Lionel Lapin (LL) owns a large rural property called "Coniglius Maximus" just outside Glen Innes in the New England district of NSW. In 2017, after having failed in cattle and sheep farming, LL decided to branch out into angora rabbit farming. Angora rabbits have a much thicker and longer fur than ordinary rabbits. They generally need to be shorn every 3-4 months. The process of shearing (just like for sheep) is not painful to therabbits. The fur can be used for the manufacture of a variety of clothing. It can be used on its own or blended with natural fibres such as wool or cotton.

LL's angora rabbit business took off. Using a novel and unique technique for increasing the fertility of female rabbits, he invented a method for improving the breeding rate of angora rabbits. This was a closely guarded secret by LL.

By late 2020, he had approximately 2000 angora rabbits on his property. Every 3 - 4 months, he would also have a team of about 3-4 shearers arrive on his property to shear the rabbits. Each rabbit takes approximately 45 minutes to shear.

Since 2018, one of the shearers that has been arriving on LL's property was Carla Zaitsez (CZ). LL was very impressed with CZ's rabbit shearing talents. She would take approximately 30-35 minutes to shear a rabbit which is much less than other shearers. The rabbits she was shearing would also be shorn much better than the other shearers thereby yielding more angora fur per rabbit.

On 8 October, 2020, LL asked CZ to live on his property and undertake rabbit shearing. CZ agreed.

No written contract existed between CZ and LL but the following facts are present:

1. LL tells her regularly to shear approximately 10-12 rabbits per day and she must comply with this instruction.
2. On some days, she shears no rabbits. On average, she would shear 10 days per fortnight;
3. She has no rabbit shears of her own. LL tell hers to only use the special rabbit shears that have been designed and manufactured for his rabbits;
4. She has an office at Coniglius Maximus with the words "Carla Zaitsev, Rabbit Shearer, Coniglius Maximus" on the door of the office;
5. LL pays CZ $50 per rabbit gross (incl GST) that she shears. She renders invoices to him at any time that she pleases. She does not get paid until she renders to LL an invoice;
6. Since October 2020, she has not performed rabbit shearing on any other properties ;
7. She has her own website known as "Zaitsev Rabbit Shearing" and advertises her services on a range of social media. LL knows about this and has no problems with it;
8. She is known among other rabbit shearers as "Lapin's Rabbit Shearer".
   1. LL was obliged to provide her with shearing work from 10 August 2021 (10 marks);

From 10 August 2021 onwards, LL has not provided CZ with any shearing work. However, he has continued to pay her $3600 net per fortnight which was approximately CZ's average pay prior to 10 August 2021. CZ has not rendered any invoices since 10 August 2021. CZ is very unhappy about this. She hates just lying around and not doing any shearing work

As she had plenty of time on her hands, CZ then began a relationship with LL's daughter. At the time, CZ was 38 years old and LL's daughter was 19.

On 10 October 2021, CZ asked LL for 3 weeks of annual leave. LL replied:

"You've got to be kidding, Carla. Annual leave is only for employees. You are not my employee".

On 23 October 2021, LL discovered CZ's relationship with his daughter and immediately said to CZ:

"I know what's happening between you and my daughter. Get out of here ! I never want to see you again!"

On next day, 24 October 2021, LL discovers that CZ, over the previous month, had been emailing other owners of angora rabbit farms throughout Australia and telling them the precise technique used by LL to increase the fertility of female rabbits. On the same day, he also discovered that she was paid $5000 for every disclosure she made.

Question:

On the assumption that CZ is an employee of LL, advise her as to whether:

1. LL could validly dismiss her on 23 October 2021(10 marks).