
Issue No 73		13 October 2000

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News

Landmark Victory Extends Severance Pay To All

In a landmark decision the AIRC has ruled that all employees who are made redundant are entitled to receive severance payments.

The test case was run by APESMA on behalf of Stephen Craig, a member of the Associations Architects branch in NSW.

Mr Craig had been made redundant in 1999. Neither his contract of employment, nor the award that covered him at the time, contained provisions that entitled him to severance pay on redundancy.

APESMA argued that in legislating subdivision (d), division (iii) of the Workplace Relations Act of 1996, Parliament sought to provide for employees without access to awards, certain minimum requirements, including severance pay.

These provisions refer to Australia's obligations under article 12 of the Termination of Employment (ILO) Convention. APESMA argued that an employee's entitlement to receive severance pay on redundancy is entrenched in article 12 of the Convention, to which Australia is a party.

Despite strong opposition from Mr Craig's former employer, and from the Commonwealth Department of Employment, Workplace Relations and Small Business, Reg Hamilton from the Australian Chamber of Commerce and Industry, and Bob Ironmonger from the Victorian Chamber of Commerce and Industry-who each intervened in the case- the Commission agreed with each of the arguments put forward by APESMA.

In handing down his judgement, Commissioner Harrison said "In my opinion the intention of the provisions of sections 170FA, FB, FC and FD is to provide employees with access to severance payments where they are not available as an award entitlement."

Legal Officer, Louise Beard, said the decision has significant implications for all employees and employers in Australia.

"It means that as the law now stands, all employees who are made redundant are entitled to receive severance payment in line with the minimum TCR standards.

"This is great news for APESMA members, particularly the Managers who are award free and whose contracts of employment are silent on the issue of redundancy or severance pay," she said.

'There are probably going to be some employers who aren't too happy with the decision though.'

"But it is about time all employees in Australia were given a legally enforceable right to severance pay- it's the least an employer can do in a situation where an employee is made redundant: They lose all their accrued entitlements, they suffer a break in the continuity of service and the inconvenience or hardship of finding another position," Beard said.

The APESMA member concerned, Stephen Craig, said he couldn't be happier with the result.

"It wasn't about the money but it was about the principle...It was a bit stressful going through this, but it was definitely worth it." he said.

"I feel I have done something worthwhile in my role in setting this precedent." said Craig.

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Issue 73 contents

Interview: Righting The Wrongs
Improving the lives of Aboriginal people can't be taken out of the context of the economy, welfare and other areas says Bob McMullan, Shadow Minister for Aboriginal Affairs.

Economics: At The Mercy Of Gamblers
The plunge of the Australian dollar relative to the greenback has consequences for Aussie workers according to Frank Stillwell.

History: Labour History Under Seige Again
The Friends of the Noel Butlin Archives Centre have recently been informed of proposed changes to the Noel Butlin Archives Centre (NBAC), changes that will cut staff by more than 50% and leave the Archives mothballed in the tunnel where the repository is situated.

Workplace: Fighting The Flexible Firm
We are told that hardship and exploitation at work is dying out, and the new economy offers opportunity, freedom and job satisfaction for all. Richard Sennett unveils the true nature of the flexible workplace.

Safety: Being bossed around is bad for your health
A survey of more than 3,000 Australian workers has revealed that some 54% of workers experience intimidating behaviour in their workplace. In almost 85% of cases it is employers, managers and supervisors who are identified as the culprits.

Unions: Discrimination
New to the union and the maritime industry and with only a few days casual work to live off, Stephen Rolls courageously spoke up against individual contracts during a job interview with Burnie Port Corp.

International: Serbian Workers and Their Unions Fight for Freedom
Serbian workers and their unions have been at the forefront of the struggle for democracy in Yugoslavia as they led a general strike in response to attempts by President Slobodan Milosevic to nullify the defeat he faced in the Sept. 24 election.

Satire: A few more years of civilised brutality will advantage Aborigines: Ruddock
CANBERRA, Tuesday: The Minister for Reconciliation Philip Ruddock has defended his comments to French newspaper Le Monde claiming that Aborigines were disadvantaged because they were late in coming into contact with developed civilisations.

Review: Poetry For Workers By Workers
Poems about the trials and tribulations of a waitress and what you learn in a chocolate factory are among the gems from the 925 anthology.

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