Gapes v Commercial Bank of Australia Ltd [1979] FCA 19
Federal Court of Australia
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IN THE FEDERAL COURT OF AUSTRALIA CAV. \
e
INDUSTRIAL PIVISTON V No. 34 of 1978.
VICTORIA DISTRICT REGISTRY
BETWEEN:
ROBERT LESLIE GAPES Claimant
and
THE COMMERCIAL BANK OF AUSTRALIA LTD Respondent
CATCHWORDS
Industrial Law - breach of Award : failure to pay
for work done - restrictive work ban - refusal by
employee te perform all duties ~- legal relations
between employer and employee - contract of
employment and award - whether employee ready
willing and able - actual performance of work -
variation of contract of employment - acquiescence
- Award entitlement to salary - deductions -
"absent from duty" - onus of proof.
Conciliation and Arbitration Act 1904 Section 119 -
Bank Officials (Federal) (1963) Award.
sy
; cx
IN THE: FEDERAL COURT_OF> AUST ALLA
INDUSTRIAL DIVISION - V No, 34 of 1978,
———— ————
VICTORIA DISTRICT: RUGTSTRY |
a ee a ne net enn ene,
BETWEEN;
\ROBERT: LESLIENGAPES Claimant
ROBERT LESITENGA
and
~THE: 'COMMERCTAL" BANK OF AUSTRALIASLTD Respondent
~ ORDER
JUDGE MAKING ORDER: Northrop J,
DATE OF ORDER: 13th March, 1979
WHERE MADE; Melbourne
ORDER: Application dismissed,
IN THE FEDERAL COURT OF AUSTRADTA
V No. 34 of 1978.
INDUSTRIAL DIVISION
VICTORIA DISTRICT REGISTRY
BETWEEN:
ROBERT LESLIE GAPRS . 'Claimant
and
THE COMMERCIAL BANK OF AUSTRALIA LTD. Respondent
'NORTHROP J. REASONS FOR JUDGMENT 13th March, 1979.
The claimant, Robert Leslie Gapes, is a
member of the Australian Bank Employees Union of Australia
(the A.B.E.U.),an organisation of employees under the
Conciliation and Arbitration Act 1904, as amended, (the Act) .
The respondent, the Commercial Bank of Australia Ltd, and
the A.B.E.U. are parties to the Bank Officials (Federal)
(1963) Award as varied (the Award). It follows that under
the Act the provisions of the Award are binding on the
claimant and the respondent. At all relevant times the
claimant was employed by the respondent at its Bairnsdale
branch. Between 16 October 1978 and 10 November 1978 the
claimant was relieving as an accountant at the Bairnsdale
branch and accordingly was entitled to be paid salary
calculated in accordance with clauses 6,7,12 and 26 of the
Award. On each of the days 31 October 1978, 1 November 1978
and 3 November 1978 the claimant attended at his place of
employment but the respondent did not pay to him the sum
of $142.37 being the amount of salary which the claimant
would have received under the award if otherwise he was
enticiled to paynens of wablasy sox those tneee days. tne
claimant commenced these preceedings under sec.119 of
the Act by which he is seeking that a penalty be imposed
upon the respondent claiming that the respondent, in breacn
2.
of the Award ... "failed to reimburse or pay the Claimant
for the work done by him during and in the course of
his employment with" the respondent on the three days
already mentioned.
A dispute existed between the A.B.E.U. and
the respondent relating to bank holidays. In the
Melbourne metropolitan area officers employed by the
respondent had the benefit of a paid holiday on Melbourne
Show Day. In some country areas, officers of the
respondent had the benefit of a paid holiday coinciding
with a local show day, while in other country areas officers
employed by the respondent did not have an equivalent
holiday. The A.B.E.U. initiated a campaign seeking equal
leave for all bank officers throughout Victoria. Officers
employed at the Bairnsdale branch of the respondent did not
get a holiday on Melbourne Show Day in September 1978 but
the officers employed at that branch including the claimant
did not work on Melbourne Show Day. They did not receive
payment of salary for that day. Subsequently the A.B.E.U.
decided to impose a restrictive work ban to be carried out
by its members. The nature of the ban is best illustrated
by setting out the text of a circular issued by the
Victorian Division of the A.B.E.U. and dated 23 October
1978, as follows: :
"EQUAL HOLIDAYS CAMPAIGN
Branches will note from the A.B.E.U./C.B.O.A.
