Can a refusal to accept a pay cut result in a genuine
redundancy?
A recent decision of the Fair Work Commission
(FWC) suggests not.
In Mallard (and ors) v Parabellum International Pty Ltd
[2017] FWC 2531, the FWC held that making an employee's role
redundant following a refusal to accept a reduction in wages will
not be a 'genuine redundancy' under the Fair Work Act
(FW Act).
In November 2016 Parabellum International (Company) requested
that three employees agree to a 13% reduction in their pay, because
of a downward pricing restructure in its service contract with
Chevron.
The employees refused to accept the reduction, and the Company
subsequently made their roles redundant due to "operational
changes to the business". Three new employees were
subsequently re-hired into the roles, on 13% lower salaries.
