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NSW Redundancy Entitlements - Settlement Doesn't Include Car Allowance as Agreed

Discussion in 'Employment Law Forum' started by Bugga Divino, 27 November 2015.

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  1. Bugga Divino

    Bugga Divino Member

    27 November 2015
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    I have been provided with a notice of redundancy by my employer, and will finish on the first week of December. My employer is a reputed and ethical business, and I have no fears of being short changed. However, the proposed redundancy settlement does not include AUD $21,500 per year as a car allowance (which was negotiated, and not a tool of the trade).

    My tenure with this company is approx. 18 months but the difference to the settlement would be a few thousand dollars. The severance is unfortunate, but necessary, given the commercial situation.

    Also, the payout of my remaining leave entitlements does not include the car allowance component. The car allowance was negotiated in order to split my salary in such a way that my employers could employ me as my expectations were well over the salary that the grade at which I was employed would be entitled to. If this had not been done, I would possibly not have undertaken this employment.

    Let me reiterate that my employer is a business of the highest ethical standards and that this omission is possibly due to a difference in interpretation.

    Would dearly request someone with this experience out there to maybe help me on what the legal situation would be. I would also be consulting my solicitors.

  2. Therese

    Therese Well-Known Member

    11 October 2015
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    Hi Bugga Divino,

    To clarify, your situation is that the car allowance was part of your salary but kept separate for certain reasons. Therefore, you believe that the car allowance should be included in your redundancy payout and it hasn't.

    Have you queried this with your employer?

    My suggestion would be to demonstrate to a solicitor how the car allowance was part of the agreement and even if it was separate it was an oral part of your employment contract and your salary. Hopefully, you can be successful arguing that it must be included in the payout.

    Your redundancy payout can be calculated in regards to the NES and the award your industry is covered under. See Redundancy pay and entitlements - Redundancy - Fair Work Ombudsman.

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