Smartline Medical Pty Ltd v Nevenko Stankovic Summary

[2022] FWC 1591

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.120—Redundancy pay

Smartline Medical Pty Ltd
v

Nevenko Stankovic

(C2022/2082)

DEPUTY PRESIDENT LAKE

BRISBANE, 22 JUNE 2022

Variation of redundancy pay

Smartline Medical Pty Ltd (the Applicant) has applied pursuant to s.120(2) of the Fair Work Act 2009 (the Act) to have the Fair Work Commission (the Commission) reduce to nil the redundancy entitlement of Mr Nevenko Stankovic (the Respondent).

The Respondent separately to this matter made an Unfair Dismissal application. A conciliation conference was convened by the Commission. The parties agreed to settle the Unfair Dismissal matter with the Applicant of this matter agreeing to pay the Respondent six weeks’ (100%) redundancy pay. By consent, the Applicant and Respondent have decided to no longer pursue this application.

In accordance with the settlement agreement, I find that the redundancy entitlement be reduced to nil.

Order

A.The redundancy entitlement be reduced to nil. I Order accordingly.

B.This order comes into effect on and from the date of this Decision

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Smartline Medical Pty Ltd applied to the Fair Work Commission to reduce the redundancy pay of Mr Nevenko Stankovic to nil. The application was made under section 120 of the Fair Work Act 2009. The case was heard by Deputy President Lake in Brisbane. The application arose from a settlement agreement between the parties regarding a separate Unfair Dismissal matter, where Smartline agreed to pay Mr Stankovic six weeks' redundancy pay. Consequently, both parties agreed to no longer pursue the reduction of redundancy pay application.

The central legal issue was whether the Fair Work Commission had the authority to reduce the redundancy pay of Mr Stankovic to nil under section 120(2) of the Fair Work Act 2009. This provision allows for the variation of redundancy pay if both parties agree and the Commission is satisfied that the variation is fair and reasonable. Given the settlement agreement and consent of both parties, the court had to determine if the agreed terms were fair and reasonable and if it was appropriate to reduce the redundancy pay to nil.

The Fair Work Commission found that the terms of the settlement agreement were fair and reasonable. Deputy President Lake noted that both parties had agreed to the terms, and there was no evidence to suggest that the agreement was unfair or unreasonable. The court was satisfied that the agreement was made in good faith and with mutual consent. Therefore, the court found that it was appropriate to reduce the redundancy pay to nil as per the settlement agreement. The Deputy President ordered that the redundancy entitlement be reduced to nil, effective from the date of the decision.

The final order of the Fair Work Commission was that the redundancy entitlement of Mr Nevenko Stankovic be reduced to nil. This order was made in accordance with the settlement agreement and the consent of both parties. The decision took effect from the date of the judgment, finalising the application for variation of redundancy pay.

Smartline Medical Pty Ltd v Nevenko Stankovic

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established