CEPU v BCS Infrastructure Support Pty Limited

The Communications, Electrical and Plumbing Union (CEPU) brought proceedings against BCS Infrastructure Support Pty Limited (BCS) in the Federal Court of Australia. The dispute concerned BCS's alleged contravention of section 345(1) of the *Fair Work Act 2009* (Cth) by failing to pay an employee, Mr. Mark Giddings, a redundancy payment to which he was entitled under the relevant enterprise agreement. The CEPU sought to recover this alleged underpayment on behalf of Mr. Giddings.

The primary legal issue before the Court was whether BCS had contravened section 345(1) of the *Fair Work Act 2009* (Cth) by failing to make the redundancy payment. This required the Court to determine if Mr. Giddings was entitled to a redundancy payment under the applicable enterprise agreement and, if so, whether BCS's failure to pay constituted a contravention of the Act.

Judge O’Sullivan found that BCS had indeed contravened section 345(1) of the *Fair Work Act 2009* (Cth). The Court reasoned that the terms of the enterprise agreement clearly stipulated that employees made redundant were entitled to a redundancy payment. As Mr. Giddings met the criteria for redundancy under the agreement, BCS was obligated to make the payment. The Court applied the principles of contractual interpretation to the enterprise agreement, concluding that BCS's failure to pay the redundancy entitlement amounted to a contravention of its statutory obligations under the *Fair Work Act 2009* (Cth).

The Court ordered BCS to pay the outstanding redundancy payment to Mr. Giddings, along with interest, and to pay the CEPU's costs of the proceedings.