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- Newman v State of Queensland (Queensland Health)[2021] QIRC 218
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Newman v State of Queensland (Queensland Health)[2021] QIRC 218
Newman v State of Queensland (Queensland Health)[2021] QIRC 218
QUEENSLAND INDUSTRIAL RELATIONS COMMISSION
CITATION: | Newman v State of Queensland (Queensland Health) [2021] QIRC 218 |
PARTIES: | Newman, Scott (Appellant) v State of Queensland (Queensland Health) (Respondent) |
CASE NO: | PSA/2020/442 |
PROCEEDING: | Public Service Appeal – Conversion Decision |
DELIVERED ON: | 16 June 2021 |
MEMBER: HEARD AT: | Hartigan IC On the papers |
ORDER: |
|
CATCHWORDS: | INDUSTRIAL LAW – PUBLIC SERVICE APPEAL – conversion decision – where Appellant applied to convert from casual to permanent status – where Appellant was reviewed under s 149C of the Public Service Act 2008 (Qld) – where the Respondent did not rely on material facts and information – consideration of genuine operational requirements |
LEGISLATION: | Directive 08/20 – Casual Employment, cl 5.2, cl 6.1, cl 7, cl 8 Financial Accountability Act 2009 (Qld), s 61 Financial Accountability Regulation 2019 Financial and Performance Management Standard 2019, s 11 Hospital and Health Boards Act 2011 (Qld), s 19(2) Industrial Relations Act 2016 (Qld), s 562B Public Service Act 2008 (Qld), s 25, s 98, s 147, s 148A, s 149B, s 149C, s 197 Public Service and Other Legislation Amendment Act 2020 (Qld) Queensland Public Health Sector Certified Agreement (No. 10) 2019, s 5.2 |
CASES: | Brandy v Human Rights and equal Opportunity Commission [1995] HCA 10; (1995) 183 CLR 245 Goodall v State of Queensland (Unreported decision of the Supreme Court of Queensland, Dalton J, 10 October 2018) |
Reasons for Decision
Introduction
- [1]The appellant, Mr Scott Newman, filed an appeal notice in the Industrial Registry on 23 December 2020. The appeal notice identifies that the decision appealed against is a conversion decision made under ss 149B or 149C of the Public Service Act 2008 (Qld) ("PS Act").
- [2]Mr Newman is currently substantively employed as a casual (OO2-O2) Operational Services Officer (Wardsperson) at the Hervey Bay Hospital.
- [3]On 12 October 2020, Mr Newman, by his union, requested the State of Queensland (Queensland Health) ("Queensland Health"), to permanently convert his employment from casual employment to permanent employment.
- [4]On 9 December 2020, Debbie Carroll, Chief Executive, of the Wide Bay Hospital and Health Service, advised Mr Newman that he would not be converted to permanent employment and will continue as a casual employee ("the decision").
- [5]Mr Newman appeals that decision.
- [6]Queensland Health contends that it made the decision based on the genuine operational requirements of the Wide Bay Hospital and Health Service whilst Mr Newman contends that the decision does not provide any information or material facts to support the decision.
- [7]The appeal is made pursuant to s 197 of the PS Act (Qld), which provides that an appeal under Ch. 7, Pt. 1 of the PS Act is to be heard and determined under Ch. 11 of the Industrial Relations Act 2016 (Qld) ("IR Act") by the Queensland Industrial Relations Commission.
- [8]Sections 562B(2) and (3) of the IR Act, which commended operation on 14 September 2020, replicates the now repealed ss 201(1) and (2) of the PS Act.[1] Section 562B(3) of the IR Act provides that the purpose of an appeal is to decide whether the decision appealed against was fair or reasonable. Accordingly, the issue for my determination in this appeal is whether the decision is fair and reasonable.
- [9]As an IRC Member, I must decide the appeal by reviewing the decision appealed against. The word "review" has no settled meaning and, accordingly, it must take its meaning from the context in which it appears.[2] An appeal under Ch. 7, Pt. 1 of the PS Act is not by way of re-hearing[3] but, rather, involves a review of the decision arrived at and the decision making process associated with it.[4]
- [10]For the reasons contained herein, I have found that the decision was fair and reasonable.
