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Transport Workers' Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd[2018] ICQ 1

Transport Workers' Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd[2018] ICQ 1

 

INDUSTRIAL COURT OF QUEENSLAND

 

CITATION:

Transport Workers’ Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd [2018] ICQ 001

PARTIES:

TRANSPORT WORKERS’ UNION OF AUSTRALIA, UNION OF EMPLOYEES (QUEENSLAND BRANCH)

(appellant)

v

LINFOX AUSTRALIA PTY LTD

(respondent)

FILE NO/S:

C/2017/16

PROCEEDING:

Appeal

DELIVERED ON:

9 February 2018

HEARING DATE:

27 November 2017

MEMBER:

Martin J, President

ORDER/S:

  1. The appeal is allowed.
  2. The decision of the Deputy President is set aside.
  3. The claim for a pro-rated payment of Mr Scheidel’s long service leave is dismissed.

CATCHWORDS:

INDUSTRIAL LAW – QUEENSLAND – GENERAL EMPLOYMENT CONDITIONS – LONG SERVICE LEAVE – ENTITLEMENT TO LEAVE – OTHER MATTERS – where employee applied for entitlement to a proportionate payment for long service leave – where employee terminated employment – whether employee terminated employment with employer “because of” mental illness – whether the Deputy President erred in rejecting evidence – whether the Deputy President failed to provide any or adequate reasons in rejecting evidence -  Industrial Relations Act 1999 s 43(4)(b)(i)

LEGISLATION:

Industrial Relations Act 1999

Acts Interpretation Act 1954

CASES:

Transport Workers’ Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd [2017] QIRC 074, related

Abbott v Blackwood [2014] ICQ 031

Blackwood v Mana [2014] ICQ 027

Footscray City College v Ruzicka (2007) 16 VR 498

Johnson & Johnson Pty Ltd v Amalgamated Metals Workers Union (1987) 21 IR 457

Pollard v RRR Corporation Pty Ltd [2009] NSWCA 110

Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355

Thomson v Orica Australia Pty Ltd (2002) 116 IR 186

Trust Company of Australia Ltd v Commissioner of State Revenue (2006) 15 VR 1

APPEARANCES:

L S Reidy directly instructed for the appellant

R Dalton directly instructed for the respondent

  1. [1]
    This appeal concerns Mr Warren Scheidel’s entitlement to a proportionate payment for his long service leave under s 43(4)(b)(i) of the Industrial Relations Act 1999 (the Act).
  2. [2]
    Mr Scheidel resigned from his employment with the respondent, Linfox Australia Pty Ltd, on 1 November 2016, having worked there for a period of approximately nine years and nine months. Before his resignation, Mr Scheidel had broken up with his girlfriend of three years. For that, and other reasons, he had discussions with Mr Jeffrey Brown of Linfox about transferring to Perth.
  3. [3]
    On 1 November, Mr Scheidel sent an email to Mr Brown, with a copy to Mr Laurence Kishore and Mr Kris Hardy, as follows:

 I would like to thank you all for looking at any options for a transfer to a Linfox site in Perth but I cannot plan a trip over to W.A. by road while surviving on a weekly wage (holiday pay) and the chance of any financial support I requested for fuel. I also believe it is asking for more than what any employee could expect from an employer. I truly appreciate your efforts on my behalf.

 I am certain I want to take this trip over to Perth to start my life over fresh after my recent break up with Catherine over the last weekend. Although it seems like a rushed decision to do this I have somewhat seen this coming from Catherine and I have been contemplating what I would do if this happened. I see this time of my life as an opportunity to travel around parts of Australia that I have never seen and this has always been a dream of mine to do so.

 Today I am giving you 2 weeks’ notice of my resignation from Linfox Virginia DC of which my last day will be Monday 14/11/2016.”

