Construction, Forestry, Mining & Energy Union v Mammoet Australia Pty Ltd
Citation: [2012] FCA 850
At a glance
- Employees affected
- 4
What happened
Mammoet Australia employed 12 crane operators and forklift drivers on the Woodside Pluto LNG Project near Karratha on fly-in fly-out arrangements. Under their workplace agreement, the company provided accommodation or paid a living away from home allowance. On 28 April 2010, 12 employees commenced 28 days of protected industrial action. On 27 April, the company warned it would remove accommodation and allowance during the strike. The company followed through.
What was decided
The appeal was dismissed. The Court found that provision of accommodation and the living away from home allowance constituted 'payment' within s 470 of the Fair Work Act. Accordingly, s 470(1) prohibited the company from making such payment during protected industrial action. The removal of accommodation was therefore lawful and did not amount to adverse action.
What it means for employers
During protected industrial action, employers must cease all wage payments and benefits to employees engaging in the action. Accommodation and living away from home allowances are considered 'payment' and must be withheld. However, employers should ensure they comply with the specific requirements of s 470 and that the action is lawful.
What it means for employees
During protected industrial action, employees may lose accommodation and allowances as these are considered wages. Employees should understand the financial consequences before engaging in protected industrial action and ensure the action is properly protected under the Fair Work Act.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →