Munro v Chubb Security Holdings Australia Ltd & Ors [2000] NSWIRComm 215

Munro v Chubb Security Holdings Australia Ltd & Ors [2000] NSWIRComm 215

The first respondent's termination package was unfair because execution of a two year consultancy agreement was an essential ingredient of the offer and would have substantially curtailed the applicant's ability to obtain alternative full time employment. The employment contract permitted that unfair conduct and was therefore varied. Fair payment in lieu of notice was 21 months based on an annual remuneration package of $346,500 exclusive of bonus, less credit for $450,000 already paid and $20,000 for six months' car use, producing $136,375 payable with interest. The other claims failed because the position was not redundant, the $60,000 bonus entitlement was not proved, superannuation...

Jurisdiction
Australia
Judgment Date
06 December 2000
Procedural Posture
Application Under S 106 of the Industrial Relations Act 1996 / Judgment After Hearing
Outcome
Application allowed in part against the first respondent; claims against the second and third respondents dismissed.
Legal Topics
['termination of Employment' 'reasonable Notice' 'payment in Lieu of Notice' 'executive Remuneration' 'bonus Payments' 'superannuation Entitlements' 'annual Leave and Long Service Leave' 'restraint of Trade' 'compensation for Distress, Humiliation and Loss of Reputation']
['industrial Relations' 'employment Law' 'unfair Contracts'] ['termination of Employment' 'reasonable Notice' 'payment in Lieu of Notice' 'executive Remuneration' 'bonus Payments' 'superannuation Entitlements' 'annual Leave and Long Service Leave' 'restraint of Trade' 'compensation for Distress, Humiliation and Loss of Reputation']

Case Brief

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Procedural Posture

Application Under S 106 of the Industrial Relations Act 1996 / Judgment After Hearing

Legal Issues

  1. 1 ["Whether the applicant's contract of employment was unfair under ss 105 and 106 of the Industrial Relations Act 1996 because of the first respondent's conduct in connection with termination." 'What period of notice or payment in lieu of notice was reasonable for the applicant as Managing Director.' 'Whether the applicant was entitled to severance payments on the basis of redundancy.' 'Whether the applicant was entitled to payment of a $60,000 bonus.' 'Whether superannuation contributions, including a deemed 6% member contribution, formed part of salary or remuneration for termination calculations.' 'Whether bonus payments should be included in annual holidays and long service leave entitlements.' 'Whether compensation should be awarded for a restraint of trade clause.' 'Whether compensation should be awarded for distress, humiliation, loss of reputation, or alleged aggravation of tinnitus.']

Ratio Decidendi

The first respondent's termination package was unfair because execution of a two year consultancy agreement was an essential ingredient of the offer and would have substantially curtailed the applicant's ability to obtain alternative full time employment. The employment contract permitted that unfair conduct and was therefore varied. Fair payment in lieu of notice was 21 months based on an annual remuneration package of $346,500 exclusive of bonus, less credit for $450,000 already paid and $20,000 for six months' car use, producing $136,375 payable with interest. The other claims failed because the position was not redundant, the $60,000 bonus entitlement was not proved, superannuation...

Court Disposition

Application allowed in part against the first respondent; claims against the second and third respondents dismissed.

Orders

  • ["The contract of employment between the applicant and the first respondent is varied from its beginning to provide that upon termination of employment other than for cause the first respondent shall pay the applicant an amount equal to 21 months pay based on the applicant's annual remuneration package exclusive of...