9-9.20 Reading Part A 10 marks, 12 minutes (1 page, words 288)
9.20-10.08 Part A Part B 30 marks, 36 minutes (3 pages, words 864)
10.08-11.20 Part B
LWA014–Employment Law
EXAM NOTES
1.Problem solving
2.contract Termination flow charts
3.IRAC Method
4.Exam summaries
5.Employee v/s Independent Contractor
oControl test
oMulti-factor test
6.Contract formation
7.Representations
oMisrepresentations at common law
oTrade Practices Act
8.Terms generally
oAwards
oFixed term contracts
oRestraint of trade
9.Terms implied by the operation of law
oExpress and implied terms
10.Interdependent (mutual) duties
oThe doctrine of mutuality – the wages/work bargain
i.Service required to earn wages
ii.No work as directed, no pay
iii.Failure to perform work due to acts of the employer
iv.Failure to perform work due to acts of the employee
oMutual trust and confidence
v.Duty of cooperation
oEmployer’s duties
vi.Duty to pay wages
vii.(no) duty to provide work
viii.Duty to indemnify
ix.Duty to assist a return to work
x.Provision of medical assistance
xi.Duty to provide longer service leave
xii.Duty to make payments into superannuation
xiii.duty to safeguard employees’ health and safety
xiv.No right to privacy
xv.No duty to provide references or reasons
xvi.Duty of care (safe system of work)
xvii.Non-delegable duty
xviii.Vicarious liability
xix.Workers’ compensation
xx.Employer's general statutory duty of care
xxi.Mutual Trust and Confidence
xxii.Duty to indemnify
xxiii.Duty to take care if providing a reference
xxiv.Proper and reasonable notice
oEmployee’s duties
xxv.No duty to disclose past faults
xxvi.Duty to obey employer’s lawful and reasonable commands
xxvii.Duty to be ready and willing to work
xxviii.Duty to work in a skilful and competent manner
xxix.Duty to look after the employer’s property
xxx.Duty to indemnify the employer
xxxi.Duty to change place of work
xxxii.Duty to change in work method
xxxiii.Duty to do other work
xxxiv.Duty of Fidelity and good faith
oStatutory duties – Workplace Health and Safety Act (s 59)
11.Industrial action issues
oStrike
oWork ban
oWork to rule
12.Notice of termination
13.Contract variation
14.Breach
15.Termination for breach or repudiation of obligation
16.Contract termination generally
17.Summary dismissal
18.Constructive dismissal
19.Wrongful dismissal
xxxv.Remedies
20.Unfair dismissal - Protection
21.Unlawful termination - Protection
oInherent requirements
22.Workplace rights protections
23.Frustration
24.Termination by operation of law
25.Common law damages
26.Compensation – Fair Work Act
27.Damages – Trade Practices Act
28.Other remeies
oExemplary damages for breach of fiduciary duty
oAccount of profits
oConstructive trust
29.Employee benefits
30.Fair Work Australia
oConstitutional power
oJudicial review under s 75(v) of the Constitution
31.Workplace Relations Act
32.Employment law policy and effectiveness
33.The contract of employment, employment relationship and fiduciary duties
oScope of the fiduciary relationship
oCorporations Act prohibitions
34.Breach of confidence
35.History of employment law
BCth legislative history
CLegislation and statutory instruments
DConstitution
ECentral features of the Federal system
36.Contract of employment
FEmployee & independent contractor distinction
(ii)Contract of service – the employee/employer relationship
(iii)Contract for services – the independent contractor/principal relationship
GApplicable tests
HExpress declaration of intent
IIncorporation
JStatutory deeming provisions
KOther work relationships
(iv)No Legal Relationship
(v)Company Directors
(vi)Office Holders
(vii)Bailment, Partnership
(viii)Tenancy, Religious Office
(ix)Principal and Agent
(x)Principal and Contractor
