Alston Australia Petroleum Limited (‘Alston’) produces and distributes petroleum products through…

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Alston Australia Petroleum Limited (‘Alston’) produces and distributes petroleum products through

thousands of service stations across Australia. Some service stations are owned by Alston, others are

franchises. (In a franchise arrangement, the franchisor (in this case Alston) licenses its business system

for use by the Franchisee, in return for a franchise fee).

One of the franchises is the ‘Alston Service Station’ located in Wollongong, New South Wales

(the ‘Franchisee’).

The franchise agreement between Alston and the Franchisee specifies that:

1. the Franchisee must strictly implement Alston’s business system;

2. must use petrol, plant, equipment and substances supplied by Alston only; and

3. must follow all work health and safety procedures specified in the Alston franchising manual.

Any breach of these terms (a failure to comply) will enable Alston to terminate (bring to an end) the

franchise agreement.

On 1 April 2020 the Franchisee entered into a contract with ABC Pty Ltd (a company, known as ‘ABC’)

to install a Liquid Petroleum Gas (‘LPG’) tank and all associated pipe works (‘the Work’) in the Wollongong

service station operated by the Franchisee. ABC has five employees, including the manager Marvin.

Earlier this year, on 11 March 2020 one of the five employees, Nora, was elected by the other three

employees to be the health and safety representative of a work group that covers all of ABC’s activities.

In negotiating the scope of the Work group, the employees and ABC had agreed that the work group

covered all premises at which ABC carried out work.

The contract between the Franchisee and ABC specifies that:

1. The completion date for the Work was 8 May 2020;

2. ABC is responsible for all maintenance for four months after the installation of the tank;

3. The only term of the contract addressing health and safety is clause 30, which provides that: ‘ABC

shall comply with the health, safety and security regulations, requirements and directions of Alston

the franchisor (including without limitation the directions of Alston’s representative) relevant to the

performance of ABC under the agreement.’


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