Print Logistics (Aust) Pty Ltd (Print Logistics) made an application to vary the redundancy pay due to one of its former employees, on the basis that Print Logistics did not have the financial capacity to make the redundancy payment, and sought that the redundancy payment be reduced.

The former employee had worked for Print Logistics for a period of at least four years but less than five years, and so was entitled to eight weeks of redundancy pay at $874.00 per week, totalling $6,992.00. Print Logistics sought a reduction of 80% of the total amount of redundancy pay. Print Logistics had 15 or more employees at the time of the former employee’s redundancy, and was not considered a small business employer.

In hearing the application, the Fair Work Commission (FWC) acknowledged that there was no doubt that the financial position of Print Logistics had declined rapidly as a result of the significant impact of COVID-19, the associated lockdown and deterioration in economic activity. However, the FWC was not satisfied that Print Logistics could not pay the amount.

The FWC stated that ‘it is not sufficient to demonstrate that it is merely beneficial to reduce the amount. The material filed indicates that the Applicant has sufficient cash to pay the full amount of the redundancy. This weighs against making the order sought.’ Consequently, the FWC dismissed the application.

If you would like more information about redundancies in your business, please contact Ai Group’s Workplace Advice Service on 1300 55 66 77.

Alternatively, if you would like advice about making an application to vary the amount of redundancy pay that is payable, please contact your local employment, workplace and industrial lawyer in Sydney, Newcastle, Melbourne, Wollongong, Brisbane, Adelaide or Perth, or contact Ai Group Workplace Lawyers here.

Decision: Print Logistics Unit Trust [2020] FWC 3128

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