Application by Redpath Contract Services Pty Ltd
At a glance
- 2
What happened
Redpath Contract Services Pty Ltd applied to vary a redundancy pay assessment. The company sought to reduce redundancy pay for two employees. The employees had since secured new employment. The Fair Work Commission considered whether the new employment was acceptable when determining the redundancy pay. the Deputy President heard the application.
What was decided
The Fair Work Commission dismissed Redpath Contract Services Pty Ltd’s application to vary the redundancy pay. The Commission found the company’s application was not successful. The decision references previous cases, Australian Commercial Catering Pty Ltd v Powell, Marcelia & Togia, Maria and Application by Spotless Services Australia Limited T/A Alliance Catering, for guidance.
What it means for employers
Employers should carefully consider the impact of subsequent employment when calculating redundancy pay. The Fair Work Commission will assess whether new employment is acceptable when determining redundancy entitlements.
What it means for employees
Employees who receive redundancy pay and subsequently find new employment should be aware that this may affect the amount of redundancy pay they are entitled to. Employers must properly assess subsequent employment when calculating redundancy payments.
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