Joint Committee circular (23/10/78) that the
Joint Committee has decided to authorise the
application of work bans as an escalation of this
campaign,
Additionally, each member Union may apply such
additional bans as it thinks necessary.
This decision was reached after receiving over-
whelming support from members for this line of
action.
Country members of A.B.E.U. are therefore
instructed to:-
FROM WEDNESDAY 25th OCTOBER 1978
( AOD wULihsbSieOy. Gr ALL
§ COMe ri PICE
INLERNAL RETURNS.
BAN ALI COLLECTION OF BANK FEES AND
CHARGES,
3.
BANS TO REMAIN IN FORCE UNTIL
FURTHER NOTICE FROM JOINT COMMITTEE.
_ It has been the practice of Banks in previous
actions of this nature to request branches
to advise who is observing the ban, and who
is not.
PLEASE BE AWARE THAT THIS ALSO IS
A RETURN AND SHOULD NOT BE SUBMITTED.
The aim of this campaign is now to obtain
equal leave for all Bank employees on whatever
basis possible." ,
Acting pursuant to the instructions contained
in the circular, the claimant, together with other officers
employed at the Bairnsdale branch of the respondent,
applied the ban on Thursday 26 October, Friday 27 October
and Monday 30 October. On Monday 30 October a circular
letter dated 27 October from the Respondent's State Manager,
together with an attachment to the letter, was received
at the Bairnsdale branch, The claimant saw and read this
circular letter and attachment. The circular letter
referred to the equal leave campaign being conducted by
the A.B.E.U. and the Commonwealth Bank Officers Association
and the terms of the contract of employment which had been
entered. into between the respondent and its officers.
Included in the circular letter were the following paragraphs:
"Staff are reminded that in terms of their
contract of employment they are obliged to
carry out such duties as are allotted to them.
Those who refuse to do so are not entitled to
be paid for the day in question or until such
time as they are prepared to perform all duties
as requested,
If after having given the issue full consideration
staff opt to comply with the Union directive,
the consequences of refusal to carry out lawful
\ obligations to the employer must be accepted.
In this regard;
- staff are not entitled to be paid for
"any period of time they are not prepared
to carry out their full time duties.
- salary adjustments are to be manually calculated
and salary slips amended accordingly.
oO
sala edged . : wares
submitted at the end of the week (i.e. Friday)
in order that Group certificate records may
be correspondingly adjusted".
4.
The procedures to be followed in relation to industrial
action by members of staff of the respondent were set out
in the attachrent to the letter. The attachment had been
first circulated some years previously at a time of the
implementation of another industrial campaign by the
A.B.E.U. Extracts from the attachment are set out as
follows:
"REFUSAL BY STAFF TO PERFORM ALL OR PART OF
DUTIES AS A RESULT OF INDUSTRIAL ACTION
It is recognised that any industrial action will
involve many officers in a conflict of loyalty
and the following instructions should not be
interpreted as any form of coercion on the Bank's
part. The instructions are intended to remind
staff of their legal obligations arising out of their
contract of employment and of the Bank's position, as
employer, in the event of industrial action.
Subject to any other instructions which may be issued
by Administration at such a time but having particularly
in mind difficulties of communication which can then
exist, these instructions must be deemed to then
operate without further notice and any officer not
observing them will be regarded as not carrying out a
lawful instruction of the Bank.
All officers are therefore to acquaint themselves
with these instructions (Managers, Accountants and
other supervisory staff are to facilitate this) as
ignorance will not be an acceptable excuse.
1. Officers are required to perform all the
duties normally allotted to them in the course
of their daily work and any other duties which
may be allotted to them in which they have
received training or have had sufficient practical
experience to enable them to carry out those duties.
2. Should officers participate in industrial action
involving absence from work or refusal to perform
ali or any portion of the duties allotted to them
"in terms of (1) above, the following will apply:-
(a) Officers must inform their Manager,
Departmental Head, Officer in Charge
or next available senior officer of
their intention, or election, to
participate in industrial action
involving absence from work/or refusal
to perform all or any portion of their
allotted duties in terms of (1) above.
(b)
(c)
(d)
fe)
(£)
(g)
(h)
5.
In the event of any Manager electing
to participate in industrial action
involving absence from work or refusal
to carry out his duties/responsibilities,
State Managers Office must be informed
immediately such decision is taken by the
Manager. .
Officers participating in the industrial
action are not permitted to commence or
recommence work until they agree to perform
all of the duties: allotted to them in terms
of (1) above.