(xi)“Deemed” employees
LRelationship Scenarios
37.Vicarious employment
MTransfer of employment
NApplying the common law tests of employment
ODismissal or labour hire workers
PLabour hire – liability to injured workers [pp 97]
QNon-delegable duty of care
(xii)Rail Corporation of NSW v Fluor Australia Pty Ltd, [2008] NSWSC 1348
(xiii)Burnie Port Authority v General Jones Pty Ltd (1994) 179 CLR 520
RHost business liability [pp 98]
SLiability for agency worker’s conduct [pp 101]
TMultiple employers – joint employment [pp 107]
38.Formation of the contract of employment
UContractual Formation
(xiv)Agreement
(xv)Intention to create a legal relationship
(xvi)Consideration
(xvii)Capacity
(xviii)Legality
VSources of terms in the contract of employment
(xix)Certainty of Terms
(xx)Sources of Contractual Terms
(xxi)Terms Implied by Fact - “Business Efficacy” Terms
(xxii)Rules of Law intended to govern relationship
(xxiii)Terms Implied by Common Law -Custom and Practice
(xxiv)Legislative Rights
(xxv)Awards and Agreements
(xxvi)The Contract and Legislation
39.Contract variation
WCCH Summary
(xxvii)[¶5-180] Variations in conditions
(xxviii)Examples
40.Terms implied by operation of law – the duties of employers and employees
XInterdependent (mutual) duties
41.Contracting out – express v implied terms
42.Fiduciary dities
43.Employees’ duties
YDuty to be ready and willing to work
ZDuty to obey employer’s lawful and reasonable commands
AADuty to work in a skilful and competent manner
BBDuty to indemnify the employer
CCDuty of Fidelity or good faith
(xxix)Running down the reputation of the employer
(xxx)Duty of Confidentiality – wrongful use or disclosure of information
(xxxi)Public interest disclosure – “Whistleblowing”
(xxxii)Secret profits, bribes, secret commissions
(xxxiii)Inventions
(xxxiv)Theft
(xxxv)Duty to report on other employees and answer questions
(xxxvi)“Spare Time” Work
(xxxvii)Duty to account for property
44.The duties of employers
(xxxviii)Duty to pay wages
(xxxix)Duty to assist a return to work
(xl)Duty to provide longer service leave
(xli)Duty to make payments into superannuation
(xlii)duty to safeguard employees’ health and safety
(xliii)Duty of care (safe system of work) - implied
(xliv)Workers’ compensation
(xlv)Workplace Health & Safety Act, s.55
(xlvi)(no) duty to provide work
(xlvii)Mutual Trust and Confidence
(xlviii)Duty to indemnify
(xlix)Duty to take care if providing a reference
(l)Proper and reasonable notice
45.Termination of the employment relationship
DDThe end of the contract
(li)Termination by agreement
46.Consensual Termination
(lii)Reasonable notice
(liii)What is “Reasonable Notice”?
(liv)Relevant factors
(lv)Notice periods under awards or industrial agreements
(lvi)Form of Notice
(lvii)Payments in lieu of notice
(lviii)Exceptions to requirement for reasonable notice
(lix)Invalid notice
(lx)Effect of notice
(lxi)Non-acceptance of notice
(lxii)Payment in lieu of notice
47.Termination by operation of law
(lxiii)Frustration
(lxiv)Death
(lxv)Bankruptcy
(lxvi)Corporate liquidation, merger
(lxvii)Unauthorised alteration of instrument
48.Redundancy
EECCH Australia summary
(lxviii)Redundancy procedures and entitlements
(lxix)No work available
(lxx)Geographic relocation
(lxxi)[¶57-110] Award provisions
(lxxii)[¶57-115] Federal award standards
(lxxiii)New standards in 2004
(lxxiv)[¶57-120] State award standards
(lxxv)[¶57-125] Agreements
(lxxvi)[¶57-130] Federal legislation
(lxxvii)Requirement to notify Centrelink
(lxxviii)Applications to Australian Industrial Relations Commission (AIRC)
(lxxix)[¶57-135] State legislation
(lxxx)[¶57-140] Individual contracts
(lxxxi)A general implied obligation to provide severance pay?
