Spotless Services Australia Limited t/as Alliance Catering

In the case of Spotless Services Australia Limited trading as Alliance Catering, the Fair Work Commission was tasked with resolving a dispute regarding the variation of redundancy pay. The applicant, who had been employed as a cook, was made redundant following the loss of a catering contract at an oil refinery. The central issue before the Commission was whether various offers of alternative employment made by the employer were 'acceptable' under the terms of the employee's employment. The key considerations included the distance from the employee's home to the prospective place of work, whether all other conditions of employment were the same or comparable, and the employee's genuine intention to accept the alternative employment.

The Commission examined conflicting evidence regarding the employee's willingness to accept alternative employment and the employer's efforts to find suitable reemployment options. Despite the employer's contention that the travel time to the alternative positions was unreasonable, the Commission found that the distance was not excessive and that the employee had secured alternative employment while the employer continued to explore other options. The Commission also took into account the union's representations and the employee's apparent bona fides in seeking new employment. Ultimately, the Commission concluded that the alternative employment offered was acceptable, and thus the employee's entitlement to redundancy pay was reduced to nil.

The Commission's decision hinged on a careful assessment of the evidence presented, with a focus on the reasonableness of the travel time and the employee's genuine efforts to secure alternative employment. The Commission found that the employee had acted in good faith by securing alternative employment while the employer continued to search for other options. As a result, the employer's application to vary the redundancy pay was successful, and the employee's entitlement to redundancy pay was reduced to nil. The decision underscores the importance of assessing the totality of circumstances in determining whether alternative employment is acceptable in redundancy pay cases.