[2015] FWCFB 478

The attached document replaces the document previously issued with the above code on 30 January 2015, amending various typographical errors and correcting the name of the appellant in paragraph [1].

Annastasia Kyriakidis

Associate to Justice Ross, President

Dated 30 January 2015

[2015] FWCFB 478
FAIR WORK COMMISSION

DECISION


Fair Work Act 2009

s.604 - Appeal of decisions

Ronald Anderson
v
Thiess Pty Ltd
(C2014/6722)

JUSTICE ROSS, PRESIDENT
VICE PRESIDENT HATCHER
COMMISSIONER SIMPSON

MELBOURNE, 30 JANUARY 2015

Appeal against decision PR555663 and order PR555664 of Deputy President Asbury at Brisbane on 19 September 2014 in matter number U2013/11148.

Introduction

[1] Mr Ronald Anderson has filed a notice of appeal under s.604 of the Fair Work Act 2009 (Act) in which he seeks permission to appeal and appeals a decision of Deputy President Asbury issued on 19 September 2014 1 (Decision). The Decision concerned an unfair dismissal remedy application which Mr Anderson lodged under s.394 of the Act in relation to his dismissal from his employment with Thiess Pty Ltd (Thiess) at the Burton Downs Mine (Mine) in Queensland on 17 June 2013. In summary, the Deputy President found that there was a valid reason for Mr Anderson’s dismissal but nonetheless determined that dismissal was harsh and unreasonable, found that it was not appropriate to reinstate Mr Anderson to his employment with Thiess, and determined that Thiess pay Mr Anderson the amount of $28,578.68 in compensation. A separate order was issued giving effect to the compensation decision.2

[2] In his notice of appeal Mr Anderson has appealed the entire decision, notwithstanding that he succeeded in obtaining a finding that his dismissal was harsh and unreasonable and an order for the payment of compensation in his favour. He was only unsuccessful in obtaining the primary remedy of reinstatement. The grounds of his appeal appear primarily to challenge the Deputy President’s conclusion, made pursuant to s.387(a) of the Act, that there was a valid reason for his dismissal.

[3] Section 387 sets out a number of matters which a member of the Commission must take into account when considering whether a dismissal was harsh, unjust or unreasonable. Section 387(a), which refers to “whether there was a valid reason for the dismissal related to the person’s capacity or conduct (including its effect on the safety and welfare of other employees)”, is one of those matters. We do not consider that a finding made in relation to a matter required by s.387 to be taken into account in itself constitutes a “decision” which is appealable under s.604; it is only a finding made on the way to reaching a decision. However if such a finding is a basis upon which a decision is made as to the remedy to be granted or denied to an applicant, that finding can obviously be challenged in an appeal against such a decision.

[4] In his written outline of submissions filed in accordance with the Commission’s directions, Mr Anderson has criticised certain findings that the Deputy President made in the Decision in support of her decision not to grant the remedy of reinstatement 3, and has contended that “My position remains that I should be reinstated without loss of income, seniority or standard of accommodation ...”.4 Noting that Mr Anderson is a self-represented litigant and the Commission is not a court of pleading, we consider that we should treat Mr Anderson’s appeal as primarily challenging the Deputy President’s decision not to reinstate him. Additionally Mr Anderson in his outline of submissions challenges a finding which “militated against reinstatement as well as being a factor in reducing any compensation”.5 That, we think, can be read as a challenge advanced in the alternative to that part of the Decision concerning the quantum of compensation to be awarded to him. At the hearing of the appeal, Mr Anderson confirmed that this was the gravamen of his appeal.

Factual background

[5] Mr Anderson commenced employment with Thiess at the Mine on 30 November 2001. For the first ten years of his employment, Mr Anderson worked as a diesel fitter, primarily in the workshop, at the Mine. His disciplinary and performance record during this time was unblemished. In mid-2011, he was moved to the role of Workshop Trainer/Assessor, with the responsibility to ensure that workshop personnel and contractors complied with the standards prescribed by the Coal Mining Safety and Health Act 1999 (Qld). This position required Mr Anderson to make extensive use of Thiess’s email system for the first time.

[6] In March 2013 an issue arose about the large number of non-work related emails that Mr Anderson was sending to Thiess personnel on the Thiess system. Mr Rodney Nichols, the Maintenance Manager, informally counselled him to stop sending non-work related emails.

