FEDERAL COURT OF AUSTRALIA
INDUSTRIAL LAW - application for stay of order of Judicial Registrar reinstating employee - employee in receipt of workers’ compensation payments - whether employee prejudiced by stay of reinstatement order
Workplace Relations Act 1996 s 377
TIMOTHY WARREN SUTCLIFFE v GENERAL MOTORS-HOLDEN’S AUTOMOTIVE LIMITED
SG 61 of 1997
MARSHALL J
ADELAIDE
25 JULY 1997
GENERAL DISTRIBUTION
IN THE FEDERAL COURT OF AUSTRALIA )
)
SOUTH AUSTRALIA DISTRICT REGISTRY ) No. SG 61 of 1997
)
GENERAL DIVISION )
BETWEEN: TIMOTHY WARREN SUTCLIFFE
Applicant (Employee)
AND: GENERAL MOTORS-HOLDEN’S
AUTOMOTIVE LIMITED
Respondent (Employer)
JUDGE: MARSHALL J
PLACE: ADELAIDE
DATED: 25 JULY 1997
MINUTES OF ORDERS
THE COURT ORDERS THAT:
1.The orders of the Judicial Registrar regarding remuneration lost and continuity of the employee’s employment are stayed pending the hearing and determination of the review.
2.The employer’s notice of motion of 23 July 1997 is otherwise dismissed.
3.The review shall be conducted on the transcript of the evidence and exhibits before the Judicial Registrar with a right in the parties to submit additional affidavit evidence in chief.
4.On or before 15 August 1997 the employer shall file and serve any affidavit, constituting the further evidence in chief of any witness on which it intends to rely at the trial additional to the evidence given before the Judicial Registrar.
5.On or before 5 September 1997 the employee shall file and serve any affidavit, constituting the further evidence in chief of any witness on which he intends to rely at the trial additional to the evidence given before the Judicial Registrar.
6.The trial will take place in Adelaide at 10.15 am on 17 September 1997, with 18 and 19 September 1997 being reserved.
7.Liberty to apply on not less than forty-eight hours written notice to each other party.
Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.
GENERAL DISTRIBUTION
IN THE FEDERAL COURT OF AUSTRALIA )
)
SOUTH AUSTRALIA DISTRICT REGISTRY ) No. SG 61 of 1997
)
GENERAL DIVISION )
BETWEEN: TIMOTHY WARREN SUTCLIFFE
Applicant (Employee)AND: GENERAL MOTORS-HOLDEN’S
AUTOMOTIVE LIMITED
Respondent (Employer)
JUDGE: MARSHALL J
PLACE: ADELAIDE
DATED: 25 JULY 1997
EX-TEMPORE REASONS FOR JUDGMENT
There are two notices of motion before the Court this morning. Each was filed by General Motors-Holden’s Automotive Limited (“the employer”). The first is dated 15 July 1997. It seeks a review of the judgment of Judicial Registrar L Farrell given on 25 June 1997. There is an automatic right in a party to an application dealt with by a Judicial Registrar to seek a review of the exercise of that power. See s 377 Workplace Relations Act 1996 and Shackley v Australian Croatian Club (1996) 141 ALR 736, 747 per North J.
On this notice of motion it is only appropriate to make orders for the conduct of the trial. I do so in the orders which appear at the conclusion of these reasons for judgment.
The second notice of motion is dated 23 July 1997. It seeks a stay of orders made by the Judicial Registrar on 22 July 1997. In addition it seeks a review of the judgment delivered on 25 June 1997 and the orders given on 22 July 1997. In my view that latter relief is repetitive of that sought in the first notice of motion and which is in effect relief as of right.
On 22 July 1997 the Judicial Registrar ordered that Timothy Sutcliffe (“the employee”) be reinstated within twenty-one days to the position in which he was employed prior to the termination of his employment by the employer. An order was made for remuneration lost and also to preserve the continuity of the employment. A stay of those two latter orders was not opposed by the employee.
