Finance Sector Union of Australia v Commonwealth Bank of Australia [2001] FCA 1613

Finance Sector Union of Australia v Commonwealth Bank of Australia [2001] FCA 1613

Each member of the representative group was in a redundancy situation on 10 October 1997 when the Bank's IS Department was abolished and their positions fundamentally changed. The Bank was obliged under cl 42 to terminate their employment and pay severance but failed to do so, breaching the Award. The continued employment was not within the organisational structure of the Bank as contemplated by the Award, and no appropriate redeployment or alternative employment was provided.

Parties
First Applicant: Finance Sector Union of Australia; Second Applicant: Kenneth Macey; Respondent: Commonwealth Bank of Australia
Jurisdiction
Australia
Judgment Date
16 November 2001
Procedural Posture
Representative Industrial Proceeding / Judgment After Hearing on Liability for Redundancy and Breach of Award
Outcome
The Bank breached the Award by failing to terminate employment and pay severance to members of the group on 10 October 1997.
Legal Topics
Redundancy, Redeployment, Retrenchment, Breaches of Award, Transfer of Employment, Outsourcing, Severance Pay
Industrial Law Employment Law Redundancy Redeployment Retrenchment Breaches of Award Transfer of Employment Outsourcing +1 more

Case Brief

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Parties

Finance Sector Union of Australia

First Applicant

Kenneth Macey

Second Applicant

Commonwealth Bank of Australia

Respondent

Procedural Posture

Representative Industrial Proceeding / Judgment After Hearing on Liability for Redundancy and Breach of Award

Legal Issues

  1. 1 Whether the Bank breached the Commonwealth Bank of Australia Officers' Award 1990 by failing to terminate the employment and pay severance to employees who did not take up employment with EDSA after outsourcing
  2. 2 Whether a redundancy situation arises when duties continued but in a different organisational context
  3. 3 Whether redeployment obligations were fulfilled

Ratio Decidendi

Each member of the representative group was in a redundancy situation on 10 October 1997 when the Bank's IS Department was abolished and their positions fundamentally changed. The Bank was obliged under cl 42 to terminate their employment and pay severance but failed to do so, breaching the Award. The continued employment was not within the organisational structure of the Bank as contemplated by the Award, and no appropriate redeployment or alternative employment was provided.

Court Disposition

The Bank breached the Award by failing to terminate employment and pay severance to members of the group on 10 October 1997.

Orders

  • The Commonwealth Bank of Australia breached clause 42 of the Commonwealth Bank of Australia Officers' Award 1990 by failing to terminate the employment of each member of the group on 10 October 1997 and failing then to pay each member a severance payment in accordance with cl 42(g) of the said Award.
  • The matter be stood over until 29 November 2001 at 9-30am for further directions.