General Manager of the Fair Work Commission v Thomson
Citation: [2013] FCA 380
What happened
The General Manager of the Fair Work Commission brought proceedings against Craig Thomson, former Health Services Union national secretary, alleging misappropriation of union funds for personal and political purposes including escort services ($102,337 in cash withdrawals), spousal travel expenses, campaign expenditures for his electorate of Dobell, and donations to community organisations between 2003 and 2009.
What was decided
The court found that criminal charges laid against Thomson (149 charges on 30 January 2013 and five additional charges on 5 February 2013) automatically stayed portions of the civil proceedings under section 312 of the Fair Work (Registered Organisations) Act where conduct was substantially the same. Remaining allegations not covered by criminal charges were stayed pending conclusion of criminal proceedings on discretionary grounds to avoid conflicting proceedings.
What it means for employers
Union officers have fiduciary duties regarding union funds. Misappropriation can trigger both civil penalty proceedings and criminal prosecution. The interaction between criminal and civil proceedings is complex and subject to statutory stay provisions.
What it means for employees
Union members have remedies for misappropriation of union funds through civil proceedings before courts. Criminal prosecution of union officials may also occur. Union accountability mechanisms include both civil penalties and criminal liability for serious breaches.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2013/2013fca0380Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections