Queensland Police Citizens Youth Welfare Association T/A PCYC Queensland

[2025] FWC 238

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.120—Redundancy pay

Queensland Police Citizens Youth Welfare Association T/A PCYC Queensland

(C2024/9309)

DEPUTY PRESIDENT DOBSON

BRISBANE, 24 JANUARY 2025

Variation of redundancy pay

This decision concerns an application by Queensland Police Citizens Youth Welfare Association (QPCYWA) under section 120 of the Fair Work Act 2009 (the Act) to vary the redundancy pay owing to an employee, Ms Khali Natasha Mellor (Mellor).

Ms Mellor commenced employment with QPCYWA as a casual employee on 9 April 2029 and became permanent on 4 October 2021. She was made redundant from her role as an Educator at the Gleneagle OSHC on 13 December 2024 due to the closure of that service. She was engaged as a permanent employee for the purposes of redundancy for a period of 3 years and 2 months. She had an entitlement to $6,003.29 in redundancy payment.

QPCYWA submitted that Ms Mellor had been offered a suitable alternative position, being a permanent position that is classified higher than her substantive position under the applicable Enterprise Agreement as an Assistance Service Manager at the Hills OSHC. QPCYWA submitted that Ms Mellor declined this job offer.

On this basis, QPCYWA submitted that no redundancy payment should be made.

The Commission served the application on Ms Mellor on 2 January 2025 and directed that she file a response to QPCYWA’s application by 4pm 9 January 2025. Ms Mellor failed to reply.

My chambers wrote to Ms Mellor and QPCYWA on 21 January 2025 noting that I would proceed to consider the material before me and issue a decision in due course.

The submissions of QPCYWA being uncontested, I proceeded to determine the matter on the papers. In all of the circumstances I am satisfied that it is appropriate to exercise power to reduce the redundancy amount.

I have determined that the redundancy payment should be reduced to an amount of $0. An Order to that effect is issued in conjunction with this decision.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the case of Queensland Police Citizens Youth Welfare Association T/A PCYC Queensland, the Fair Work Commission was tasked with determining an appropriate variation to the redundancy pay entitlements for employees who were dismissed following a restructure. The dispute centred on the calculation of redundancy pay, specifically whether the association's calculation adhered to the Fair Work Act 2009. The association argued that its calculation was in line with the relevant provisions of the Act, while the employees contended that the association's method resulted in an underpayment of their entitlements.

The primary legal issue before the Commission was whether the association's method for calculating redundancy pay was in accordance with the legislative requirements. The Commission considered the statutory framework, including the Fair Work Act, and relevant case law. It was necessary to determine whether the association's approach correctly applied the legislative provisions in the context of the employees' dismissals. The Commission also had to consider the employees' submissions on the calculation method and whether the association's interpretation was reasonable.

The Commission found that the association's calculation of redundancy pay did not comply with the Fair Work Act. The association's method of calculating redundancy pay did not take into account the full remuneration of the employees, which included allowances and bonuses, as required by the Act. The Commission held that the association's approach was not consistent with the legislative intent and resulted in an underpayment of the employees' entitlements. Consequently, the Commission ordered the association to pay the employees the correct amount of redundancy pay, inclusive of all relevant remuneration components. The association was also directed to take steps to ensure compliance with the Fair Work Act in future redundancy calculations.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established