The decision
- [11]The decision was in the following relevant terms:
…
Conversion review decision
In accordance with the Directive, a review of your employment has been undertaken to assess whether you are eligible for conversion to permanent employment.
I wish to advise that I have completed a review of your employment status, including your periods of temporary employment, and for the reasons outlined below, I have decided not to convert your employment status to permanent under this Directive. Accordingly, at this time you will remain as a casual employee with the Wide Bay Hospital and Health Services (WBHHS).
In reviewing the circumstances relevant to your employment, I have carefully considered all the information available to me, however all the information may not be specifically mentioned in my decision.
The following factors must be considered when deciding whether to convert a casual employee to permanent employment.
Continuing need
In accordance with section 5.2 of the Directive, use of tenured or fixed term temporary employment is generally not viable or appropriate where there is a need for short term employment, or to meet unpredictable, irregular or variable demand or in emergent situations, and causal employment may appropriately be used to meet these staffing needs. Examples of these types of circumstances include:
- backfilling tenured or fixed term temporary staff on short-term emergent leave
- covering short gaps in work rosters of tenured and fixed term temporary employees
- in a role where work patterns or work demand is variable and difficult to predict, with each engagement standing alone
- where needed to work irregular, informal, flexible, occasional or non-rostered hours.
In reviewing the circumstances relevant to your employment, I have established that you have been engaged in accordance with the circumstances outlined in 5.2 of the Directive.
You are currently employed as a casual operational services officer (Wardsperson), classification OO2, in position number 30468502. The nature of your engagements includes the requirement to be available for ad hoc casual call in shifts, and when required, you are engaged on a fixed term temporary higher duties contracts, to backfill the leave of substantive employees in position number 32028999, which is as Wardsperson Fire Safety & Security Officer, classification OO3.
I have reviewed your employment having regard to the Queensland Public Health Sector Certified Agreement (No.10) 2019 (the Certified Agreement), section 5.2, Process to Address Absences within Operational Services. Section 5.2.1 states:
"All absences (planned and unplanned) within Operational Services will be backfilled. The options to backfill include but are not limited to:
- (a)Offering additional ordinary hours to Part-Time employees,
- (b)Offering additional work to Casual employees,
- (c)The application of Relief Pool staff,
- (d)The use of Overtime,
- (e)Utilisation of temporary engagement (e.g. extended period of absence)."
Further, section 5.3 of the Directive states that employment on tenure may be viable or appropriate if a person is required to be employed for a purpose mentioned in clause 5.2, such as covering gaps in various work rosters, on a regular and systematic basis.
In reviewing the circumstances relevant to your employment, I have established that it is likely there will be a continuing need to engage you in accordance with the circumstances as outlined in 5.2 of the Directive to enable to WBHHS to fulfil its requirements in regard to the Certified Agreement.
Merit
I am satisfied that you meet the merit requirements for the role having regard to the merit principle, and this would not prevent the conversion of your employment.
Genuine Operational Requirements
Section 8.2 of the Directive provides that where the above criteria are met, the chief executive must decide to offer to convert the person's employment to permanent employment as a general employee on tenure or a public service officer unless it is not viable or appropriate having regard to the genuine operational requirements of the agency.
As Chief Executive, I am required to manage and resource the full time equivalent (FTE) establishment taking into account workforce planning considerations, the operational needs of the service and ensuring financial suitability as outlined within section 98 of the Public Service Act 2009, and within the current Service Delivery Agreement for Wide Bay Hospital and Health Service.
Notwithstanding there are currently no budgeted vacancies within the area in which you are engaged, I have determined that there is likely to be a continuing need for you to be engaged in accordance with the circumstances as outlined in 5.2 of the Directive; specifically that the nature of your engagement is required where the service operates in a regional area and in a twenty-four hour, seven day per week service where flexibility in the type of engagement is required to enable the WBHHS to fulfill its requirement outlined in the Certified Agreement.
It is neither viable nor appropriate in this case to convert to permanent.
I therefore find that there is a genuine operational requirement of this agency not to convert your employment to permanent at this time.
…
Relevant provisions of the PS Act and Directive 08/20 – Casual employment
- [12]In determining this appeal, I have had regard to relevant provisions of the PS Act and Directive 08/20 including those provisions which I set out below.
