Application to vary redundancy pay dismissed as proposed role not objectively acceptable
Date: 8 April 2025
Court: Fair Work Commission
Judge(s): Commissioner Durham
Judgment date: 4 April 2025
Catchwords: Redundancy pay variation — Other acceptable employment — Objective test — Family circumstance
Abstract:
The Fair Work Commission (FWC) dismissed an employer’s application to reduce redundancy pay of an employee, finding that the alternative employment offered was not objectively “other acceptable employment” under s 120(1)(b)(i) of the Fair Work Act 2009.
Background
TAE Aerospace Pty Ltd (TAE) sought to reduce Mr David Vanner's redundancy entitlements to nil, arguing that they had secured suitable alternative employment for him, which he declined. Mr Vanner had been employed by TAE since 2014 and, in April 2024, he was seconded to Rosebank Engineering Pty Ltd (RBE), part of the same group TAE belongs to known as ASDAM Group. In September 2024, Mr Vanner was notified of TAE’s intention to make his existing position (prior to secondment) redundant. He was offered an alternative position at RBE which TAE considered as suitable alternative, arguing no change in salary or conditions (RBE Role). Mr Vanner disagreed, citing the need to work from home 100% and increased…