1

[ExtractfromQueenslandGovernmentIndustrialGazette,

dated31March,2006,Vol.181,No.13,page495-502]

QUEENSLANDINDUSTRIALRELATIONSCOMMISSION

IndustrialRelationsAct1999 - s.278 -unpaidwages

QueenslandNurses'UnionofEmployees(forKirstienneDavinaJudd)ANDComalManagementPtyLtdt/aUpperCoomeraMedicalCentre(W/2005/78)

COMMISSIONERASBURY / 22March2006

Applicationforpaymentofunpaidwages - IndustrialRelationsAct1999s.278 - Heldapplicantnothourlyorcasualemployee - Heldapplicantresignedemploymenton9February2005 - Communicationbytextmessagingresultinginconfusionaboutcessationofemployment - Claimforwagesinlieuofnoticerefused - Claimforannualleaveandleaveloadinggranted - Claimbyrespondentforsetoffofamountsclaimedbyapplicantagainstallegedoverpaymentsrefused.

DECISION

1.Overview

ThisisanapplicationbytheQueenslandNurses'UnionofEmployees(QNU)onbehalfofKirstienneDavinaJudd. TheapplicationseeksanOrderunders.276oftheIndustrialRelationsAct1999againstComalManagementPtyLtdt/aUpperCoomeraMedicalCentre(therespondent)withrespecttounpaidwages. Theapplication,asamendedwiththeconsentofbothpartiesatahearingon5July2005,contendedthatthefollowingamountswerepayable:

  • $749.89forWagesfortheperiodfrom7February2005until9February2005;
  • $3,787.28forannualleaveandloadingfortheperiodfrom1November2000until8February2005;
  • $3,750.00forwagespayableforthreeweeksinlieuofnoticeonthedismissalofMsJuddon8February2005;
  • $6,921.23forunpaidsuperannuationcontributionsfortheperiod1November2000to8February2005.

TherespondentdidnotdisputethatMsJuddwasentitledtotheamountofsuperannuationclaimed. However,therespondentmaintainedthatcontributionshadbeenpaidtotheAustralianTaxationOffice(ATO)onbehalfofMsJuddandanumberofotheremployees,andthattheATOwasintheprocessoftransferringthosemoniesintothenominatedsuperannuationfundsofeachemployee. Afterthisdecisionwasreservedandbeforeitwasreleased,MsJuddandtheQNUcorrespondedwiththeCommissiontoadvisethatthisaspectoftheclaimwasnotpressed,onthebasisthatoutstandingcontributionshadnowbeentransferredintoMsJudd'ssuperannuationaccount.

EvidencefortheapplicantwasgivenbyMsJudd. EvidencefortherespondentwasgivenbyaDirectoroftheRespondentMrMalcolmCoghillandMrWayneSecomb,aManagementConsultantandBusinessAdvisorengagedbytherespondent.

2.IssuesforDetermination

InordertodetermineMsJudd'sentitlementtotheamountsclaimedinthisapplication,itisfirstnecessarytodeterminethebasisofheremployment. MsJuddcontendedthatatalltimesshewasemployedbytherespondentasafull-timeweeklyemployee. TherespondentcontendedthatMsJuddwasacasualemployeefollowingaresignationinJuly2003. IfthisisthecasethenMsJuddhadnoentitlementtonoticeonterminationofemploymentortoannualleaveandloading.

MsJuddalsocontendedthatshewasdismissedwithoutnoticebyMrCoghillon8February2005. TherespondentcounteredwiththecontentionthatMsJuddresignedheremploymentanddidnotgivetherequiredperiodofnotice. Accordingly,therespondentdidnotpaywagestoMsJuddfortheperiodfrom7-9February2005ormakeanypaymentinlieuofnoticeonthecessationofheremployment. Further,therespondentwithheldannualleavepayments. ItisthereforenecessarytodeterminewhetherMsJuddresignedheremploymentorwhethershewasdismissedbyMrCoghill.

TherespondentalsocontendedthatMsJuddhadresponsibilityforcalculatingwagesforstaff,andhadoverpaidherselfduringtheperiodofheremployment. AccordinglytherespondentarguedthatthisoverpaymentexceededMsJudd'sclaimforwages,andaccordinglytheclaimshouldberefusedonthisbasis. Itisthereforealsonecessarytodeterminewhetherthereshouldbeanoffsetforanyoverpaymentwhichmayhavebeenmadetotheapplicant,andwhetheranoverpaymentwasmadeatall.

3.Evidence

3.1TheBasisofMsJudd'sEmployment

MsJuddcommencedemploymentwiththerespondentinNovember2000asaRegisteredNurse/PracticeManager,onafull-timepermanentbasis. On1October2001,MsJuddreceivedaletterofappointmentsignedbyMrCoghill,whichshecountersigned. Thatletter(AttachmentKDJ1toExhibitA2)wasinthefollowingterms:

"AnnualRoleandsalaryreview:KirstiJuddPracticeManager

Thisdocumentoncesignedbelowservesasanagreementbetweenthesigningpartiestothefollowingconditions.