49.Termination as a consequence of breach of contract
(lxxxii)Distinguishing fundamental from non fundamental breach
(lxxxiii)Automatic vs Elective theory of termination
50.Wrongful dismissal
51.Unfair dismissal
52.Summary dismissal - Termination as a consequence of breach by the employee
FFWhat constitutes misconduct?
GGRepudiation
(lxxxiv)Effect of repudiation
53.Constructive dismissal
54.Discipline
HHDemotion
(lxxxv)Demotion can be a breach of contract
IIFining
(lxxxvi)What monetary measures are justifiable discipline?
(lxxxvii)Can an employer sue an employee?
JJSuspension
(lxxxviii)What are the implications of suspension of employment?
(lxxxix)[¶51-470] Notice required
KKTransfer
LLCases
55.Discrimination in employment
MMSources of anti-dscrimination law
(xc)Racial Discrimination Act 1975 (Cth)
(xci)Sex Discrimination Act 1984 (Cth)
(xcii)Age Discrimination Act 2004 (Cth)
(xciii)Disability Discrimination Act 1992 (Cth)
(xciv)Workplace Relations Act 1996 (Cth)
(xcv)Human Rights Commission Act 1981 (Cth)
(xcvi)Disability Services Act 1986 (Cth)
(xcvii)Equal Opportunity for Women in the Workplace Act 1999 (Cth)
(xcviii)Equal Employment Opportunity (Commonwealth Authorities) Act 1987 (Cth)
(xcix)Human Rights and Equal Opportunity Commission Act 1986 (Cth)
(c)Anti-discrimination Act 1992 (NT)
56.Other aspects of employment law in the NT
57.Remedies
(ci)Misleading and deceptive conduct – TPA s 52
58.Review of the Fair Work Act – Workplace Relations Act
59.LEGISLATION
60.CASES
61.LATIN TERMS - Glossary
62.Summaries completed
63.Exam research notes
1.Problem solving
1. Is there a contract of employment?
Intention: performance trials (Dietrich v Dare) andworking trials
Note: distinction between the ‘contract of employment’ and the ‘employment relationship: Byrne v Australian Airlines Ltd (1995) 185 CLR 410
Who are the parties? (Privity of contract - Coulls v Bagot’s Executor and Trustee Co Ltd)
- How was it communicated and when was it received? (orally, writing, email)
- Was there conduct to support the formation of a contract?
- If consideration at issue
- Is there a total failure of consideration?
- Is there an estoppel?
- Is there part performance?
Casual employees
Has the work been performed under an unbroken contract?
Restricted employment
- Illegal workers: Migration Act 1958 (Cth) s 235
- Employment of children: WRA s 16(3)(e); State legislation
Licensing requirements
- Certain industries require registration of employees (eg, lawyers, stock brokers)
2. Are they an employee or independent contractor? Hollis v Vabu;Stevens v Brodribb Sawmilling
(a) Is there some other relationship such as bailment, office holder, director?
- Employee: Vicarious liability, statutory rights and benefits (WRA or FWA), worker’s compensation, superannuation, long service leave, sick leave, annual leave, employee benefits, general implied terms, unfair dismissal, harsh or wrongful termination, repudiation
- Has there been continuous service?
3. Incorporation of terms (express and implied)
(a) What are the legislated minimum conditions: WRA; FWA
(b) What are the Award conditions
(c) Was a term attempted to be unilaterally varied?
Puff, mere representation, contractual term
Collateral contract (JJ Savage & Sons Pty Ltd v Blakney; Hoyts Pty Ltd v Spencer)
Express terms
Signature; Reasonable notice (actual knowledge, constructive knowledge, reasonable notice); Acceptance of a
ticket; Course of dealing; Reference
Implied terms
- Implied by fact (Contract complete on its face - BP Refinery (Westernport) v Hastingsor Contract notcomplete on its face - Byrne v Australian Airlines Ltd; Hawkins v Clayton (informal contracts))
- Implied by general law (professional services, supply of goods, supply of services, supply or work materials, tenancy agreements, bailment)
- Implied by custom or usage (Con-Stan Industries of Aust v Norwich Winterhur Insurance (Australia) Ltd)
- Implied by statute (Trade Practices Act, CAFTA, Sale of Goods Act)
Awards
An employee’s individual contractual intention to incorporate an award term is paramount: Byrne v Australian Airlines Ltd
