Compliance requirements drive restructure, eliminating existing management role

The Fair Work Commission (FWC) recently dealt with an unfair dismissal application from a finance director who challenged his redundancy, finding that genuine redundancy requirements were satisfied despite his claims of targeting and available redeployment opportunities.

The case arose when the education company restructured its finance department due to cash flow pressures and compliance requirements, eliminating the finance director position while creating a new senior accountant role requiring different skills.

The worker argued his redundancy was not genuine, claiming he was personally targeted for removal and that the restructure was designed to create a more compliant finance department under the financial controller's management.

He maintained that he could and should have been redeployed to the new senior accountant position despite the lower salary, arguing his qualifications and willingness made redeployment reasonable.

The employer defended the redundancy as operationally necessary due to financial pressures and the need for Australian Accounting Standards Board (AASB) compliant financial reporting that the existing structure could not deliver.

The company maintained that the worker was not suitable for redeployment to the new role due to demonstrated deficiencies in required compliance areas.

Financial pressures drive departmental restructure

The restructure originated from a formal...

Read Full Story: https://news.google.com/rss/articles/CBMi6gFBVV95cUxOSGVROGtsYTdyX3djYjcySGJl...