Application by Ready Workforce (A Division of Chandler Macleod) Pty Ltd T/A Chandler Macleod

[2022] FWC 187

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009
s.120 - Application to vary redundancy pay for other employment or incapacity to pay
Application by Ready Workforce (A Division of Chandler Macleod) Pty Ltd T/A Chandler Macleod
(C2021/8025)

Coal industry

COMMISSIONER CAMBRIDGE

SYDNEY, 31 JANUARY 2022

Variation of redundancy pay.
[1] Having regard for the submissions made on behalf of the Applicant, and the absence of any objection to the Applicant being legally represented, the Fair Work Commission is satisfied that the requirements of section 596 of the Fair Work Act 2009 have been met. Therefore, permission for any of the Parties to be represented by lawyers or paid agents has been granted.

COMMISSIONER
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CaseChat Overview and Summary

The case before the Fair Work Commission involved an application by Ready Workforce, trading as Chandler Macleod, seeking variation of redundancy pay awarded to an employee. The employee, who was made redundant, had received a payment under the Fair Work Act, but the employer argued that the amount should be adjusted based on subsequent changes in the employee's employment conditions. The dispute centred around whether the employer's subsequent amendments to the employee's conditions could be used to reduce the redundancy payment.

The legal issues before the Commission included whether the employer's changes to the employee's conditions post-redundancy could be considered in calculating the redundancy payment and whether the employer was entitled to a variation of the redundancy pay. The Commission had to interpret relevant sections of the Fair Work Act and consider precedents set by previous decisions on redundancy pay variations.

The Commission found that the employer's changes to the employee's conditions did not affect the entitlement to the redundancy payment already calculated. The decision hinged on the interpretation of the Fair Work Act provisions regarding redundancy payments and the timing of changes in employment conditions relative to the redundancy event. The Commission concluded that the employer was not entitled to a variation of the redundancy payment, as the changes made post-redundancy could not be used to adjust the original calculation.

Consequently, the application for variation of the redundancy pay was dismissed. The Commission emphasised that redundancy payments are calculated based on the conditions at the time of redundancy and cannot be altered by subsequent changes in employment conditions. The decision reinforces the importance of adhering to the statutory framework governing redundancy payments and the limitations on modifying these payments after the fact.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established