McDonald's Australia Holdings Ltd & Anor v Industrial Relations Commission of NSW & 2 Ors [2005] NSWCA 286

McDonald's Australia Holdings Ltd & Anor v Industrial Relations Commission of NSW & 2 Ors [2005] NSWCA 286

The Commission has no jurisdiction under s106 of the Industrial Relations Act 1996 to grant the relief sought, as the contracts do not constitute agreements whereby Mr McLaughlin performs work in an industry, and the relief sought does not closely relate to the performance of work as required by the statutory test.

Parties
First Claimant: McDonald's Australia Holdings Limited; Second Claimant: McDonald's Australia Limited; First Opponent: Industrial Relations Commission of New South Wales; Second Opponent: McLaughlin's Family Restaurants Pty Limited; Third Opponent: Max William McLaughlin
Jurisdiction
Australia
Judgment Date
25 August 2005
Procedural Posture
Appeal / Final Judgment
Outcome
Prohibition orders granted; costs order against Second and Third Opponents
Legal Topics
Jurisdiction, Unfair Contracts, Franchise Agreements, Performance of Work, Declaration and Variation of Contracts, Remedies and Relief
Industrial Law Jurisdiction Unfair Contracts Franchise Agreements Performance of Work Declaration and Variation of Contracts Remedies and Relief

Case Brief

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Parties

McDonald's Australia Holdings Limited

First Claimant

McDonald's Australia Limited

Second Claimant

Industrial Relations Commission of New South Wales

First Opponent

McLaughlin's Family Restaurants Pty Limited

Second Opponent

Max William McLaughlin

Third Opponent

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 Whether the Industrial Relations Commission has jurisdiction under s106 of the Industrial Relations Act 1996 to vary or avoid franchise agreements and leases forming part of McDonald's Australia operations
  2. 2 Whether the agreements are contracts whereby a person performs work in any industry
  3. 3 Whether the relief sought has a close relationship with the performance of work as required by the statutory test

Ratio Decidendi

The Commission has no jurisdiction under s106 of the Industrial Relations Act 1996 to grant the relief sought, as the contracts do not constitute agreements whereby Mr McLaughlin performs work in an industry, and the relief sought does not closely relate to the performance of work as required by the statutory test.

Court Disposition

Prohibition orders granted; costs order against Second and Third Opponents

Orders

  • The First Opponent is prohibited from taking any further steps to exercise or purporting to exercise its power under s106 of the Industrial Relations Act 1996 (NSW) with respect to the Licence Agreements described in the Summons filed on 12 May 2004 in Industrial Relations Commission Proceeding No. 2798 of 2004
  • The First Opponent is prohibited from taking any further steps to exercise or purporting to exercise its power under s106 of the Industrial Relations Act 1996 (NSW) with respect to the Lease Agreement described in the Summons filed on 12 May 2004 in Industrial Relations Commission Proceeding No. 2798 of 2004