Benchmark WA Industrial Relations Case Database

ER 24 Pty Ltd T/A ER 24 v Mr Graham Trevor Farrant

[2017] FWC 399 Fair Work Commission 2017-01-01
Source
Not yet cited by other cases
Applicant: ER 24 Pty Ltd T/A ER 24
Respondent: Mr Graham Trevor Farrant

Ratio

The employer's application to vary (reduce) redundancy pay under s.120 FW Act was dismissed because the employer failed to establish that it had "obtained" the respondent's subsequent employment with MSS Strategic Medical. The respondent independently sought and secured the new position through his own SEEK application and recruitment process, which was not arranged by the employer and therefore did not constitute employment "obtained by" the employer for the purposes of s.120(1)(b).

Outcome

Against applicant dismissed

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 · 10

  • The respondent was employed as a full-time paramedic at Gregory Crinum Mine at an hourly rate of $43.50 per hour
  • The respondent had 3 years and 7 months' service with the employer
  • The respondent's employment was terminated as redundant
  • The respondent subsequently obtained employment with MSS Strategic Medical at a BMA Broadmeadows underground mining site
  • The respondent's new employment involved a different roster (6 on/6 off instead of 7 on/7 off), lower overtime rates, and underground mining work
  • The respondent was required to fund his own training courses (Security Officer, Return to Work Co-ordinator, Pre-employment Functional Assessment)
  • The respondent applied for the MSS position through a SEEK advertisement on his own initiative
  • An email from the employer stated employees would 'still need to apply through their advertisements on SEEK'
  • The employer did not arrange the respondent's interview or offer guarantee of employment transfer
  • The respondent was not informed he would automatically be given a position based on the employer's documentation

Factors

For
  • The respondent's employment was terminated due to redundancy, not performance issues
  • The respondent was not provided with certainty of re-employment by the employer
  • The respondent was required to undertake full recruitment process with the new employer
  • The respondent's new employment conditions were substantially less favourable (reduced overtime, different roster, underground mining environment, required self-funded training)
Against
  • The employer argued it was working 'in the background' with MSS and CPA to arrange placement
  • The employer submitted the respondent had obtained alternative employment with MSS Strategic Medical

Legislation referenced

  • Fair Work Act 2009 (Cth) s.119
  • Fair Work Act 2009 (Cth) s.120
  • Fair Work Act 2009 (Cth) s.120(1)(b)
  • Fair Work Act 2009 (Cth) s.120(1)(b)(i)
  • Fair Work Act 2009 (Cth) s.120(2)
  • Ambulance and Patient Transport Industry Award 2010

Concept tags · 6

[P]Genuine redundancy [P]Reasonable redeployment in redundancy [S]Unfair dismissal (federal) [S]Compensation for unfair dismissal [M]Procedural fairness at dismissal stage [M]Mining / resources sector

Principles · 3

articulates para 18
Where an employer has not 'obtained' subsequent employment for the redundant employee, it is not necessary to consider under s.120(1)(b)(i) whether that employment is acceptable.
articulates para 19
An employer does not 'obtain' employment for a redundant employee under s.120(1)(b) where the employee independently seeks and secures the subsequent employment through their own application and recruitment process, without the employer arranging or guaranteeing the position.
cites para 17 · from [2017] FWC 397
The reasoning regarding entitlement to redundancy pay under s.119 and the application of s.120 variation powers in the context of redundancy terminations

