United Voice v Valspar (WPC) Pty Ltd

Case

[2014] FCAFC 34

27 March 2014


Details
AGLC Case Decision Date
United Voice v Valspar (WPC) Pty Ltd [2014] FCAFC 34 [2014] FCAFC 34 27 March 2014

CaseChat Overview and Summary

United Voice, a union representing employees, brought an action against Valspar (WPC) Pty Ltd in the Federal Circuit Court of Australia, alleging that the employer had contravened section 50 of the Fair Work Act 2009 (Cth) by directing employees to take annual leave at specified times, and had also contravened a term of an enterprise agreement. Valspar (WPC) Pty Ltd appealed the decision to the Full Court of the Federal Court of Australia.

The appeal raised questions about the proper interpretation of an enterprise agreement term, and whether the employer's direction to employees to take annual leave at specified times constituted a contravention of the agreement. The appeal also raised questions about the relevance of the antecedents of the agreement in interpreting its provisions. The court considered whether the direction to take leave at specified times was a reasonable and lawful exercise of the employer's management rights, or whether it constituted an interference with the employees' right to take leave when they wished.

The Full Court held that the appeal should be upheld and the matter remitted to the Federal Circuit Court of Australia for further hearing. The court found that the antecedents of the enterprise agreement were relevant in interpreting its provisions, and that the employer's direction to employees to take annual leave at specified times was not a reasonable and lawful exercise of management rights. The court held that the employer's direction constituted an interference with the employees' right to take leave when they wished, and therefore constituted a contravention of the agreement. The appeal was therefore upheld and the matter was remitted to the Federal Circuit Court of Australia for further hearing in conformity with the reasons for judgment of the Full Court. The orders of the Full Court were that the appeal be upheld and the matter be remitted to the Federal Circuit Court of Australia for further hearing.
Details

Areas of Law

  • Employment & Labour Law

Legal Concepts

  • Appeal

  • Breach of Contract

  • Enterprise Agreement

  • Contravention

  • Annual Leave