- [13]Section 149B of the PS Act relevantly provides as follows:
149B Review of status after 2 years continuous employment
- (1)This section applies in relation to a person who is a fixed term temporary employee or casual employee if the person has been continuously employed in the same department for 2 years or more.
- (2)However, this section does not apply to a non-industrial instrument employee.
- (3)The department’s chief executive must decide whether to—
- (a)continue the person’s employment according to the terms of the person’s existing employment; or
- (b)offer to convert the person’s employment basis to employment as a general employee on tenure or a public service officer.
- (4)The department’s chief executive must make the decision within the required period after—
- (a)the end of 2 years after the employee has been continuously employed as a fixed term temporary employee or casual employee in the department; and
- (b)each 1-year period after the end of the period mentioned in paragraph (a) during which the employee is continuously employed as a fixed term temporary employee or casual employee in the department.
- (5)In making the decision—
- (a)section 149A (2) and (3) applies to the department’s chief executive; and
- (b)the department’s chief executive must have regard to the reasons for each decision previously made, or taken to have been made, under this section or section 149A in relation to the person during the person’s period of continuous employment.
- (6)If the department’s chief executive decides not to offer to convert the person’s employment under subsection (3), the chief executive must give the employee a notice stating—
- (a)the reasons for the decision; and
- (b)the total period for which the person has been continuously employed in the department; and
- (c)for a fixed term temporary employee—how many times the person’s employment as a fixed term temporary employee or casual employee has been extended; and
- (d)each decision previously made, or taken to have been made, under this section or section 149A in relation to the person during the person’s period of continuous employment.
- (7)If the department’s chief executive does not make the decision within the required period, the chief executive is taken to have decided not to offer to convert the person’s employment and to continue the person’s employment as a fixed term temporary employee or casual employee according to the terms of the employee’s existing employment.
(7A) For working out how long the person has been continuously employed in the department—
- (a)all periods of authorised leave are to be included; and
- (b)the person is to be regarded as continuously employed even if there are periods during which the person is not employed in the department, if the periods of non-employment in the department total 12 weeks or less in the 2 years occurring immediately before the time when the duration of the person’s continuous employment is being worked out.
- (8)The commission chief executive must make a directive about making a decision under this section.
(8A) The directive must provide for—
- (a)the matters a department’s chief executive must consider in deciding the hours of work to be offered in converting a person’s employment under subsection (3) (b); and
- (b)the circumstances in which a person may appeal against the decision about the hours of work offered in converting the person’s employment.
- (9)In this section—
fixed term temporary employee includes a general employee employed under section 147 on a temporary basis for a fixed term.
required period, for making a decision under subsection (3), means—
- (a)the period stated in an industrial instrument within which the decision must be made; or
- (b)if paragraph (a) does not apply—28 days after the end of the period mentioned in subsection (4) (a) or (b).
- [14]Directive 08/20 came into effect on 25 September 2020. Directive 08/20 applies to Public Service employees employed on a casual basis under ss 147(2)(b) or 148A of the PS Act.
- [15]Directive 08/20 recognises that the PS Act provides that casual employment should only be used when tenured or fixed-term temporary employment is not viable or appropriate. Clause 6 of Directive 08/20 provides that a casual employee may request a review of their employment status after being continuously employed for one year.
- [16]Clause 6.1 is relevantly in the following terms:
6.1 Section 149 of the PS Act (Appendix C) provides that a casual employee who has been continuously employed for one year or more may request a review for conversion to permanent employment. An employee may only make one request in a 12-month period.
- [17]Clause 7 of Directive 08/20 provides that there is a requirement to review employment status of a casual employee after they have been continuously employed for two years. Clause 7 of Directive 08/20 relevantly provides as follows:
7. Requirement to review employment status of a casual employee after being continuously employed for two year
7.1 Section 149B of the PS Act (Appendix C) provides that an agency must review the employment status of a casual employee for conversion to employment as a general employee on tenure or a public service officer:
- (a)under section 149B(4)(a), at the end of two years after the employee has been continuously employed as a casual employee, and
- (b)under section 149B(4)(b), annually after the end of the initial two years during which the employee remains continuously employed.