  1. [4]
    After serving his two week notice period, Mr Scheidel ceased working for the respondent on 14 November 2016. Mr Kishore and Mr Hardy attested in their affidavits that at no time did Mr Scheidel advise them of any illness he felt he may have been suffering. Each stated that he did not notice any abnormal behaviour from Mr Scheidel.
  2. [5]
    On 28 November 2016, Mr Scheidel contacted a workplace relations officer at Linfox, Mr Blake Byrne, to request a pay out of his long service leave entitlements.  On behalf of Linfox, it was decided that  Mr Scheidel was not entitled to such a payment because he had not resigned on account of illness or incapacity, or due to a domestic or other pressing necessity. Mr Scheidel was advised on 29 November 2017 that the respondent would not make any payment to him.
  3. [6]
    On 30 November 2016, Mr Scheidel attended Coffs Harbour Health Campus and was provided with a medical certificate. The certificate declared Mr Scheidel to be suffering from “severe psychological distress secondary to relationship breakdown and workplace dispute” and that he was unfit to resume work “30/11/16 – 21/11/16”. The certificate provided no further detail.
  4. [7]
    Mr Scheidel was then assessed by Dr Eric De Leacy, a consultant psychiatrist and pathologist, on 23 March 2017. Dr De Leacy concluded in his report of 30 March 2017:

“This is the case of a man who has deteriorated psychiatrically through failed relationships which has brought on a condition of mixed anxiety and depression. He resigned in relation to his altered mood state. He found it hard to make decisions at this time and was quite perplexed. He did not know what to do. He did not understand the necessity to seek mental health care until it was too late.

 

 Mr Scheidel resigned from his position at a time when he was suffering a mental illness and was not thinking clearly. He was incapacitated. If he had not been suffering a mental illness he would have had other options that he could have considered such as taking leave or discussing the problems with his employer but he was too confused to do this.

 In short his resignation occurred in the setting of him having a mental illness and this is the reason he resigned.”

  1. [8]
    The Transport Workers’ Union (TWUQ), on Mr Scheidel’s behalf, commenced a proceeding in the Commission seeking the payment of Mr Scheidel’s long service leave. In the hearing before the Commission, Dr De Leacy conceded that other stressors, such as financial difficulties or the loss of a beloved motor vehicle, could contribute to the onset of a mental illness. It was acknowledged in Dr De Leacy’s report that Mr Scheidel had had his car repossessed, been declared bankrupt and been unemployed since leaving his position at Linfox.
  2. [9]
    On 4 August 2017, the Commission refused the TWUQ’s application.[1] The TWUQ appeals the decision of the Deputy President.

Legislation

  1. [10]
    Section 43 of the Industrial Relations Act 1999 (the Act) defines the conditions under which an employee is entitled to long service leave:

43 Entitlement

  1. (1)
    This section applies to all employees, other than seasonal employees.
  1. (2)
    An employee is entitled to long service leave on full pay of—
  1. (a)
    for the first 10 years continuous service—8.6667 weeks; and
  1. (b)
    if the employee has completed at least a further 5 years continuous service—another period that bears to 8.6667 weeks the proportion that the employee’s further period of continuous service bears to 10 years.
  1. (3)
    An employee who has completed at least 7 years continuous service is entitled to a proportionate payment for long service leave on the termination of the employee’s service.
  1. (4)
    However, if the employee’s service is terminated before the employee has completed 10 years continuous service, the employee is entitled to a proportionate payment only if—
  1. (a)
    the employee’s service is terminated because of the employee’s death; or
  1. (b)
    the employee terminates the service because of—

(i) the employee’s illness or incapacity; or

(ii) a domestic or other pressing necessity; …”

  1. [11]
    This case concerns Mr Scheidel’s entitlement under s 43(4)(b)(i) and whether he terminated his employment with the respondent ‘because of’ a mental illness.