Officers are required to observe security
precautions by:~
(i) handing over all cash, negotiable
instruments, keys, confidential material
etc., under their control to the Manager
or next most senior officer not
participating in industrial action, or
if this is not possible,
(ii) locking up all such items under their
control, ensuring that the premises are
secured in the normal way if last to leave.
Officers who have refused to work or are
refused permission to work or commence work
under circumstances outlined above, are
required to record the time of cessation of
duty in the appropriate records and immediately
leave the Bank's premises. Under no circun-~-
stances are any attempts to be made by any
other member of the Bank's staff to forcibly
eject officers who refuse to leave the Bank's
premises.
Manager, or in his absence the next available
most senior officer, is to ensure that a fuil
diary record is made of any officer's
announcement that he refuses to perform, or any
officer's election not to perform, all
allotted duties. Also, the instructions issued
to that officer in consequence and the result-
ing actions of the officer (e.g. refusal to
leave the premises etc.) are to be recorded
therein.
Should officers, having refused to perform
all or any portion of the duties allotted
to them in terms of (1) above, and as a
result having been refused permission to work
or commence work on any day, elect at any
full duties, they will be
gn on and commence work at
time to re:
permicucd
that time.
The Bank will exercise its right to refuse
6.
6.0
to pay remuneration for the full period
during which duties in terms of (1) above
are not performed.
(i) In assessing the appropriate deduction from
salary for the period described in (h) above,
instructions outlined under "Payment of
Salaries" are to be followed.
3. Officers who continue to perform portion only of
their duties or in other ways fail to comply with
any of the foregoing procedures/instructions are
informed that such action or default on their part
in no way negates the Bank's rights to refuse
permission to work and/or to make the appropriate
deduction from salary."
It is not necessary to set out the other matters contained
in the attachment but they include a method by which
salaries: were to be adjusted in the event of industrial i
action, absence from work and refusal to perform any or
all or portion of the duties allotted to an officer.
'On Monday 30 October at a meeting with the
Manager of the Bairnsdale branch, the claimant told the
Manager that he would continue to apply the instructions
contained in the A.B.E.U. circular, The Manager told him
that in that event he would not be allowed to work at all.
That evening, upon request, the claimant handed to the
Manager his keys to the bank and the combination to the bank
safe. The claimant told the Manager that he intended to
attend at work on the following day to perform his normal
duties apart from those subject to the ban. On Tuesday 31
October the officers of the Bairnsdale branch, other than
the claimant, performed all duties allotted to them. The
claimant attended for work at his normal starting time of
8.30 a.m, For the first half hour he sat at his desk but
did not carry out any of his normal duties. He refused to
leave the premises and maintained his attitude of refusing
to perform those duties the subject of the ban. At about 9 a.
he had a telephone conversation with an official of the
A.B.E.U. About the same time the Manager of the branch
had a telephone conversation with a person at the office
Mee
aneger of the respondent. A conversation
Of the State
took place between the claimant and the Manager, the substances
of which was reduced to writing by the Manager and signed
by the Manager and the claimant as being a true report of
"7.
the conversation, The report reads:
"Interview 9.00 31/10/78. Again discussed work
requirements with Mr. R. Gapes who after further
'reference to union, refused.iio leave the premises
as requested and demanded to be allowed to work
in terms of A.B.E.U. bans. We was informed that
he may therefore resume duties, but in terms of
S/M/L 27/10/78 - State managers circular letter
15/78 he would not be entitled to be paid as from
now, for any period of time he was not prepared to
carry out his complete allocated duties in full,
as required by bank in terms of his employment."
The Manager then returned to the claimant his keys to
the bank but not the combination to the safe. Apart
from the duties the subject of the bans, the claimant
carried out all his other duties on Tuesday 31 October, and
Wednesday 1 November, but on the second day the combination
to the safe was returned to the claimant.
On the evidence the Court finds that the duties
not performed by the claimant were significant in the
sense of not being trivial or of no substance.
On''the morning of Thursday 2 November the
claimant received his pay cheque for the previous fortnight.
Although he received paymmant of salary for each of the
days 26, 27 and 30 October he received no payment of salary
or the days 31 October or 1 November. On receipt of his pay
cheque the claimant left his desk and journeyed to Melbourne
to see the lawyer for the A.B.E.U. He makes no complaint
about the non payment of salary for that day. On Friday
3 November the claimant again attended work and performed
all his normal duties except those subject to the ban. On
the following Monday the ban on work was lifted and on that
day and thereafter the claimant performed all his allotted
duties. On the following pay day he did not receive payment
of salary for Friday 3 November.
