S B Cuthill Enterprises Pty Ltd v Staples Australia Pty Ltd [2018] NSWIRComm 1027

S B Cuthill Enterprises Pty Ltd v Staples Australia Pty Ltd [2018] NSWIRComm 1027

The applicant was in material breach of the agreement by participating in a three-day withdrawal of services and ignoring explicit warnings and opportunities to return to work. The contract permitted termination on two weeks' notice for such breaches after an opportunity to rectify. The respondent provided warnings and an opportunity for rectification. No unfairness was found in the decision to terminate given these circumstances. Compensation is limited to the contractual entitlement to payment in lieu of notice, not general unfairness, as applicant's conduct led to termination and there was opportunity for re-engagement.

Parties
Applicant: S B Cuthill Enterprises Pty Ltd; Respondent: Staples Australia Pty Ltd
Jurisdiction
Australia
Judgment Date
18 May 2018
Procedural Posture
Industrial Relations/contract of Carriage Dispute / Principal Judgment After Hearing and Written Submissions
Outcome
Partial compensation order—application for reinstatement dismissed; compensation for pay in lieu of notice ordered
Legal Topics
Contract of Carriage, Unfair Termination, Compensation, Collective Bargaining, Industrial Action
Industrial Law Contract of Carriage Unfair Termination Compensation Collective Bargaining Industrial Action

Case Brief

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Parties

S B Cuthill Enterprises Pty Ltd

Applicant

Staples Australia Pty Ltd

Respondent

Procedural Posture

Industrial Relations/contract of Carriage Dispute / Principal Judgment After Hearing and Written Submissions

Legal Issues

  1. 1 Whether the termination of the applicant's contract of carriage was unfair
  2. 2 Whether compensation is payable under section 314 of the Industrial Relations Act 1996 (NSW)
  3. 3 Whether reinstatement was impracticable

Ratio Decidendi

The applicant was in material breach of the agreement by participating in a three-day withdrawal of services and ignoring explicit warnings and opportunities to return to work. The contract permitted termination on two weeks' notice for such breaches after an opportunity to rectify. The respondent provided warnings and an opportunity for rectification. No unfairness was found in the decision to terminate given these circumstances. Compensation is limited to the contractual entitlement to payment in lieu of notice, not general unfairness, as applicant's conduct led to termination and there was opportunity for re-engagement.

Court Disposition

Partial compensation order—application for reinstatement dismissed; compensation for pay in lieu of notice ordered

Orders

  • Staples Australia Pty Ltd shall pay to Mr Scott Brian Cuthill a sum equivalent to two weeks' pay calculated on the basis of the weekly wage allocated to him by S B Cuthill Enterprises Pty Ltd.
  • Payment to be made within 14 days of the decision date.