Grounds 1(a), 1(b)(vi), 1(b)(vii) and 1(c): Whether Mr Scheidel resigned ‘because of’ an illness

  1. [12]
    The appellant pursued a number of grounds of appeal that ultimately amounted to a submission that the Deputy President erred in his construction of s 43(4)(b)(i). In his reasons, the Deputy President said:

“[38] However, the expression ‘because of’, in its everyday usage, can have two separate and distinct meanings. Firstly, as noted by Swan DP, Fisher C and Asbury C (above), the expression can be followed by the reason why a particular action was taken. Secondly, the expression can be followed by an explanation of why a particular action was taken. Sometimes the reason advanced by an employee as to why they resigned their employment might also coincide with the explanation for their resignation. However, this is not such a case.

[39] As noted by Neate C in eBet at [106], there is a legal distinction between having an illness and resigning because of it. It is necessary to determine what motivated the employee to resign their employment.

[40] If, as clearly seems to be the case, Mr Scheidel resigned his employment to ‘move on’ after his relationship breakdown, then that was the motivation for his resignation and not his undiagnosed medical condition. He did not resign because of his mental health or because he had a mental health issue. He was unaware that he had any issue until more than four weeks after he resigned his employment. His mental health issues might help explain his decision to resign, but that is not the test.” (emphasis original)

  1. [13]
    On the Deputy President’s interpretation, an employee’s entitlement will only arise where they have become aware of their illness or incapacity, and then terminate their employment on that basis. The applicant argues that the Deputy President:
  1. applied the wrong test of causation;
  2. erred in reading in a requirement of knowledge of the mental illness; and
  3. erred in finding that the illness must be the singular cause of the termination.
  1. [14]
    The question that necessarily arises is whether the phrase ‘because of’ in s 43(4)(b) refers to an employee’s subjective belief about the reason for the termination of their employment or whether it refers to the actual cause. This demands an analysis of the section itself.
  2. [15]
    Under s 43(4)(b)(i), an employee is entitled to receive a payment in lieu of receiving long service leave if they resign ‘because of’ an illness or incapacity. This implies a causal relationship between the illness or incapacity and the termination. In Trust Company of Australia Ltd v Commissioner of State Revenue,[2] Hansen J said of the same phrase, albeit in a notably different statutory context:

“[40] … The Concise Oxford Dictionary, 10th ed, (1999), defines ‘because of’ as meaning ‘by reason of’. So defined, the expression ‘because of’ is reduced to its bare bones, so to speak. To seek to clarify the expression by language of my own would involve the risk of placing a judicial gloss or qualification on the expression. Further, to go beyond this definition with further definition would be to go around in circles or at least, hopefully, in a circle that would return one to the beginning, but also with the risk I have mentioned. I merely observe that ‘because of’ is an expression of causation; if event Y occurred ‘because of’ event X, it follows that event X caused event Y.”

  1. [16]
    In considering the phrase ‘because of’ under the Sex Discrimination Act 1984, Allsop J in Thomson v Orica Australia Pty Ltd[3] said:

“[157] I was taken to decisions of the highest authority in Australia and the United Kingdom about the words ‘on the ground of’, ‘by reason of’ and cognate expressions. I do not think it necessary to deal with all of these cases. It is essential to attend to the words of the statute.

[159] Lockhart J in Mt Isa Mines, supra at 321 to 326 examined the operation of the SD Act and the phrase ‘by reason of’ in the light of all these cases, with the exception of IW v City of Perth, supra. His Honour said at 321-22:

In my opinion the phrase ‘by reason of’ in s 5(1) of the SD Act should be interpreted as meaning ‘because of’, ‘due to’, ‘based on’ or words of similar import which bring something about or cause it to occur. The phrase implies a relationship of cause and effect between the sex (or characteristic of the kind mentioned in s 5(1)(b) or s 5(1)(c)) of the aggrieved person and the less favourable treatment by the discriminator of that person.

