s.120 - Redundancy pay

[1] Australian Retirement Trust (Applicant) has made an application pursuant to s.120 of the Fair Work Act 2009 for an order to vary the amount of redundancy pay otherwise payable to its former employee, Ms Christine Johnson (Respondent). The Applicant seeks to reduce the Respondent's redundancy entitlement from four weeks' pay to nil on the basis that it obtained other acceptable employment for her.

[2] On 2 February 2026, the Commission wrote to the Respondent seeking confirmation as to whether she opposed the application. No response was received. Further correspondence was sent on 5 February 2026 requesting a response by 12 February 2026. The Respondent was advised that, in the absence of a response by that date, the Commission would determine the application on the material filed.

[3] No response has been received from the Respondent. In those circumstances, I proceed to determine the application on the papers.

[4] Section 120 of the Act provides:

120 Variation of redundancy pay for other employment or incapacity to pay

(1) This section applies if:

(a) an employee is entitled to be paid an amount of redundancy pay by the employer because of section 119; and

(i) obtains other acceptable employment for the employee; or

(2) On application by the employer, FWC may determine that the amount of redundancy pay is reduced to a specified amount (which may be nil) that FWC considers appropriate.

(3) The amount of redundancy pay to which the employee is entitled under section 119 is the reduced amount specified in the determination.

[5] Section 120 confers a discretion on the Commission to reduce the amount of redundancy pay where the employer has obtained "other acceptable employment" for the employee or cannot pay the amount.

[6] The Respondent commenced employment with the Applicant on 5 February 2024 in the role of Enterprise Business Agility Coach. Her position was made redundant on 19 January 2026. The Applicant submits that the Respondent declined an offer of acceptable alternative employment and accordingly should not be entitled to redundancy pay. The alternative position offered was that of Agility COE Lead which provided, amongst other things, the same remuneration, working hours and location as the redundant role.

[7] Having considered the application and the material provided, I am satisfied that the position offered by the Applicant constituted other acceptable employment

[8] I am satisfied that the Applicant obtained 'other acceptable employment' for the Respondent pursuant to s 120(1)(b) of the Act. In the circumstances, it is appropriate to exercise the discretion conferred by s.120(2) to reduce the amount of redundancy pay otherwise payable to the Respondent to nil. An Order to this effect will be issued with this Decision.

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