Elsadat and Secretary, Attorney-General's Department

This matter concerned an application by Mrs Elsadat against the Secretary, Attorney-General's Department, heard by Ms A E Burke AO, Member of the Administrative Appeals Tribunal. The dispute centred on Mrs Elsadat's entitlement to redundancy pay following the cessation of her employment with Waratah Group, which had been placed into voluntary administration. The core of the disagreement was whether Mrs Elsadat's employment had effectively ceased in a manner that triggered her redundancy entitlements under the Fair Work Act 2009, particularly in light of assurances given by the insolvency practitioners.

The Tribunal was required to determine whether Mrs Elsadat was entitled to an advance on account of redundancy pay under the Fair Entitlements Guarantee Act 2012 (FEG Act). This involved considering when her employment ceased, whether the terms of her employment contract regarding redundancy were superseded by assurances from the insolvency practitioners, and whether these assurances entitled her to redundancy pay despite the company's insolvency. The Tribunal also implicitly considered whether the circumstances of the company's administration and sale of assets affected her entitlement.

The Tribunal reasoned that Mrs Elsadat's entitlement to redundancy pay had been assured by the insolvency practitioners, provided she remained to assist in winding down the company. This undertaking was found to override her original employment contract. Consequently, the Tribunal concluded that Mrs Elsadat was entitled to an advance on account of redundancy pay under the FEG Act. The Tribunal set aside the previous decision and remitted the matter to the Secretary with a direction that Mrs Elsadat is entitled to an advance for redundancy pay, to be calculated in accordance with section 119(2) of the Fair Work Act.