The workers kept their jobs, but their relocation terms raised another HR issue
The FWC found no redundancy after Toll closed a warehouse, but ruled its relocation measures fell short for five test employees.
In Toll Transport Pty Ltd v United Workers’ Union [2026] FWC 2519, issued on 9 July 2026, the Fair Work Commission considered a dispute over Toll Transport’s closure of its Altona warehouse and the relocation of employees to other Toll worksites.
Toll had operated the warehouse in Melbourne’s western suburbs to distribute Nike retail products. Nike advised Toll in 2022 that it would not renew its contract. The contract was ultimately extended to April 2025, and Toll closed the Altona operation that month after it did not secure a replacement customer.
The dispute concerned approximately 122 employees who had worked at the warehouse and were subsequently relocated. The United Workers’ Union argued that the closure and relocations triggered redundancy obligations under the applicable enterprise agreement. It also challenged Toll’s ability to relocate employees when some wanted the option of a redundancy payment instead.
Toll maintained that redundancy consultation and payments were not required because it had secured alternative work for the employees. The company’s position was that the employees remained employed and that no redundancy had occurred.
The Commission examined the circumstances of five test employees who had been moved to Toll sites associated with Kmart,...
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