United Voice v SERCO Group Pty Ltd

United Voice (the applicant) brought proceedings against SERCO Group Pty Ltd (the respondent) in the Federal Circuit Court of Australia concerning the interpretation of an enterprise agreement. The dispute centred on whether employees working at the Wickham Point immigration detention facility were entitled to a remote district allowance during periods of annual leave. Serco managed the facility, which was designated as a "remote district or centre" under the Serco Immigration Services Agreement 2015.

The court was required to determine the proper construction of subclause 19(c) of the 2015 Agreement, specifically whether the remote district allowance was payable to employees while they were on annual leave. The core legal issue was whether the phrase "located at a Company designated remote district or centre" and the provision for the allowance to cease if an employee "transfers from a remote district" meant that the allowance was only payable when the employee was physically present and working at the facility, or if it was payable throughout their employment at that location, including during periods of leave.

The court applied principles of contractual construction, drawing on guidance from commercial contract interpretation, to construe the industrial instrument. It reasoned that while the allowance's purpose was to compensate employees for working in a remote location, this did not necessarily mean it was only payable when the employee was actively working at the facility. The court found that the express terms of subclause 19(c) indicated that the allowance would only cease to apply if an employee transferred from a remote district. The provision for payment "pro rata fortnightly in arrears in accordance with the normal pay cycle" was seen as inconsistent with an intention for the allowance to cease temporarily during annual leave. Therefore, the court concluded that the allowance was payable during periods of annual leave.