have fou r weeks not ice of

terminatiox and be paid

i n

respec t thereof and re f lec ts the

awareness of the

award

o f t he appropr i a t eness to the pa r t i cu la r

c lass of

employment of persons

employed i n l o c a l government of

spec ia l p rovis lons concern ing r igh ts

of

termination.

The

modifications of the terms

of

ernploTyment

co2tained

,

i n s.158 of

the Act

may

be inconsis tent with clauses

6

and

22

but

so

f a r as

t h a t is so t h e y g a i n t h e i r a u t h o r i t y

from clause

21.

It may

be thought that

as vha t is t o be

In te rpre ted i s an award

and

no t

an Act of Parliament

some

l e s s p a r t i c u l a r i t y

and

precision

of

expression

is t o be

anticipated.

Accordingly

grea te r s ign i f icance

may

be accorded

t o s p e c i a l p r o v i s l o n s i n

t h e i r r e l a t i o n t o g e n e r a l p r o v i s i o n s .

I t may

be

sa id the re fo re

t h a t

i n this

award

the absence of e,xpress qualiTying vords

i n

clauses

such

as 6 and 22 has no

s ign i f i cance

i n

t he

presence of the qualifying

words which

do

appear

i n clause 21

which

dea l s w i th the spec i f i c sub jec t

o f

termmation.

When the procedures prescr ibed

by s.158 of t h e Act a r e

implemented the clerk

may

be given four

weeks

not lce , vhlch, but

L

for the condi t ion ln t roduced in to c lause

21

by

the

vords

Itsubject tcj

the p rov l s ions

of

the Local

Government Act1',

could have beln given vhen he

was

suspended.

Those

.c.o-rds

13

postpone the r ight to not ice for the espress purpose

of

a l lowing the prcvis ions

of

s.158

to opera te

on the employment

according

to

the

terms

thereof .

Whether he i s remunerated

o r no t fo r t he pe r iod

of

suspension

i s

determined, pursuant

t o t h e

award,

by

the a rb i t r a to r , bu t he

s t i l l

receives

four weeks

not ice .

Accordingly,

i t i s my

view that the proper conclusion

i s t h a t t h e

award

i t s e l f , i n t e r p r e t e d

as

a

whole, provides

that during the per iod

of

suspension the remuneration

of

the

c l e rk depends upon

the appl ica t ion

of

the provisions of

s.158

t o t h e r e l a t i o n s h i p

of

employer

and

employee between

the

I

respondent and Hr. Laphan End tha t in the circumstances

110

,

remuneration was

payable t o him pursuant t o t h e award during

tha t per iod .

In

t h e r e s u l t t h e

summons here in must

be dismissed.

I

c e r t l f y t h a t t h i s

and

the

12

precedlng pages are

a t rue copy o f the

Reasom

f o r J u d g m e n t h e r e i n o f h i s H o n o u r

Kr.

Jus t lce 5w A

&

5

Details
AGLC
Municipal Officers Association v Shire of Yalgoo [1978] FCA 79
Case
[1978] FCA 79
Decision Date

CaseChat Overview and Summary

The Municipal Officers Association of Australia sued the Shire of Yalgoo, alleging that the Shire breached the Local Government Officers (Western Australia) Award 1975 by failing to pay William James Lapham, the Shire Clerk, his minimum salary during his suspension. The Association argued that the Award guaranteed the employee's salary during suspension, while the Shire contended that the Award's clause 21 incorporated the Local Government Act 1960-1975, which allowed the Shire to determine the employee's remuneration during suspension. The Federal Court of Australia had to decide whether clause 21 of the Award incorporated the Act's provisions and whether the Award guaranteed the employee's salary during suspension.

The court held that the Award's clause 21 did not merely provide a period of notice to be given to the employee upon termination of employment, but it dealt with the subject of termination of employment broadly considered. Clause 21 provided that the employer's right to terminate the employee's employment was subject to the provisions of the Act, which dealt with termination not only with respect to the time when the Council may terminate the employment but also with respect to remuneration of the employee during the period of his suspension. The court held that the Award's clause 21 incorporated the Act's provisions, and the remuneration of the employee during suspension depended upon the application of the provisions of the Act to the relationship of employer and employee between the Shire and the employee. Therefore, the court dismissed the summons.

In conclusion, the Federal Court of Australia held that the Award's clause 21 incorporated the Act's provisions, and the remuneration of the employee during suspension depended upon the application of the provisions of the Act to the relationship of employer and employee between the Shire and the employee. The court dismissed the summons, and no orders were made.

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

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Ratio Decidendi

Legal Principle Established

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