4. What do the contractual terms mean?
Construction issues
- Meaning of the words - (i) natural, common or ordinary meaning, (ii) intended meaning
- Parol evidence rule (LG Thorne & co Pty Ltd v Thomas Borthwick & Sons; State Rail Authority of NSW v Heath Outdoor Pty Ltd; Gordon v Macgregor)
- Exceptions: subject matter, resolving ambiguity, foreign or technical words, identify parties and their relationship, evidence of implied terms, consideration, rectification, collateral contract, context of noncontractual remedies.
- Factual matrix (Codelfa Construction P/L v State Rail Authority of NSW; Pacific Carriers Ltd v BNP Paribas)
- Exclusion clause – exclude, restrict or qualify rights (Darlington Futures v Delco). Construe by rules of thumb: Contra proferentem rule, seriousness of the breach, Four corners rule, Main purpose of the contract, Deviation rule, Specific rules concerning exclusion of negligence clauses, Reasonableness, Pre-contractual statements
- Trade Practices Act ss 68, 68A; CAFTA s 68
- TPA ss 52, 53; CAFTA ss 42,43; Uniform credit code, unconscionable conduct
- Legal effect or significance of the words (Life Assurance Co of Australia Ltd v Phillips)
Classification of terms (Hongkong Fir case)
Warranty (damages only), intermediate term (damages and/or termination), condition (termination)
5. Discharge of contract
- Performance (Exceptions: de minimis rule, severable contracts, substantial performance, prevention offurther performance, acceptance of defective performance)
- Agreement (unilateral, bilateral)
- termination or variation?
- Redundancy – no unfair dismissal rights
- Summary dismissal: Sanders v Snell (1998) 196 CLR 329; Bruce v AWB Ltd (2000) 100 IR 129
- Frustration (Davis Contractors v Fareham Urban District Council; Codelfa case)
- Operation of law (death, bankruptcy, corporate liquidation, merger, unauthorised alteration of instrument)
- Breach of a condition or a serious breach of an intermediate term (failure to perform [non-performance; defective performance; late performance], anticipatory breach)
- Misconduct
- Repudiation: KoompahtooLocalAboriginalLand Council v Sanpine Pty Ltd; Burazin v Blacktown City Guardian P/L
- Wrongful, unfair or summary dismissal?
- Does the P elect to terminate or affirm and/or wish to seek damages?
Notice requirements
Failure to give adequate notice is a wrongful dismissal
Minimum statutory notice period: Rankin v Marine Power International (2001) 107 IR 117
6. Rights (in rem or in personam) and obligations (including equitable) of the parties
jura in rem – rights enforceable against the world at large
jura in personam – rights enforceable against certain persons only
- it is a right to have an interest in land created and that is said to be a right enforceable by personal action: Hillpalm Pty Ltd v Heaven’s Door Pty Ltd (2004) 220 CLR 472
- An application for property settlement under the Act is an action in personam, not in rem: Wallmann, In Marriage of (1981) 60 FLR 453
- The remedy for breach of the contract between the mortgagee and the registered proprietor gave rise to an action in personam but not to the creation of an interest in land.: Shaw Excavations Pty Ltd v Portfolio Investments Pty Ltd (2000) 9 Tas R 444
General rights
Right of assignment (LPA s 182)
Contract law
Rights provided under the contract (ie. rights acquired as part of the other parties obligations)
- eg. accept or reject insubstantial performance
Right of termination
Rights after a vitiating factor [misrepresentation, mistake, non est factum, duress, undue influence, unconscionable conduct]
- rescission
Rights after a ‘breach’ or ‘repudiation of obligation’
- Termination for breach or repudiation of obligation
- Affirmation
- Wait and see – but this may imply a waiver or affirmation
Obligations generally
Contractual term obligations – express terms (eg. payment of money, notice requirements)
Contractual terms – implied terms
Restraint of trade
Good faith?
