Hudson Global Resources (Aust) Pty Limited

[2024] FWC 985

[2024] FWC 985

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.120—Redundancy pay

Hudson Global Resources (Aust) Pty Limited

(C2024/932)

COMMISSIONER HARPER-GREENWELL MELBOURNE, 16 APRIL 2024

Variation of redundancy pay – other acceptable employment obtained – application granted.

1. Hudson Global Resources (Aust) Pty Limited (the Applicant) has made an application under s.120 of the Fair Work Act 2009 (Cth) (the Act) to reduce the redundancy entitlement of Ms Rebecca Doyle.

1. The Applicant seeks to reduce Ms Doyle’s redundancy entitlement to nil on the basis it offered her an alternative role within the organisation at a higher rate of pay and on a permanent basis. The Applicant submits the alternative role constitutes ‘other acceptable employment’ for the purposes of s.120(1)(b)(i) of the Act.

Background

1. The background to the Application is summarised as follows. Ms Doyle commenced working full-time with Hudson on 1 April 2018. On 6 March 2023, Ms Doyle commenced a period of parental leave. Ms Doyle returned to work on 30 January 2024. While Ms Doyle was on parental leave the Applicant lost several key enterprise clients including the client for which Ms Doyle’s Account Manager role related to. The Applicant implemented a series of organisation changes leading to a change in its business delivery model. Consequently, Ms Doyle’s Account Manager role was made redundant. On 9 November 2023, Ms Doyle was offered either a redundancy or redeployment.

1. The Applicant submits that after a period of consultation Ms Doyle was offered the role of Client Executive which she initially accepted on 29 November 2023. On 6 December 2023, Ms Doyle confirmed that she would return to work on 30 January 2024. The Applicant submits the Client Executive role was offered at the same status and pay as Ms Doyle’s original role.

1. The Applicant submits after accepting the role Ms Doyle raised concerns about the status of the role. Ms Doyle’s concerns were that she had previously been responsible for a number of direct reports and the new role deprived her of the ability to further develop her management skills.

1. On 19 December 2023, the Applicant attempted to communicate with Ms Doyle about the availability of another senior role following an internal resignation. After further consultation Ms Doyle was offered the role of Client Relationship Manager (CRM) which encompassed client relationship management and business development duties. Ms Doyle did not accept the Client Relationship Manager role and requested that she receive a redundancy.

1. The Applicant submits both the first role and second role offered to Ms Doyle were sufficiently similar to her original role in status and pay taking into consideration the changes in the business delivery model and the loss of several key enterprise clients.

Considerations

1. On 22 February 2024, correspondence was sent from my chambers directing the Applicant to serve the Application on Ms Doyle. Ms Doyle was directed to advise in writing to my Chambers as to whether she objected to the Application.

1. On 22 February 2024, Ms Doyle wrote to my Chambers advising that she objected to the Application. Ms Doyle did not provide any reasons for her objection. The matter was subsequently listed for a mention/directions hearing. On 26 February 2024, Ms Doyle requested the matter be adjourned to a later date. Ms Doyle’s request for an adjournment was granted. I conducted a mention/directions hearing on 26 March 2024 and directions for the filling of materials in support of the Application and Ms Doyle's objection were issued.

1. On 3 April 2024, Ms Doyle sent correspondence to my Chambers. Amongst other things Ms Doyle wrote:

   “[...]after reviewing the previous cases I have decided I do not wish to peruse this any      further.

   [...]

   I am agreeing to Hudson reducing the amount to 0.”

1. On 4 April 2024, correspondence was sent from my Chambers to the parties noting that Ms Doyle had withdrawn her objection to the Application and consents to the redundancy amount being reduced to nil. The parties were informed that in the absence of an objection, I intended to determine the matter on the papers without a hearing. The parties were offered an opportunity to be heard however neither party requested to be heard.

1. Section 120 of the Act confers on the Commission a discretion to reduce the amount of redundancy pay to which an employee would otherwise have been entitled under s.119 of the Act. Section 120(1) applies if an employee is entitled to be paid an amount of redundancy pay by the employer pursuant to s.119, and the employer ‘obtains other acceptable employment for the employee’.

1. The question for determination in this matter is whether the Applicant obtained other acceptable employment for Ms Doyle. Ms Doyle does not object to the Application and has not filed any submissions for my consideration. Therefore, taking into account the materials filed and the submissions of the Applicant, I am satisfied that the Applicant obtained other acceptable employment for Ms Doyle. Accordingly, I have determined to grant the Application and reduce the redundancy pay to which Ms Doyle is entitled to nil. An Order[1] will be issued separately to this decision.

COMMISSIONER

[1] PR773533.

Printed by authority of the Commonwealth Government Printer

<PR773532>