InthepastyeartheMedicalcentrehourshavebeenextended. Preparationforaccreditationhasbeencompleted,policyandproceduremanualswrittenandnewstafftrained.

TheroleKirstiJuddundertakescontinuestobethatofPracticeManager, RegisteredNurseandReception. DutiesareallthoserequiredtoensurethecompletefunctioningoftheMedicalCentre.

Kirsti'srosteredhoursarenotlessthan38perweekandnotmorethan43perweek. Hoursofworkareattendedbetween8-6p.m.weekdaysand8-11.30Saturdays. (Presentrosterasatthisdayis8-5.30Monday,8-5.30/6p.m.Tuesday,offWednesday, 8-5.30/6p.m.Thursday,8-5.30/6p.m.Friday,8-11.30Saturday) Hoursmaychangebymutualconsultation.

Standardentitlementsof20daysannualleave,8sickdaysannuallyand8%superannuationapply.

Thereisarequirementtobeavailableoutofhourstoinvestigateandresetthesecurityalarm,ifidentifiedasthenearestemployeeatthetimeofnotificationbysecuritymonitoringofalarmoffset.

Wageisintheformofaweeklysalaryandasatthisdateisrevisedfrom$946perweekto$1020perweek. Thiswillbefixedatleastuntil1/10/02.".

MsJudd'sevidencewasthatherstatusasafull-timepermanentemployeedidnotchangeforthedurationofheremploymentwiththerespondent. On23July2003MsJuddtenderedherresignation,andthiswasnotacceptedbyMrCoghill. AftersomediscussionswithMrCoghill,MsJuddremainedinemploymentwiththerespondent. On28July2003MrCoghillwrotealettertoMsJuddessentiallystatingthatheadmiredandappreciatedMsJudd'seffortsandstandards,andofferingheranexpandedmanagementroleintherespondent'sbusiness(referExhibitA7). ThatletteralsostatedthatMrCoghillwasofferingan "appropriatefinancialpackagetakingintoaccount[MsJudd's]taxationconsiderations". Undercross-examination,MrCoghillconcededthathewrotethelettertoMsJuddafterherresignationon23JulyandthatthelettermadenomentionofMsJuddbecomingacasualemployee.

ItwasnotputtoMsJuddincross-examinationthatthehigherratepaidtoherwitheffectfromSeptember2003wasacasualloading. Inrelationtothisrate,MsJuddagreedwiththepropositionputtoherincross-examinationthatshehadaskedfortheincrease,becauseofincreasedcostsoftravelassociatedmanagingtwolocationsasrequiredbyMrCoghill. MsJuddalsosaidthatawageincreasepaidtoherbytherespondenthadreflectedincreasedresponsibilitiesinherrole,andwasnotexplainedtoherasacasualloading. Insupportofhercontentionthatshewasnotacasualemployee,MsJuddsaidthatwhenthemedicalcentrewasclosedonpublicholidays,sheandotherfull-timestaffwerepaidinaccordancewiththeAwardfornotworkingonthepublicholiday.

On5December2003,MrCoghillsentalettertoMsJuddsayingthathehadacceptedherresignationon23Julyandnowconsideredhertobeacasualemployee. ThatletteralsostatedthatitwasMrCoghill'swishthatMsJudd'semploymentpackagebestructuredonasalarybasisratherthananhourlybasisasinpreviousyears(ReferExhibitA2AttachmentKDJ2). MsJuddsaidthatthefirstshehadheardthatMrCoghillconsideredhertobeacasualemployee,waswhenshereceivedtheletterdated5December2003.

Further,MsJuddsaidthatbetweenJuly2003andthecessationofheremployment,herwageremainedthesameasdidherhoursofworkandentitlementstosickleave,annualleaveandbereavementleave. InresponsetoquestionsfromtheCommissionMsJuddsaidthatshehadnotrespondedtotheletterof5December2003,asshehadnotbeengiventheopportunity,andMrCoghillhadsaidthathewoulddiscussthematterwithheronthefollowingFriday. Thisdiscussionhadnoteventuated,andtheissuehadnotbeenbroughtupagain. MsJuddalsoconfirmedthatduringtheentireperiodofheremploymentshehadreceivedpayslipsshowingabalanceofaccruedannualleave.

NotwithstandingthecontentionthatafterMsJudd'sresignationon23July2003,shehadbeenemployedasacasualemployee,MrCoghillsaidin paragraph8ofhiswitnessstatement(ExhibitR2)thatMsJuddhadacceptedtheroleofoverseeingthesecondmedicalpracticeatTweedHeadsandnoadditionalremunerationhadbeendiscussed. Inparagraph9,MrCoghillsaid:

"Intheweekending28thSeptember2003,MsJudd'sremunerationwasincreasedby$300.00ascompensationandongoingpaymentforthisrole.".

