Amcor Limited v Construction, Forestry, Mining and Energy Union [2003] FCAFC 57

Amcor Limited v Construction, Forestry, Mining and Energy Union [2003] FCAFC 57

Upon Amcor's termination of its employees' employment due to business restructuring and transfer to Paper Australia, the employees' positions with Amcor became redundant and they were retrenched within the meaning of cl 55 of the Agreement. Severance payments for redundancy under the certified agreement became payable by Amcor regardless of continuity of employment under the new employer, as obligations crystallised upon dismissal due to redundancy.

Parties
Appellant: Amcor Limited; First Respondent: Construction, Forestry, Mining and Energy Union; Second Respondent: Neville George Anderson; Intervenor: Minister for Employment and Workplace Relations
Jurisdiction
Australia
Judgment Date
28 March 2003
Procedural Posture
Appeal / Full Court Judgment
Outcome
Appeal dismissed
Legal Topics
Redundancy, Retrenchment, Transmission of Business, Severance Payments, Certified Agreement Interpretation
Industrial Law Employment Law Redundancy Retrenchment Transmission of Business Severance Payments Certified Agreement Interpretation

Case Brief

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Parties

Amcor Limited

Appellant

Construction, Forestry, Mining and Energy Union

First Respondent

Neville George Anderson

Second Respondent

Minister for Employment and Workplace Relations

Intervenor

Procedural Posture

Appeal / Full Court Judgment

Legal Issues

  1. 1 Whether employees were redundant and retrenched under the certified agreement upon transfer of their employment due to restructuring
  2. 2 Whether redundancy refers to the loss of the employee's position with their employer or the position itself
  3. 3 Whether severance payments are payable in circumstances of transmission of business

Ratio Decidendi

Upon Amcor's termination of its employees' employment due to business restructuring and transfer to Paper Australia, the employees' positions with Amcor became redundant and they were retrenched within the meaning of cl 55 of the Agreement. Severance payments for redundancy under the certified agreement became payable by Amcor regardless of continuity of employment under the new employer, as obligations crystallised upon dismissal due to redundancy.

Court Disposition

Appeal dismissed

Orders

  • The appeal be dismissed.
  • The amount awarded to Mr Anderson by the primary judge ($88,677.30) stands; any dispute regarding calculation for other employees to be resolved by the primary judge.