VIC s55 Fair Work Act (NES Protections) - EA reduces scope of redundancy scenarios but offers greater compensation

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Sergio

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28 July 2022
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As a result of a restructure there have been changes to my role. While the significance of those changes is a matter of dispute between myself and my employer, in the absence of the Enterprise Agreement they would certainly trigger a redundancy payment under s119 of FW Act (which only requires that "the employer no longer requires the job done by the employee to be done by anyone"). If it so desired, it would then be up to my employer to seek to reduce the redundancy entitlement via a s120 application to the FW Commission.

The Enterprise Agreement, however, provides for "redeployment into a directly comparable role" and states that if this occurs "you will not be entitled to any redundancy benefits". Again, my employer and I have different opinions as to whether or not the new role is directly comparable.

Leaving that issue aside, I'm curios to understand whether my entitlements to a redundancy payment under s119 of the FW Act continue to exist in parallel with the redundancy provisions in the Enterprise Agreement?

It's my understanding that s55 of FW Act invalidates any term in an Enterprise Agreement that is detrimental to an employee in any respect when compared to the National Employment Standards (including redundancy payments per s119).

Surely provisions in an Enterprise Agreement that negate a redundancy payment (in circumstances where it would be payable under the NES) are detrimental to me in the current circumstances?

How would I go about asserting a right to a redundancy payment (even if that is only the lower sum provided under the NES)?

What do I do if my employer continues to deny that my role is redundant and that any payment is due? I'm willing to quit but don't want to waive my rights to any claim for compensation (as my next role will almost certainly have a greatly reduced income).

Thanks
Sergio
 

Rod

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The Enterprise Agreement, however, provides for "redeployment into a directly comparable role" and states that if this occurs "you will not be entitled to any redundancy benefits". Again, my employer and I have different opinions as to whether or not the new role is directly comparable. ....

See s.120 of the FWA - the EA is similar to the FWA.

as my next role will almost certainly have a greatly reduced income
I am unclear as to whether you mean with your current employer, or a new employer

If current employer a reduction in pay = redundancy
How would I go about asserting a right to a redundancy payment (even if that is only the lower sum provided under the NES)?

Carefully! Would need to document this in correspondence to your employer, giving reasons why you are exercising your right to redundancy. Keep in mind if you resign claiming redundancy, your employer may refuse to recognise your claim to redundancy meaning you'll need to go to court seeking your redundancy payout.