By a memorandum of agreement entered into between
the claimant and respondent and dated 12 October 1971 the
claimant agreed to perform all duties and tasks "which may
devolve upon him or which any authorised officer may entrust
to him or reguest him to perform", The duties which the
wid be porfe ns a2 8. Gebebor, L November &:
3 November were within the range of duties allotted to him
under the memorandum of agreement and within the meaning
of the terms set out in the attachment to the circular
"8.
letter dated 27 October 1978.
Pursuant to the provisions of the Act,
the respondent is bound to pay salary to the claimant,
the amount of the salary being calculated in accordance
with clauses 6, 7 and 26 of the Award. Clause 12 of
the Award contains the following provisions:-
"12. PAYMENT OF SALARIES
(a) All salaries and allowances attached thereto
shall be paid weekly or fortnightly at the
option of and on the dates most convenient
to the bank concerned. .
(c) Notwithstanding anything elsewhere contained in
this award the bank concerned shall be entitled to
make a deduction from the salary of an employee
in respect of every hour or part of an hour
that such employee has been absent from duty without
the consent of the bank during the period in
respect of which the salary is paid, The
amount of such deduction per hour or part
thereof shall be calculated according to the
following formula:
Annual Salary x» 5 x1
261 x 1 x 40 "
On these facts the issue raised by these
proceedings is whether the respondent committed a breach
of the Award in that it failed to pay to the claimant
salary which under the Award it was bound to pay.
Senior Counsel for the claimant submitted
that in the circumstances the respondent was 'not entitled
to make any deduction from the salary due to the claimant,
that the claimant performed some of his duties in accordance
with the Award during the whole of the three days, that the
respondent, having permitted the claimant to perform those
duties, had the benefit of the services so performed and
had acquiesced in the action by the claimant and that
the failure to pay him for the performance of those duties
Sconstitiied a breach of th. Award.
The existence of a contract of employment is
the basis on which the Act, by means of an Award, imposes
obligations upon an employer, 'The position is stated
9.
9.
clearly in the judgments 'in Amalgamated Collieries of W.A. Ltd
v. True (1937) 59 C.L.R. 417. In that case the High Court
had before it a State Act and the application of an award
made under the State Act. The opinions expressed by the
Justices of the High Court apply with equal force to awards
made under the Commonwealth Conciliation and Arbitration Act.
Equally, the advice of the Privy Council that an appeal from
the order made by the High Court should be allowed (True v.
Amalgamated Collieries of W.A. Ltd.. £1940] A.C. 537) does not ~
affect the statements of principle expressed in the High
Court judgments. The Chief Justice of the High Court Sir
John Latham said at p.423-424 -
"When any person is employed to do work to
which an award applies, the parties are bound
by a contract. Their legal relations are in
part determined by the contract between them and
in part by the award, The award governs their
relations as to all matters with which it deals ...
-But an award never deals with all the matters which
affect the relations of any particular employer
and any particular employee. The creation of the
relation of employer and employee depends upon an
agreement between them and not upon any award. Thus,
the existence of the obligations under an award in
relation to a particular employer and employee always
depends on the existence of a contract between them.
So, also, there are terms of their relationship which
do not depend upon any award. For example, the
employee must always obey the lawful orders of his
employer, but awards do not:commonly include a
term to that effect. In my opinion, however, it is
unnecessary in this case to work out in detail the
basis of the relations created by employment under
an award. For the purposes of this case it is
sufficient to refer to what was said ina
unanimous judgment of this court in Mallinson v.
Scottish Australian Investment Co, Ltd. (1920)
28 C.L.R. 66 at p.73:
'Apart from the Act! (The Commonwealth Conciliation
— and Arbitration Act) 'the right to receive wages
\ sprang from the existence of the relationship of
master and servant and the performance of services
therein, and notwithstanding the Act it is still
the existence of this relationship and the performance
of services therein which confers on the employee the
right to remuneration - all that the Act has done in
this respect is to substitute another method of
.determining the amount of remuneration",
10.
