Pruden v Omni Effect Australia Pty Ltd

CITATION:

Pruden v Omni Effect Australia Pty Ltd [2013] QCAT 672

PARTIES:	Corinne Marea Pruden (Applicant)
V
Omni Effect Australia Pty Ltd (Respondent)

APPLICATION NUMBER:

MCDO1602-13

MATTER TYPE:

Other minor civil dispute matter

HEARING DATE:

On the papers

HEARD AT:

Brisbane

DECISION OF:

Adjudicator Bertelsen

DELIVERED ON:

29 November 2013

DELIVERED AT:

Brisbane

ORDERS MADE:

1. Minor civil dispute application 1602/13 filed 8 August 2013 is transferred to the Magistrates Court of Queensland at Brisbane.

2. Proceedings are deemed to have commenced on 8 August 2013.

CATCHWORDS:

Applicant’s employment – employment agreement – Tribunal’s jurisdiction to hear employment claims – Tribunal’s pronouncements in respect of employment claims

Ervin v Smipat Pty Ltd trading as LJ Hooker Burleigh Heads [2013] QCATA 153

APPEARANCES and REPRESENTATION (if any):

This matter was heard and determined on the papers pursuant to s 32 of the Queensland Civil and Administrative Tribunal Act 2009 (QCAT Act).

REASONS FOR DECISION

Ms Pruden was employed as “Engagement Manager NSW” for Omni Effect Australia Pty Ltd on a fulltime basis from 15 April 2013 pursuant to an employment agreement dated 22 February 2013.
Ms Pruden states her employment was terminated on 11 June 2013; that termination occurring within the first 12 months probationary period she is entitled to four weeks salary in lieu of notice (clause 1.0 probationary period); that based on a salary of $163,500.00 inclusive of superannuation, four weeks salary is $11,538.00; that is the sum of money Ms Pruden claims.
In the Tribunal’s recent decision of Ervin v Smipat Pty Ltd trading as LJ Hooker Burleigh Heads [2013] QCATA 153 it was clearly articulated that employment contract claims of this nature were not within the jurisdiction of the Tribunal but rather were to be pursued in the civil Courts and in this case that would be the Magistrates Court of Queensland.
On 2 October 2013 the Tribunal issued a direction as follows:
“The applicant shall file submissions on the issue of the Tribunal’s jurisdiction to determine this matter within 28 days.”
Whilst some submissions have been made they do not appear to address the issue of jurisdiction but rather focus on the perceived liability of Mr Michael Wise a company director and secretary of the respondent company Omni Effect.
An application by Ms Pruden to have Mr Wise added as respondent to the application has already been refused. There being no persuasive submissions on the part of Ms Pruden that would distinguish her claim from the sorts of claims precluded by Smipat’s decision the Tribunal makes orders for the transfer of this application to the Magistrates Court of Queensland at Brisbane as follows.

Orders

1.Minor civil dispute application 1602/13 filed 8 August 2013 is transferred to the Magistrates Court of Queensland at Brisbane.
2.Proceedings are deemed to have commenced on 8 August 2013.

CaseChat Overview and Summary

Corinne Marea Pruden commenced proceedings in the Queensland Civil and Administrative Tribunal (QCAT) against Omni Effect Australia Pty Ltd (Omni Effect) seeking payment of four weeks' salary in lieu of notice. Ms Pruden was employed by Omni Effect as “Engagement Manager NSW” and was terminated during the first 12 months probationary period. The Tribunal was asked to determine whether it had jurisdiction to hear Ms Pruden’s claim, and if not, to transfer the matter to the appropriate court.

The primary legal issue for the Tribunal was whether it had jurisdiction to hear Ms Pruden’s employment-related claim. This issue arose from the Tribunal's recent pronouncements on the matter, specifically in the case of Ervin v Smipat Pty Ltd trading as LJ Hooker Burleigh Heads [2013] QCATA 153, which clarified that employment contract claims of this nature were not within the Tribunal’s jurisdiction and should be pursued in the civil Courts, in this instance, the Magistrates Court of Queensland.

The Tribunal considered the submissions made by Ms Pruden but found they did not address the jurisdictional issue and instead focused on the perceived liability of Mr Michael Wise, a company director and secretary of Omni Effect. The Tribunal had already refused Ms Pruden’s application to add Mr Wise as a respondent to the application. Given the lack of persuasive submissions on the jurisdictional issue and the similarity of Ms Pruden's claim to those precluded by the Smipat decision, the Tribunal concluded that it did not have jurisdiction to hear the matter. Consequently, it ordered the transfer of the application to the Magistrates Court of Queensland at Brisbane.

In light of the above, the Tribunal made orders transferring the minor civil dispute application to the Magistrates Court of Queensland at Brisbane and deemed the proceedings to have commenced on 8 August 2013.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established