Broadlex Services Pty Ltd v United Workers' Union [2020] FCA 867

Broadlex Services Pty Ltd v United Workers' Union [2020] FCA 867

Where, for reasons unrelated to ordinary and customary turnover of labour, an employer repudiates the employee's contract of employment because it no longer requires the job to be done by anyone, and the employee accepts the repudiation by agreeing to work significantly fewer hours with reduced remuneration, the employee's employment is terminated within the meaning of s 119(1) of the Fair Work Act 2009 (Cth) and a redundancy pay entitlement arises.

Parties
Appellant: Broadlex Services Pty Ltd; Respondent: United Workers' Union
Jurisdiction
Australia
Judgment Date
22 June 2020
Procedural Posture
Appeal / Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Redundancy Pay, Statutory Interpretation, Termination of Employment, Employment Contract, Employment Relationship
Industrial Law Employment Law Redundancy Pay Statutory Interpretation Termination of Employment Employment Contract Employment Relationship

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Parties

Broadlex Services Pty Ltd

Appellant

United Workers' Union

Respondent

Procedural Posture

Appeal / Appeal Judgment

Legal Issues

  1. 1 Meaning of 'employment is terminated' in s 119(1) of Fair Work Act 2009 (Cth)
  2. 2 Entitlement to redundancy pay where contract of employment is terminated but employment relationship continues
  3. 3 Distinction between employment contract and employment relationship

Ratio Decidendi

Where, for reasons unrelated to ordinary and customary turnover of labour, an employer repudiates the employee's contract of employment because it no longer requires the job to be done by anyone, and the employee accepts the repudiation by agreeing to work significantly fewer hours with reduced remuneration, the employee's employment is terminated within the meaning of s 119(1) of the Fair Work Act 2009 (Cth) and a redundancy pay entitlement arises.

Court Disposition

Appeal dismissed

Orders

  • The appeal be dismissed.
  • No award as to costs.