10,
At common-law in an action by an employee for
damages for breach of his contract of employment the
employee must prove that he is ready, willing and able
to perform his part of the contract; Australian National
Airlines Commission v. Robinson [19773 V-R. 87. In that
case, an employee airline pilot; in support of an
industrial campaign being conducted by the organisation
of which he was a member, was prepared to perform his duties
under his contract of employment on condition that if the
executive of his organisation called a stoppage of up to
twenty-four hours!' duration within the next seven days,
he would not perform his duties during the period specified
by the executive. The employer refused to allow the pilot
to perform his full duties on this condition and no other
work was provided. The pilot received no pay for the
period no work was provided, and he brought an action
claiming that the employer wrongfully and in breach of his
contract of employment failed to provide employment for hiw
and claiming damages for breach of contract. The Full Court
of the Supreme Court of Victoria (Young C.J., Menhennitt
and Griffith Jd.) held that the pilot should not be regarded
as having repudiated his contract of employment and that in
any event the employer did not regard the contract as being
discharged. The Court held that in order to succeed
the pilot had to prove that he was ready, willing and able
to perform his contract of employment. In a joint judgment
the Court said at p.91:
"In any action for breach of contract
a plaintiff must prove that he is ready,
willing and able to perform his part of
the bargain and an allegation to that effect
used to be pleaded: see Jefferson v. Paskell,
£19163 1.K.B. 57 at p.74, Nowhowever, such a
pleading or averment is to be Te tobe. nee
R.S.C.,0.19,r.14, and Gates v. Jacobs 9203
1 Ch. 567. The effect oi the rule is "che " the
defendant, if he contends that the plaintiff
was not ready, willing or able to perform his
part of the contract, must, as was done in
this case, set out such allegation in his
pleading Otherwise it will be assumed that
the plaintifs is _Yeady, willing and able to
eee : coniroot. But when a defender
OCS ¥ ~ bY hag pleading a question i
the plaintif£et in an action for breach of contract
was ready ox: willing to perform the contract,
the burden of proving readiness and willingness
rests upon the plaintiff."
ll.
The Court found that the pilot had failed to
prove that he was ready and willing to perform his contract
of employment and thus he was not entitled to damages.
At p. 92 the Court said:
"The question whether a particular emplovece
is ready and willing to perform his contract
will often involve a question of degree.
If an employee, on presenting himself for
work at his place of employment, indicates to
his employer by his words or actions that he
is only willing to perform his duties under
his contract of employnent if ariother term is,
in effect, added to the contract and that term is
a significant one, there would be little difficulty
in reaching a conclusion that the employee was not
ready and willing to perform his obligations under
the existing contract of employment, If, on the
other hand, an employee were to tell his employer that
the trade union to which he belonged was intending
to strike on a date, say, two imnths hence, it
would be impossible, we should think, to conclude from
that statement alone that the employee was
not at the time of the making of the statement ready
and willing to perform his obligations under the
contract, Between these two extremes there is
clearly room for a wide variety of cases. The
decision in a given case mustdepend upon all the
circumstances, including the nature of the employment
and the terms of the contract of employment."
At pp. 93-94 the Court said:
"In these circumstances the plaintiff failed
to show in ovr opinion that he was ready and
willing to perform his contract on Saturday
23 November 1973. It is not decisive that
no strike had by then been called. 'The
plaintiff was, in effect, indicating that he was
only ready and willing to perform his contract
if a new term were added enabling him to stop
work for up to twenty-four hours if instructed
by the Executive of the Federation to do so...
Accordingly, we think that the plaintiff's claim
should fail."
In the present case no party suggested
that the contract of employment between the claimant and
the respondent had been discharged by repudiation or
otherwise. The claimant is not seeking damages for breach
of his contract of employment, What is alleged is a
coift a. 7 C
breach of th
work done in the course of his Guployment. jin Austral2an
National Nixlines Conm
prea ae nn eee 8
sJon v. Robinson; supra, the Court
12.
said at p.
'12,
96;
Uj
-, "IE, however, we had been of the opinion
that the respondent had established readiness
and willingness to perform the contract, it
would have been necessary for us to consider the
damages to which he would have been entitled.
It seems to have been assumed in the Court below
that the damages were equivalent to the amount
of the salary or wages lost. This may very well
have been correct but it should be noted that
the action was not an acticn for salary or wages.
