Whittaker v Unisys Australia Pty Ltd

The plaintiff, Mr Whittaker, brought an action against Unisys Australia Pty Ltd, his former employer, concerning the termination of his employment. The dispute arose when the plaintiff was removed from his position as Director of Project Services and offered a new role as Project Manager, which he considered a significant demotion. The Federal Circuit Court of Australia was tasked with determining the validity of the employer's actions and the rights of the plaintiff under the employment contract. The central issue before the court was whether the employer had repudiated the employment contract by unilaterally changing the plaintiff's role and responsibilities, effectively demoting him. Additionally, the court had to address whether the plaintiff's acceptance of the new role constituted a waiver of the employer's repudiation and whether the plaintiff was entitled to notice and severance pay.

The court found that the employer's actions clearly demonstrated an intention not to be bound by the existing contract, amounting to a repudiation. The plaintiff exercised his right to terminate the contract in response to this repudiation. The court held that the task of interpreting the contract should be approached in a practical and non-technical manner. The employer's argument that the plaintiff's new role was part of a restructuring process did not change the fundamental nature of the employer's repudiation. The court also determined that the term "redundancy" was not applicable, as the plaintiff's position was not made redundant, and the Redundancy Policy was not incorporated by reference into the employment contract. Furthermore, the plaintiff did not act unreasonably by rejecting the new role, and therefore, he was entitled to six months' pay in lieu of notice.