Sally Rugg, Monique Ryan: mediation fails, case to resume in court

Sally Rugg’s lawyer says her action against Monique Ryan will be a test case for what constitutes ‘reasonable’ overtime.

A legal stoush between federal MP Monique Ryan and political staffer Sally Rugg will resume in court after mediation failed. Picture: NCA NewsWire/ Luis Ascui

Sally Rugg’s legal action against teal MP Monique Ryan is set to go to trial, in a “test case” the left-wing activist’s lawyers say could have significant implications in ­defining “reasonable” working hours in parliament and ­offices across the nation.

Maurice Blackburn Lawyers principal Josh Bornstein, acting for Ms Rugg, said on Thursday that mediation had failed to ­resolve the dispute, which relates to his client’s six months working as Dr Ryan’s chief of staff. Mr Bornstein issued a statement saying Ms Rugg would seek to add claims of ­“serious contraventions” of the Fair Work Act to her case against the commonwealth.

If successful, the case could cost ­taxpayers and employers millions of dollars.

“A serious contravention ­occurs where the breach of labour standards is knowing and systematic,” Mr Bornstein said.

“The penalty for serious contraventions is a maximum of $660,000.

“The serious contravention claim is made in circumstances in which Dr Ryan publicly ­acknowledged that her staff were working 70-hour weeks and that it was not safe.

“In addition, the commonwealth has been on notice of unlawful excessive hours being worked for parliamentary staffers for many years, including by ­reason of inquiries and reports to parliament.”

Mr Bornstein cited Sex Discrimination Commissioner Kate Jenkins’ Set the Standard report into workplace culture in federal parliament, saying it had found that staff working excessive hours “was an important factor in an ­unsafe workplace”.

“Ms Rugg’s case will be a test case for what constitutes ‘reasonable’ overtime or additional hours for parliamentary staffers and may impact other white-collar employees in the labour market,” he said.

“If Ms Rugg’s case succeeds, it will open the door for further ­litigation including class actions, not just for employees of the ­commonwealth, but for every Australian worker experiencing exploitation because of a con­tractual obligation to perform undefined ‘reasonable additional hours’. Tomorrow morning, the Federal Court will hear Ms Rugg’s application for an injunction to ­restrain the termination of her employment.

“After that issue is determined, Ms Rugg will then pursue her claims for compensation and other orders against the commonwealth and Dr Monique Ryan.”

In her own statement, Dr Ryan said she would not be commenting on the case while it was before the Federal Court.

However, she said Ms Rugg’s claims, and the matters raised in Mr Bornstein’s statement on Thursday, were “rejected, and will be defended”.

“My focus remains the electorate of Kooyong, and I’ll continue to work hard to represent the ­people of Kooyong as well as I can,” Dr Ryan said.

A spokeswoman from Sparke Helmore lawyers, who are acting for the commonwealth, declined to comment, as did the federal ­Department of Finance and the office of Special Minister of State Don Farrell.

Ms Rugg’s legal action against Dr Ryan centres on allegations that the MP caused the commonwealth to engage in “hostile ­conduct” by attempting to dismiss her after she refused to work the additional “unreasonable” hours.

In October, Dr Ryan spoke to The Australian about her concern regarding staffing levels, as she and fellow teal MPs floated the idea of fundraising for extra staff after Prime Minister Anthony ­Albanese reduced crossbench MPs’ entitlements from four personal staff members to one, in ­addition to four electorate staffers.

Dr Ryan said she would “certainly” be looking at fundraising for extra staff and “wasn’t sure” whether she would talk to Climate 200, but left the door open to ­talking to donors whose “values aligned with my own”.

She raised concerns with ­current staffing levels that were “unsustainable”, given some staff were working more than 70 hours a week.

“It’s not healthy. I think it’s only a matter of time before we have a poor outcome with one of our staff members,” Dr Ryan said at the time.

As a senior personal staff ­member for a crossbench MP, Ms Rugg is entitled to up to $145,715 in base salary, plus 15.4 per cent superannuation, up to $30,799 in “personal allowance” to compensate for extra hours worked, and travel allowance of $289 per night for every night spent away from home in the course of work.

Under the Members of Parliament (Staff) Act, federal political staffers are expected to work a 38-hour week, generally between 8am and 6pm, Monday to Friday.

“Employees may agree with their employing parliamentarian for some of their ordinary hours to be worked outside the hours of 8am to 6pm, Monday to Friday,” the MOP(S) Act states. ­“Additional hours of work, over and above 38 hours per week, are ­recognised through the payment of … parliamentary staff allowance or, where allowances are not paid, time off in lieu.”

Dr Ryan campaigned strongly on the issue of equality, respect and safety for women in the lead-up to the May election, in which defeated then-treasurer Josh Frydenberg in his previously blue-ribbon Liberal seat of Kooyong in Melbourne’s affluent inner east.

Dr Ryan was also a key proponent of a parliamentary code of conduct, tweeting in June that it would be “crucial in improving the workplace culture of Parliament House”.

“I’m looking forward to developing a code of conduct that will hold politicians to a high standard,” Dr Ryan tweeted.

When she hired Ms Rugg last July, Dr Ryan took to her website to spruik her new recruit as an “outstanding all-rounder with ­excellent leadership experience, a proven track record of effective policy advocacy, and high level strategic communications skills”.

“We are thrilled to welcome her to Team Mon,” Dr Ryan said.

Ms Rugg said it had been Dr Ryan’s policy outlook that had ­attracted her to the job.

“What drew me to Monique was obviously the policy priorities – climate change, gender equity, integrity and transparency in politics – but also her approach as a grassroots, community-connected independent,” she told Nine Newspapers at the time.

Ms Rugg took to Twitter in her first week in the role to say how much she was enjoying it, tweeting, “Best first-week-of-a-new-job ever”, in response to Dr Ryan’s first speech in late July, and “I love my new job so much omg” a few weeks later in August.