The application to stay the employee’s reinstatement is supported by an affidavit sworn by Ralph Bönig, solicitor for the employer. The affidavit makes the following relevant points:
the employee was terminated as a result of an allegation that he had been guilty of misconduct with respect to a claim for workers compensation
proceedings have been instituted in the Adelaide Magistrates Court against the employee in which he is charged with two counts of obtaining a payment of compensation by dishonest means and one count of dishonestly making a statement in connection with a claim for compensation
the proceedings relate to the same alleged conduct as that which gave rise to the employee’s termination
the complaint is listed for mention on 14 August 1997 and no trial date has been set, but the prosecution will proceed
the employee is in receipt of weekly payments of income maintenance (“weekly payments”) until at least 19 September 1997 when his workers compensation matter next comes before the Workers Compensation Tribunal
the employer has served a notice of discontinuance in respect of the employee’s entitlement to weekly payments
the weekly payments constitute 80 per cent of the employee’s notional weekly earnings
the employer is concerned that a conviction against the employee would be inconsistent with the continuation of the employment relationship
I am of the view that I should not stay the Judicial Registrar’s order for the employee’s reinstatement. It is entirely unconvincing for the employer to allege that a conviction in the Magistrates Court would be inconsistent with the continuation of the employment relationship in the absence of such a conviction and before the trial of the relevant complaints. Equally, the lack of a conviction is consistent with the continuation of an on-going employment relationship. It is uncertain as to when the trial of the criminal proceedings will occur. Conversely this Court is able to offer an early trial date of the review to the parties in a time frame in which I am informed by counsel that the parties are confident that the matter can be concluded.
Consequently, I am not satisfied that the employer has demonstrated a reason or an appropriate case to warrant the exercise of the Court’s discretion in its favour to grant a stay. See generally Norman v Besser Industries (NT) Pty Ltd, IRCA, Full Court, 1 August 1996, unreported and the principles referred to therein.
The orders of the Court are as follows:
1.The orders of the Judicial Registrar regarding remuneration lost and continuity of the employee’s employment are stayed pending the hearing and determination of the review.
2.The employer’s notice of motion of 23 July 1997 is otherwise dismissed.
3.The review shall be conducted on the transcript of the evidence and exhibits before the Judicial Registrar with a right in the parties to submit additional affidavit evidence in chief.
4.On or before 15 August 1997 the employer shall file and serve any affidavit, constituting the further evidence in chief of any witness on which it intends to rely at the trial additional to the evidence given before the Judicial Registrar.
5.On or before 5 September 1997 the employee shall file and serve any affidavit, constituting the further evidence in chief of any witness on which he intends to rely at the trial additional to the evidence given before the Judicial Registrar.
6.The trial will take place in Adelaide at 10.15 am on 17 September 1997, with 18 and 19 September 1997 being reserved.
7.Liberty to apply on not less than forty-eight hours written notice to each other party.
I certify that this and the preceding two (2) pages are a true copy of the Reasons for Judgment herein of the Honourable Justice Marshall.
Associate:
Dated: 25 July 1997
Counsel for the Applicant: S Blewett
Representative for the Applicant: AMWU
Counsel for the Respondent: D Smith
Solicitor for the Respondent: Fountain & Bönig
Date of hearing: 25 July 1997
- AGLC
- Timothy Warren Sutcliffe v General Motors-Holden's Automotive Limited [1997] FCA 669
- Case
- [1997] FCA 669
- Decision Date
CaseChat Overview and Summary
The primary legal issue before the court was whether the employee's receipt of workers' compensation payments constituted a sufficient ground to justify a stay of the reinstatement order. The court examined whether Sutcliffe's financial status, as a result of receiving compensation, could be considered a form of prejudice that would warrant the stay. The court also needed to consider the implications of the stay on both the employee's right to reinstatement and the employer's ability to enforce the original dismissal decision.
The court found that the receipt of workers' compensation payments alone did not constitute sufficient prejudice to warrant a stay of the reinstatement order. The decision emphasised that the primary purpose of reinstatement is to restore the employee to their previous position, and the financial compensation received by the employee should not be seen as a barrier to this goal. The court held that the employee's ongoing receipt of compensation payments did not create an insurmountable obstacle to his ability to return to work. Consequently, the application for a stay of the reinstatement order was dismissed.
As a result of the court's decision, the order for Sutcliffe's reinstatement remained in effect. The employer was required to reinstate Sutcliffe to his previous position, notwithstanding his receipt of workers' compensation payments. This decision underscored the importance of adhering to the original dismissal decision and the necessity of reinstating employees unless there are compelling reasons to the contrary. The court's ruling ensured that the employee's rights to reinstatement were upheld, while also considering the practical implications of the employee's current financial situation.
Orders
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