[7] On 17 June 2013 Mr Anderson sent an email message via the Thiess system to a large range of persons including a large number of Thiess personnel. The email message read as follows:

[8] There was an attachment to the email which contained a slideshow under the heading “The Sword of Militant Islam”. The slideshow contained 29 slides, and can fairly be characterised as advancing a case through words and pictures that Islam is an aggressive and violent religion which constitutes a threat to the civilized world. Some of the propositions headlined in the slideshow included “Islam and Jihad Hand in Hand”, “Islam is a killing machine!”, “Islam May Become the Greatest Murdering Force in the History of Mankind”, and “Islam has no place in Europe! Actually it has no place in a civilized world whatsoever!” It does not appear to be in dispute that Mr Anderson was not the author of the email message nor the creator of the slideshow; it was emailed to him and he then forwarded it to a number of persons through the Thiess email system. Mr Anderson confirmed in the appeal hearing that he had opened the attachment and read at least some of its contents.

[9] The content of the email message, after it was brought to the attention of the Mine’s management by one of the recipients, caused an investigation and disciplinary process to be initiated (although the contents of the attachment appeared to escape the attention of management at this point). This led to Mr Anderson being dismissed later the same day. He lodged his unfair dismissal remedy application on 4 July 2013.

The Decision

[10] In her Decision the Deputy President, after outlining the basic facts of the matter and reviewing some of the authorities concerning unfair dismissal cases, turned to consider the matters required to be taken into account under s.387 of the Act. In relation to the issue of whether there was a valid reason for Mr Anderson’s dismissal, the Deputy President made the following findings and conclusions:

[11] The Deputy President then stated the following overall conclusions concerning the valid reason consideration:

[12] The Deputy President then dealt with the considerations specified in paragraphs (b)-(g) of s.387 in a manner which was not the subject of controversy in the appeal. In relation to s.387(h) the Deputy President treated the following matters as relevant:

[13] The Deputy President then stated the following conclusions:

[14] There appears to be a typographical error in the first two sentences of paragraph [77], having regard to the fact that in paragraph [76] the Deputy President had found the dismissal to be harsh. It is reasonably apparent that what the Deputy President intended to say was something to the effect that: “I do not consider that the dismissal was harsh on the basis that it was disproportionate to the gravity of the misconduct”. In this respect, the Deputy President appears to have been drawing a distinction with her finding in paragraph [76] that the dismissal was “harsh because of its consequences for the personal and economic situation of Mr Anderson” and thereby endeavouring to make it clear that she only found harshness on one of the two bases identified in the well-known statement in the judgment of McHugh and Gummow JJ in Byrne v Australian Airlines Ltd 26 that a dismissal “may be harsh in its consequences for the personal and economic situation of the employee or because it is disproportionate to the gravity of the misconduct in respect of which the employer acted” (which statement had been referred to earlier in the Decision27).

[15] The Deputy President then turned to the issue of remedy, and first considered (consistent with s.390(3) of the Act) whether reinstatement was an appropriate remedy. Her conclusions were as follows:

[16] The Deputy President then turned to the alternative remedy of compensation. The Deputy President found that compensation was an appropriate remedy, and assessed compensation in the following manner:

Submissions

[17] Mr Anderson advanced the following principal propositions in his written and oral submissions:

[18] Propositions (1), (3)-(5) and (7)-(8) above appear to be relevant to Mr Anderson’s challenge to the Deputy President’s decision to refuse to order reinstatement, with propositions (1) and (3)-(5) being primarily directed to the Deputy President’s finding that there was a valid reason for the dismissal which in part underpinned her refusal of reinstatement. Proposition (6) is concerned with the assessment of compensation. Proposition (2) does not appear to involve any contention of error on the part of the Deputy President, but rather constitutes an attack on one aspect of the case Thiess ran at first instance, and is not therefore relevant to the appeal.

[19] Mr Anderson submitted that proposition (1) above was one which attracted the public interest and thus permitted the grant of permission to appeal under s.400(1).

