Even a small mistake can have big consequences for employers

 

Coffey Projects (Australia) recently learned the hard way that there are serious consequences with providing employees incorrect information in relation to their workplace rights and entitlements.

 

Despite employing a Human Resources manager, Coffey Projects relied on outdated policies that did not reflect amendments to the Fair Work Act 2009 (Cth) and provided an employee with incorrect information about his parental leave entitlements. 

 

The outdated policy incorrectly stated that parental leave was only available to “primary” caregivers. As he believed he was not entitled to parental leave, the employee took a combination of annual leave and unpaid leave in order to care for his newborn twins.

 

When he was due to return to work, he was only offered part-time hours and later made redundant. The employee successfully argued that had he been provided the correct advice, he would have applied for parental leave which guaranteed his right to return to work on a full-time basis. He then would have been entitled to be paid out his entitlements as if he were a full-time rather than a part-time employee. Coffey was order to pay the difference between these amounts being $109,000.

 

The outdated policy was in breach of the National Employment Standards and as a consequence, Coffey was ordered to pay their former employee almost $170,000 consisting of unpaid wages and redundancy pay which he would have received had he been granted parental leave. 

 

Although the Court found the employer did not act recklessly or knowingly, it was still penalised and ordered to pay an additional penalty of $8,800.