A recent case in the Fair Work Commission, Mohammad Aimal v Battery Energy Power Solutions Pty Ltd (U2020/2520) examined the fairness of the employer’s redundancy process.
The Case
Battery Energy Power Solutions Pty Ltd employed Mr Aimal in early 2019 as a casual employee which transitioned to permanent later in the year. Mr Aimal was regarded as a good employee. In early 2020 the employer’s business was detrimentally affected and two positions were identified for redundancy, which included Mr Aimal’s position.
In a meeting on 3 March 2020 Mr Aimal was told that his position was being made redundant, that there were no other available positions, and that his employment was terminated with immediate effect. At first the employer contended that he was terminated because he refused to accept a cleaner position that was offered to him on 3 March 2020, but then abandoned its defence that there was a genuine redundancy.
Decision
The Fair Work Commission found that Mr Aimal’s employment was terminated unfairly, and that he would have continued to be employed by the Respondent for no more than 1 week had he not been dismissed. His compensation was limited to 1 week’s pay.
Implications
The case emphasises the need for proper consultation to be undertaken before employment is terminated for redundancy.
If you are facing a potential redundancy situation, call a WorkLegal lawyer without delay.