Serco Sodexo Defence Services Pty Ltd (SSDS)

[2014] FWC 9197

[2014] FWC 9197

FAIR WORK COMMISSION

STATEMENT

Fair Work Act 2009
s.120 - Application to vary redundancy pay for other employment or incapacity to pay

Serco Sodexo Defence Services Pty Ltd (SSDS)
(C2014/6408, C2014/6409, C2014/6410, C2014/6411 & C2014/6412)

COMMISSIONER ROE SYDNEY, 17 DECEMBER 2014

Applications by Serco Sodexo Defence Services Pty Ltd (SSDS) to vary redundancy pay for other employment due to loss of defence contracts.

[1] SSDS has made a number of applications seeking to have the redundancy payments, due to a significant number of SSDS employees who were made redundant as a result of the loss of the defence contracts, reduced to nil, or an amount to be determined by the Fair Work Commission (the Commission). SSDS argues that it has obtained other acceptable employment for these employees, primarily with the incoming contractors.

[2] The Fair Work Commission is first considering whether or not SSDS has obtained alternative employment with the incoming contractors for its employees and whether or not that employment is on acceptable terms and conditions. If the Commission concludes that SSDS has obtained acceptable alternative employment then the Commission will ensure that affected employees are notified and have an opportunity to raise the particular circumstances of any employment offer made to them. If the Commission concludes that acceptable alternative employment has been found in the particular circumstances of an employee the Commission will then determine what reduction, if any, should apply to their redundancy payment.

[3] SSDS have said that they will pay redundancy payments which are due to those who have not been offered work with the incoming contractors. However, SSDS is not aware which of its former employees have been offered work. To assist SSDS and the employees the Fair Work Commission has directed the incoming contractors to provide information which enables those who have been offered and those who have not been offered work to be identified. Upon receipt of this information SSDS is paying redundancy payments to those eligible workers who have not been offered work with the incoming contractors. This has occurred in respect to the Northern Territory and Kimberly contracts and will occur shortly in respect to the NSW/ACT contracts. It will occur in the second half of December 2014 in respect to the Queensland contracts.

[4] The Northern Territory/Kimberly contract ended on 30 September 2014. The Fair Work Commission considered arguments and evidence from SSDS, the relevant unions and the incoming contractors on the 2nd, 8th and 14th of October 2014. The Fair Work Commission issued a decision on 31 October 2014 which determined that SSDS had not obtained acceptable employment for SSDS employees with the incoming contractors. SSDS has appealed this decision, and the appeal is listed for hearing before a Full Bench of the Fair Work Commission on 17 March 2015. United Voice and the National Union of Workers have agreed not to commence enforcement action on behalf of any member until this appeal is resolved. As part of an agreement with the Unions, SSDS has deposited $1,608,231.00 into an interest bearing account as security for the redundancy pay for its former employees in the Northern Territory/Kimberly region.

[5] The NSW/ACT contracts ended on 31 October 2014. The Fair Work Commission considered evidence in respect to these contracts on the 17th to 19th of November 2014 with final submissions being received on 5 December 2014. A decision in respect to those contracts will be issued in the New Year.

[6] The Queensland contract ended on 30 November 2014. The Fair Work Commission is hearing arguments and evidence in respect to this matter on the 16th to 18th of December 2014.

[7] The Fair Work Commission, SSDS and the relevant unions are attempting to finalise these matters as quickly as possible. However, given the significant number of contracts, incoming contractors, and employees involved the matter is complex.

[8] It is very important that you advise SSDS if your address and/or contact details have changed or change in the near future. This is so that you can be advised of progress in this matter and have the opportunity to have your particular circumstances considered should the Fair Work Commission find that SSDS has obtained acceptable employment with a particular incoming contractor. It is also important so that if you are entitled to redundancy payments you can receive those payments. You can contact SSDS for this purpose by telephoning the SSDS People Support Centre on 1300 117 737.

COMMISSIONER

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