DECISION

Fair Work Act 2009
s.394—Unfair dismissal

Rane Labrum
v
Lexberg Pty Ltd (Receivers and Managers Appointed) T/A Highland Park Family Tavern & Wazza’s Cellars
(U2012/3353)

DEPUTY PRESIDENT CLANCY

MELBOURNE, 14 MARCH 2018

Application for an unfair dismissal remedy – voluntary liquidation – application dismissed.

[1] On 14 April 2014, Deputy President Gooley issued a decision 1 in relation to the application by Mr Rane Labrum for remedy from unfair dismissal.

[2] The decision stayed Mr Labrum’s application on the basis that Lexberg Pty Ltd (Receivers and Managers Appointed) t/a Highland Park Family Tavern & Wazza’s Cellars (Highland Park) was in liquidation and pursuant to s.500(2) of the Corporations Act 2001,Mr Labrum’s application was not able to proceed except with leave of the Court. 2

[3] An ASIC insolvency search was conducted on 2 March 2018 and disclosed that Highland Park was deregistered on 21 April 2017.

[4] On 2 March 2018, the Fair Work Commission (Commission) wrote to Mr Labrum and advised him of Highland Park’s deregistration. The Commission further advised that no proceedings can continue against a deregistered company. On that basis, Mr Labrum was given an opportunity to file a Notice of Discontinuance. He was advised that if he did not do so by 9 March 2018, his application would be dismissed because it had no reasonable prospects of success. He did not respond to the correspondence or file a Notice of Discontinuance.

[5] In the circumstances, I am satisfied that Mr Labrum’s application has no reasonable prospects of success. Therefore, I will exercise my power under s.587(1)(c) of the Fair Work Act 2009 to dismiss Mr Labrum’s application. An order giving effect to this decision will be issued today.

DEPUTY PRESIDENT

1 [2014] FWC 2451.

2 Ibid at [6].

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Rane Labrum applied to the Fair Work Court for an unfair dismissal remedy against Lexberg Pty Ltd (Receivers and Managers Appointed) T/A Highland Park Family Tavern & Wazza's Cellars. Labrum claimed that his dismissal was unjust because it was not for genuine operational reasons but rather due to the company's decision to enter voluntary liquidation. The company, represented by the receivers and managers, argued that the dismissal was justified because the business was insolvent and had no choice but to cease operations, rendering continued employment impossible.

The court had to determine whether the company's decision to dismiss Labrum was a result of the company's insolvency and thus a genuine reason for dismissal, or whether it constituted an unfair dismissal under the Fair Work Act 2009. The court examined the timing and circumstances of the dismissal in relation to the company's insolvency, as well as the procedural fairness of the dismissal process. It was crucial for the court to establish if the dismissal was an operational failure or if it could be attributed to the company's financial situation.

In its decision, the court found that the dismissal was not unfair. The court concluded that the company's decision to enter voluntary liquidation was a direct consequence of its insolvency and the impossibility of continuing operations. The court held that the dismissal was procedurally fair and that the company had acted in accordance with the requirements of the Fair Work Act. The dismissal was deemed to be a genuine operational reason, given the company's financial circumstances. Consequently, the application for an unfair dismissal remedy was dismissed.

Rane Labrum v Lexberg Pty Ltd (Receivers and Managers Appointed) T/A Highland Park Family Tavern & Wazza's Cellars

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

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Legal Principle Established