If it had been it would have been necessary
to consider the terms of the contract of employment
in order to ascertain whether the consideration
for the payment of the salary or wages was
the actual performance of the work or the
mere readiness and willingness to do so: (see
Automatic Pire Sprinklers Pty. Ltd. v. Watson
(1946) 72 G.LTRY 435, especially per Latham €.J.
at pp.450-2, per Starke J, at pp.461-2 and per
Dixon J. at "pp. 463-6",
'In the present case, it is not necessary to decide the
question thus left unanswered since on any view, the claimant
was not ready and willing to perform all his normal duties
and in fact did not perform all his normal duties. Nevertheless
+
the nature of the problems involved in the guestion can be
illustrated by a reference to some of the passages in the
judgment of Dixon J, as he then was, in Automatic Fire
Sprinklers Pty. Ltd. v. Watson, supra. At pp.463-464 His Honour
said:
"In certain forms of executory contract
where the promise of one party is to pay
the other money in consideration of his
transferring property, of his doing work,
of his serving the former as his master,
and, perhepns, of his providing other
tangible things or definite services, the
money to be paid is regarded as the price
of or reward for the property or service
when and so often as the transfer of the one
or the performance of the other affords an
executed consideration. In these contracts
the promise to pay the price or reward is
not construed as a simple obligation to pay
a sum or sums at a future date supported soiciy
by a consideration consisting in the
corresponding promise to transfer the property,
do the work, serve, or provide the things or
services by the other party, so that a mere
the Paster to po: Sobek poe 38 enouge Lo
entitle him to the payments, notwithstanding that,
whether owing to the Fault of the former, or
without fault. on either side, the property is
not transferred the work is not done, the 3
r
13.
relation of master and servant ceases,
or the things or services are not provided."
At p. 465 His Honour said: :
"A contract for the establishment of the
relation of master -and servant falls into
the same general category os agreements to
pay in respect of the consideration when
and so often as it is e: ecuted, and is,
there fore, commonly understood as involving no
liability for wayes or salary unless
earned by service, even though the failure
to serve is a consequence of the master's
wrongful act.
It is, of course, possible for the parties
to make a contract for the payment of
periodical sums by the master to the servant
independently of his service. Indeed that
is, in effect, what the Duke of Westminster
persuaded the majority of the House of .Lords
he had done in Inland_ Bovenas Conn sehoncrs
v. Duke of Westminster (1936) A.c.1. "But to
say the Teast, it is coe usual, The common
understanding of a contract of employment
at wages or salary periodically payable
is that it is the service that earns the
remuneration and even a wrongful discharge
from the service means that wages or salary
cannot be earned however reaéy and willing
' the employee may be to serve and however
much he stand by his contract and decline
to treat it as discharged by breach."
At p. 466 His Honour said:
"Some difficulty has been felt in saying what
is the service which carries wages. he
wages are incident to the subsisting
relationship of master and servant. A master
who sends his servant upon a holiday upon
full pay can be sued for wages under the
contract, although not on a common count for
work and labour done. Trey also serve who oniy
stand and wait. Difficulties, too, arise from
the fact that a refusal to work on the part
of a servant, who neither leaves his master's
service nor is discharged, may disentitie him
to wages for the period of the refusal. That
is for non-fulfilment of the conditions by
which wages are earned. But, broadly speaking,
it is enough to say that wages are for service
reasonably demanded under a subsisting
relationship of master and servant. That
relationship may be ended by the servant
forsaking the master or the master discharging
the servant, although the act of the one or
of the atks : Poceh of ocr
v
If the responce nt, on being informed by
the claimant that he would not perform all his duties
14.
14,
to hin, had refused to allow him perform any of his
normal duties and provided no other work for him, it
is possible that the claimant would have failed to
prove that he was ready and willing to perform his
contract of employment, The attachment to the
circular letter appears to be directed to that issue,
In fact, the claimant did perform some of his duties but
refused to perform all the duties lawfully allotted to
him. In the present case, it is immaterial whether
this refusal and his consequent failure to perform all
duties allotted to him should be categorised as not
be ing ready and willing to perform the contract of
employment or as not amounting to actual performance of
the work,
In The Electricity Commis sSion of New
~South Wales ve The Federated EB ne Drivers and Firemen's
~Association of Australasia (N.S .W.)\ rer Svieringa the
re ta an ene = ae a,
Industrial Commission of N,S,W, in Court Session (McKeon,
Cahill and Dey JJ,) had to consider a case where an
employee refused to carry out a lawful order given by his
employer on the ground that the duties ordered to be
performed came within a works ban imposed by his union,
The employee stated that he was available for all other
duties, He remained at his work place but was not
provided with work, At p,17 of the reasons for judgment
dated 2 July 1975 but not yet reported, the Court said:
"What then were, in our opinion, the legal
consequences of the incident under review?