MrCoghillalsoconcededthattherewereweekswhereMsJuddworkedmorethan32hoursafterthetimewhenhecontendedthatheremploymentwascasual. Further,MrCoghillconcededthatinaweekwhenMsJuddwasabsentduetoillness,shewaspaid38hours'pay.

MsJuddsaidthatduringheremploymentshetookannualleaveonanumberofoccasionsandwaspaidforthatleave. MsJuddwasonpaidannualleaveinDecember2001,January2002,June2002,April2003,February2004andJanuary2005andhadtakensingledaysofannualleaveonotheroccasions. MsJuddhadalsotakensickleaveandinJuly2004hadtakenbereavementleave,forwhichshewaspaid. InOctober2004MsJuddhadasubstantialamountofovertimeowingtoherandhadtakentimeoffinlieutoreducethatamount.

3.2CessationofMsJudd'sEmployment

InJanuary2005,MsJuddagaintenderedherresignation,givingsixweeks'notice,withthefinaldatebeingFriday18February2005. MsJuddsaidthatMrCoghilltriedtoextendhernoticeperiodtoatimethatsuitedhim,butshewasunabletoobligebecauseshehadenrolledinafull-timecourse. AccordingtoMsJudd,heremploymentwasterminatedbyMrCoghillon9February2005,followingaheatedexchangeoftelephonecallsandtextmessages. MsJuddsaidthatheremploymentwasterminatedwithimmediateeffectandshedidnotreceiveanypaymentinlieuofnotice.

Thesequenceofevents,accordingtoMsJudd'sevidencewasthaton4January2005,sheadvisedMrCoghillbytelephoneofherresignation. On5January2005MsJuddsentafacsimiletoMrCoghillinthefollowingterms(referAttachment "R2" toExhibitR2):

"DearMalcolm,

Asdiscussed,Iwishtonotifyyouofmyresignation.

IwillbeavailabletoworkuntilFriday18/2/05inclusive. IamunabletostaybeyondthisdateasIwillbeundertakingacourse.

Iwillbeonannualleave,asyouareaware,from20-30January2005,thenamavailabletoreturntotrainmyappointedreplacementifyouwish.

Ithasbeenaprivilegetoworkforthecompanyforthepast4years,butasyouknow,Ihavebeenunsettledforquitesomemonths,andIfeelitisdefinitelytimetoundertakeanewrole,elsewhere.".

On6January2005MrCoghillsentalettertoMsJuddacknowledgingreceiptofherresignationwhichwassaidtohavebeenreceivedbyfacsimileon7January2005(referExhibitA4). MsJuddsaidthaton7January2005followingaconversationwithMrCoghill,itwasagreedthatMsJuddwouldhaveherholidayandMrCoghillwouldhavehis,andthatifMsJuddstillwishedtoresignafterthattime,shewouldgiveonemonth'snotice. On31January2005MsJuddreturnedtoworkandsaidthatshestillintendedtoceaseworkingfortherespondentonFriday18February2005. On3February2005MsJuddwasadvisedthathergrandmotherhaddiedintheUnitedKingdom,andtoldfamilythatshecouldnotaccompanythemtothefuneral,duetoworkcommitmentsincludingaccreditationandtrainingofnewstaff. MsJuddsubsequentlyfoundthatnonewstaffweretobeemployedandthataccreditationhadbeendelayed.

MsJuddsaidthatshehadmetwithMrCoghillat12.00middayonTuesday8February2005,andinformedhimofherangerthataccreditationhadbeendelayed;statedthattherewasnopointinhercontinuingtoworkfortherespondentinthecircumstances;andthatshecouldhavegonetotheUnitedKingdomwithherfamily. MsJuddsaidthatMrCoghilltoldherthatsheshouldtrytomaketheflighttotheUnitedKingdomthatdaywithherfamily,andthatsheshouldgoimmediately. MsJuddsubsequentlyattemptedtocatchtheflightbutmissedit. MsJuddsaidthatshethensentMrCoghillatextmessageadvisinghimthatshehadmissedtheflight,butstillwishedtoceaseworkingfortherespondent "ontheup-comingFriday". At6.58p.m.Queenslandtime(7.58p.m.NewSouthWalestime)on9February2005,MsJuddsaidthatshereceivedatextmessagefromMrCoghillasfollows:

"HiKirsti - yourfinalagreeddayremains28022005 - saveyourcourse - letsmakethebestofit - Mal.".

MsJuddsaidthatshesentatextmessagetoMrCoghillinresponse,totheeffectthatshewassorry,butasshehadbeenadvisedthattherespondentwouldbealrightwithouther,shewasgoingtoMelbournetobewithherothergrandmother,whowasalsodying. At7.20p.m.MsJuddreceivedafurthertextmessagefromMrCoghillasfollows:

"Acceptsometimeoff - butcanonlyaskyoutocompleteyourundertaking - onlysomuchIcanaskofthestaffinyourdefault - yourreferenceisinyourhands.".

