Benchmark WA Industrial Relations Case Database

Application to vary a modern award to remove ambiguity or uncertainty or correct error Review of industry-specific small business redundancy provisions in certain modern awards

[2025] FWC 3506 Fair Work Commission 2025-01-01
Source
Not yet cited by other cases
Applicant: Fair Work Commission (on own initiative)

Ratio

The Commission varied six modern awards (Joinery and Building Trades, Mannequins and Models, Manufacturing and Associated Industries and Occupations, Sugar Industry, Textile Clothing Footwear and Associated Industries, and Timber Industry) to clarify that employees are entitled to redundancy pay under s 121(4) of the Fair Work Act 2009 (Cth) National Employment Standards, which addresses the interaction between award-specific small business redundancy provisions and the statutory threshold introduced by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023.

Outcome

For applicant granted

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 · 5

  • The inconsistency or ambiguity arose due to s 121(4) of the FW Act, introduced by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023, which came into effect on 15 December 2023.
  • Award-specific redundancy provisions in six modern awards contained language that did not clearly account for the operation of s 121(4).
  • The Sugar Industry Award 2020 clause 42.4 applied redundancy exclusions but did not explicitly reference the entitlement to redundancy pay under s 121(4).
  • The Construction, Forestry and Maritime Employees Union filed a submission in agreement with the provisional view for the Joinery and Building Trades Award 2020 and the Manufacturing and Associated Industries and Occupations Award 2020.
  • No other submissions were filed in response to the provisional view and draft determinations.

Factors

For
  • Absence of any submissions opposing the provisional view.
  • Construction, Forestry and Maritime Employees Union support for the proposed variations to the Joinery and Building Trades Award 2020 and Manufacturing and Associated Industries and Occupations Award 2020.
  • Clear ambiguity or uncertainty in award clauses arising from the introduction of s 121(4) by the Closing Loopholes Act.
  • Need to clarify that employees are entitled to redundancy pay under s 121(4) of the NES despite exclusions in earlier subsections.
Against

Legislation referenced

  • Fair Work Act 2009 (Cth) s 160
  • Fair Work Act 2009 (Cth) s 121(4)
  • Fair Work Act 2009 (Cth) s 121(1)
  • Fair Work Act 2009 (Cth) s 123(1)
  • Fair Work Act 2009 (Cth) s 123(4)(a)
  • Fair Work Act 2009 (Cth) s 123(4)(d)
  • Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (Cth)

Concept tags · 5

[P]Genuine redundancy [P]Modern award (federal) [P]Award variation [P]Small business employer [S]Award interpretation — principles

Principles · 2

articulates para 3
Award-specific small business redundancy provisions must be varied to account for the statutory entitlement to redundancy pay under s 121(4) of the Fair Work Act 2009 (Cth), which addresses circumstances where employees of small businesses would otherwise be excluded from redundancy pay.
articulates para 7
Where an award clause applies exclusions from redundancy pay based on earlier sections of the National Employment Standards, the clause should be clarified to expressly preserve entitlements arising under s 121(4) of the Fair Work Act 2009 (Cth) to avoid ambiguity or uncertainty.

