Newman v Eagle Group Australiaasia Pty Ltd [1996] IRCA 405

DECISION NO: 405/96 C A T C H W O R D S INDUSTRIAL LAW - termination of employment - contract for services not contract of service. Industrial Relations Act 1988 ss.170CA, 170CB, 170CC, 170DE, 170EA CASES: Stevens v Brodribb Sawmilling Company Pty Ltd (1985-86) 160 CLR NEWMAN -v- EAGLE GROUP AUSTRALASIA PTY LTD No. VI-5150 of 1995 Before: Judicial Registrar Ryan Place: Melbourne Date: 11 September 1996

INDUSTRIAL RELATIONS COURT OF AUSTRALIA VICTORIA DISTRICT REGISTRY VI-5150 of 1995 B E T W E E N : RODNEY NEWMAN Applicant AND EAGLE GROUP AUSTRALASIA PTY LTD Respondent MINUTES OF ORDERS Judicial Registrar Ryan 11 September 1996 THE COURT ORDERS: 1. That the application is dismissed. NOTE: Settlement and entry of orders is dealt with by Order 36 of the Industrial Relations Court Rules.

INDUSTRIAL RELATIONS COURT OF AUSTRALIA VICTORIA DISTRICT REGISTRY VI-5150 of 1995 B E T W E E N : RODNEY NEWMAN Applicant AND EAGLE GROUP AUSTRALASIA PTY LTD Respondent Before: Judicial Registrar Ryan Place: Melbourne Date: 11 September 1996 REASONS FOR JUDGMENT The Applicant claims that: (i) he was employed by and dismissed by the Respondent (ii) the termination of his employment was at the initiative of the Respondent and was unlawful (iii) he worked for the Respondent as a mortgage assessor and financial consultant from 19 June 1995 to 25 September 1995 The Respondent filed a notice of employer's appearance through Stephen Burrows. At that time Mr Burrows described himself as a director of the company. The Australian Industrial Relations Commission certified that it had been unable to settle the matter by conciliation and the Applicant and Mr Burrows appeared at a Directions Hearing. The matter was listed for trial but the Respondent did not appear and was not represented at the hearing. Enquiries made just prior to the hearing suggested that the directors of the Respondent company denied that there was any contract of employment within the jurisdiction of the Industrial Relations Court and within the jurisdiction of Division 3 of Part VI of the Industrial Relations Act 1988. A Mr Jacob Hans Jost, apparently a director of the Respondent company, was advised by telephone that the application would proceed to hearing. The Applicant appeared and gave evidence. He stated that: (i) he had been a licensed finance broker since 1985 (ii) he had worked at various times from 351 Collins Street and 151 Queen Street and in 1995 was working from Level 6, 422 Collins Street Melbourne (iii) he had known Stephen Charles Burrows for eight years and was aware that in 1994 Mr Burrows traded as Block Credits from the Block Arcade at 282 Collins Street The Applicant tendered a somewhat curious newsletter dated 16 September 1994 (Exhibit A1). The newsletter is headed: "NEWSLETTER BLOCK CREDITS NEW APPOINTMENTS MAJOR PROJECT VICTORIA" One of two new appointments referred to in the newsletter is that of Mr Burrows as Credit Executive for the South Pacific region for Eagle Bank Inc. a bank incorporated in Nauru and refused representation in Australia (Exhibit A12 - Reserve Bank of Australia letter 15 August 1995). The major project is referred to in the newsletter as follows: "Block Credits has recently been the successful vendor to secure a major housing development outside Melbourne. The total project value at completion in seven years is noted to be $250 million with stage 1 valued at approximately $21 million. This project is unique and we will be seeking active broker report." The newsletter is somewhat florid in expression and contains the following statements: "MONEY MONEY MONEY, who wants it? We have two major Trusts here in town with approximately $20 million available. LETTERS OF CREDIT