[161] Lockhart J then expressed the view that this divergence of opposite views perhaps obscured the proper inquiry dictated by the words of the statute. His Honour was of the view that motive or intention, whilst not necessary, may be relevant, if present, to the resolution of the statutory task of answering the factual question as to whether there is a relationship of cause and effect between the sex or pregnancy or characteristic in para(a), para(b) or para(c) of subs 5(1) and subs 7(1) and the comparatively less favourable treatment. If I may respectfully say so, I agree with that proposition and with his Honour's lucidly expressed reasons at 321 to 326.” (emphasis added)

  1. [17]
    What an employee might say to their employer, or even believe themselves, may be relevant to a question of causation. However, the extent of their relevance will depend upon the proper construction of the statute. In relation to s 43(4)(b)(i), they do not determine it. An employee’s motivation or statements to their employer cannot be determinative of their entitlement under s 43(4)(b)(i) because they alone cannot prove the cause of the employee’s termination.
  2. [18]
    If an employee resigns due to illness, but tells their employer they have done so to find a new line of work, the cause of the termination is the illness. Similarly, where an employee claims to have been suffering an illness, but is found to be healthy, that employee has not terminated their employment because of an illness. They may honestly believe that illness was the reason for their termination, but that will not render them eligible under the Act.
  3. [19]
    In the Deputy President’s reasons, his Honour noted, “[Mr Scheidel] was unaware that he had any issue until more than four weeks after he resigned his employment.”[4] This raises the issue of knowledge. The section does not demand knowledge on the part of an employee; it simply requires that illness or incapacity result in the employee’s termination. By way of example, an employee may unknowingly be suffering an illness that causes them to struggle with manual work. The employee may then resign, believing that he or she has grown too old for manual work. Despite the fact that the employee has only later become aware of the illness, the employee has nevertheless resigned ‘because of’ that illness. The Deputy President has read into the section an additional requirement that the termination must be made in the knowledge of their illness. This is an unnecessary gloss that does not reflect the words of the Act.
  4. [20]
    The respondent submits that the Deputy President’s interpretation must be accepted. To hold otherwise would mean employers cannot know when liability to pay out long service leave will arise. It therefore argues that in the absence of an illness being put forth by the employee at the time of termination, the employee has no entitlement to a pro-rata payment for long service leave. The submission, in effect, is that the interpretation of s 43(4)(b)(i) I have set out above amounts to an absurdity.
  5. [21]
    It is conceivable that an employee may wait a considerable period before making their claim. Indeed, the appellant suggested that this could be up to six years, in accordance with the Limitations of Actions Act 1974. The sizeable administrative burden this might place on an employer, such as the maintenance of employee records and the setting aside of funds with respect to every employee who has resigned after having served between seven and ten years pending the expiry of their limitation period, suggest that the above interpretation of s 43(4)(b)(i) may undermine the purpose of the Act.
  6. [22]
    A court must interpret a statute so as to give effect to its purpose.[5] In Project Blue Sky Inc v Australian Broadcasting Authority,[6] McHugh, Gummow, Kirby and Hayne JJ said:

“[69] The primary object of statutory construction is to construe the relevant provision so that it is consistent with the language and purpose of all the provisions of the statute. The meaning of the provision must be determined ‘by reference to the language of the instrument viewed as a whole’. In Commissioner for Railways (NSW) v Agalianos, Dixon CJ pointed out that ‘the context, the general purpose and policy of a provision and its consistency and fairness are surer guides to its meaning than the logic with which it is constructed’. Thus, the process of construction must always begin by examining the context of the provision that is being construed.”

  1. [23]
    Their Honours then added:

“[78] However, the duty of a court is to give the words of a statutory provision the meaning that the legislature is taken to have intended them to have. Ordinarily, that meaning (the legal meaning) will correspond with the grammatical meaning of the provision. But not always. The context of the words, the consequences of a literal or grammatical construction, the purpose of the statute or the canons of construction may require the words of a legislative provision to be read in a way that does not correspond with the literal or grammatical meaning. In Statutory Interpretation, Mr Francis Bennion points out:

