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