[2025] FWC 953
General information, not legal advice.
Fair Work Commission
2025-04-04
Original judgment source is linked above.
s.120 - Application to vary redundancy pay for other employment or incapacity to pay
Variation of redundancy pay - whether acceptable alternative employment obtained - other employment found to not be acceptable - application dismissed
(1) An employee is entitled to be paid redundancy pay by the employer if the employee's employment is terminated:
(a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
(b) because of the insolvency or bankruptcy of the employer.
(2) The amount of the redundancy pay equals the total amount payable to the employee for the redundancy pay period worked out using the following table at the employee's base rate of pay for his or her ordinary hours of work:
Employee's period of continuous service with the employer on termination
(3) A reference in this section to continuous service with the employer does not include periods of employment as a casual employee of the employer."
"120 Variation of redundancy pay for other employment or incapacity to pay
(1) an employee is entitled to be paid an amount of redundancy pay by the employer because of section 119; and the employer:
(i) obtains other acceptable employment for the employee; or
(2) On application by the employer, the FWC may determine that the amount of redundancy pay is reduced to a specified amount (which may be nil) that the 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."
"This is not easy to write after committing 10 years of my life to the business. But after taking some time to evaluate the impact of what a new role with Rosebank might look like and how it will impact both my personal life and my ability to do the job. I do not believe the role with Rosebank will be a suitable alternate to my role made redundant at TAE. I believe to fill the role, be truly effective and contribute to the business, as well as support my own development and mental health, I need to be more directly connected with the team I work with, as I was in my Strategy and Commercial Exec role. Meaning, I would need to spend more time in Melbourne.
With two very young children it required significant co-ordination just to get to Melbourne for the day. This is while my partner is on maternity leave, once Lily returns to work the impact and coordination will be greater.
I spoke with Sam this morning in the US and shared I would be happy to further extend the secondment for a short period as there are a couple of things I am working on currently I would like to see completed or tidied up for handover. But ultimately as my role with TAE has been made redundant and I do not consider there to be a suitable alternative, I accept that this too means I will be made redundant by TAE."
Ipswich and Adelaide. Several other RBE employees work at Ipswich. TAE submit that:
last nine months of his employment with TAE when seconded to RBE. With respect to concerns regarding his future development, TAE submits that someone's performance and ability, not the site where they work, impacts an employee's development.
"What constitutes "acceptable alternative employment" is a matter to be determined as we have said, on an objective basis. Alternative employment accepted by the employee (and its corollary, alternative employment acceptable to the employee) cannot be an appropriate application of the words because that meaning would give an employee an unreasonable and uncontrollable opportunity to reject the new employment in order to receive redundancy pay; the exemption provisions would be without practical effect.
Yet the use of the qualification "acceptable" is a clear indication that it is not any employment which complies but that which meets the relevant standard. In our opinion there are obvious elections of such a standard including the work being of like nature; the location being not unreasonably distant; the pay arrangements complying with award requirements. There will probably be others."
"[178] ... The underlying principle as to what is 'acceptable employment' does not mean it must be acceptable to the employee. ... The test is an objective one. ...
[182] ... In Vicstaff Pty Ltd (t/as Stratco) v May [2010] FWA 3141; (2010) 204 IR 233 ('Vicstaff'), Bissett C said at paras [29]-30]:
29. The determination of whether or not alternative employment is acceptable must be determined objectively and not subjectively from the perspective of the employer or employees. That the alternative employment may be rejected does not objectively make it unacceptable nor does the fact that the employment was offered make it, by virtue of the offer, acceptable. ...
30. It is therefore incumbent upon the employer (Vicstaff) in this matter to demonstrate that the alternative employment is acceptable taking into account all matters relevant in such a consideration. Had the alternative work been considered acceptable to the individuals one imagines they would have accepted the work offered.'
[183] Notwithstanding the above general principles, whether the alternative employment is acceptable, will likely include consideration of the following matters:
This list is not exhaustive. There may be other relevant factors.
[184] It is also necessary to take account of whether the employee is cooperative and
willing to meaningfully engage with the employer in discussions on any offers of alternative employment. An unreasonable refusal to accept the alternative employment or a failure to meaningfully engage with the employer about objectively reasonable offers, may result in orders to reduce the redundancy pay entitlement to nil. As the authorities make plain, these are factors which may influence the Commission's exercise of discretion under s 120 of the Act."
Carer's responsibilities and Family circumstances.

[1] Kelly Group (Administration) Pty Ltd [2023] FWC 2650.
[3] [2016] FWC 461, [178]-[184].
[4] [2019] FWC 756, [24]; [2016] FWC 2880, [11].
Printed by authority of the Commonwealth Government Printer
TAE Aerospace Pty Ltd
Mr David Vanner [2025] FWC 953
(2010) 204 IR 233
(1990) 140 IR 123