‘The distinction between literal and legal meaning lies at the heart of the problem of statutory interpretation. An enactment consists of a verbal formula. Unless defectively worded, this has a grammatical meaning in itself. The unwary reader of this formula (particularly if not a lawyer) may mistakenly conclude that the grammatical meaning is all that is of concern. If that were right, there would be little need for books on statutory interpretation. Indeed, so far as concerns law embodied in statute, there would scarcely be a need for law books of any kind. Unhappily this state of being able to rely on grammatical meaning does not prevail in the realm of statute law; nor is it likely to. In some cases the grammatical meaning, when applied to the facts of the instant case, is ambiguous. Furthermore there needs to be brought to the grammatical meaning of an enactment due consideration of the relevant matters drawn from the context (using that term in its widest sense). Consideration of the enactment in its context may raise factors that pull in different ways. For example the desirability of applying the clear literal meaning may conflict with the fact that this does not remedy the mischief that parliament intended to deal with [footnotes omitted].’”[7]

  1. [24]
    When interpreting a statute, the court should attempt to avoid absurdities. In Footscray City College v Ruzicka,[8] Chernov JA (with whom Warren CJ and Maxwell P agreed) said:

“[16] Next, given the circumstances, to construe the legislation as the respondent proposes, namely, that subs (2A) is to be read as covering all s 98/98A applications such that the concluding words preclude the court from awarding costs against the unsuccessful claimant, would be to disregard the legislative policy referred to earlier and would produce incongruous and manifestly absurd results that could not have been intended by Parliament. A court strains not to construe legislation to produce such an effect. Over 150 years ago Lord Wensleydale referred in Grey v Pearson to what became known as “the golden rule”:

… I have been long and deeply impressed with the wisdom of the rule, now, I believe, universally adopted, at least in the Court of Law in Westminster Hall, that in construing wills and indeed statutes, and all written instruments, the grammatical and ordinary sense of the words is to be adhered to, unless that would lead to some absurdity, or some repugnance or inconsistency with the rest of the instrument, in which case the grammatical and ordinary sense of the words may be modified, so as to avoid that absurdity and inconsistency, but no farther.

It is the case, as Pearce and Geddes point out in Statutory Interpretation in Australia, that ‘the golden rule contemplated that a mistake had been made in the wording of the Act’. But the rule is also otherwise applied to avoid construing legislation so as to produce patently unintended or absurd results.”

  1. [25]
    In light of the abovementioned principles of interpretation, it might be argued that it was beyond the intention of Parliament for such an interpretation of s 43(4)(b)(i) to be adopted. The uncertainty and administrative burden imposed on employers could be said to be contrary to the purposes of social justice for employers and the effective and efficient operation of enterprises and industries provided for in s 3 of the Act.
  2. [26]
    Nevertheless, to construe the Act so as to deny an employer’s liability under s 43(4)(b)(i) where an employee has not stated that illness is the reason for the termination may also lead to absurd results. Taking the example at [19] above, it would seem unjust to deny an employee’s claim simply because they had been unaware of their illness. Given the potential for unjustness on both interpretations, the simplest reading of the section should be favoured. It would be to usurp the role of this court to strain the language of s 43(4)(b)(i) so as to read in a requirement of knowledge and disclosure of the illness.
  3. [27]
    It is helpful to refer to a similar situation that in arose in New South Wales in the case of Johnson & Johnson Pty Ltd v Amalgamated Metals Workers Union.[9] That case concerned an employee who had resigned from his position as a tradesman fitter and turner to take up employment with his trade union. In resigning, the only reason he provided to his employer was that he had found “another job”. When he subsequently demanded the pro-rated payment of his long service leave on account of a back injury, his employer denied its liability. His employer claimed that his illness was simply a later rationalisation of his decision to leave his position.
  4. [28]
    The relevant legislation in that case provided:

“In the case of a worker who has completed with an employer at least 5 years service as an adult, and whose services are terminated by the employer for any reason other than the worker’s serious and wilful misconduct, or by the worker on account of illness, incapacity or domestic or other pressing necessity or by reason of the death of the worker, be a proportionate amount on the basis of three months for fifteen years service (such service to include service with the employer as an adult and otherwise than as an adult).”