Cases cited in this decision · 1

Cited
[2025] FWC 2569 — Application to vary a modern award to remove ambiguity or uncertainty or...
"…es Award 2020 and Timber Industry Award 2020 pursuant to s 160 of the FW Act are issued with this decision. The determinations operate from 1 December 2025. PRESIDENT Printed by authority of the Commonwealth...…"
Archived text (850 words)
1 Fair Work Act 2009 s.160—Application to vary a modern award to remove ambiguity or uncertainty or correct error Review of industry-specific small business redundancy provisions in certain modern awards (AM2025/20) JUSTICE HATCHER, PRESIDENT SYDNEY, 24 NOVEMBER 2025 Review of industry-specific small business redundancy provisions in certain modern awards – Commission’s own initiative – Joinery and Building Trades Award 2020 – Mannequins and Models Award 2020 – Manufacturing and Associated Industries and Occupations Award 2020 – Sugar Industry Award 2020 – Textile, Clothing, Footwear and Associated Industries Award 2020 – Timber Industry Award 2020 – decision. [1] On 1 September 2025, I issued a Statement1 commencing proceedings on the Commission’s own initiative under s 160 of the Fair Work Act 2009 (Cth) (FW Act) to deal with an inconsistency or ambiguity in award-specific redundancy provisions in six identified modern awards: • Joinery and Building Trades Award 20202 • Mannequins and Models Award 20203 • Manufacturing and Associated Industries and Occupations Award 20204 • Sugar Industry Award 20205 • Textile, Clothing, Footwear and Associated Industries Award 20206 • Timber Industry Award 20207 [2] The inconsistency or ambiguity arises due to s 121(4) of the FW Act, which was introduced by the Fair Work Legislation Amendment (Closing Loopholes) Act 2023 (CL Act) and came into effect on 15 December 2023. [3] Paragraph [7] of the Statement set out my provisional view that the relevant clause relating to award-specific small business redundancy provisions in each of the identified modern awards, except for the Sugar Industry Award 2020, should be varied to clarify that employees are entitled to redundancy pay in the circumstances provided for by s 121(4) of the National Employment Standards (NES). [4] Draft determinations for each of those awards giving effect to my provisional view were published with the Statement and interested parties were invited to file submissions in relation to the provisional view and the draft determinations. [2025] FWC 3506 DECISION [2025] FWC 3506 2 [5] The Construction, Forestry and Maritime Employees Union filed a submission in agreement with the provisional view and the draft determinations published for the Joinery and Building Trades Award 2020 and the Manufacturing and Associated Industries and Occupations Award 2020. No other submissions were filed. [6] In paragraph [10] of the Statement, I indicated that in the absence of any responsive views, the variations will be made in the same terms as proposed in the draft determinations. As no responsive views were filed opposing the variations, I confirm my provisional view to vary the identified awards, except the Sugar Industry Award 2020. [7] Paragraph [8] of the Statement set out my provisional view that while the Sugar Industry Award 20208 does not contain an additional entitlement for employees of small businesses, an ambiguity or uncertainty may arise in clause 42.4 of the award as it applies ‘to an employee engaged at a bulk terminal, unless the employee is excluded from redundancy pay under the NES by sections 121(1), 123(1), 123(4)(a) and 123(4)(d) of the Act.’ My provisional view was that this clause should be varied to clarify that employees are entitled to redundancy pay in the circumstances set out in s 121(4). [8] No submissions were filed in respect of the provisional view and draft determination for the Sugar Industry Award 2020. I therefore confirm my provisional view, and the variation in the draft determination will be made to remedy the identified ambiguity or uncertainty. [9] It is also necessary to adjust ‘NOTE 3’ which appears under the heading of clause 42, Redundancy in the Sugar Industry Award 2020. The Note states: NOTE 3: Clause 42.5 supplements the NES by providing entitlements to certain employees in sugar mills excluded from redundancy pay under the NES by section 123(1)(a) of the Act because they are employed for a specified period of time or for a specified task. The other exclusions in sections 121(1), 123(1) and 123(4)(d) continue to apply. [10] Note 3 will, consistent with the variation to clause 42.4 and to further avoid ambiguity and uncertainty, be varied to add the following underlined words: NOTE 3: Clause 42.5 supplements the NES by providing entitlements to certain employees in sugar mills excluded from redundancy pay under the NES by section 123(1)(a) of the Act because they are employed for a specified period of time or for a specified task. The other exclusions in sections 121(1), 123(1) and 123(4)(d) continue to apply, unless the employee is entitled to redundancy pay under the NES by section 121(4) of the Act. [2025] FWC 3506 3 [11] Determinations varying the Joinery and Building Trades Award 2020, Mannequins and Models Award 2020, Manufacturing and Associated Industries and Occupations Award 2020, Sugar Industry Award 2020, Textile, Clothing, Footwear and Associated Industries Award 2020 and Timber Industry Award 2020 pursuant to s 160 of the FW Act are issued with this decision. The determinations operate from 1 December 2025. PRESIDENT Printed by authority of the Commonwealth Government Printer <PR794011> 1 Statement [2025] FWC 2569. 2 MA000029. 3 MA000117. 4 MA000010. 5 MA000087. 6 MA000017. 7 MA000017. 8 Sugar Industry Award 2020 cl 42.4.