1 Fair Work Act 2009 s.120—Redundancy pay Mercy Community Services SEQ Limited T/A Mercy Community (C2024/180) COMMISSIONER SIMPSON BRISBANE, 30 JANUARY 2024 Variation of redundancy pay [1] This decision concerns an application by Mercy Community Services SEQ Limited T/A Mercy Community (the Applicant) under section 120 of the Fair Work Act 2009 (the Act) to vary the redundancy pay owing to an employee, Ms Nadia Parishev (Ms Parishev/the Respondent). Background [2] On 23 October 2023, Ms Katreona Coase (Human Resources Business Partner) and Ms Natasha Shaw (Regional Manager) met with the Respondent to advise of a client who had decided to cease services with Mercy Community effective 3 November 2023. It was submitted that this ceasing of services meant that Support Worker positions at the location would not be required, therefore redundant, effective 3 November 2023. [3] The Applicant submitted the Respondent was impacted due to working her guaranteed hours across two locations, 16 hours per fortnight at the aforementioned location and 10 hours per fortnight at an alternate location. The Respondent was subsequently provided with a list of alternate locations (and shifts) to consider as a means to mitigate the impacts of the redundancy. [4] It was submitted the Respondent was also informed at this time that, were these locations and/or shifts determined to not be suitable, the outcome a partial redundancy, for the reduction in guaranteed hours (of 16 hours per fortnight). [5] On 31 October 2023, Ms Coase and Ms Shaw again met with the Respondent and it was advised (by the Respondent), to which the Applicant agreed, that she would only be seeking to maintain her guaranteed hours of 10 hours per fortnight at the alternate location. The result of this agreement being a partial redundancy based on the reduction in guaranteed hours of 16 hours per fortnight. [6] On 3 November 2023, this was subsequently formalised in written correspondence from the Applicant to the Respondent, inclusive of providing partial redundancy payment calculations. [2024] FWC 224 DECISION [2024] FWC 224 2 [7] The partial redundancy payment of $1,643.04 gross was based on six (6) weeks retrenchment payment (due to ‘at least 2 years but less than 3 years’ continuous service), with the Respondent’s leave entitlements being retained and no notice period payment, due to continued employment. Reducing Redundancy Pay [8] It was submitted the reduction in redundancy is due to a reduction in guaranteed hours from 26 hours per fortnight to 10 hours per fortnight (a reduction of 16 hours per fortnight), which was calculated at the applicable rate of $34.21 per hour and a retrenchment payment of six (6) weeks (due to ‘at least 2 years but less than 3 years’ continuous service) – which equated to an amount of $1,643.04 gross. Directions Hearing [9] The matter was listed for a Directions Hearing on 22 January 2024. Further information was sought from Mr Roberts regarding the calculation. [10] On this same day, Mr Roberts emailed the Commission attaching evidence the payment of the partial redundancy was the amount of $1,643.04 gross. [11] The Commission issued directions as follows: “Dear parties, I refer to the listing earlier today. I confirm that the Respondent (Ms Parishev) is to advise if she objects or consents to the application, by 5:00pm Wednesday, 24 January 2024. Should the Commissioner not hear from the parties, he will deal with the matter based on the material before the Commission. …” [12] Nothing further was received from the parties. Consideration [13] In all of the circumstances I am satisfied that it is appropriate to exercise power to reduce the redundancy amount. Conclusion [2024] FWC 224 3 [14] I have determined that the redundancy payment should be reduced to an amount of $1,643.04 gross. An Order to that effect is issued in conjunction with this decision. COMMISSIONER Printed by authority of the Commonwealth Government Printer <PR770674>