  1. [29]
    At first instance, the Commission determined that the back injury was genuine and consequently, the employee was entitled to payment of his long service leave. The Commission’s decision was affirmed on appeal. Watson J held that despite the worker’s “duplicity in failing to state also the reason now claimed on the form completed by him” that was “misleading [to] both his present and any future employer”,[10] the employee was still entitled to claim payment for his long service leave because he had provided sufficient evidence to demonstrate that the back injury was a genuine reason for the termination of his employment. The fact that he had not disclosed this to his employer at the time of termination was not detrimental to his application.
  2. [30]
    Watson J found that the employee’s desire to work for his union was a “motivating factor for the worker leaving his employment with the appellant when he did”, which was “of no less importance than his back injury”.[11] His Honour nevertheless held that if the employee had a genuine reason for termination that fell within the scope of the section, it was irrelevant when the evidence for that reason was presented to the employer or that another motivation for termination existed. The legislation considered in that case is not, of course, the same. But it is sufficiently similar to assist, by way of analogy, in the construction of the subject legislation.
  3. [31]
    Having considered the words of the section, the issues of interpretation relating to absurdity and the above case, I conclude that the proper construction of the statute is that there is no necessary requirement that an employee know of or disclose an illness or incapacity at the time of termination. All that must be shown is that an illness or incapacity caused the employee to resign. Consequently, the Deputy President erred in his  construction of s 43(4)(b)(i).
  4. [32]
    Addressing the appellant’s contention that the Deputy President erred in finding that the illness must necessitate the employee’s resignation, the appellant has misunderstood the Deputy President’s reasons. His Honour stated that there must be a causal relationship shown between the illness and the termination, not that the illness be the sole cause. This particular ground has no basis.
  5. [33]
    Nevertheless, as I have found that the Deputy President erred in his Honour’s application of s 43(4)(b)(i), the appeal must be allowed. Section 558 of the Industrial Relations Act 2016 provides that upon hearing an appeal, the court may do the following:

558 What court may do

(1)On an appeal under section 556 or 557, the court may—

  1. (a)
    dismiss the appeal; or
  1. (b)
    allow the appeal, set aside the decision and substitute another decision; or
  1. (c)
    allow the appeal and amend the decision; or
  1. (d)
    allow the appeal, suspend the operation of the decision and remit the matter, with or without directions, to the commission or an Industrial Magistrates Court to act according to law.”
  1. [34]
    In this case, it is appropriate that I exercise the power to allow the appeal, set aside the decision of the Deputy President and substitute my own. I turn now to consider the evidence before the Commission.
  2. [35]
    The evidence of Dr De Leacy is unconvincing. While it must be accepted that at the time of diagnosis Mr Scheidel was suffering an illness, it does not follow from the doctor’s evidence that Mr Scheidel in fact terminated his employment because of that illness. Dr De Leacy conceded that a number of stressors could have influenced Mr Scheidel’s mental health between the termination and the diagnosis. This casts doubt as to the actual cause of Mr Scheidel’s illness and the timing of its onset.
  3. [36]
    The medical certificate of 30 November 2016 is also unconvincing. It states that Mr Scheidel was suffering severe anxiety and depression, but this diagnosis was 29 days after he had ceased his employment. The causes of this illness were said to be his relationship breakdown and his ‘workplace dispute’. This single sentence opinion can hardly be accepted as convincing evidence Mr Scheidel terminated his employment on the basis of an illness. Indeed, the psychological distress may have arisen after he had already resigned. This is arguably supported by the fact that the ‘workplace dispute’ most likely refers to Mr Scheidel’s communications with the respondent regarding his entitlement to the claimed payment for long service leave, all of which occurred after he had resigned. The certificate is therefore equivocal as to the onset of Mr Scheidel’s illness and cannot be accepted as evidence of Mr Scheidel’s entitlement.
  4. [37]
    It follows that there is no evidence to demonstrate that at any point before the termination of his employment Mr Scheidel was suffering a mental illness. Although it is not necessary that Mr Scheidel know of or disclose that illness as the reason for his termination prior to that termination, there must be evidence to prove that the illness is in fact the true cause of the termination. None was presented. As such, Mr Scheidel’s claim must be refused.

