Association of Professional Engineers, Scientists and Managers Australia v Bulga Underground Operations Pty Ltd
At a glance
- 1
- MA000020
What happened
the Applicant was employed as a salaried staff employee by Bulga Underground Operations from 2003, covered by an enterprise agreement. When Bulga made the Applicant redundant, it calculated his untaken long service leave entitlements but failed to pay the correct amount. The employer miscalculated his 'base rate of pay' under both the Fair Work Act and the Coal Mining Industry (Long Service Leave) Administration Act, resulting in underpayment of his long service leave benefit upon termination due to redundancy.
What was decided
The court declared that Bulga contravened s 323(1) of the Fair Work Act and s 39CB(2) of the Coal Mining Industry (Long Service Leave) Administration Act. The court found that Bulga failed to correctly calculate the base rate of pay for the purpose of calculating long service leave entitlements. The matter was remitted to determine the amount of compensation owing to the Applicant and the penalties payable by Bulga.
What it means for employers
When making employees redundant, employers must correctly calculate long service leave entitlements by properly determining the base rate of pay under both the Fair Work Act definition and any applicable enterprise agreement or award. Errors in calculation result in breach of statutory obligations.
What it means for employees
Redundant employees are entitled to full long service leave payment calculated on their correct base rate of pay, which includes all ordinary remuneration. Employers cannot undercount entitlements by miscalculating base pay.
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