Sydney Sunny Glass Pty Ltd v McParland [2020] FCA 1017

Sydney Sunny Glass Pty Ltd v McParland [2020] FCA 1017

Sunny Glass did not assume the obligation to transfer shares under the collateral share contract on taking over as employer; the 'current entitlements' at the transition comprised salary, superannuation, and car allowance as actually paid, not the side share arrangement. The joint and several liability order for share delivery was set aside. Sunny Glass and Mr Chi were liable for adverse action against Mr McParland for exercising a workplace right under the Fair Work Act and for failure to pay the car allowance, with penalties adjusted to fit only the proven contraventions and their seriousness.

Jurisdiction
Australia
Judgment Date
24 July 2020
Procedural Posture
Appeal / Judgment on Appeal and Cross Appeal
Outcome
Appeal allowed. Cross-appeal allowed in part. Orders of the Federal Circuit Court varied.
Legal Topics
['contractual Interpretation' 'employment Entitlements' 'adverse Action' 'civil Penalties' 'termination of Employment' 'collateral Contracts']
['contracts' 'employment Law' 'industrial Law'] ['contractual Interpretation' 'employment Entitlements' 'adverse Action' 'civil Penalties' 'termination of Employment' 'collateral Contracts']

Case Brief

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Procedural Posture

Appeal / Judgment on Appeal and Cross Appeal

Legal Issues

  1. 1 ['Whether the second employer (Sunny Glass) assumed obligations under a collateral share contract made with the first employer (Nuline) to deliver shares to the employee.' "Determining the proper construction of 'current entitlements' in the employment transition between Nuline and Sunny Glass." 'Assessment of liability for adverse action and breaches of the Fair Work Act on termination of employment.']

Ratio Decidendi

Sunny Glass did not assume the obligation to transfer shares under the collateral share contract on taking over as employer; the 'current entitlements' at the transition comprised salary, superannuation, and car allowance as actually paid, not the side share arrangement. The joint and several liability order for share delivery was set aside. Sunny Glass and Mr Chi were liable for adverse action against Mr McParland for exercising a workplace right under the Fair Work Act and for failure to pay the car allowance, with penalties adjusted to fit only the proven contraventions and their seriousness.

Court Disposition

Appeal allowed. Cross-appeal allowed in part. Orders of the Federal Circuit Court varied.

Orders

  • ['The appeal be allowed.' 'The cross-appeal be allowed in part.' "The orders made by the Federal Circuit Court of Australia on 13 June 2019 be varied by: (a) deleting 'and the Third Respondent are jointly and severally liable to' from order 1; (b) setting aside orders 2, 3, 5 and 6; and (c) adding the following...