Equitable obligations
Fiduciary duties
Confidentiality
7. Causes of action
Standing issues
Statute of limitations issues
Statute
- Statutory illegality in contracts
- Contracts contrary to public policy
- Unfair dismissal - Workplace Relations Act 1996 (Cth) (but will be prevented by s 674 where another claim relies on the same set of facts)
- Unlawful termination on prohibited grounds - Workplace Relations Act 1996 (Cth)
- Constructive dismissal
- Summary dismissal
- Unfair contract
- Discrimination
Common law
- Breach of contract
- Repudiation of contract
- Wrongful termination
- Deceit: Derry v Peek (1889) 14 App Cas 337; Commercial Banking Co of Sydney Ltd v R H Brown (1972) 126 CLR 337
- Negligent misstatement: Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465; Jamieson v Vox Retail Group [2002] QCA 220; Cornwell v Cth [2005] ACTSC 14
- Defamation
- Injurious falsehood
- Trespass to goods
Equity
- Equitable estoppel
- Breach of fiduciary duty
- Breach of confidentiality
In rem actions
- Trespass to land
- Trespass to goods
- Detinue
- Conversion
Arbitration process
Workplace Relations Act
Fair Work Act
Other possible approaches
Statutory demand (Corps Act s 459E); Wind up application (Corps Act s 459Q)
8. Pleadings
Federal Court of Australia Act 1976 (Cth) s 31A
- s 31A is no bar to an arguable case: Bond v Barry [2007] FCA 1484
9. Remedies
Common law remedy available as of right
Equitable remedy subject to discetion
Common Law – employment
Wages
Fixed term contract ended: Reynolds v Southcorp Wines (2002) 122 FCR 301
Common law remedies – contract
Damages for breach of contract or repudiation: The Winkfield
Recovery of sums fixed by the contract
Other actions for damages
Action for money due (recovery of debts)
Quantum meruit (a claim to recover a sum as a quantum meruit for partial performance)
Common law - negligence
Damages in contract and/or tort, but defences of duty to mitigate (Burns v MAN Automotive (Aust) Pty Ltd) and contributory negligence (Law Reform (Miscellaneous Provisions) Act 1956 (NT) s 16)
Equitable remedies
Injunction
Specific Performance
Constructive Trust
Tracing
Equitable Compensation
Equitable Damages
Equitable charge or lien
Account of profits
Recission
Declaration
Rectification
Specific Restitution
Delivery up
Mareva order
Anton Piller order
Receivership
Statutory remedies – general
Trade Practices Act s 52, 53B
CAFTA – Misleading and deceptive conduct
Statutory remedies – employment
Unfair dismissal (re-instatement, re-employment, payment in lieu: Sanders v Snell)
Unlawful termination
Statutory Duress – WR Act: Schanka v Employment National (2000) 96 IR 449
Freedom of Association
State Industrial Tribunals
10. Conclusion
Additional, alternate or practical solution (ie accord and satisfaction, new or varied contract)
2.contract Termination flow charts
3.IRAC Method
Preliminary matters
- Identify all of the parties involved with your client (the person seeking advice). This includes individuals, employers (such as a company or trading name mentioned), even third parties.
- Identify the relationship of each of the parties to your client(ie. contractual relations, fiduciary duties, bona fide purchaser for value without notice, accessory to a breach, etc)
- What is the nature of the property (if any) in dispute and the attaching proprietary and personal rights?
ISSUES
What facts and circumstances brought these parties to court?(ie. Identify all the legal issues which created the controversy and the law related to each party’s relationship)
- Consider civil causes of action and criminal sanctions created by statute, common law and equitable law.
- Break up the legal test(s) into elements to be considered separately from the relevant leading case(s)
RULES
What is the relevant governing law for each issue based on the factual matrix?(ie. Identify all the material and inferred facts (eg time spans from dates provided))
- For each issue, what principle of law does each case stand for?
- Are the principles consistent?
- Which cases are authoritative and persuasive?
- Could a principle be extended to the current fact situation?
ANALYSIS (the most important aspect of the IRAC method)