MsJuddsaidthatherhusbandthentelephonedMrCoghillandadvisedMrCoghillthatMsJuddwouldbefinishing "thisFriday" andthatMrCoghillshouldnotsendanymorethreateningtextmessages. MrCoghillthenhunguponMsJudd'shusband. MsJuddsaidthatwhenherhusbandcalledMrCoghillback,MrCoghillsaidthatMsJuddcould "finishuptonight". At7.44p.m.MrCoghillcalledMsJudd'smobiletelephoneandaskedtospeaktoher. WhenMsJudd'stelephonewasansweredbyherhusband,MrCoghillaskedforMsJudd,andwastoldthatshewasnotavailable. At8.01p.m.MrCoghillsentanothertextmessageintwopartstoMsJuddasfollows:

"P1ifyou(sic)thughusbandprevailsthenIwillbeatUCMCat7.00amQLDtomorrowforhandover - ifnotthenourarrangementuntilendofFebprevails...P2withunderstandingregardingMelbourne - takecare - Malcolm.".

At8.52p.m.on9February2005MsJuddreceivedatextmessagefromMrCoghillasfollows:

"Kindlyadvisewhattomorrowisthetimetable.".

At9.49p.m.MrCoghillsentafurthertextmessagetoMsJudd,againintwoparts,asfollows:

"P1IwillbeatUCMCat7.00an(sic)tomorrowonThursdayforthehandover - Iwillbetotallyatalosstocometotermswithourseparation - IamsadP2butwilltrytosohardtounderstandasyouwish - IwillloveyoualwaysPrincess - Iwillmissyoueveryday.".

MsJuddmaintainedthatheremploymentwasterminatedbyMrCoghillon9February2005,whenhetoldMsJudd'shusbandthatshecould "finishup" thatnight. MsJuddsaidthatshewasnotpaidwagesfortheperiodfrom7to9February2005. MsJuddalsosaidthatshedidnotreceiveanypaymentinlieuofnoticeuponheremploymentbeingterminatedbyMrCoghill,andmaintainedthatshewasentitledtothreeweeks'wagesinrespectofnoticenotgiven.

MsJuddsaidthatwhenshehadresignedheremploymentforthesecondtime,shehadgivensixweeks'notice,becauseshehadapre-approvedperiodofannualleavefortheperiodfrom20to30January2005. MsJuddsaidthattheleavehadbeenapprovedsixmonthsearlier,andthatreplacementstaffhadalreadybeenrostered. MsJuddalsosaidthataftergivingnoticethatheremploymentwouldceaseon18February2005,andhavingthatresignationacceptedbytherespondent,shehadbudgetedtoreceiveincomeforthatperiod. MsJudd'sexpectationsinthisregardhadnotbeenmetbecauseheremploymentwasterminatedbyMrCoghillon9February2005,andshehadnotreceivedanypaymentsforthedurationofthenoticeperiodorinrespectofheraccruedannualleave.

Undercross-examination,MsJuddagreedwiththepropositionthaton5January2005shehadfaxedaletterofresignationtoMrCoghillconfirmingatelephoneconversation,andthatshehadstatedinthatletterthatshewouldbeavailabletoworkuntil18February2005. MsJuddalsoagreedwiththepropositionputtoherbyMrCoghillthathehadacceptedherresignationinthetermsitwasgiven,andhadconfirmedthatacceptancebyletterdated6January2005. Further,MsJuddagreedthatuponherreturnfromannualleaveshehadconfirmedthatshewishedtoceaseemploymenton18February2005. MsJuddsaidthatwhenshehadaskedMrCoghillaboutthepossibilityofceasingemploymentearlier,thisrequesthadbeenrefused,andMrCoghillhadaskedMsJuddtoextendhernoticeperioduntiltheendofFebruary. MsJuddsaidthatwhenMrCoghillwouldnotagreetotheearlierdateforthecessationofheremployment,shedidnotinsistuponleavingonthatdateasshecouldhavelostheraccruedentitlements.

InresponsetothepropositionthatshehadadvisedMrCoghillthatshewasleavingon8February2005,MsJuddsaidthatthisrelatedtoattemptingtocatchaninternationalflighttoattendhergrandmother'sfuneralintheUnitedKingdom.

ItwasalsoputtoMsJuddduringcross-examinationthatMrCoghill'stextmessagestating: "HiKirsti - yourfinalagreeddayremains28022005 - saveyourcourse - letsmakethebestofit - Mal" wassentonoraround8Februaryratherthan9February,andthatMsJudd'ssequenceoftextmessageswasincorrect. MsJuddrejectedthispropositionandmaintainedthatthemessageinquestionwasreceivedbyherat6.58p.m.Queenslandtime,on9February2005. MsJuddfurthermaintainedthatshehadheldadiscussionwithMrCoghillon8February2005abouttravellingtotheUnitedKingdom,buthadnotdiscussedgoingtoMelbourneatthattime. AsaresultofMrCoghill'smessageon9February2004,MsJuddhadadvisedhimthatshehadalreadyindicatedthatherresignationwastobeeffectiveon18February2005,andhadnotagreedtoremainintherespondent'semploymentuntil28February2005. AccordingtoMsJudditwasatthispointthatMrCoghillhadterminatedheremployment.