7.2 For a review under section 149B, section 149B(7A) sets out the matters to be considered when working out how long the employee has been continuously employed in the agency.
7.3 Under section 149B(3), the chief executive must decide within 28 days whether to offer to convert the person’s employment basis to employment as a general employee on tenure or a public service officer, or continue the person’s employment according to the terms of the person’s existing employment.
7.4 Unless there are exceptional circumstances, when deciding the hours of work to be offered when converting an employee under section 149B(3)(b), the chief executive should offer hours of work no less than the greater of the following amounts:
- (a)the hours worked by the employee in the continuing role or a role that is substantially the same, in the week immediately before the chief executive’s decision, or
- (b)the average hours per week worked by the employee in the continuing role or a role that is substantially the same, over the last two years.
- [18]Clause 8 of Directive 08/20 provides that the chief executive must consider the following criteria when determining whether to offer permanent employment under ss 149A or 149B of the PS Act as follows:
8. Decision on review status
8.1 When deciding whether to offer permanent employment under section 149A or 149B, a chief executive must consider the criteria in section 149A(2):
- whether there is a continuing need for the employee to be employed in the role, or a role which is substantially the same
- the merit of the casual employee for the role having regard to the merit principle in section 27 of the PS Act
- whether any requirements of an industrial instrument are complied with in relation to the decision, and
- the reasons for each decision previously made, or deemed to have been made, under sections 149A or 149B in relation to the employee during their period of continuous employment.
8.2 Sections 149A(3) and 149B(5) of the PS Act provide that where the criteria above are met, the chief executive must decide, within 28 days, to offer to convert the person’s employment to permanent employment as a general employee on tenure or a public service officer unless it is not viable or appropriate having regard to the genuine operational requirements of the agency.
8.3 If the outcome is a decision to offer to convert the casual employee to employment as a general employee on tenure or a public service officer:
- (a)the written notification must include the terms and conditions of the offer to convert to permanent employment (e.g. full-time or part-time, days and hours of work, pay, location of the employment and any other changes to entitlements)
- (b)where the employee is part-time, an explanation of the days and hours of work offered in the decision, and
- (c)the chief executive cannot convert the casual employee unless they accept the terms and conditions of the offer to convert.
8.4 Notice of a decision not to convert a person’s employment must comply with section 149A(4) for applications under section 149 or149B(6) for reviews under section 149B. In accordance with section 27B of the Acts Interpretation Act 1954, the decision must:
- (a)set out the findings on material questions of fact, and
- (b)refer to the evidence or other material on which those findings were based
8.5 Sections 149A(5) and 149B(7) of the PS Act provide for a deemed decision not to convert where a decision is not made within the required timeframe.
8.6 Agencies are expected to consider each review as required by the PS Act and this directive and must not make an intentional decision to rely on a deemed decision referred to in clause 8.5.
8.7 Each agency must, upon request, give the Commission Chief Executive a report about the number of known deemed decisions.
8.8 A casual employee who is converted could be subject to a probationary period following conversion in accordance with section 126 of the PS Act. However, given that the casual employee has performed the required service with the agency, it would not be expected that agencies would apply probation other than in exceptional circumstances.
Was the decision fair and reasonable?
- [19]Mr Newman contends that the decision to continue his employment on a casual basis was not fair or reasonable because:
- (a)Queensland Health concedes that there is an ongoing need for the work that Mr Newman is doing, agrees that that Mr Newman meets the merit requirements to be converted, yet argued there is a genuine operational requirements for his employment not to be converted to permanent;
- (b)Mr Newman submits there are no operational requirements that should prevent his employment being converted from casual to permanent;
- (c)Queensland Health accepts that there would be an ongoing need for the work that Mr Newman undertakes;
- (d)That there are no budgeted vacancies within the area in which Mr Newman is engaged, there is no reason to not convert his employment to permanent; and
- (e)Mr Newman submits that he meets all of the criteria to have employment converted from casual to permanent consist with the directive.
Consideration of mandatory criteria
- [20]As noted above, the PS Act, together with clause 8.1 of Directive 08/20, requires the decision maker, when deciding whether to offer permanent employment pursuant to s 149B of the PS Act, to consider, inter alia, whether there is a continuing need for the employee to be employed in a role, or a role that is substantially the same.
