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Autumn 2004

Crucial redundancy Win

Tasmanian employees employed under Federal Awards will benefit from a decision in an important test case about redundancy entitlements in the Tasmanian Industrial Commission.

The case sounds a warning to employers in take-over situations.

The decision, which was upheld by a Full bench after the employer appealed, means that employees will be entitled to have all their years of service recognised if a redundancy situation eventuates.

The case involved an employee who worked for a company for twenty-nine years. During that period the ownership of the company changed hands three times.

After twenty-nine years of service, the employee was made redundant.

Redundancy payments were calculated on the basis of years of service with the owner at the time of termination.

The Commission ruled that the company must recognise the employee's entire period of employment, stating that there had been no break in employment.

The employer appealed the decision to the Full Bench of the Commission, which upheld the original decision.

The case was an important win for the member, and sets a crucial precedent for other employees as takeovers happen with increasing frequency.

While the Commission will consider each case on its merits, this case now means employers taking over an existing business cannot simply ignore employees' previous work history in the event of redundancies.

HACSU will pursue those employers who have refused to recognise years of service with the previous employer in transfer agreements if redundancy becomes an issue.