Sensis Pty Ltd v Gundi

Case [2017] FCA 1519


FEDERAL COURT OF AUSTRALIA

Sensis Pty Ltd v Gundi [2017] FCA 1519

Appeal from: Gundi v Sensis Pty Ltd [2017] FCCA 1438
File number: VID 774 of 2017
Judge: O'CALLAGHAN J
Date of judgment: 15 December 2017
Catchwords: INDUSTRIAL LAW – whether respondent’s position was made redundant – whether respondent was redeployed to a “Reasonable alternative position” within the meaning of the Sensis Enterprise Agreement 2014  – whether respondent was offered a “Suitable Position” within the meaning of the Sensis Enterprise Agreement 2014 –  whether respondent entitled to a remedy for breach of contract – whether primary judge erred in reversing the onus of proof when considering the questions of whether respondent deployed to “Reasonable alternative position” or offered “Suitable Position” within the meaning of the Sensis Enterprise Agreement 2014  
Legislation:

Evidence Act 1995 (Cth), s 140

Fair Work Act 2009 (Cth), ss 50, 539(2) (Item 4), 546

Federal Court of Australia Act 1976 (Cth), s 27

Cases cited:

Australian Building and Construction Commissioner v Hall [2017] FCA 274

Briginshaw v Briginshaw (1938) 60 CLR 336

Clothing & Allied Trades Union of Australia v Hot Tuna Pty Ltd (1988) 27 IR 226

Fox v Percy (2003) 214 CLR 118

Date of hearing: 3 November 2017
Registry: Victoria
Division: Fair Work
National Practice Area: Employment and Industrial Relations
Category: Catchwords
Number of paragraphs: 43
Counsel for the Appellant: Mr M F Wheelahan QC and Mr B Avallone
Solicitor for the Appellant: Seyfarth Shaw Australia
Counsel for the Respondent: Mr R A Millar
Solicitor for the Respondent: McDonald Murholme Solicitors

ORDERS

VID774 of 2017
BETWEEN:

SENSIS PTY LTD
Appellant

AND:

ROBERT GUNDI
Respondent

JUDGE:

O'CALLAGHAN J

DATE OF ORDER:

15 DECEMBER 2017

THE COURT ORDERS THAT:

1.The appeal be allowed.

2.The orders made by the Federal Circuit Court of Australia on 27 June 2017 in MLG1206/2016 be set aside.

3.In lieu of the orders made by the Federal Circuit Court of Australia on 27 June 2017 in MLG1206/2016, the proceeding be dismissed.

Note:    Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.


REASONS FOR JUDGMENT

O’CALLAGHAN J:

THE FACTS

  1. The respondent (the respondent or Mr Gundi) started work with the appellant (the appellant or Sensis) in 2008.  He was employed to sell advertising services by making “cold calls” to potential customers.  In October 2011, the respondent was offered and accepted the position of “Media Sales Advisor”, which also involved selling the appellant’s advertising services.  The terms of his employment were contained, in part, in a contract of employment dated 6 October 2011 (the October 2011 contract of employment).  The respondent worked under a “mobile operating model”, which meant that he spent much of his working day visiting customers.

  2. The respondent’s employment was also governed by an enterprise agreement, called the Sensis Enterprise Agreement 2014 (the enterprise agreement).  The parties agreed that, because the October 2011 contract of employment contained an “entire agreement” clause, the enterprise agreement was not incorporated into that…

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Details
AGLC
Sensis Pty Ltd v Gundi [2017] FCA 1519
Case
[2017] FCA 1519
Decision Date

CaseChat Overview and Summary

The case of Sensis Pty Ltd v Gundi involved a dispute between the employer, Sensis Pty Ltd, and the employee, Mr. Gundi. The central issue was whether Mr. Gundi's position was rendered redundant and if he was subsequently redeployed to a "reasonable alternative position" or offered a "suitable position" as defined by the Sensis Enterprise Agreement 2014. Additionally, the court had to determine if Mr. Gundi was entitled to a remedy for breach of contract and whether the primary judge made an error by reversing the burden of proof when assessing the aforementioned questions.

The court examined whether the primary judge erred in concluding that Sensis Pty Ltd had breached the terms of the October 2011 contract of employment. The appellant argued that Mr. Gundi did not advance any such case before the primary judge and that the claim was not supported by evidence or legal principle. The court found that the appellant's submission was valid and that the respondent's counsel did not dispute the claim.

The court concluded that the appeal would be allowed, and the orders made by the primary judge on 27 June 2017 would be set aside. Instead, the proceeding would be dismissed. The court found that the primary judge had indeed erred in reversing the onus of proof when considering the questions of whether Mr. Gundi was redeployed to a "reasonable alternative position" or offered a "suitable position" as defined by the Sensis Enterprise Agreement 2014. As a result, the appeal was allowed, and the proceeding was dismissed.

Orders

Orders of the court

1. The appeal be allowed.

2. The orders made by the Federal Circuit Court of Australia on 27 June 2017 in MLG1206/2016 be set aside.

3. In lieu of the orders made by the Federal Circuit Court of Australia on 27 June 2017 in MLG1206/2016, the proceeding be dismissed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

The appellant submits that the primary judge erred in holding that the appellant had breached the terms of the October 2011 contract of employment because Mr Gundi did not advance any such case before the primary judge, nor was it supported by any evidence or legal principle. I am bound to accept that submission, and counsel for the respondent did not seek to contend otherwise.CONCLUSION The appeal will accordingly be allowed, the orders of the primary judge set aside and, in lieu of the orders made by the primary judge, an order will be made that the proceeding be dismissed.

Ratio Decidendi

Legal Principle Established

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