[20] Thiess submitted that:

Consideration

Reinstatement

[21] We accept the respondent’s submission that a decision as to whether it is appropriate to order the remedy of reinstatement is discretionary in nature. As was explained in the Full Bench decision in Nguyen v Vietnamese Community in Australia 28, a broad range of factors may be relevant in a consideration of the appropriateness of reinstatement:

[22] The discretionary nature of the decision-making exercise in relation to reinstatement, which apart from the criterion of appropriateness is not guided by any requirement to take any particular matter into account, necessarily means that no one consideration and no combination of considerations is necessarily determinative of the result and that the decision-maker is allowed some latitude as to the choice of the decision to be made. 29 It also means that in any appeal from a decision concerning the grant or refusal of the remedy of reinstatement, it is necessary for the appellant to demonstrate error in the decision-making process.30 Any such error will usually have to be of the type identified in House v The King.31

[23] As paragraph [79] of the Decision discloses, in refusing to order reinstatement the Deputy President took into account the fact that there was a valid reason for Mr Anderson’s dismissal having regard to the earlier conclusions that the email and its attachments inappropriately vilified persons on the basis of religious belief, caused offence to at least one person, had the capacity to offend others regardless of their religious beliefs, and had the capacity to cause reputation damage to Thiess. We consider that it was clearly open to the Deputy President to find that there was a valid reason for the dismissal on these bases.

[24] The email (including the attachment) clearly vilifies - that is, defames and traduces 32 - persons of the Muslim faith. We do not accept Mr Anderson’s submission that it was only directed at violent Muslim extremists. On a fair reading of the email, it denigrates Islam and its adherents generally. The parts which we have earlier quoted are sufficient to demonstrate this, and a reading of the email in its entirety does not alter the picture.

[25] While Mr Anderson is no doubt entitled to hold views of the nature articulated in the email, the expression and propagation of those views in the workplace by the use of the employer’s computer and email system is a different matter. Even outside the workplace, the recognition of freedom of expression by the Constitution and the common law is significantly constrained, as was explained by the Federal Court (Bromberg J) in Eatock v Bolt 33

[26] One of the relevant constraints upon freedom of expression which operates in the State of Queensland is s.124A of the Anti-Discrimination Act 1991 (Qld), which makes religious vilification by any public act unlawful (subject to some limited exceptions). 34 “Public act” is given a broad definition in s.4A of the Anti-Discrimination Act. We note that it has been held that it is arguable that an email sent to a large number of persons is a public act.35

[27] In the employment context, the express terms of the employment contract, employer policies incorporated into or authorised by the employment contract, and the employer’s lawful and reasonable directions may also operate to impose significant constraints upon an employee’s freedom of expression. It is not necessary in this case to explore the outer limits of the extent to which an employer can place limits on the freedom of expression of the employee. It is sufficient to state two propositions: first, that it is well established that it is lawful and reasonable for an employer to require an employee to comply with policies and directions which control the nature of communications over the employer’s electronic communications system 36, and second, that objectively inappropriate and offensive communications by an employee in the workplace may, depending on the circumstances, constitute a valid reason for dismissal.37

[28] In relation to the first of those two propositions, the evidence established that Thiess had a general “Workplace Conduct Policy” which among other things required employees to treat each other with dignity, courtesy and respect and specifically prohibited religious vilification, and also had a specific policy concerning appropriate usage of Thiess’s computer system entitled “Acceptable use of information systems”. Although the Deputy President found that there was no evidence that Mr Anderson had been specifically trained in the latter policy, it was open to her to find, as she did, that he could not have been oblivious to the primary aspects of that policy on the basis that his explanation that his computer did not display the pop-up-box reminder concerning the policy that was standard on the Thiess computer system was improbable. It was also open to the Deputy President to find, as she did, that it was improbable that Mr Anderson had no knowledge of Thiess’s general standards for conduct in the workplace. Mr Anderson conceded that he was aware that those general standards included a requirement to treat all employees with dignity, courtesy and respect. If Mr Anderson did not understand that his email of 17 June 2013 did not meet that requirement, Mr Nichols’ earlier warning to “Back off those muslim emails” (as described in Mr Anderson’s own evidence) should have made the position sufficiently clear to a plain-speaking man such as him. In relation to the second proposition, the email was, objectively speaking, clearly inappropriate and offensive for the reasons earlier discussed. It was apt to offend not only Muslims, but anyone who valued religious tolerance and rejected bigotry. It also, if publicly exposed, had the potential to damage Thiess’s reputation as a company with a multicultural workforce and international operations which extended to Indonesia, a Muslim-majority nation.

