DRW Investments Pty Ltd v Richards [2016]
FWC 461 is a decision in which a large transport company having lost a major
hauling contract found work for affected drivers with the new contractor.
The affected drivers argued that they had been made redundant by their old employer entitling them to redundancy payments but the old employer disagreed.
Commissioner Sams found that the drivers had resigned from their old employer to take up work with the new employer. As a result their employment had not been terminated at the initiative of the old employer so as to bring into operation section 119 of the Fair Work Act.
Commissioner Sams also commented that redundancy pay was for a specific beneficial purpose and not meant as a windfall where employees, whilst being made redundant one day are offered and accept suitable alternative employment the next day.
The affected drivers argued that they had been made redundant by their old employer entitling them to redundancy payments but the old employer disagreed.
Commissioner Sams found that the drivers had resigned from their old employer to take up work with the new employer. As a result their employment had not been terminated at the initiative of the old employer so as to bring into operation section 119 of the Fair Work Act.
Commissioner Sams also commented that redundancy pay was for a specific beneficial purpose and not meant as a windfall where employees, whilst being made redundant one day are offered and accept suitable alternative employment the next day.
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