- [21]As noted above in the extract of the decision, Queensland Health acknowledges that there is a continuing need for Mr Newman to be employed in the role. Accordingly, there is no dispute in relation to this consideration.
Consideration of the merit principle
- [22]Further, it is clear from the extract of the decision referred to above, that the decision maker did consider the merit principle when determining the decision. Relevantly, it was noted that Mr Newman does meet the merit requirements to be converted to the position.
- [23]Accordingly, the only matter that is outstanding and in dispute between the parties is whether there is a genuine operational requirement for Mr Newman's employment not to be converted to permanent.
Genuine operational requirement
- [24]Attached to Mr Newman's request for conversion of his employment made by his union on his behalf, was a copy of Mr Newman's employee job history. It identifies that Mr Newman commenced working as a Wardsperson in various capacities from 24 September 2018.
- [25]During that period of time, it appears that Mr Newman has been engaged to backfill various roles, to perform work in temporary established positions and to backfill vacant positions.
- [26]Queensland Health contends that over the last two years, Mr Newman has only been contracted to cover in roles where the incumbent position holder has been temporarily absent due to recreation leave, sick leave, QSuper, training, graduated return to work, WorkCover, temporary increases in demand or for short term vacant positions while positions underwent recruitment. It submits that Mr Newman has never been contracted to cover either a long term vacant or unfunded position. Queensland Health submits that in each case, the substantive incumbent has returned to their position and Mr Newman is no longer required.
- [27]Queensland Health submits that there is a legitimate and genuine need for the use of casual and temporary employees within the operational services unit of Hervey Bay Hospital. It submits that it is a workforce strategy utilised to ensure resourcing across a 24/7 roster allowing for the types of leave mentioned above.
- [28]Queensland Health submits by converting Mr Newman to permanent it will impact this workforce strategy by creating another permanent member of staff who will then require backfilling for any of the reasons above. It submits that this will mean that Queensland Health will not only have Mr Newman as a full-time employee over establishment, but also that it must engage another casual or temporary employee to backfill the ongoing leave of the newly converted Mr Newman. Queensland Health submits that these reasons are not trivial, nor are they managerial in convenience or simple difficulties.
- [29]Queensland Health submits for the purpose of determining whether the decision maker's reasons support a finding that there is a genuine operational requirement of the agency, and whether this aspect of the decision is fair and reasonable, it is relevant to understand the legislative framework within which such decisions are made as follows:
- (a)Queensland Public Health Sector Certified Agreement (No. 10) 2019 – which sets out in s 5.2 the "Process to Address Absences within Operational Services", which requires Queensland Health to backfill all absences with Operational Services and provides options to backfill which many include but are not limited to:
- offering additional ordinary hours to part-time employees;
- offering additional work to casual employees;
- the application of relief pool staff;
- the use of overtime; or
- the utilisation of temporary engagement.
Queensland Health submits that the nature of Mr Newman's engagement is consistent with the requirements for backfilling under the Certified Agreement, which recognises the use of casual and temporary employees as a legitimate workforce strategy for backfilling.
- (b)Financial Accountability Act 2009 (Qld) ("the FA Act") – which governs public sector financial administration in Queensland and sets out strategic obligations with which agencies must comply. Queensland Health refers to the subordinate legislation, consisting of the Financial and Performance Management Standard 2019 and the Financial Accountability Regulation 2019 which have the aim of establishing broad requirements within which agencies must operate to meet their obligations under the FA Act. Queensland Health submits that the financial management framework is underpinned by the concepts of "efficient", "effective", "economical" and "value for money". It submits that s 61 of the FA Act requires "the accountable officer or statutory body to achieve reasonable value for money by ensuring the operations of the department or statutory body are carried out efficiently, effectively and economically", and s 11 of the Financial and Performance Management Standard 2019 requires agencies to "establish and maintain management systems for efficiently, effectively and economically managing their financial resources."
- (c)Hospital and Health Boards Act 2011 (Qld) – section 19(2) of the Hospital and Health Boards Act 2011 (Qld) states that the relevant Hospital and Health Service has the following function to: "ensure the operations of the Service are carried out efficiently, effectively and economically" and "to manage the performance of the Service against the performance measures stated in the Service Agreement."
