Great Scott International Pty Limited & Anor (No 2) v Cosmetic Suppliers Pty Limited & Anor [2006] NSWIRComm 358

Industrial Court of New South Wales

CITATION: Great Scott International Pty Limited & Anor (No 2) v Cosmetic Suppliers Pty Limited & Anor [2006] NSWIRComm 358

FIRST APPLICANT Great Scott International Pty Ltd

SECOND APPLICANT Scott Evan Krauss PARTIES: FIRST RESPONDENT Cosmetic Suppliers Pty Ltd

SECOND RESPONDENT Sebastian Australia Pty Ltd

FILE NUMBER(S): IRC 4548 of 2002

CORAM: Staff J

CATCHWORDS: Unfair contract - Applicant employee of company for eight years - Encouraged to enter into agency agreement - Failure to meet sales targets - Whether agency agreement unfair - Agency agreement summarily terminated - Whether period of employment and period of agency should be taken into account for purposes of payment in lieu of notice - Held employee alter ego of corporate agency - Arrangement unfair - Agreement failed to provide notice of termination provision - Consideration of the reality of legal relations not merely legal form - Appropriate to take into account both period of employment and period of agency arrangement for the purposes of assessing reasonable notice - Issue of notice in contracts of employment - Issue of notice in commercial agreements - Calculation - Mitigation - Contract varied - Industrial Relations Act 1996, s 105 and s 106.

LEGISLATION CITED: Industrial Relations Act 1991 Industrial Relations Act 1996 (NSW)

Abboud v The State of New South Wales (Department of School Education) (No 2) (2000) 99 IR 299 Bankstown City Council v Paris (1999) 100 IR 363 Barclays Australia Investment Services Limited and ors v Nordby (1995) 99 IR 258 at 279 English v Aradlay Insurance Brokers Pty Limited (2005) 145 IR 129 at 141 Gala v State Bank of New South Wales t/as Colonial State Bank (No 2) (1998) 84 IR 216 Great Scott International Pty Ltd v Cosmetic Suppliers Pty Ltd (2005) 147 IR 95 Lavings v Barclay Mowlem Construction (New South Wales) Ltd (1994) 99 IR 247 Mark Trenter t/as 'Time Rite Onforwarders' v Australian Air Express Pty Limited [2006] NSWIRComm 314 CASES CITED: Mayne Nickless Ltd v Industrial Relations Commission of New South Wales (2004) 141 IR 1 Mills v Industrial Fish Tasmania Pty Ltd (Receivers and Managers Appointed) (1993) 49 IR 416 Quinn v Jack Chia (Australia) Ltd [1992] 1 VR 567 Payne v Foxboro L & N Pty Ltd (1998) 81 IR 404 Port Macquarie Golf Club Ltd v Stead and another (1996) 64 IR 53 Ross v GN Comtext (Australia) Pty Limited (2000) 107 IR 1 Stevenson v Barham (1977) 136 CLR 190 Westfield Holdings v Adams (2001) 114 IR 241 Westfield Limited and Another v Helprin Helprin v Westfield Limited and Another (1997) 82 IR 411 Wheeler v Philip Morris Ltd (1989) 32 IR 323