Indemnity clause leads to costs awarded for rejection of
offer
Two teachers have been ordered to pay their former
employer's costs on an indemnity basis after they unreasonably
refused a $10,000 settlement offer. Mr Carr and Mr Pathik commenced
proceedings in the Federal Circuit Court alleging that their former
employer, ILSC (Brisbane) Pty Ltd, had underpaid them, breached the
modern award that covered their employment and breached their
general protections by reducing their weekly hours after they made
a complaint in relation to their employment.
Before the hearing of the matter, ILSC sent each applicant a
letter offering, on without prejudice basis, to settle their claims
in exchange for a lump sum payment of $10,000 each and the parties
entering into a deed of release. ILSC stated that the offer would
be open for acceptance for 28 days. Both Mr Carr and Mr Pathik
rejected ILSC's offer two business days later. They both
counter offered, proposing that ILSC pay
