A Full Bench of the Fair Work Commission (FWC)  has decided that casual service is not to be taken into account when calculating redundancy entitlements under the redundancy clause in an enterprise agreement applicable to Unilever.

The decision is a welcome development. In its decision, the Full Bench made the following comments about the earlier split decision of a Full Bench of the Commission in AMWU v Donau [2016] FWCFB 3075 which led to a great deal of concern amongst employers when handed down in 2016:

[28] There was argument before us about the significance of a decision of the Full Bench in Australian Manufacturing Workers’ Union v Donau Pty Ltd, in which a majority found that a period of ‘contiguous’ casual service counted in the calculation of severance pay under the enterprise agreement in question. That decision turned on its own facts. It should not be understood as establishing any principle about the application of s.22 of the Act to casual employment, or the approach to calculating service in enterprise agreements….

If you would like more information about redundancy please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.

Alternatively, if you would like advice in relation to structuring full-time, part-time and casual employment arrangements, please contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Wollongong, Adelaide, Melbourne or Brisbane or email Ai Group Workplace Lawyers at info@aigroupworkplacelawyers.com.au.

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