Grounds 1(b)(i) and 1(b)(v): Whether the Deputy President erred in rejecting the evidence of Dr De Leacy

  1. [38]
    The appellant contends that the Deputy President erred on two bases in rejecting the evidence of Dr De Leacy. Firstly, the appellant argues that the Deputy President was wrong to conclude that the diagnosis was not relevant to Mr Scheidel’s condition and that Dr De Leacy had conceded various other stressors had contributed to Mr Scheidel’s condition. Secondly, the appellant says the Deputy President erred in finding that there was no evidence supporting that Mr Scheidel resigned because of a mental illness.
  2. [39]
    The appellant has characterised the stressors listed by the Deputy President at [42] as “hypothetical triggers”. With respect, this misconstrues the evidence. It was in the report of Dr De Leacy that Mr Scheidel had in fact had his car repossessed, been bankrupted and been unemployed after leaving his employment with the respondent. In cross-examination, it was put to Dr De Leacy that these factors could contribute to a mental illness. The respondent cross-examined Dr De Leacy in the context of his report. To state that there was no evidence that these stressors could have contributed to Mr Scheidel’s condition is incorrect.
  3. [40]
    Given that Dr De Leacy had conceded that such stressors could have contributed to Mr Scheidel’s mental illness, there was, consequently, no medical evidence that demonstrated, on balance, that Mr Scheidel had resigned because of a mental illness. The only other medical evidence, the medical certificate of 30 November 2016, did not support a finding in favour of Mr Scheidel. Further, as Dr De Leacy’s report could not assist in determining the cause of Mr Scheidel’s termination, it was not relevant.
  4. [41]
    The findings made by the Deputy President were open on the facts. No error is shown.

Ground 1(b)(iv): Whether the Deputy President failed to provide any or adequate reasons in rejecting the evidence of Dr De Leacy

  1. [42]
    The appellant argues that the Deputy President failed to give adequate reasons for rejecting the medical evidence of Dr De Leacy.
  2. [43]
    It is an error of law to provide inadequate reasons for a decision.[12] As I explained in Blackwood v Mana:[13]

“[7] The extent to which reasons are necessary and the level of adequacy required will depend upon the circumstances of each case. What will be sufficient in one case may not be sufficient in another. The extent to which reasons are required was considered by Muir JA in Drew v Makita (Australia) Pty Ltd where he said:

“[58] The rationale for the requirement that courts give reasons for their decisions provides some guidance as to the extent of the reasons required. The requirement has been explained, variously, as necessary: to avoid leaving the losing party with ‘a justifiable sense of grievance’ through not knowing or understanding why that party lost; to facilitate or not frustrate a right of appeal; as an attribute or incident of the judicial process; to afford natural justice or procedural fairness; to provide ‘the foundation for the acceptability of the decision by the parties and the public’ and to further ‘judicial accountability’.

[59] The extent to which a trial judge must expose his or her reasoning for the conclusions reached will depend on the nature of the issues for determination and ‘the function to be served by the giving of reasons.’ For that reason, what is required has been expressed in a variety of ways. For example, in Soulemezis v Dudley (Holdings) Pty Ltd, Mahoney JA said:

‘… And, in my opinion, it will ordinarily be sufficient if – to adapt the formula used in a different part of the law … by his reasons the judge apprises the parties of the broad outline and constituent facts of the reasoning on which he has acted.’”

  1. [44]
    In his reasons, the Deputy President said:

“[41] Importantly, in terms of the provisions at s 43(4)(b)(i) of the Act, there is no medical evidence to support any contention that Mr Scheidel was unable to continue in his employment because of his illness or incapacity. In fact, much of the evidence points in the other direction. Immediately prior to his resignation he was exploring options to transfer to a Linfox operation in Western Australia. When he did seek medical attention on 30 November 2016 his stressors were identified as "relationship breakdown and workplace dispute" and the medical certificate he was issued appears to cover a period of only a few days. Further, all of his Facebook posts around that time portrayed him as having a positive state of mind.