MrCoghillsaidinhisevidencethatwhenMsJuddhadreferredto "finishingontheupcomingFriday" hehadbelievedthatsheintendedtoresignheremploymentonthatdate. MrCoghillagreedthathehadsentthemessagetoMsJuddreceivedbyherat6.58p.m.on9February2005,statingthatherfinalagreeddateremained28February2005. However,accordingtoMrCoghill,MsJuddhadrespondedtothismessagebysendingamessageat8.05p.m.statingthatshewassorry,butshehadbeentoldthatitwasalrightforhertoleavelastnight. MrCoghillsaidthatinhisview,MsJuddwasreferringtoleavingemployment,andwasstatinginthismessagethatshehadleftthepreviousnight - 8February2006.

Duringcross-examination,thesequenceoftextmessagesoutlinedbyMsJuddwasputtoMrCoghill. MrCoghillacceptedthathehadforwardedatextmessagetoMsJuddwhichwasreceivedbyherat8.20p.m.on9February2005statingthatheacceptedthatMsJuddcouldhavesometimeoff,butrequestingthatshecompleteherundertakingtoremaininemploymentuntil28February2005. However,MrCoghillmaintainedthatmessagesfromMsJuddtotheeffectthatshewasleavingonFridayandthenonTuesday,constitutedaresignation,andnegatedanyagreementthatmayhavebeeninplaceforMsJuddtoremaininemploymentuntil28February2005.

3.3AllegedOverpayment

Duringtheperiodofheremploymentwiththerespondent,MsJuddworkedunderanarrangementwhichprovidedfortimeoffinlieuofovertime. Thiswasbasedonathirty-eighthourweekwithflexitime. WhenMsJuddworkedonSaturdays,shewaspaidhernormalweeklyrate,buthad "flexed" thehoursattheequivalentovertimerate. MsJuddsaidthatMrCoghillhadaccesstothetimeandwagesrecordsandwasresponsibleforexecutingpaymentsinaccordancewiththoserecords. Further,MsJuddsaidthatatnotimeduringheremploymenthadMrCoghillsuggestedthatthetimeoffinlieuarrangementwasfraudulent,andthatMrCoghillhadbeenawarethatshewasstillreceivingherweeklywage,whileworkingreducedhoursduetotakingtimeoffinlieuofovertime.

MsJuddalsosaidthatshewasalwaysrequiredtorequestleaveandtohaveitapproved. Leavewasrecordedinatimeandwagesbook,andthenenteredintoacomputerisedaccountingpackage "Quickbooks". MsJuddthenproducedareportforMrCoghill,whichhecheckedandapprovedbeforepayingtheleave. MsJuddsaidthatshedidnothaveanyaccesstotherespondents' bankaccounts,eitherasasignatoryorthroughtheinternet. Further,therewasnocashkeptinthemedicalcentre,asitwasabulkbillingfacility. MsJuddalsosaidthatshewasnotresponsibleforpayingherwages. Undercross-examination,MsJudddeniedthatshehadbeentheonlypersonrecordingleaveandhoursworkedintherespondent'stimeandwagesbookandsaidthatshecouldnotconfirmthatshewastheonlypersonwithaccesstotherespondent'scomputerised "QuickPayroll" system.

Incross-examiningMsJudd,MrCoghilltookhertoanumberofentriesintherespondent'stimeandwagesbookwhereMsJuddhadworkedlessthan38hoursbuthadbeenpaidherannualsalary. MsJuddprovidedanexplanationinrespectofeachoftheseentriesincludingthatshehadbeenonsickleaveorthatpublicholidayshadfallenduringtherelevantweek. MsJuddalsosaidthatithadbeenherunderstandingoftheagreementwithMrCoghillthathoursworkedinexcessof38perweekwouldaccrueflexitime,andthatthereferenceto43hoursperweekwassimplythemaximumhoursforwhichshecouldberostered. Thiswastobeusedasa "guide" forMrCoghill,inordertomaintainareasonableworkload.

MrCoghill'sevidencewasthatwhenMsJuddcommencedemploymentwiththerespondenton1November2003,thebasisofherwagewasanhourlyrateof$20.47. ThiswassaidbyMrCoghilltobeafigure "demanded" byMsJuddtoperformtheroleofregisterednurseandpracticemanager. Thisfigurewasmaintaineduntil10December2000whenitwasincreasedto$22.00perhour,againatthe "demand" ofMsJudd. MrCoghillagreedthatMsJuddworkedanarrangementsimilartoflexitime. Whenquestioned,MsJuddhadinsistedthatthiswastheonlywaytoorganisethehoursinthemedicalcentretoenablenursingstafftomaximisetheiremploymentopportunitiesandtomeettheneedsofthepractice. MrCoghillessentiallysaidthatthesystemofflexitimewascontrolledbyMsJuddandthattherespondenthadsimplycontinuedtopaystaffinaccordancewiththatsystem. MrCoghillalsocontendedthatMsJuddhadincreasedhersalaryperiodicallyasa "selfgivenloading". Undercross-examinationMrCoghillsaidthathewasresponsiblefortransferringfundstopaywages,butnotforcalculatingtheamountofwagestobepaid.

