The new jobs paid less per hour - and the overtime excuse backfired spectacularly
A landscaping employer that made two workers redundant then tried to wipe out their redundancy pay has had its bid thrown out by the Fair Work Commission.
Creative Image Landscapes Pty Ltd (CIL) applied to reduce the redundancy entitlements of both workers to zero, arguing it had lined up new jobs for them with another company, APS Drainage and Civil Pty Ltd.
The Commission accepted that CIL was the driving force behind the job offers. But that was only half the test.
Under section 120 of the Fair Work Act 2009, an employer can apply to reduce redundancy pay where it has found other acceptable employment for the worker. Both words matter - the employment has to be objectively acceptable, not just available.
The first worker had nine years of service and was owed 14 weeks' redundancy pay - $28,280. His hourly rate at CIL had been $50.50. At APS, it dropped to $45.00.
CIL called the pay cut "only a slight reduction." The Commission did not agree.
Over a 40-hour week, that gap added up to $11,440 a year. CIL argued more overtime at APS and a shorter commute to the depot would make up the difference. Neither held up.
The worker's new role was site-based. His APS conditions document listed his primary location as "onsite as required of each project" - meaning he travelled to different job sites across Melbourne regardless of where the depot sat. The commute argument fell flat.
As for overtime, the...
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