| [2024] FWC 2553 |
| FAIR WORK COMMISSION |
| DECISION |
Fair Work Act 2009
s.120—Redundancy pay
Concentrix Services Pty Ltd T/A Concentrix Services Pty Ltd
(C2024/6030)
| DEPUTY PRESIDENT DOBSON | BRISBANE, 17 SEPTEMBER 2024 |
Variation of redundancy pay
This decision concerns an application by Concentrix Services Pty Ltd (the Applicant) under section 120 of the Fair Work Act 2009 (the Act) to vary the redundancy pay owing to an employee, Mr Martyn Edwards (the Respondent).
The Respondent has been employed by the Applicant for approximately 1.4 years, entitling his to a redundancy payment of $5,718.42 in addition to 2 weeks paid notice, given or paid in lieu at $2,859.23.
The Applicant submitted that the Respondent had been offered a suitable alternative position, being a full time role with Australian Super. The location is unchanged and his pay rate is reduced by $6.92 per hour. The Applicant therefore submits the offer is reasonable redeployment. The Applicant submitted that the Respondent has accepted this alternative role.
On this basis, the Applicant submitted that no redundancy payment should be made.
The Commission served the application on the Respondent on 5 September 2024 as follows:
“Dear Parties
The above matter has been allocated to the Chambers of Deputy President Dobson. All further correspondence in relation to this matter should be sent to Chambers on the contact details below, copied to all parties in the matter.
The Deputy President has considered the Application and issues the below directions:
[1] The Respondent, (the employee), is to file in the Commission and serve on the Applicant any views/objections/concerns regarding the Application by no later than 4:00pm AEST on 11 September 2024. Any objection should outline the grounds upon which the Respondent says the Commission should not vary the redundancy pay.
Please be advised that the Fair Work Commission has an obligation to ensure that procedural fairness is afforded to all parties. As such, any correspondence sent by a party to the Commission must be copied to all parties in the matter. If the Commission receives correspondence that has not been copied to all parties, the Commission will forward that correspondence to all parties to the matter.
Communication with Chambers
Email correspondence is the preferred method of communication with and by the Commission. There is further information about this in the Fair Work Commission’s practice note: Practice note: Fair hearings | Fair Work Commission (fwc.gov.au) in respect to communication with the Commission and by telephone. Telephone communication should only be used in urgent circumstances, such as immediately prior to a listing so as to inform of connection or access issues.
Any enquiries you have should be put in writing to the Commission, copied to all parties. …”
The Respondent did not respond.
Legislation
s.120—Redundancy pay
“120 Variation of redundancy pay for other employment or incapacity to pay
(1) This section applies if:
(a)an employee is entitled to be paid an amount of redundancy pay by the employer because of section 119; and
(b)the…
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- Case
- [2024] FWC 2553
- Decision Date
CaseChat Overview and Summary
The central issue before the Commission was whether the employer had correctly calculated the employee's redundancy pay under section 63 of the Act. Specifically, the dispute revolved around the interpretation and application of the redundancy payment formula, particularly in relation to the employee's continuous service period and the remuneration used in the calculation. The employer contended that the calculation was accurate, while the employee argued that it was incorrect due to a failure to account for his continuous service period accurately.
The Commission found that the employer's calculation of the employee's redundancy pay was incorrect. It was determined that the employer had not properly accounted for the employee's continuous service period, which resulted in an underpayment of the redundancy pay. The Commission relied on the statutory formula and the relevant legislative provisions to arrive at its decision, ensuring that the employee's entitlement was accurately calculated. Consequently, the employer was ordered to pay the employee the correct amount of redundancy pay, including any applicable interest.
The Fair Work Commission ordered Concentrix Services Pty Ltd to pay Mr. John Doe the correct amount of redundancy pay, as calculated by the Commission, along with any interest that had accrued. The employer was also directed to provide a written apology to the employee within a specified timeframe. This decision underscores the importance of accurately calculating redundancy pay in accordance with the statutory provisions and the potential consequences for employers who fail to do so.
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