Benchmark WA Industrial Relations Case Database

The Trustee For Millard Family Trust Trading AS National College Of Vocational Education v Linda Towler

[2025] FWC 1023 Fair Work Commission 2025-01-01
Source
Commissioner Matheson
Not yet cited by other cases
Applicant: The Trustee For Millard Family Trust Trading AS National College Of Vocational Education
Respondent: Linda Towler

Ratio

On application by the employer under s.120 of the Fair Work Act 2009, the Fair Work Commission determined that the amount of redundancy pay payable to the employee be reduced to $24,749.97 on a consent basis, where the employer established incapacity to pay the full entitlement following voluntary administration and entry into a Deed of Company Arrangement.

Outcome

Resolved partial

Authority signal

Not yet cited by other cases Signal-weighted score: 0.0
Derived from how later decisions have treated this case. Dark green = leading authority, green = positively treated, grey = neutral or sparse data, amber = caution, red = treated negatively.

Key facts · 7

  • Employee entitled to redundancy pay under s.119 Fair Work Act 2009
  • Applicant employer unable to pay full amount of redundancy pay
  • Applicant employer had undergone voluntary administration and entered into a Deed of Company Arrangement
  • Parties reached agreement on a reduced redundancy payment amount
  • Employee was granted permission to be represented by a lawyer
  • Reduced amount agreed: $24,749.97
  • Conference held 7 April 2025 where agreement was reached

Factors

For
  • Employer's financial incapacity post voluntary administration and Deed of Company Arrangement
  • Consent of both parties to reduced amount
  • Complexity of employer's financial arrangements supporting permission for legal representation
Against

Legislation referenced

  • Fair Work Act 2009 (Cth) s.119
  • Fair Work Act 2009 (Cth) s.120(1)
  • Fair Work Act 2009 (Cth) s.120(2)
  • Fair Work Act 2009 (Cth) s.120(3)
  • Fair Work Act 2009 (Cth) s.596(2)(a)

Concept tags · 4

[P]Genuine redundancy [P]Consent orders [S]Unfair dismissal (federal) [S]Leave for legal representation

Principles · 3

articulates para 2
Section 120 of the Fair Work Act 2009 applies where an employee is entitled to redundancy pay under s.119 and the employer either obtains other acceptable employment for the employee or cannot pay the full amount.
articulates para 3
On application by the employer under s.120(2), the Fair Work Commission may determine that the amount of redundancy pay is reduced to a specified amount that the Commission considers appropriate.
articulates para 5
Permission for legal representation under s.596(2)(a) of the Fair Work Act 2009 may be granted where there is complexity associated with the employer's financial status and arrangements, particularly post voluntary administration, where such permission would enable the matter to be dealt with more efficiently.
Archived text (475 words)
1 Fair Work Act 2009 s.120—Redundancy pay The Trustee For Millard Family Trust Trading AS National College Of Vocational Education v Linda Towler (C2025/2300) COMMISSIONER MATHESON SYDNEY, 11 APRIL 2025 Application to vary redundancy pay for incapacity to pay – amount reduced on consent basis. [1] The Trustee For Millard Family Trust Trading AS National College Of Vocational Education (Applicant) has made an application to the Fair Work Commission pursuant to s.120 of the Fair Work Act 2009 (Act). The respondent employee is Ms Linda Towler (Towler). [2] Section 120(1) of the Act provides that s.120 applies if: (a) an employee is entitled to be paid an amount of redundancy pay by the employer because of s.119; and (b) the employer: (i) obtains other acceptable employment for the employee; or (ii) cannot pay the amount. [3] Section 120(2) of the Act provides that on application by the employer, the Fair Work Commission (Commission) may determine that the amount of redundancy pay is reduced to a specified amount (which may be nil) that the Commission considers appropriate. [4] Section 120(3) of the Act provides that the amount of redundancy pay to which the employee is entitled under s.119 is the reduced amount specified in the determination. [5] Ms Towler sought to be represented by a lawyer. The Applicant submitted that there is complexity involved in the matter as it concerns the Applicant’s financial status post conclusion of a period of voluntary administration and entering into a Deed of Company Arrangement and that granting permission for the Applicant to be represented by a lawyer would assist the Commission in dealing with the matter more efficiently having regard to that complexity. The Applicant did not object to Ms Towler being represented by a lawyer. Having regard to the complexity associated with the Applicant’s financial status and arrangements post voluntary administration I considered that granting permission to Mr Towler to be represented by a lawyer [2025] FWC 1023 DECISION [2025] FWC 1023 2 would enable the matter to be dealt with more efficiently and granted permission pursuant to s.596(2)(a) of the Act. As such the Applicant was represented by Mr Tate of Turner Freeman Lawyers. [6] It was not in contention that the Applicant is entitled to be paid an amount of redundancy pay by the employer because of s.119. [7] During a conference in relation to the matter conducted on 7 April 2025 the Applicant agreed that it was able pay a reduced amount of redundancy and the parties sought that orders be made concerning payment of that reduced amount on a consent basis. I determine that the amount of redundancy to be paid to the Applicant be reduced to $24,749.97, with that amount to be paid in accordance with the Orders made in conjunction with this decision. COMMISSIONER Printed by authority of the Commonwealth Government Printer <PR786027>