CCIG Investments Pty Ltd v Schokman

CCIG Investments Pty Ltd (the appellant) appealed to the High Court of Australia against the decision of the Full Federal Court, which had affirmed a judgment in favour of Mr Schokman (the respondent). The dispute concerned the respondent's claim for compensation under the *Long Service Leave Act 1976* (Qld) following the termination of his employment with the appellant. The Full Federal Court had found that the appellant was liable to pay the respondent long service leave entitlements accrued during his employment.

The High Court was required to determine whether the appellant, as a successor employer, was liable for the long service leave entitlements accrued by the respondent during his employment with a previous employer, pursuant to section 10(1) of the *Long Service Leave Act 1976* (Qld). This involved considering the interpretation of "transfer of business" and the circumstances under which an employer becomes liable for accrued long service leave entitlements of an employee of a previous employer.

The Court held that the appellant was not liable for the respondent's accrued long service leave entitlements. The majority reasoned that for section 10(1) to apply, there must be a "transfer of business" in the sense of a continuity of the employing entity, not merely a continuity of the employment relationship. The Court found that the appellant had not acquired the business of the previous employer in a manner that would trigger the statutory obligation to recognise accrued entitlements. The legal principle applied was that a successor employer's liability for accrued long service leave under the Act is contingent upon a specific type of business transfer that preserves the continuity of the employing entity, rather than simply the continuation of the employee's work.

The appeal was allowed, and the judgment of the Full Federal Court was set aside. The respondent's claim against the appellant was dismissed.