Employment National v CPSU & Ors, Min for Employment v CPSU & Ors

Employment National (in its capacity as administrator of the National Distribution Company) and the Minister for Employment were the applicants in proceedings before the High Court of Australia concerning the interpretation of the *Workplace Relations Act 1996* (Cth). The respondents were the Community and Public Sector Union (CPSU) and other unions. The dispute centred on whether certain payments made by Employment National to employees constituted wages for the purposes of calculating superannuation contributions under the Act.

The primary legal issue before the Court was whether payments made by Employment National to employees, described as "redundancy payments" and "severance payments," were to be considered "ordinary remuneration" for the purposes of the superannuation guarantee provisions of the *Workplace Relations Act 1996*. This involved determining the scope and meaning of "ordinary remuneration" as defined in the Act and its interaction with the nature of the payments in question.

The Court reasoned that the characterisation of the payments was crucial. It held that the payments, being made upon termination of employment and linked to the cessation of employment rather than to the performance of work, did not fall within the definition of "ordinary remuneration." The Court applied the principle that payments made in consequence of the termination of employment, rather than in return for services rendered, are generally not considered wages or ordinary remuneration for the purposes of superannuation obligations. The Court distinguished between payments for services rendered during employment and payments made upon its termination.