Redundant one day and offered alternate employment the next equals no redundancy pay

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.

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Ready, aim...don't fire!

A small business owner has been fined almost $30,000 for unfairly dismissing an employee.

 

Acupuncture Australia Pty Ltd summarily dismissed a sales assistant for allegedly stealing from the business. The employee had worked for the company for three years when the managing director began to suspect her of theft. The sales assistant was sacked on the spot and reported to the police, despite a lack of proof of any crime.

 

The managing director was unable to provide any evidence to the Fair Work Commission of theft or fraud against the business and the police were not proceeding with the matter further.

 

The Fair Work Commission found the dismissal was “appalling” and “inexcusable” and ordered the company pay its former employee $29,000 as compensation.

 

If you suspect an employee is committing an offence or act of misconduct, it is important to investigate the matter properly and in accordance with the Fair Work Act 2009 (Cth).  

 

Even if you are a small business employer, you must ensure all employees are treated fairly and in line with the Small Business Code.

 

An experienced workplace relations lawyer will be able to explain the step by step process needed to investigate any allegations of misconduct. Act properly and avoid being penalised for protecting your business.   

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