Redundancy and Redeployment - Striking a Fair Balance

On 15 March 2013, the New South Wales District Court handed down a decision which illustrated the caution that must be applied when dealing with operational change.

The Plaintiff, Kelvin Smith ("Mr Smith") had been employed by the Second Defendant, Commonwealth Steel Company Pty Ltd ("CSC") since 1978. He became a furnace operator in the early 1990s and had been doing this job ever since.

In late October 2010, CSC transferred Mr Smith to the "railway finishing line". This work involved painting railway wheels and some other unskilled work.

Mr Smith gave CSC a letter of resignation on 9 October 2010 but alleged at the hearing that, by the time he had done so, he had already been terminated as a furnace operator and therefore was entitled to redundancy payments.