The recent Supreme Court of Victoria decision, Cameron v Asciano Services Pty Ltd, highlights the need for diligent drafting of contracts of employment by employers to enable flexibility in employment arrangements.

Cameron brought proceedings against Asciano Services for repudiation of his contract of employment.  Cameron had been employed as a business development manager between 1992 and 2009 but in 2009 was directed to also take on a managerial role in their Customer Service Centre.  He argued that by, removing him from his responsibilities in his current role, isolating him from meetings and directing him to take long service leave, Asciano Services conduct repudiated the contract.

The Supreme Court of Victoria, however, held that this was not a repudiation.  Asciano Services had asked other employees to take long service leave and to help them out by taking on more duties on top of their normal roles.  Cameron would still keep his former duties, title and terms of employment in addition to the new role.  Clause 1(b) of the contract of employment required Cameron to undertake responsibilities and perform other such duties, within his skills and qualifications, as Asciano Services required.  This was found to cover the situation in question as the customer service role was within Cameron's skills and qualifications.  Any direction that Cameron perform duties of lesser consequence was not a repudiation, given the inclusion of clause 1(b).
 
This judgment shows the value of a clause that allows an employer to direct employees to take on different, even lesser, duties to their customary role.  Such a clause gives employers the option to reassign employees instead of making them redundant and to rearrange their workforce to suit the changing needs of their business.

If you require assistance in reviewing or re-drafting your employment agreements, to take into account all relevant factors, please contact our Director of Small to Medium Enterprises, Chris Morey by email or phone 03 9629 9629.