Application by Regal Cabinets Pty Ltd

[2025] FWC 801

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s 120—Redundancy pay

Application by Regal Cabinets Pty Ltd

(C2025/1729)

DEPUTY PRESIDENT BEAUMONT

PERTH, 20 MARCH 2025

Application to vary redundancy pay — incapacity to pay

On 8 March 2025, Regal Cabinets Pty Ltd (the Applicant) applied to the Fair Work Commission for an order under s 120 of the Fair Work Act 2009 (Cth) (the Act) that the amount of redundancy pay due to Mr Kevin Hazel be reduced by 100 percent.

On 19 March 2025, a conference was convened with the parties. The parties agreed about the disposition of the dispute between them and sought an order giving effect to their in-principle agreement. By consent, the parties sought an order to reduce the amount of Mr Hazel’s redundancy pay by 100% on the basis that the Applicant was unable to pay Mr Hazel, a director of the Applicant, the redundancy pay owing under clause 39.4 of the Timber Industry Award 2020[1] (see s 120(1)(b)(ii) of the Act).

Being satisfied that there was an application properly before the Commission pursuant to s 120 of the Act and that it was appropriate to do so, I have determined the dispute by issuing an Order[2] concurrently with this decision in the terms sought by the parties. In doing so, the Commission advised the parties that it would be appropriate to publish short reasons for decision in relation to the Order, and these are those reasons.

DEPUTY PRESIDENT

Matter determined on the papers.

[1] MA000071.

[2] PR785397.

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Regal Cabinets Pty Ltd (the Applicant) applied to the Fair Work Commission for an order under section 120 of the Fair Work Act 2009 (Cth) to reduce the amount of redundancy pay due to Mr Kevin Hazel by 100 percent. The Applicant, a director of the company, was unable to pay the redundancy pay owing under clause 39.4 of the Timber Industry Award 2020. The application was made on 8 March 2025 and a conference was convened with the parties on 19 March 2025. The parties reached an in-principle agreement and sought an order to reduce the redundancy pay by 100 percent based on the Applicant's inability to pay.

The legal issue before the Fair Work Commission was whether the Applicant could be granted an order to reduce the redundancy pay by 100 percent under section 120(1)(b)(ii) of the Act. This section allows the Commission to reduce the amount of redundancy pay if the employer is unable to pay the amount owing. The Commission considered whether the Applicant had properly applied for the order, whether there was an application before the Commission, and whether it was appropriate to issue the order.

The Deputy President of the Fair Work Commission determined that there was an application properly before the Commission and that it was appropriate to issue the order in the terms sought by the parties. The Commission issued an order reducing the amount of Mr Hazel's redundancy pay by 100 percent on the basis that the Applicant was unable to pay the amount owing. The Deputy President also noted that it would be appropriate to publish short reasons for decision in relation to the order.

The Fair Work Commission issued an order reducing the amount of Mr Hazel's redundancy pay by 100 percent. The order was made on the basis that the Applicant was unable to pay the amount owing. The Deputy President considered that it was appropriate to issue the order in the terms sought by the parties. The Commission also noted that it would be appropriate to publish short reasons for decision in relation to the order.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established