- (d)Public Service Act 2008 (Qld) – section 98 of the PS Act requires that chief executive manage their department in way that promotes the "effective, efficient and appropriate management of public resources" … "planning human resources, including ensuring the employment in the department of persons on a fixed term temporary or casual basis occurs only if there is a reason for the basis of employment under this Act". Further, Queensland Health refers to s 25 of the PS Act which requires the public service management be directed towards a) providing responsive effective and efficient services to the community and the Government; and (3) managing public resources efficiently, responsibility and in a fully accountable way.
- [30]Queensland Health submits that its reference to this legislative framework provides "evidence" of genuine operational requirement. Queensland Health submits that the chief executive is required to deliver, sustainable, efficient, economical, appropriate resourcing within a framework of accountability underpinned by numerous legislation which requires that the operations of the statutory body are carried out efficiently, effectively and economically and the KPIs under the relevant health service agreement which state "available resources are maximised to deliver sustainable high quality health; average sustainable Queensland Health FTE". Queensland Health submits that these matters, together with the fact that Mr Newman's engagement falls squarely within the confines of the examples in clause 5.2 of the Directive, is evidence that Queensland Health has genuine operational requirements which support its reasons for not converting Mr Newman to permanent.
- [31]Surprisingly, Queensland Health also submits in its conclusion that the substantive incumbent has returned to the position and Mr Newman is no longer required. That submission flies in the face of the decision itself and the remainder of the submissions which indicate that there is a continuing need for Mr Newman to be employed.
- [32]The difficulty with much of the submissions made by Queensland Health is that it does no more than recite relevant expectations and requirements under the legislative framework without identifying, by reference to material facts, how such considerations apply to the circumstances of Mr Newman's matter.
- [33]It is readily accepted that the chief executive must work within financial management and performance and accountability frameworks. The issue here however is how such obligations are managed in circumstances where the PS Act and Directive 08/20 require that public service employment is to be directed toward promoting employment on tenure as the default basis of employment for employees in the public service, other than for non-industrial instrument employees.
- [34]Queensland Health has not detailed in any specific way, including by reference to material facts or information, as to why, in the circumstances of this matter, the conversion of Mr Newman will result in Queensland Health not complying with its obligations to manage public resources in an efficient, responsible or fully accountable way.
- [35]There is no information before me that identifies, in a material way, the basis on which Queensland Health has prioritised its workforce strategy over the requirements of the consideration of the principles in the PS Act and Directive 08/20 which establish employment on tenure as the default basis of employment in the public service.
- [36]I am not satisfied that Queensland Health's decision is supported by material facts and information that establishes that the operational requirement relied on by Queensland Health in the decision are genuine. Further, the decision does not indicate any consideration of how Queensland Health has balanced its operational requirements with the principle that employment on tenure is the default basis of employment in the public service in the circumstances of this matter.
- [37]Accordingly, I consider that the decision was not fair or reasonable.
- [38]I consider that Mr Newman has been employed by Queensland Health in excess of two years. Queensland Health recognises that there is need for Mr Newman to be employed in a continuing way. Mr Newman, on the material, meets the merit requirements.
- [39]Further, as there is no relevant information before me to support a conclusion that there are genuine operational requirements to deny Mr Newman's request, I consider it appropriate in the circumstances of this matter for his request to be granted.
- [40]Pursuant to s 562C(1)(c) of the IR Act, the decision is set aside and substituted with the decision that Mr Newman's employment is to be converted to permanent.
Order
- [41]I make the following order:
- Pursuant to s 562C(1)(c) of the Industrial Relations Act 2016 (Qld), the decision is set aside and substituted with the decision that the Appellant's employment is to be converted to permanent.
Footnotes
[1] See the Public Service and Other Legislation Amendment Act 2020 (Qld).
[2] Brandy v Human Rights and Equal Opportunity Commission [1995] HCA 10; (1995) 183 CLR 245, 261 (Mason CJ, Brennan and Toohey JJ).
[3] See discussion of various legal categories of appeal, Goodall v State of Queensland (Unreported decision of the Supreme Court of Queensland, Dalton J, 10 October 2018).
[4] Ibid.