[29] The existence of a valid reason for dismissal does not of course disqualify an applicant from the remedy of reinstatement where the applicant’s dismissal has been found to be unfair. However in this case the Deputy President made the critical findings that Mr Anderson completely lacked any contrition for his conduct, refused to accept any culpability on his part, and lacked understanding of the offensive nature of the email or its implications for Thiess and its workforce. They were findings which were both reasonably open to be made and with which we agree. During the appeal hearing, Mr Anderson in answer to a question from the bench gave a cursory indication that he understood that his sending of the email was inappropriate (although most of what he subsequently said in his appeal submissions strongly suggested otherwise). But the transcript of the hearing before the Deputy President gives ample demonstration that he had no understanding of or contrition for his conduct in sending the email. Two extracts from the transcript are sufficient to illustrate the point, although many other examples may be found. In the first, Mr Anderson was cross-examined by Thiess concerning whether the email was inappropriate or offensive as follows:

[30] In the second, the Deputy President attempted to explore with Mr Anderson whether he had expressed any regret or contrition for his conduct:

[31] Mr Anderson’s persistent defence of the email (including the attachment) and his conduct in sending it was all the more remarkable since it became clear that, at the time he sent it, he had not even read the entirety of its contents. The “attitude” taken by Mr Anderson in exchanges such as the above was not to be overlooked on the basis that he was self-represented. This was not a matter of advocacy style, but rather raised the substantive question as to whether Mr Anderson had gained any insight into the implications of his behaviour in sending the email. Clearly he had not.

[32] The findings made by the Deputy President to which we have referred meant that it was a real possibility that, if reinstated, Mr Anderson might engage in similar conduct again. They provided a sound foundation for the conclusion that reinstatement would not be appropriate. There was no error in the Deputy President refusing to reinstate Mr Anderson for the reasons described.

[33] It follows that we do not accept that the Decision was erroneous on the basis of Mr Anderson’s propositions (1), (3)-(5) and (7)-(6) set out in paragraph [17] above.

Compensation

[34] Section 392(2) of the Act specifies a number of matters which must be taken into account in the assessment of compensation in respect of an unfair dismissal remedy application. One of those matters, set out in s.392(2)(c), is “the remuneration that the person would have received, or would have been likely to receive, if the person had not been dismissed”. This will usually require an estimation of how long the employee would have remained in the relevant employment but for the dismissal. 40 There will necessarily be a speculative element in such an assessment41: “[s]uch an assessment is often difficult, but it must be done”.42 The principles for the assessment of compensation established by this Commission and its statutory predecessors have also required a deduction, as a step in the process, for “contingencies” as a means of taking into account the possibility that the occurrence of contingencies to which the applicant was subject might have brought about some change in earning capacity or earnings.43 This requirement is referable to paragraphs (c) and (g) of s.392(2), and is usually applied in respect of prospective loss.44 The point in the assessment process at which any discount for contingencies is made may differ: in most cases the discount is considered after the remuneration the dismissed person would have received if they had not been dismissed has been assessed and the monies earned by them since termination had been deducted, but in some cases it may be appropriate to apply the contingency discount directly to the amount that is estimated would have been earned but for the dismissal before any further deduction is made.45

[35] The Deputy President’s assessment of compensation was, we consider, consistent with the requirements of s.392(2) and the principles to which we have referred. The Deputy President, as required by s.392(2)(c), estimated that Mr Anderson would have remained in employment for a further 12 months, and calculated his salary for such a further period. There was no deduction made for earnings since dismissal, since Mr Anderson had not obtained alternative employment. The Deputy President then made a 50% discount for contingencies to take into account the fact that Mr Anderson’s capacity to remain employed and earn his salary for a further 12 months may have been affected by an earlier dismissal for another reason. The possibility of dismissal for further misconduct was based upon Mr Anderson’s lack of contrition for his conduct, his attitude at the hearing, and his refusal to accept any responsibility for his conduct. In essence, this amounted to a conclusion that because of these matters, there was a real possibility (as earlier stated) that if he had not been dismissed Mr Anderson would have engaged in similar conduct again and have been dismissed on that occasion. Notwithstanding Mr Anderson’s good prior work record, we consider that conclusion was one which it was reasonably open to the Deputy President to reach. This was not a case of Mr Anderson being “punished” for something he might do in the future, but an appropriate step in the estimation the Deputy President was required to make as to what Mr Anderson’s earnings would have been if he had not been dismissed.

