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employing a Human Resources manager, Coffey Projects relied on outdated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outdated policy incorrectly stated that parental leave was only available to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outdated policy was in breach of the National Employment Standards and as a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.
