Date: 8 April 2025
Court: Federal Court of Australia
Judge(s): Rangiah J
Judgment date: 7 April 2025
Catchwords: Contravention of enterprise agreement — construction of commencement provisions — genuine and reasonable mistake — no pecuniary penalty imposed

Abstract:

In Independent Education Union of Australia v Corporation of the Roman Catholic Diocese of Toowoomba (No 2) [2025] FCA 310, the Federal Court of Australia determined not to impose a pecuniary penalty for contravention of enterprise agreements where the respondents acted under a genuine and reasonable but mistaken interpretation of the agreements’ commencement clauses.

Background

Each commencement clause provided that where it “specifies an earlier operative date in relation to a particular provision, then that provision shall operate from that date for all applicable employees employed at that earlier date”.

Toowoomba Catholic Education (a respondent) did not pay a 1 July 2019 salary increase and the consequential increased superannuation contribution to any of its teachers (including Mr Murtagh — an applicant) employed as at 1 July 2019, who had resigned before the applicable agreement commenced operation and were no longer working at another Diocesan school. Similarly, Downlands…