Mildren Automotive Pty Ltd

Mildren Automotive Pty Ltd was involved in a legal dispute before the Fair Work Commission, concerning the variation of redundancy pay. The employer sought to reduce the redundancy payments to the employees due to the employees securing alternative employment and the employer's financial hardship. The Commission was tasked with determining whether the employer had obtained acceptable alternative employment for the employees and whether the employer's inability to pay the redundancy payments was genuine.

The central legal issue revolved around the interpretation and application of the redundancy provisions in the National Automotive Parts Suppliers Award (NAPSA). The employer argued that the employees' acquisition of alternative employment justified a reduction in redundancy payments. Conversely, the employees contended that the redundancy provisions should be strictly adhered to. Additionally, the employer claimed that its financial incapacity rendered it unable to pay the full redundancy entitlements as stipulated by the award.

The Fair Work Commission considered the award provisions and the circumstances of the case. It was found that the employees had indeed secured acceptable alternative employment, which justified a reduction in the redundancy payments. However, the employer's financial hardship did not absolve it from its obligations under the award. The Commission concluded that the employer's financial situation did not reach the threshold required to warrant a reduction in redundancy pay. Consequently, the application was allowed in part, reducing the redundancy payments due to the employees based on their alternative employment, while maintaining the full entitlement due to the employer's financial status.