If an employee is entitled to redundancy pay on termination, but their employer has obtained other acceptable employment for them, the employer can apply to the Fair Work Commission (FWC) for an order under the Fair Work Act 2009 (Cth) (FW Act) to reduce (including to nil) the amount of redundancy pay that is due to the employee.
The employer is required to demonstrate that:
- it “obtained” the alternative employment for employees; and
- the alternative employment was “acceptable”.
In the recent decision of Sodexo Australia Pty Ltd T/A Sodexo [2016] FWC 4012, Deputy President Sams of the FWC considered the second test of whether the alternative employment was “acceptable”.