Case Study - Workplace Relations - A Redundant Employee Gets What Is Fair

Situation:

Tracy worked for a wholesale wine distribution company. She was initially engaged as a Brand Manager in the marketing department. Over time Tracy's role changed to meet the needs of the company. Towards the end of her time with the company she was also involved in the sales side of the business, including soliciting orders from customers and processing stock re-orders.

After Tracy had been with the company for just over four years her position was made redundant. She was offered her accrued annual leave together with four weeks pay in lieu of notice. The company paid 80% of her entitlements into her bank account. They withheld 20% until she signed a release document.

Response:

Tracy came to Moores Legal as she was concerned that the payment offered was inadequate. She also felt it was unfair that her former employer was withholding 20% until she signed a release document.

Moores Legal was able to advise Tracy that as her employer was only offering to pay her statutory entitlements, it could not require her to sign a release, and therefore could not withhold part of her payment until she did so.

Moores Legal also closely examined the nature of the work Tracy did and how it had changed over time. We advised that as she was doing some sales work, her employment was covered by the Commercial Sales (Victoria) Award. This Award contained redundancy provisions which entitled Tracy to a severance payment.

Outcome:

As a result of the communications with her former employer Tracy received the remaining 20% of the initial amount offered together with a further eight weeks severance pay. She was not required to sign the release document. The benefit to Tracy was just over fifteen times the legal fees charged to her.