Quatius Logistics Pty Ltd t/as Soniq Logistics Pty Ltd Summary

[2025] FWC 1093

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.120 - Application to vary redundancy pay for other employment or incapacity to pay

Quatius Logistics Pty Ltd t/as Soniq Logistics Pty Ltd

(C2025/2941)

Storage services
COMMISSIONER REDFORD	MELBOURNE, 17 APRIL 2025

Variation of redundancy pay

An application has been made pursuant to s 120 of the Fair Work Act 2009 (the Act) by Quatius Logistics Pty Ltd t/as Soniq Logistics Pty Ltd (Soniqu) for variation of redundancy pay. The application concerns Mr Colin Belsham, an employee of Soniqu.
It is evident to me from the application that Soniqu has relocated its warehouse from South Dandenong, located in the south-east of Melbourne, to Truganina in the west of Melbourne, resulting in a redundancy in respect to Mr Belsham.
It is also evident to me from the application and accompanying material provided to the Commission that Soniqu is presently facing financial challenges, including rent arrears and an Australian Tax Office Payment plan.
The application asserts that Mr Belsham has worked for Soniqu for eight years, and that the amount of redundancy pay to which he is entitled is a sum equivalent to 14 weeks pay. It seeks this amount be reduced to an amount equivalent to 10 weeks pay.
The application asserts Mr Belsham has agreed to this proposition.
Upon allocation of this matter to my chambers, Mr Belsham was contacted to ask whether he agreed with the proposed changed to his redundancy pay or did not agree. His response was that he did agree.
Section 120 of the Act provides that on application by an employer, the Commission may determine that the amount of redundancy pay is reduced to a specified amount (which may be nil) that it considers appropriate. Section 120 applies if:

a.an employee is entitled to be paid an amount of redundancy pay by the employer because of section 119 of the Act; and
b.the employer obtains other acceptable employment for the employee; or
c.the employer cannot pay the amount.

There appears to be no doubt Mr Belsham is entitled to be paid an amount of redundancy pay in accordance with s 119 of the Act. On the basis of the response provided by Mr Belsham in relation to this matter, I accept the contention set out in the application that Soniqu cannot pay the redundancy pay to which he is entitled. I consider it is appropriate to reduce the amount to a sum equivalent to ten weeks pay. I note Mr Belsham consents to this proposition.
I determine that the amount of redundancy to be paid to Mr Belsham be reduced to a sum equivalent to ten weeks pay, with that amount to be paid in accordance with the Order[1] made in conjunction with this decision.

COMMISSIONER

[1] PR786220

Printed by authority of the Commonwealth Government Printer

Quatius Logistics Pty Ltd trading as Soniq Logistics Pty Ltd applied to the Fair Work Commission under section 120 of the Fair Work Act 2009 to vary the redundancy pay for its employee, Mr Colin Belsham. The application followed the company's relocation of its warehouse from South Dandenong to Truganina, resulting in Mr Belsham's redundancy. Soniq Logistics asserted that it was facing financial difficulties, including rent arrears and an Australian Taxation Office Payment Plan, and sought to reduce Mr Belsham's redundancy pay from 14 weeks to 10 weeks. Mr Belsham confirmed that he agreed to the proposed reduction.

The Commission had to decide whether the employer was justified in reducing the redundancy pay under section 120 of the Act. This section allows for a reduction if the employer obtains other employment for the employee or cannot pay the amount. It was clear that Mr Belsham was entitled to redundancy pay under section 119 of the Act, and the employer's financial difficulties were undisputed. Given Mr Belsham's consent to the reduction, the Commission found it appropriate to reduce the amount to ten weeks' pay.

The Commission determined that the redundancy pay owed to Mr Belsham should be reduced to an amount equivalent to ten weeks' pay. This decision was based on the employer's financial hardship and the employee's consent to the proposed reduction. The Commission made an order to reflect this decision.

Quatius Logistics Pty Ltd t/as Soniq Logistics Pty Ltd

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established