Sacked hours after chasing her car and phone allowances

Devonshire v Magellan Powertronics Pty Ltd & Ors [2013] FMCA 207

Decided by
Federal Magistrates Court of Australia
Date
11 April 2013
Outcome
Claim allowed to proceed; director and manager kept in
Result
Employee succeeded
A worried sales manager at her desk late in the day, with her car key beside the laptop.
Illustrative image. It does not show the people in this case.

Melinda Devonshire, a business development manager whose case was heard in Perth, said she spent weeks chasing her correct salary, car allowance and phone allowance. On the day she pressed the company's director about it, she went home sick and was dismissed by email that afternoon. Before any trial, the employer asked the court to throw out key parts of her claim. The court refused: asking her employer about her pay was a workplace right, and the two people who ran the company stayed in the case personally.

Key points

  • Under s 341 of the Fair Work Act 2009 (Cth), a complaint or inquiry made directly to your employer about your employment can be a protected workplace right.
  • Being entitled to be paid in full is itself a workplace right, because s 323 of the Act requires employers to pay in full.
  • A worker dismissed while off sick can still bring a s 352 claim when the medical certificate reaches the employer after the dismissal; whether the delay was reasonable is decided at trial.
  • Directors and managers who are involved in an unlawful dismissal can be sued personally under s 550.

What happened

Melinda Devonshire was hired by Magellan Powertronics Pty Ltd as its Business Development Manager. According to her, the agreed package was a $67,000 base salary, a $14,000 a year car allowance, a mobile phone allowance of $140 a month and a 2% commission on sales. She said she asked several times for a written contract and never received one.

She said her pay was wrong almost from the start. On her account, she emailed the National Sales Manager on 1 December 2011 because she had been paid incorrectly, followed up on 15 December, and sent more emails before and after her Christmas leave because her salary, car allowance and phone allowance were still not being paid correctly.

On 27 January 2012 she raised it again and was called to a meeting with the company's director. She said he told her she was not worth the money, that he was not happy to pay her the correct salary, and that he was not happy she had taken holidays. After the meeting she felt unwell. She emailed the director and the General Manager to say she had gone to the doctor, and the General Manager replied asking her to bring a doctor's certificate.

At 4.03pm that day the General Manager emailed her under the subject "Contract Termination". The email cited her discussion with the director, the fact that she left the office, her "refusal to wear the company uniform" and her "lack of sales to date", and noted she was still within her three-month probation. She sent the company her medical certificate on 24 February 2012.

The claim and the employer's response

Ms Devonshire, who represented herself, brought a general protections claim. She said the company took adverse action against her (dismissing her) because she had a workplace right, contrary to s 340 of the Fair Work Act 2009 (Cth), and that it dismissed her while she was temporarily absent through illness, contrary to s 352. She sued the company and also its sole director and its General Manager personally.

Rather than go straight to a trial, the company and the two individuals asked the court to decide three questions first. They argued that her questions about pay were not a workplace right, that her sick leave claim failed because the certificate came after she was dismissed, and that the two individuals were not her employer and should be removed from the case. If they had won, her claim would have ended without a trial.

A workplace right is defined in s 341. It includes being entitled to the benefit of a workplace law, and being "able to make a complaint or inquiry" about your employment. The employer argued that the second limb only covers formal complaint processes, such as a complaint to a regulator, and not an employee simply asking the boss.

Federal Magistrate Lucev rejected that argument. Section 323 requires an employer to pay the amounts owed to an employee for their work in full and in money, so Ms Devonshire's claim to be paid her salary and allowances was the benefit of a workplace law. Separately, relying on earlier decisions and on the explanatory memorandum to the Fair Work Bill, he held that an employee can make a complaint or inquiry directly to their employer and that this can be a workplace right.

On the sick leave claim, the regulations protect an absence where the worker provides a medical certificate (or statutory declaration) within 24 hours or "such longer period as is reasonable in the circumstances". The employer said the rule applies only to current employees. The court called the submission a "nonsense": a dismissed worker will often provide the certificate after the dismissal. Whether a four-week delay was reasonable was left for the trial.

Finally, s 550 makes anyone "involved in" a contravention liable as if they had committed it. Both individuals admitted dealing with her pay, and the General Manager sent the dismissal email. The court described their argument as "without any merit whatsoever" and kept them in the case.

What the court decided

All three questions went Ms Devonshire's way and the employer's application was dismissed. This was not a final win. The court did not decide why she was dismissed, and the company had said it ended her employment for other reasons, including the uniform and her sales. Those questions were left for a trial. We have not found a later published judgment deciding the claim.

What this means for you

If you have asked your employer about unpaid wages, allowances or commission and were dismissed or treated worse soon afterwards, the timing may support a general protections claim. In such a claim the employer must prove that your complaint was not a reason for what it did. It helps to keep your emails, your payslips and any written record of what you were promised.

Since this decision, the Full Court of the Federal Court has said that not every complaint qualifies: it must be founded on a right or entitlement. In one of those cases the majority held that a complaint to your employer that it has broken your employment contract, or a law about your employment, is enough, so a complaint like Ms Devonshire's should still be covered. A general protections claim about a dismissal must usually be lodged with the Fair Work Commission within 21 days.

The takeaway

Asking your employer when you will be paid what you were promised is protected. An employer that dismisses you for asking, and the managers involved, can be taken to court.

Note: The Federal Magistrates Court was renamed the Federal Circuit Court in April 2013, and since 1 September 2021 its work is done by the Federal Circuit and Family Court of Australia (Division 2). The meaning of "able to make a complaint or inquiry" in s 341(1)(c)(ii) has since been considered by the Full Court of the Federal Court in PIA Mortgage Services Pty Ltd v King [2020] FCAFC 15 and Alam v National Australia Bank Limited [2021] FCAFC 178. Those decisions require the complaint or inquiry to be founded on a right or entitlement, which is narrower than the reasoning in this case, although the majority in PIA held that a complaint to the employer about an alleged breach of the employment contract qualifies. From 7 July 2026 a general protections application to the Fair Work Commission can be made on an alleged dismissal, and the 21 days run from when the alleged dismissal took effect.

Claim allowed to proceed; director and manager kept inGeneral protectionsUnderpaymentLeave

Federal Magistrates Court of Australia · 11 April 2013

Devonshire v Magellan Powertronics Pty Ltd & Ors [2013] FMCA 207, Federal Magistrate Lucev. Read the full decision

This is a plain-English summary of the published decision, for general information. It is not legal advice, and every case turns on its own facts.

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