[42] That Dr De Leacy might have diagnosed Mr Scheidel as having an Adjustment Disorder with Mixed Anxiety and Depressed Mood on 23 March 2017 is not relevant to his situation in November 2016. By March 2017, Mr Scheidel was unemployed and had run out of money; he was living with a friend; his car had been repossessed; and he had been declared bankrupt. All these events, as conceded by Dr De Leacy in his cross-examination, could have contributed to the state of Mr Scheidel's mental health at the date of the diagnosis.” (emphasis added)

  1. [45]
    It is plain from the above that the Deputy President did provide reasons for his rejection of Dr De Leacy’s evidence. Although Dr De Leacy’s evidence supports a finding that Mr Scheidel was suffering a mental illness at the time of diagnosis, the Deputy President found that other events and stressors occurring between the time of termination and the time of diagnosis may also have contributed to this diagnosis. Neither the doctor’s report nor his oral evidence supported a finding that Mr Scheidel was suffering from a mental illness that caused him to terminate his employment. The Deputy President consequently found that the evidence did not, on balance, support a finding of entitlement under s 43(4)(b)(i). So much is clear from the Deputy President’s reasons.
  2. [46]
    This ground must fail.

Orders

  1. [47]
    I make the following orders:
    1. The appeal is allowed.
    2. The decision of the Deputy President is set aside.
    3. The claim for a pro-rated payment of Mr Scheidel’s long service leave is dismissed.

Footnotes

[1]  [2017] QIRC 074.

[2]  (2006) 15 VR 1, 20.

[3]  (2002) 116 IR 186, 226-228.

[4]  At [40].

[5] Acts Interpretation Act 1954 s 14A.

[6]  (1998) 194 CLR 355 at 381-382.

[7]  At 384.

[8]  (2007) 16 VR 498 at 504-505.

[9]  (1987) 21 IR 457.

[10]  At 471.

[11]  At 469.

[12] Abbott v Blackwood [2014] ICQ 031 at [16]-[18]. See also Pollard v RRR Corporation Pty Ltd [2009] NSWCA 110.

[13]  [2014] ICQ 027.

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Editorial Notes

  • Published Case Name:

    Transport Workers' Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd

  • Shortened Case Name:

    Transport Workers' Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd

  • MNC:

    [2018] ICQ 1

  • Court:

    ICQ

  • Judge(s):

    Martin P

  • Date:

    09 Feb 2018

Appeal Status

Please note, appeal data is presently unavailable for this judgment. This judgment may have been the subject of an appeal.

Cases Cited

Case NameFull CitationFrequency
Abbott v Blackwood [2014] ICQ 31
2 citations
Blackwood v Mana [2014] ICQ 27
2 citations
Foorscray City College v Ruzicka (2007) 16 VR 498
2 citations
Johnson & Johnson Pty Ltd v Amalgamated Metals Workers Union (1987) 21 IR 457
4 citations
Pollard v RRR Corporation Pty Ltd [2009] NSWCA 110
2 citations
Project Blue Sky v Australian Broadcasting Authority (1998) 194 C.L.R 355
3 citations
Thompson v Orica Australia Pty Ltd (2002) 116 IR 186
2 citations
Transport Workers' Union of Australia, Union of Employees (Queensland Branch) v Linfox Australia Pty Ltd [2017] QIRC 74
2 citations
Trust Company of Australia Ltd v Commissioner of State Revenue (2006) 5 VR 1
2 citations

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Hoveydai v Nixon Pacific Pty Ltd [2024] QIRC 1482 citations
McPhail v Brezac Constructions Pty Ltd [2020] QIRC 542 citations
Sambo v The Trustee for Dotti Family Trust [2020] QIRC 821 citation
Simmons v Uniting Church in Australia Property Trust (Q.) represented by UnitingCare Health [2021] QIRC 2423 citations
1

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