Old UGC Inc v Industrial Relations Commission of NSW

Old UGC Inc (the applicant) sought judicial review of a decision by the Industrial Relations Commission of New South Wales (the respondent Commission). The dispute concerned the Commission's jurisdiction to hear an application alleging an unfair contract, specifically a compensation and release agreement, which was a variation of a pre-existing employment contract. The applicant contended that the contract was governed by foreign law and therefore the Commission lacked jurisdiction.

The central legal issue before the Court of Appeal was whether the Industrial Relations Commission had correctly exercised its jurisdiction under sections 105 and 106 of the *Industrial Relations Act 1996* (NSW) to hear and determine an application concerning an unfair contract, notwithstanding that the contract was expressed to be governed by foreign law. The court was required to consider the territorial nexus required for the Commission's unfair contracts jurisdiction.

The Court of Appeal reasoned that the compensation and release agreement constituted a variation of a pre-existing employment contract. Given that the employment had a sufficient connection to New South Wales, the Commission's jurisdiction to deal with unfair contracts was properly invoked. The court found that the application of foreign law to the agreement did not oust the Commission's jurisdiction, as the underlying employment relationship and the circumstances of its termination had a territorial nexus to New South Wales.

The application for judicial review was dismissed, and the applicant was ordered to pay the costs of the proceedings.