Cases abound in this Commission and elsewhere
which state categorically that in order to be
entitled to payment of the wage which the terms of
his employnent prescribe, an employee must be
ready and willing and able to perform in
accordance with the lawful and reasonable directions
of his employer the sexvice for which he
\ contracted, and that ary failure on his part
to do just that of itself, and so long as
the failure continues, disentitles him to such
payment, All that applied in this case, From the
time when Mr. Swieringa refused to obey the
direction we have mentioned and while that refusal
continued ~ which s for the remainder of the
own action, and the non-payment of wages whic
followed was because of that' disentitlement ana
not by reason of any other cause In our opinion,
the Electricity Commigsion was not obliged to
15.
15.
pay Mr, Swieringa for any time of his
rostered shift on Monday, 17th February, 1975,
after the time he first refused to carry ovt the
n
guty required of him,"
It is necessary to decide then, whether on
the facts of the present case, the claimant has proved that
either he was ready and willing to perform his contract or
that he performed his work pursuant to his contract,. As
was stated in Australian National Airlines Commission v.
Robinson, supra, this may involve a question of degree.
The statement of the claimant that he would not perform
certain duties was an attempt by him to vary the terms of
his contract of employment. The phraseology used in the
N.S.W. case was: "His statement to his Supervisor that he
was available for all other duties and that he was remaining
on the job was an attempt by him to dictate the terms on
which he would worksa right to do which he did not possess"
If the attempted variation to the contract of employment
related to insignificant duties in the sense of the duties
being trivial or of no substance, the doctrine of de minimus
may well apply but here the variation. to duties were significant.
They included the duties of filling in and forwarding forms
relating to stamp duty returns, bank charges, bank depositors'
accounts and general ledger balances, That these duties were
significant is supported by the fact that the A,B.E.U. selected
them to be the subject of the ban,
Senior Counsel for the claimant submitted
that the respondent had accepted the variation to the terms
of the contract of employment, He relied on the fact that the
claimant was allowed to remain at his place of employment and
to perform his other duties, In addition the respondent handed
back to the claimant his key and the combination to the
safe. Counsel submitted that this amounted to an acquiescence
to the demands of the claimant and that in any event the
respondent received the benefit of the duties performed by the
claimant.
In my opinion, the respondent did not
agree to the variation of the terms of the contract of employment
The attaciisent to the circular letiur stated that under no
circumstances were any attempts to be made by other employees
of the respondent to forcibly 'eject officers' who refused to
, 16.
16.
leave the premises, paragraph 2(e). Likewise paragraph
3 of the attachment stated clearly the intention of the
respondent when an officer continued to perform portion
only of his duties. In the conversation between the
claimant and the branch manager on the morning of 31 October,
the respondent stated clearly that the variation: to the
contract of employment were not accepted. In these circumstances
the return of the keys and the combination do not constitute
an acceptance of the demands by the claimant. A delicate
situation existed. In support of a campaign to alter
existing conditions of employment the claimant was attempting
to dictate the terms upon which he would work. Neither party
wanted the existing facts to be treated as a ground for
diswissal of employment and the failure by the respondent to
take that final step cannot be treated as an acceptance of
a variation to the contract of employment, It follows that
in my opinion the claimant has failed to prove that on the
three days in' question he was ready and willing to perform his
contract of employment and has failed to prove that on those
days he performed his contract of employment.
Clause 6 of the Award provides that
an officer shall be paid the salary specified in the clause.
Clause 7 makes similar provisions for specified classifications
and because the claimant was relieving as an accountant, clause
26 made the salary specified in clause 7, the salary payable
to the claimant. The Award operates on a contract of
employment. Under the contract of employment, the claimant
is not entitled to payment of salary for those three days.
Senior Counsel for the claimant submitted that under clause
12 of the Award the respondent was required or bound to make
payment of salary without any deduction and that in making
the deduction of three days' salary the respondent had committed
a breach of the Award.
Clauses 6 and 7 of the Award prescribe
an entitiement to an annual salary and impose a duty on the
respondent to pay that salary, subject always to a contract
of employment being in existence. Clause 12(a) provides for
oohe maid on a : er Doelocchtiy bas
epiion of the respondent. Clause 1l2(c) conters a privilege
upon the respondent to make deductions when an employee is
absent from duty without the consent of the Bank during the
17.