MrSecombe'sevidencewasthathewasengagedbyMrCoghilltoprepareareportintothepaymentsmadebytherespondenttoMsJudd. Essentially,MrSecombe'sevidencewasdirectedtoestablishingthatMsJuddhadbeenoverpaidduringtheperiodofheremploymentwiththerespondent. ItwasapparentfromMrSecombe'sevidencethathiscalculationswerebasedontheassumptionthatMsJuddwasemployedonthebasisofanhourlywagerate. ItwasalsoapparentthatMrSecombeassumed,basedoninstructionsfromMrCoghillthatMsJudd'ssalarywascalculatedbymultiplyingthehourlyrateof$22.00by43,sothatthesalarywastreatedasincludingcompensationforfivehoursovertimeperweek. Further,MrSecombewasnotshowntheletterofappointmentreceivedbyMsJuddon1October2001,headed "AnnualRoleandsalaryreview:KirstiJuddPracticeManager" (AttachmentKDJ1toExhibitA2)beforehecompletedhisreport.

MrSecombe'sreportstatedthattheamountofannualleaveclaimedbyMsJuddintheapplicationsubjectoftheseproceedingswascancelledoutbyexcesspaymentswhichMsJuddwassaidtohavemadetoherself,onthebasisoftheassumptionsunderpinningthatreport. MrSecombegaveasanexampleofoverpaymentstoMsJudd,thesituationwherebyshewaspaidforpublicholidaysfallingonaSaturdayandSundayintheweekending26December2004. Undercross-examination,MrSecombeagreedthatifMsJuddwasaweeklyemployee,hersalaryfortheweekinwhichpublicholidaysfellwouldnotbereduced,regardlessofwhetherMsJuddwasrequiredtoworkonsuchpublicholidaysornot. MrSecombeagreedundercross-examinationthathisreportwasbasedonlimitedaccesstodocumentssuchasMsJudd'spayslips. FurtherMrSecombeagreedthathehadlimitedexperienceinQueenslandindustrialrelationslaw,andthathisreportwasbasedoninstructionsandcalculationsprovidedtohimbyMrCoghill. MsJuddrefutedtheallegationinMrSecombe'sReport(ExhibitR1)thattheWages/TimeBookwassomehowinaccurate.

Conclusions

AfterreviewingtheevidenceIamunabletobesatisfiedthatMsJuddwasemployedonanhourlybasis. ItisclearfromtheletterofappointmentreceivedbyMsJuddon1October2001thatemploymentwasonaweeklybasisandthatremunerationwasbywayofaweeklysalary. Thefactthattheweeklysalarymayhavebeencalculatedonthebasisofanamountof$20.47perhour,andlater$22.00perhour,doesnotalterthenatureoftheweeklysalary. Further,thereisnoevidencethatthebasisofthesalaryasweeklysalarywaseveralteredaswouldhaveoccurredhadMsJuddstartedanewcontractofemploymentasacasualemployee. IamalsounabletobesatisfiedthatMsJuddwasatanytimeemployedonacasualbasis. TheletterpurportingtoalterthebasisofMsJudd'semploymentsoughttodosoretrospectively,inthattheletterfromMrCoghillwasdated5December2003andreferredtoMsJuddbeingacasualemployeewitheffectfrom23July2003.

Further,thatletterpurportedtoacceptMsJudd'sresignationretrospectively,afterMsJuddhadcontinuedinemploymentwiththerespondentforsomemonths,withnoapparentchangetohertermsandconditionsofemployment. Inmyviewweeklyemploymentcannotbealteredtocasualemploymentretrospectively. MsJudd'sresignationtenderedon23July2003,wasnotacceptedbyMrCoghillandwasnotacteduponbyMsJudd. Rather,MsJuddcontinuedtoworkfortherespondentwithoutanychangetohertermsandconditionsofemployment. TheconclusionthatMsJuddwasnotacasualemployee,isalsosupportedbythelettersenttoMsJuddbyMrCoghillon28July2003offeringheranexpandedmanagementrole,andmakingnomentionofanychangefromweeklytocasualemployment. Thisletterisinconsistentwiththeletterof5DecemberandindicatesanattemptbyMrCoghilltoreconstructeventsaftertheyhadoccurred. Finally,MrCoghill'sownevidencewasthattheincreaseinremunerationpaidtoMsJuddintheweekending28September2003wastocompensateforanewrole,andhiscross-examinationofMsJuddestablishedthatthiscompensationincludedafactorfortheincreasedcostoftravelbetweentwolocationsbecauseofthenewrole. ClearlyitwasnotacasualloadingandIdonotacceptMrCoghill'soralevidencetothecontrary.

