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Redundancy upheld

THE Full Federal Court has upheld a ruling of the Federal Court of Australia handed down on May 13 2002 that former Amcor employees were entitled to a redundancy payout when their employment was terminated, even though the employees took up positions with an Amcor subsidiary. This was despite the new employment being in the same positions, at the same location and on the same terms and conditions as their previous employment.

Law firm MinterEllison warned that in light of the appeal being lost, employers need to check their collective agreements, awards, contracts or policies to ensure the inclusion of a transmission exemption clause.

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