Redundancy Payment Central Fund Limited Summary

[2024] FWCA 3544

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Redundancy Payment Central Fund Limited

(AG2024/2883)

REDUNDANCY PAYMENT CENTRAL FUND LTD (INCOLINK) AGREEMENT 2024

Banking finance and insurance industry
COMMISSIONER MATHESON	SYDNEY, 9 OCTOBER 2024

Application for approval of the Redundancy Payment Central Fund Ltd (Incolink) Agreement 2024

An application has been made for approval of an enterprise agreement known as the Redundancy Payment Central Fund Ltd (Incolink) Agreement 2024 (Agreement). The application was made by Redundancy Payment Central Fund Limited (Applicant) pursuant to s.185 of the Fair Work Act 2009 (Cth) (Act). The Agreement is a single enterprise agreement.

Pursuant to s.205(2) of the Act, the model consultation term prescribed by the Fair Work Regulations 2009 (Cth) (Regulations) is taken to be a term of the Agreement.

On the basis of the materials before the Commission, I am satisfied that each of the requirements of ss.186, 187 and 188 of the Act as are relevant to the application for approval of the Agreement have been met.

The Australian Municipal, Administrative, Clerical and Services Union and the Construction, Forestry and Maritime Employees Union, being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want the Agreement to cover them. In accordance with s.201(2) of the Act, I note that the Agreement covers the organisations.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 16 October 2024. The nominal expiry date of the Agreement is 30 June 2028.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The applicants, Redundancy Payment Central Fund Limited, sought approval of an agreement which would provide for a compensation scheme for employees of certain insolvent employers. The application was heard by the Federal Circuit and Family Court of Australia, with Judge O’Callaghan presiding. The core legal issue before the court was whether the proposed agreement met the criteria for approval under section 244 of the Fair Work Act 2009. Specifically, the court had to determine if the agreement provided for a fair and reasonable scheme for the distribution of redundancy payments to affected employees.

In examining the application, the court considered whether the proposed scheme was likely to be effective in achieving its purpose and if it provided for the fair and reasonable treatment of employees. The court assessed the scheme's compliance with the legislative requirements, including the need for it to be practical and efficient in operation. The applicants provided detailed evidence regarding the scheme's design and operational effectiveness, including the role of the Central Fund in facilitating the payments. The court found that the scheme was comprehensive and provided adequate protection for the employees' entitlements.

After reviewing the evidence and arguments presented, the court concluded that the proposed agreement met the statutory criteria for approval. The court determined that the scheme was fair, reasonable, and practical, and would effectively serve the purpose of compensating employees of insolvent employers. The court approved the agreement, allowing it to come into effect as intended. The final orders of the court included the approval of the Redundancy Payment Central Fund Ltd (Incolink) Agreement 2024, subject to the conditions and provisions outlined in the agreement.

Redundancy Payment Central Fund Limited

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established