Accordingly,on8February2004whenMsJudd'semploymentwiththerespondentceased,shewasaweeklyemployee. IfMsJuddresignedheremploymentshewasrequiredtogivenoticeinaccordancewithherobligationsundertheNursesAward - State(theAward). IfMsJudd'semploymentwasterminatedshewasentitledtonoticeinaccordancewiththeAwardandtheAct.

OnthequestionofwhetherMsJudd'semploymentwasterminatedbytherespondent,itishardlysurprisingthatthereisconfusion,whenthepartiestotheemploymentrelationshipchosetocommunicateaboutthecessationofthatrelationshipthroughthemediumoftextmessaging. OnMsJudd'sownevidence,itisclearthatshegavenoticetoMrCoghillbytextmessagesentonTuesday9February2005,thatshewishedtofinishontheupcomingFriday. InmyviewMsJuddwasreferringtoFriday11February2005. MsJuddalsostatedthatthisadvicewasrepeatedtoMrCoghillbyherhusbandon9February2005inatelephoneconversation. WhileitisthecasethatMrCoghillsentatextmessagetoMsJuddsayingthatheacceptedthatshecouldtakesometimeofftobewithhergrandmother,andintimatingthatMsJuddwouldnotreceiveareferenceunlesssheremainedinemployment,MsJudddidnotrespondtothatmessage. Furthermore,accordingtoMsJudd'sversionofevents,afterthatmessagewasreceivedbyMsJudd,herhusbandtelephonedMrCoghillandstatedthatMsJuddwouldbefinishing "thisFriday" - i.e.11February2005.

MrCoghill'ssubsequenttextmessagesmakeitclearthathebelievedMsJuddhadresigned. At8.50p.m.on9February2006MrCoghillmadeonelastattempt - againbywayoftextmessaging - topersuadeMsJuddtoremaininemploymentuntil28February2005andfurtheradvisedthatshewouldbegrantedleavetogotoMelbourneifsheagreedtothiscourseofaction. MsJuddstatedthatsheswitchedoffherhomeandmobiletelephonesthroughoutthenightofTuesday9February2005andmadenofurthercontactwithMrCoghill. Finally,onMsJudd'sevidence,MrCoghilldismissedherbytellingherhusbandthatshecouldfinishupthatnight. MrCoghilldeniesthathesaidthisanditisinconsistentwiththetoneofhistextmessages. MsJudd'shusbanddidnotgiveevidenceandwasnotcross-examined. IamunabletoacceptthatMrCoghillterminatedMsJudd'semploymentbyadvisingherhusbandthatshecouldfinishup. OnbalanceIrejectMsJudd'scontentionthatMrCoghilldismissedherandthatsheisentitledtobepaidthreeweeks'noticeonthebasisthatMrCoghillterminatedheremployment. InmyviewMsJudd'sownevidence,particularlythesummaryofeventscontainedinAttachmentKDJ5toExhibitA3,clearlyestablishesthatMsJuddceasedemploymentofherownvolitionon9February2005. MsJuddisnotentitledtopaymentforanyperiodofnoticepastthatdate.

ThefurtherquestioniswhetherMrCoghillwasentitledtowithholdpaymentofaccruedannualleavefromMsJuddonthebasisthatshefailedtoworkfortheentireperiodofnoticethatshehadestablisheduponadvisingMrCoghillofherresignation. Onthisquestion,IamoftheviewthatMrCoghillwasnotentitledtomakeanydeductionfromMsJudd'swagesfornoticenotgiven. TheminimumnoticethatMsJuddwasrequiredtogivewasaperiodoftwoweeks,byvirtueofclause4.2.3oftheAward. MsJuddgavenoticeon5January2005ofherintentiontoresignheremploymentandstatedthatshewasavailabletoworkuntil18February2005. TheperiodofnoticegivenbyMsJuddexceededthetwoweeksshewasrequiredtogive. WhileMrCoghillcouldhaveacceptedthatnotice,hewasnotentitledtoinsistonalongerperiodoronaperiodinexcessofthetwoweeksrequiredtobegivenbyMsJudd.

ItisnotclearwhetherMrCoghillacceptedthenoticegivenbyMsJudd. ThelettersenttoMsJuddbyMrCoghillon6January2005merelyacknowledgesreceiptoftheresignation(ExhibitA4). EvenifMrCoghill'sletterdoesconstituteacceptanceoftheresignation,hewasnotentitledtoanymorethantwoweeks'noticeunderthetermsoftheAward. MsJuddgaveinexcessoftwoweeks'noticeandMrCoghillwasnotentitledtowithholdanypaymentsfromherbecauseoffailuretogivenoticebyvirtueofthetermsoftheAward. ThereisnoevidenceofanycontractualobligationonthepartofMsJuddtogivenoticeinexcessofthatrequiredbytheAward,andiftherewasitisdoubtfulthatsuchanobligationcouldderogatefromthetermsoftheAward.

