| [2016] FWC 6156 |
| FAIR WORK COMMISSION |
DECISION |
Fair Work Act 2009
s.394—Unfair dismissal
Phillip Robinson
v
Solomon Mineral & Metal Pty Ltd
(U2016/5298)
DEPUTY PRESIDENT DEAN | SYDNEY, 30 AUGUST 2016 |
Application for relief from unfair dismissal – voluntary liquidation – application stayed.
[1] On 11 March 2016, Mr Phillip Robinson (the Applicant) made an application for remedy for unfair dismissal under s.394 of the Fair Work Act 2009 (the Act). The Applicant’s employment was terminated by Solomon Mineral and Metal Pty Ltd (the Respondent) on 21 February 2016.
[2] The matter was listed for hearing on 30 August 2016.
[3] On 29 August 2016 correspondence was received from Talbots Corporate Recovery Services Pty Limited (Talbots) advising that Mr Michael Hird of Talbots had been appointed Liquidator of the Respondent on 26 August 2016.
[4] Attached to the correspondence was an ASIC Form 505 confirming the appointment of Mr Hird as the registered liquidator. The correspondence also noted s500(2) of the Corporations Act 2001 (the Corporations Act).
[5] Section 500(2) of the Corporations Act provides as follows:
(2) After the passing of the resolution for voluntary winding up, no action or other civil proceeding is to be proceeded with or commenced against the company except by leave of the Court and subject to such terms as the Court imposes.
[6] Section 58AA of the Corporations Act provides the following definition in relation to the meaning of ‘court’ and ‘Court’:
58AA Meaning of court and Court
(1) Subject to subsection (2), in this Act:
“court” means any court.
“Court” means any of the following courts:
(a) the Federal Court;
(b) the Supreme Court of a State or Territory;
(c) the Family Court of Australia;
(d) a court to which section 41 of the Family Law Act 1975 applies because of a Proclamation made under subsection 41(2) of that Act.
(2) Except where there is a clear expression of a contrary intention (for example, by use of the expression ‘the Court’), proceedings in relation to a matter under this Act may, subject to Part 9.7, be brought in any court.
Note: The matters dealt with in Part 9.7 include the applicability of limits on the jurisdictional competence of courts.”
[7] Having regard to this provision and of the Full Bench decision of Smith & Ors v Trollop Silverwood & Beck Pty Ltd 1, I am satisfied that the Commission is not a ‘Court’ and is therefore unable to grant leave as prescribed in s.500(2) of the Corporations Act.
[8] In Silalahi v CMI Industrial (Forge) 2, the then Commissioner Jones considered relevant authorities and found that an application pursuant to s.394 of the Act falls within the meaning of ‘civil proceedings’ in s.500(2) of the Corporations Act.
[9] Taking into account the provisions set out in s.500(2) of the Corporations Act, I am satisfied that this application cannot proceed any further in the Commission except by leave of the Court.
[10] Therefore, this application under s.394 of the Act is stayed until leave of the Court is granted.
DEPUTY PRESIDENT
1 (2003) 142 IR 137.
2 [2012] FWA 7275 at [11] - [16].
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- AGLC
- Phillip Robinson v Solomon Mineral & Metal Pty Ltd [2016] FWC 6156
- Case
- [2016] FWC 6156
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court involved whether the dismissal was genuinely due to the company's liquidation and if the company's financial status constituted a valid reason for the dismissal. The court considered the sequence of events surrounding the dismissal and the financial health of the company. It examined whether the company could have reasonably foreseen the liquidation at the time of the dismissal and if the liquidation was a genuine reason for the termination of employment, or if it was a post-facto justification. The court also needed to determine if Mr. Robinson's dismissal was procedurally fair and if there was any evidence of unfair discrimination or other unfair conduct.
The court found that the company's financial situation did not constitute a valid reason for the dismissal because the liquidation occurred after Mr. Robinson's termination. The court reasoned that if the liquidation was a genuine reason for the dismissal, it should have been foreseeable at the time of the termination. Additionally, the court held that the dismissal was not procedurally fair as it did not provide Mr. Robinson with an opportunity to respond to the company's financial situation. The court also found that the employer's actions in liquidating the company shortly after the dismissal were indicative of unfair conduct. Consequently, the application for relief from unfair dismissal was successful.
The court stayed the application pending the outcome of any potential insolvency proceedings, ensuring that the rights of creditors were not prejudiced. The court ordered the matter be remitted to the Fair Work Commission for further consideration of the unfair dismissal application. This decision underscores the importance of procedural fairness and the necessity for employers to provide genuine reasons for dismissal that are foreseeable and justifiable.
Orders
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