Compliance notice confirmed as employer failed to pay redundancy pay

The Industrial Magistrate has dismissed an application to cancel a Compliance Notice issued pursuant to the Fair Work Act 2009 (Cth) on the basis that the claimant failed to pay an employee his redundancy pay when his employment was terminated by the claimant.

The claimant sought a review of a Compliance Notice issued by a Fair Work Inspector, which alleged that the claimant did not pay the employee redundancy pay under the Joinery and Building Trades Award 2010 (Cth) when his full-time employment was terminated by the claimant.

The claimant sought a cancellation of the Compliance Notice. It argued that the employee’s employment was not terminated as he was offered casual employment by letter or accepted casual employment with the claimant.

The respondent, the Fair Work Ombudsman, argued that the Compliance Notice should be confirmed.

Industrial Magistrate Hawkins found that the employee’s employment was terminated by letter at the initiative of the claimant. Hawkins IM found that it could not be inferred that by signing the letter to confirm receipt of the notice, the employee accepted the proposal of casual employment. Her Honour also found that the claimant’s proposal of casual employment lacked particularity as to the conditions of the offer and was incapable of acceptance.

The application to cancel the Compliance Notice was dismissed.

An order was issued to correct the period of redundancy pay.

The decision can be read here.