Inmyview,theupshotofthesituationcreatedbytheinappropriatemeansofcommunicationadoptedbyMsJuddandMrCoghillinrelationtothecessationofMsJudd'semploymentwasthataftertenderingherresignationon5January2005,MsJuddcommunicatedanintentiontoceaseemploymenton11February2005,andthenceasedemploymenttwodaysearlieron9February2005. MsJuddceasedemploymentwiththerespondentofherownvolition. AnyentitlementtopaymentonthepartofMsJuddceasedon9February2005. Iamoftheviewthatfrom7to9February2005,MsJuddwasonleaveapprovedbyMrCoghill. AccordinglyMsJuddisentitledtotheamountclaimedforthisperiod.

ThesuperannuationcontributionsclaimedbyMsJuddhavenowbeenpaid. However,thiscasehasdemonstratedthattherearesignificantdifficultiesinestablishingthewhereaboutsofsuperannuationcontributionscollectedonbehalfofemployeesbytheAustralianTaxationOffice.

NeitherMsJuddnorMrCoghillwasabletoobtaininformationfromtheATOtoestablishthatthecontributionshadbeenpaidtoMsJudd. AllthatcouldbeestablishedwasthatanamounthadbeenpaidbyMrCoghilltotheATOtocoversuperannuationguaranteeshortfallamountsforanumberofhisemployeesincludingMsJudd. AttemptsbytheCommission,withtheconsentoftheparties,toobtaininformationaboutMsJudd'ssuperannuationfromtheATOweremetwitharesponsetotheeffectthattaxationlegislationprotectedtheATOfromhavingtodisclosesuchinformation. MrCoghillprovidedaletterfromhisAccountantstatingthatasat5July2005alloutstandingsuperannuationamountsassessedbytheATOasbeingowedtoMsJuddhadbeenpaidandthatthetotalamountofsuchpaymentswasapproximately$20,694.65. Itwasnotuntil24February2006thatMsJudd'ssuperannuationaccountwascreditedwiththeamountowedtoher.

Thedifficultieswiththissituationareobvious. Anemployerfacedwithasignificantclaimforsuperannuationcontributionswasunabletoestablishthatthosehadbeenpaidtoaparticularemployee. Anemployeeclaimingtohavebeenowedsuperannuationcontributionscouldnotestablishwhetherthosecontributionshadbeenpaid. Thecontributionsweremadetotheemployee'saccountaconsiderabletimeaftermoneyappearstohavebeenpaidtotheATO. TheATOisnotrequiredtodiscloseinformationtoenabledisputessuchastheonebeforetheCommissioninthiscasetoberesolved.

IamunabletoacceptMrCoghill'ssubmissionthatanyoffsetshouldbeallowedonthebasisofoverpaymenttoMsJudd. Firstly,IamnotsatisfiedthatMsJuddwasoverpaid. TheevidenceestablishesanagreementbetweenMsJuddandtherespondentandthatMsJuddwaspaidinaccordancewiththatagreement. ThereisnoevidenceofdishonestyonthepartofMsJudd. Rather,followingthebreakdownofanemploymentrelationship,MrCoghillhasattemptedtowalkawayfromanagreementaboutthetermsofthatrelationship. Inmyviewthetermsoftheagreementwereclear,andtheyformedthebasisofMsJudd'scontractofemployment. IcanseenoreasonwhyMrCoghillshouldberelievedofhisobligationsundertheagreement,becauseinhindsightheisnothappywithitsterms.

Inanyevent,itisalsothecasethattheentitlementtoannualleave,whichIamsatisfiedhasbeenestablished,couldnotbesetoffagainsttheoverpaymentwhichMrCoghillallegedhadbeenmade,evenhadheestablishedthatthiswasthecase. ThisisbecausetheoverpaymentallegedbyMrCoghillrelatedtohoursofworkandnottoannualleave: seeTheHaggartyGroupPtyLtdvJustinWallace(2001)166QGIG417andtheauthoritiessetouttherein.

Accordingly,IOrderthattherespondent,ComalManagementPtyLtd,TradingAsUpperCoomeraMedicalCentre,paytoMsKirstienneJudd,theamountof$4,537.17being$3,787.28foraccruedannualleaveandloadingand$749.89forwagesfortheperiod7to9February2005,lesstaxationaccordingtolaw.

I.C.ASBURY,Commissioner.
HearingDetails:
20055,7July
2August
Released: 22March2006 / Appearances:
MsG.McCaulofQueenslandNurses'UnionofEmployeesfortheapplicant.
MrM.Coghillfortherespondent.

GovernmentPrinter,Queensland

TheStateofQueensland2006.