Companies in Australia have to take into account casual employment of workers when they calculate redundancy payments, following a successful appeal by the Australian Manufacturing Workers’ Union. The appeal challenged a decision allowing Forgacs, an engineering and shipbuilding company, to include only the permanent employment period while calculating reduncancy payouts.
- Australian employees will now have their casual employment calculated towards their redundancy entitlements as a result of a recent Fair Work Commission ruling.
- The Fair Work Commission recently upheld an appeal made by the Australian Manufacturing Workers’ Union against a decision that allowed engineering and shipbuilding company Forgacs to only calculate the permanent employment period in their redundancy payouts.
- “Employers will have to be careful with the record-keeping of casual employees and also maintain records for entitlements such as long service leave.
“Casual employees are not entitled to redundancy payouts and thus employers may be more inclined to keep them as casuals especially in industries where redundancies are common.”