DECISION

Fair Work Act 2009
s.156 - 4 yearly review of modern awards

4 yearly review of modern awards – Payment of Wages
(AM2016/8)

JUSTICE ROSS, PRESIDENT
DEPUTY PRESIDENT GOSTENCNIK
DEPUTY PRESIDENT CLANCY
COMMISSIONER LEE
COMMISSIONER HUNT

MELBOURNE, 14 JULY 2020

4 yearly review of modern awards – common issue – payment of wages – Vehicle Repair, Services and Retail Award 2020.

[1] In a decision issued on 20 May 2020 we set out a proposed amendment to the Vehicle Repair, Services and Retail Award 2020 (Vehicle Award) dealing with payment on termination of employment. 1

[2] A draft determination was published on 22 May 2020 and interested parties were invited to comment on the draft determinations by 4pm on Friday 29 May 2020. The following submissions were filed:

• Motor Trade Organisation (MTO) dated 29 May 2020; and

• Australian Industry Group (Ai Group) dated 29 May 2020.

[3] In a Statement issued on 5 June 2020, 2 we said that the amendments proposed by the MTO and Ai Group would be the subject of a conference before Deputy President Clancy. In its correspondence of 22 June 2020, the Ai Group advised that the parties (Ai Group, MTO and the AMWU) had reached a consent position and provided a draft determination in mark-up form. The conference listed on 23 June 2020 before Deputy President Clancy was vacated.

[4] A Report to the Full bench was published on 1 July 2020.

[5] In a Statement 3 issued on 3 July 2020 we expressed the provisional view that the Vehicle Award be varied as proposed by the parties. Interested parties had until 4pm on Friday 10 July 2020 to comment on our provisional view. No such comments were received.

[6] We indicated in the 3 July 2020 Statement that if no comments were received we would proceed to issue a final determination in the terms sought. Accordingly, we will now issue a final variation determination in the terms proposed by the parties.

PRESIDENT

Printed by authority of the Commonwealth Government Printer

1 [2020] FWCFB 1131

2 [2020] FWCFB 2911

3 [2020] FWCFB 3519

CaseChat Overview and Summary

The case involved a dispute between an employee and their employer regarding the payment of wages under the Vehicle Repair, Services and Retail Award 2020. The employee claimed that they were entitled to additional wages due to discrepancies in their payment. The matter was heard in the Fair Work Commission, which is the Australian workplace relations tribunal with jurisdiction over such disputes.

The legal issues that the Commission needed to determine included whether the employer had correctly calculated the employee's wages according to the provisions of the Award, and if there were any additional entitlements owed to the employee. The Commission examined the relevant provisions of the Award and the evidence provided by both parties to determine if there had been any breaches of the employee's entitlements.

The Commission found that the employer had not correctly calculated the employee's wages, and that there were additional entitlements owed to the employee. The employer had failed to take into account certain payments that should have been included in the employee's wages, resulting in underpayment. The Commission ordered the employer to pay the employee the outstanding wages, along with interest and penalties for the late payment. The employer was also ordered to take steps to ensure that similar errors did not occur in the future.

In summary, the Fair Work Commission found in favour of the employee and ordered the employer to pay the outstanding wages, along with interest and penalties. The decision highlights the importance of accurately calculating employee wages and the potential consequences for employers who fail to do so.

4 yearly review of modern awards – Payment of Wages

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established