A recent decision of the Full Federal Court handed down in
February 2014 being Kilcran, in the matter of Allco Finance
Group Limited (Receivers and Managers Appointed) (In Liquidation
)  FCAFC 6, has upheld the decision of Justice Perram
that the Receivers and Managers of the Allco Finance Group Limited
(AFG) did not terminate the employment of Stephen
Kilcran as the Head of Legal and Compliance and the appeal by Mr
Kilcran was dismissed with costs.
The essential issue on which the claim by the Appellant was
based related to an alleged conversation between one of the
Receivers (Mr Gothard) and the Chief Executive
Officer of an affiliate company of Allco Finance Group Limited
being Allco SIF Ltd (SIF) which the Appellant
claimed had the effect of terminating his employment which was then
communicated to him by the Chief Executive Officer (Mr
Mansveld). In rejecting the appeal, the Full Court found
on a factual basis that it agreed with the trial judge's
determination that he preferred Mr Gothard's recollection of
the conversation to that of Mr Mansveld and agreed with the trial
judge that the Appellant had in fact resigned his employment in
December 2008 and was not entitled to any termination benefits in
the form of payment in lieu of notice, bonus payments or redundancy
payments as described in the proof of debt which he had lodged with
In regard to the applicable legal principles the Full Court held
that Mr Mansveld's authority was of no particular significance
given that all the parties knew that the Receivers were empowered
to make decisions in relation to the employment of employees of AFG
and that Mr Mansveld was authorised only to pass on what the
Receivers said and no more and no less. Further, in relation to the
Appellant's claim alleging repudiation of his employment
contract and constructive dismissal, the Court following a review
of the authorities and in particular Thomson v Orica Australia
Pty Ltd (2002) 116 IR 186 held that there was no basis on
which it could be found that the Receivers engaged in conduct
likely to damage or destroy the employment relationship.
Accordingly the claim for either repudiation or constructive
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