Australian Business Industrial

Case

[2012] FWA 8726

17 OCTOBER 2012


Details
AGLC Case Decision Date
Australian Business Industrial [2012] FWA 8726 [2012] FWA 8726 17 OCTOBER 2012

CaseChat Overview and Summary

In the Fair Work Commission, Australian Business Industrial Pty Ltd applied to vary the Graphic Arts, Printing and Publishing Award 2010 to change the payment of wages for employees upon termination. The applicant sought to reduce the payment amount from 8 weeks' pay to 4 weeks' pay. The dispute arose from the current redundancy pay provisions under the Award and the applicant's desire to align their redundancy pay scheme with the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed variation to the Award was consistent with the objectives of the Fair Work Act, particularly in relation to the protection of employees' entitlements upon termination. The applicant argued that the current 8 weeks' pay provision was excessive and not reflective of industry standards or statutory requirements. The Commission needed to consider whether the proposed change was justified and whether it would have a detrimental impact on employees.

The Fair Work Commission considered the evidence provided by both parties and the relevant provisions of the Fair Work Act and the Modern Awards. The Commission determined that the proposed reduction in redundancy pay from 8 weeks' to 4 weeks' was not consistent with the objectives of the Fair Work Act, which aim to provide adequate protection to employees. The Commission found that the current 8 weeks' pay provision was not excessive and was in line with the statutory minimum entitlements. The Commission rejected the application, upholding the existing redundancy pay provisions under the Award.

Consequently, the Fair Work Commission dismissed Australian Business Industrial Pty Ltd's application to vary the Graphic Arts, Printing and Publishing Award 2010. The 8 weeks' pay for redundancy remained the applicable entitlement for employees upon termination.
Details

Areas of Law

  • Employment & Labour Law

Legal Concepts

  • Review of modern awards

  • Payment on termination

  • Wages