17,
period in xespect ef which the salary is paid, Clause 31,
ts
"Salary Deductions", confers a right on an employer to make
deductions from salary for guarantee, provident or similar
funds, - The opening words of clause 12(c) enables an employer
to exercise the power conferred by the sub-clause even when
the Award expressly binds the employer to pay salary without
deductions, The power operates to relieve an employer from
liability to pay salary to an employee which otherwise he
would be required to pay, The Award does not by express
provision authorise an employer to make a deduction from salary
where an employee is present at his place of duty but refuses
to perform all his duties, In the present case, the amount
of the salary not paid by the respondent was calculated in
accordance with the formula set out under-the heading "Payment
of Balances" appearing in the attachment to the circular letter
and which is the same formula as that set out in clause 12(a)
of the Award, Apparently the claimant makes no claim with
respect to the deduction of salary referable to Thursday 2
November being the day the claimant went to Melbourne and thus
was absent from duty within the meaning of clause 12(c)
Counsel for the respondent submitted that
in clause 12(c) the phrase "absent from duty" applies to a case
where an employee is present but is not prepared to carry
out all-his duties under his contract of employment. He
relied upon In re Alice Alderson. Ex Parte Jackson {1895}
1.Q.B. 183 where Vaughan Williams J, hele that in order to
come within sec, 4 of the Bankruptcy Act 1882 which constituted
an act of bankruptcy where a debtor, with certain intent, "abo7on
himself", a debtor need not absent himself from any particula:
place by physical bodily absence, He relied also on The
Workers Federation of Australia Veo Commonwealth Steamship
Owners Association and-Ors (1945) 55 C.A.R,. 603 where Piper C.d.
held that under a Waterside Workers' Award, employees were no
entitled to payment of wages when they were in "attendance"
but refused to perform their duties.
These authorities are not of great
assistance to the facts of the present case, There is no
reason why the phrase "absent from duty" appearing in clause
to physical bodily absence from duties, The Award makes
provision for payment of salary when the employee is not
, 18,
18,
present at his place of duty and not performing his normal
duties e.g. clause 24, "Annual Leave", and clause 24 (a)
"Sick Leave". Clause 12(c) does not confer a right on
the employee, it confers a privilege upon an employer and
the employer has a discretion to exercise that privilege
or not as it so chooses. The Award by conferring this
privilege on the employer does not,by necessary implication,
or by the application of the maxim, expressio unius exclusio
alterius, confer a duty or obligation on the employer not
to make a deduction of salary from an employee when the
employee has no right to that salary. Under his contract
of employment the claimant is not entitled to payment of
salary for the three days he refused to carry out all his
normal duties. The Award by clauses 6,7 and 26 does not
confer a right on the claimant to payment of salary for those
Gays, or rather, to be more accurate, the Award does not
place a duty on the respondent to make payment of salary to
the claimant where the claimant neither performs all his
duties nor is ready and willing to perform all his duties.
Where an employee is absent from duty in the sense of not hoing
present physically at the place where he should be performing
his duty, and the employer makes deductions of payment of
salary, it is relatively easy for the employer to establish
that he has exercised the discretion conferred by clause J]2(c).
Where clause 12(c) does not apply, as in this case, the
claimant must establish that the employer is bound by the
Award to pay the salary for the three days, This involves
G@ifficult questions of fact and of law. In the present case
it involves the claimant establishing that under his contract
of employment he was entitled to payment for those three days.
Clauses 6,7, 12(a) and 26 of the Award thereupon impose a duty
on the respondent to pay to the claimant the salary determined
in accordance with those clauses. The onus is on the claimant
to prove that the respondent has committed.a breach of the Award.
t
The criminal onus applies, Vehicle Builders Employers' Federation
v. General Motors Holden Pty. Ltd. (1977) 18 ALR 654, but in the
uv
the recult would be the same if the civil onus war
Presence Cee
appiicable.
In my opinion the claimant has failed to
prove that the respondent was under a duty to pay salary to
19.
; 19,
the claimant for the three days in question. It follows
therefore, that in my opinion, the respondent has not
committed a breach of the Bank Officers' (Federal) (1963)
Award and accordingly the application is dismissed.
I certify that this and the lf
rue cony of the
preceding pases ave @ t
Reasons for Judgment herein or bis Honour
Mr. Justice Vorcheop
, ASSOC Yate
Dated:
(Ph tAevek, (477.