Application by Utility Mapping (Aust) Pty Ltd Trading AS Utility Mapping
At a glance
- 1
What happened
Utility Mapping, a company providing scientific services, applied to the Fair Work Commission to vary redundancy pay for an employee. The employee was offered acceptable alternative employment with reduced seniority following a redundancy. The company sought to reduce the redundancy pay based on this alternative employment.
What was decided
Deputy President Easton found that the offered alternative employment was acceptable. The Commission considered principles regarding reducing redundancy pay. It noted the employee experienced no loss of remuneration and a reduction in seniority. The application to vary redundancy pay was considered.
What it means for employers
Employers offering alternative employment following a redundancy should carefully consider the impact on an employee's seniority and remuneration. The Fair Work Commission may reduce redundancy pay if the alternative employment is acceptable, even if it involves a reduction in seniority, provided there is no loss of pay.
What it means for employees
Employees facing redundancy may be offered alternative employment. If the alternative employment involves a change in seniority, it's important to understand how this might affect redundancy pay entitlements. Acceptable alternative employment can impact redundancy pay.
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