Association of Professional Engineers, Scientists and Managers, Australia v Wollongong Coal Limited
Citation: [2014] FCA 878
What happened
The Association of Professional Engineers, Scientists and Managers, Australia, a union, brought proceedings against Wollongong Coal Limited and Wongawilli Coal Pty Ltd on behalf of members. The members were employed at a coal mine and had been promised contractual bonuses based on production levels and the commencement of a facility called 'Longwall 5'. The events triggering the bonus payments had occurred, but the employer had not paid the promised amounts. The union alleged the employer contravened section 323 of the Fair Work Act by failing to pay employees in full.
What was decided
The employer applied for summary judgment to dismiss the proceedings. The court dismissed the summary judgment application, finding that an arguable case exists. The court held that section 323 of the Fair Work Act does relate to payment of contractual entitlements, including incentive-based payments and bonuses, not merely to the historical 'Truck Act' requirement to pay in money rather than in kind. The application proceeded to further hearing.
What it means for employers
Employers cannot rely on summary dismissal to avoid claims regarding non-payment of contractual bonuses. Section 323 of the Fair Work Act protects payment of contractual incentive-based payments, and disputes about whether such payments are owed may need to proceed to full hearing even if the legal basis for the claim is contested.
What it means for employees
The Applicant can pursue claims through their union for unpaid contractual bonuses under section 323 of the Fair Work Act. The fact that a bonus is contractual and conditional on performance does not remove it from the act's protections requiring full payment in money.
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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 →