Cases cited in this decision · 1

Followed
[2017] FWC 397 — ER 24 Pty Ltd T/A ER 24 v Mr Stephen John Brown
"…reasons I am not satisfied in accordance with s.120 (1)(b)(i) of the Act that I should exercise the discretion pursuant to s.120(2) of the Act to reduce the amount of redundancy pay. [21] I Order accordingly....…"
Archived text (903 words)
ER 24 Pty Ltd T/A ER 24 v Mr Graham Trevor Farrant [2017] FWC 399 (26 May 2017) Last Updated: 2 June 2017 [2017] FWC 399 FAIR WORK COMMISSION DECISION Fair Work Act 2009 s.120 - Application to vary redundancy pay for other employment or incapacity to pay ER 24 Pty Ltd T/A ER 24 v Mr Graham Trevor Farrant (C2016/5771) COMMISSIONER SPENCER BRISBANE, 26 MAY 2017 Variation of redundancy pay. [1] This Decision arises out of a number of applications made by ER 24 Pty Ltd (the Employer) for orders varying redundancy pay in relation to a number of former employees. These reasons should be read in conjunction with the substantive reasoning in ER 24 Pty Ltd T/A ER 24 v Mr Stephen John Brown [2017] FWC 397 [1] which is applicable to the current circumstances. That decision is issued with, and forms part of, each of the Respondents who were employed as paramedics. That decision includes the submissions of ER24, relevant to the Respondent in these matters. Mr Farrant made individual submissions as below. Applicant’s submissions specifically on Mr Farrant [2] The Applicant submitted that the Respondent was employed by the Applicant in a full time paramedic position at Gregory Crinum Mine and paid an hourly rate of $43.50 per hour. [3] The Applicant submitted the Ambulance and Patient Transport Industry Award 2010 applied to the Respondent’s employment. [4] The Applicant submitted the Respondent had served three (3) years and seven (7) months’ service with the Applicant. Respondent’s submissions [5] The Respondent submitted he is entitled to redundancy as the cessation of his employment was not due to performance issues. [6] The Respondent submitted the amount he was entitled to $12, 789.00 as a redundancy payment. [7] The Respondent submitted, in relation to the new rate of pay, it has differed to his disadvantage as his overtime rate with MSS Strategic Medical (MSS) has reduced. [8] The Respondent submitted in relation to the location of the new employment, that it had changed considerably and he is now required to work in an underground mining environment. The Respondent submitted he was concerned about the rising risks of pneumoconiosis in the area. [9] The Respondent submitted, in relation to the hours of employment, that there was a change to his previous 7 on / 7 off roster to a 6 on / 6 off roster. This altered roster, he submitted, has a major impact on his family life as he now only has four full days instead of six days he is able to spend with his family. [10] In relation to his duties, he submitted that, with the new employment, there is a requirement to complete a Security Officer course, a Return to Work Co-ordinator course and a Pre-employment Functional Assessment test and that the Respondent must fund these courses/tests himself. [11] The Respondent believed he had no other option but to accept the offer of employment from MSS at the BMA Broadmeadows underground site as there was no other alternative at that time. [12] The Respondent submitted he had to apply for a position with MSS through an advertisement on SEEK. He submitted that he was informed he needed to do this by Peak Down Mine paramedic colleague (Mr Bradley Poultney), and not the Applicant. The Respondent submitted that he had an interview and following this, he was offered the position. He submitted that the Applicant did not arrange the appointment nor did they offer a guarantee of transfer of employment. [13] The Respondent submitted that, in an email from Ms Jahnee Perkins, it was stated: “whilst E24 Executive Management Team are working in the background with MSS and CPA, you will still need to apply through their advertisements on SEEK.” [14] The Respondent submitted that this does not represent a ‘transfer of employment’ as stated in the Applicant’s document. [15] The Respondent submitted he initiated contact himself with both CPA and MSS and he was told he would have to apply for a position with them through the SEEK website and would have to undergo the full recruitment process. The Respondent was not told he would be given a position solely on the basis that the Applicant had forwarded documentation to them regarding placing him in a paramedic position, nor would his employment be ‘transferred.’ Respondent’s submissions on ordinary and customary turnover of labour [16] The Respondent did not provide the Commission with specific submission on the ordinary and customary turnover of labour. Consideration [17] In the reasoning provided in the decision of Mr Brown, I find that there is an entitlement to redundancy pay as per s.119. [18] In considering making this order, it must be determined as per s.120(1)(b) whether the employment was obtained by the Applicant and that the employment was acceptable. [19] As I have summarised in Brown , the Applicant did not “obtain” the current employment of the Respondent, and therefore it is not necessary to consider whether that employment is acceptable under s.120. Conclusion [20] Accordingly, for the aforementioned reasons I am not satisfied in accordance with s.120 (1)(b)(i) of the Act that I should exercise the discretion pursuant to s.120(2) of the Act to reduce the amount of redundancy pay. [21] I Order accordingly. COMMISSIONER [1] A copy of the decision [2017] FWC 397 was provided to the Respondent by email. Printed by authority of the Commonwealth Government Printer <Price code A, PR589535>