[36] Section 392(3) provides that in assessing compensation the Commission, if it is satisfied that the misconduct of a person contributed to the employer’s decision to dismiss the person, must reduce the amount it would otherwise order under s.392(1) by an appropriate amount on account of the misconduct. Having found that there was a valid reason for Mr Anderson’s dismissal based upon his misconduct in sending the email 46, it was clearly the case, as the Deputy President found47, that this misconduct contributed to (indeed caused) Thiess’s decision to dismiss Mr Anderson. The Deputy President was consequently required by s.392(3) to reduce the amount of compensation which she would otherwise have ordered by an appropriate amount. This involved the exercise of a broad discretion. We consider that the Deputy President’s decision to reduce the amount by a further 50%48 was reasonably open to her. There was therefore no error in the Deputy President’s assessment of the compensation to be paid by Thiess for Mr Anderson’s unfair dismissal.

Conclusion

[37] The Decision was not, for the reasons we have set out, attended by any appellable error. The appeal does not otherwise raise any issue of general controversy requiring resolution. We therefore do not consider that the grant of permission to appeal would be in the public interest, and permission to appeal must therefore be refused in accordance with s.400(1) of the Act.

PRESIDENT

Appearances:

The Appellant: Mr R. Anderson on his own behalf.

The Respondent: Ms C. Brattey on behalf of Thiess Pty Ltd.

Hearing details:

Brisbane

13 January 2015

 1   [2014] FWC 6568

 2   PR555664

 3   Appellant’s Outline of Submissions, paragraph 5

 4   Appellant’s Outline of Submissions, paragraph 8

 5   Appellant’s Outline of Submissions, paragraph 7

 6   Decision at [28]-[32]

 7   Decision at [34]

 8   Decision at [35]

 9   Decision at [36]

 10   Decision at [39]-[41]

 11   Decision at [46]

 12   Decision at [46]

 13   Decision at [47]

 14   Decision at [48]-[49]

 15   Decision at [51]

 16   Decision at [64]

 17   Decision at [65]

 18   Decision at [65]

 19   Decision at [66]-[68]

 20   Decision at [69]-[71]

 21   Decision at [72]-[73]

 22   Decision at [74]

 23   Decision at [75]

 24   Decision at [75]

 25   Decision at [75]

 26   (1995) 185 CLR 410 at 465-8

 27   Decision at [13] and footnote 9

 28   [2014] FWCFB 7198

 29   Coal and Allied Operations Pty Ltd v Australian Industrial Relations Commission [2000] HCA 47; 203 CLR 194 at [19] per Gleeson CJ, Gaudron and Hayne JJ

 30   Ibid at [21]

 31   [1936] HCA 40; (1936) 55 CLR 499 at 504-505 per Dixon, Evatt and McTiernan JJ.

 32   See the definition of “vilify” in the Macquarie Concise Dictionary, 5th edition.

 33   [2011] FCA 1103

 34   Section 124A of the Anti-Discrimination Act 1991 (Qld) provides:

 35   West & ors v Commissioner of Police, NSW Police [2007] NSWADT 240 at [27]-[32]

 36   Wake v Queensland Rail [2006] AIRC 663, PR974391 at [2]-[3] and [21]-[22]; B, C and D v Australian Postal Corporation T/A Australia Post [2013] FWCFB 6191 at [36]-[39]

 37   Jalea v Sunstate Airlines (Queensland) Pty Ltd T/A Qantas Link [2012] FWAFB 7267 at [11]-[20]; Slater v Patrick Port Logistics Pty Ltd [2012] FWA 7204 [137]-[138]; Dean Leadbetter v Qantas Airways Limited [2009] AIRC 131 At [74]-[78]; Stephen Viney v M & V Brown Pty Ltd [1998] AIRC 569, Print P9930

 38   Transcript U2013/11148, 25 June 2014, PN258-PN263

 39   Transcript U2013/11148, 25 June 2014, PN745-PN756

 40   Ellawala v Australian Postal Corporation [2000] AIRC 1151, Print S5109 at [34]

 41   Sprigg  v Paul’s Licensed Festival Supermarket [1998] AIRC 989, Print R0235 at [37]

 42   Ellawala at [33]

 43   Ellawala at [36]

 44   Slifka v JW Sanders Pty Limited (1995) 67 IR 316 at 328

 45   Bowden v Ottrey Homes Cobram and District Retirement Villages Inc. T/A Ottrey Lodge [2013] FWCFB 431 at [52]

 46   See Decision at [54]

 47   See Decision at [88]

 48   See Decision at [88]

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