s.120 - Application to vary redundancy pay for other employment or incapacity to pay

Quatius Logistics Pty Ltd t/as Soniq Logistics Pty Ltd

• [1] An application has been made pursuant to s 120 of the Fair Work Act 2009 (the Act) by Quatius Logistics Pty Ltd t/as Soniq Logistics Pty Ltd (Soniqu) for variation of redundancy pay. The application concerns Mr Colin Belsham, an employee of Soniqu.
• [2] It is evident to me from the application that Soniqu has relocated its warehouse from South Dandenong, located in the south-east of Melbourne, to Truganina in the west of Melbourne, resulting in a redundancy in respect to Mr Belsham.
• [3] It is also evident to me from the application and accompanying material provided to the Commission that Soniqu is presently facing financial challenges, including rent arrears and an Australian Tax Office Payment plan.
• [4] The application asserts that Mr Belsham has worked for Soniqu for eight years, and that the amount of redundancy pay to which he is entitled is a sum equivalent to 14 weeks pay. It seeks this amount be reduced to an amount equivalent to 10 weeks pay.
• [5] The application asserts Mr Belsham has agreed to this proposition.
• [6] Upon allocation of this matter to my chambers, Mr Belsham was contacted to ask whether he agreed with the proposed changed to his redundancy pay or did not agree. His response was that he did agree.
• [7] Section 120 of the Act provides that on application by an employer, the Commission may determine that the amount of redundancy pay is reduced to a specified amount (which may be nil) that it considers appropriate. Section 120 applies if:
  1. an employee is entitled to be paid an amount of redundancy pay by the employer because of section 119 of the Act; and
  2. the employer obtains other acceptable employment for the employee; or
  3. the employer cannot pay the amount.
• [8] There appears to be no doubt Mr Belsham is entitled to be paid an amount of redundancy pay in accordance with s 119 of the Act. On the basis of the response provided by Mr Belsham in relation to this matter, I accept the contention set out in the application that Soniqu cannot pay the redundancy pay to which he is entitled. I consider it is appropriate to reduce the amount to a sum equivalent to ten weeks pay. I note Mr Belsham consents to this proposition.
• [9] I determine that the amount of redundancy to be paid to Mr Belsham be reduced to a sum equivalent to ten weeks pay, with that amount to be paid in accordance with the Order[1] made in conjunction with this decision.

[1] PR786220

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