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Spotless Facing Court Action Over Failure To Pay Redundancy Entitlements

Spotless facing court action over failure to pay redundancy entitlements

The Fair Work Ombudsman claims Spotless broke workplace laws by failing to make redundancy payments to workers it sacked.

Under the Fair Work Act, redundancy entitlements must be paid to employees when their job is made redundant.

The only exception is when the redundancy is due to the “ordinary and customary turnover of labour”.

Spotless facing court action over failure to pay redundancy entitlements

Fair Work has commenced legal action, alleging Spotless refused to pay $29,013 in redundancy entitlements to three workers.

The workers are among more than 30 that Spotless sacked in 2015 after its contracts to provide hospitality and catering services at Perth International Airport expired.

One of the employees had worked for the company for 32 years.

Perth Airport where the Spotless contractors worked.

Spotless has reputation for treating contract workers badly

Spotless has a reputation for treating contract workers badly.

The company faced criticism earlier this week for refusing to pay redundancy payments to four cleaners based in Wollongong.

The company suggested the workers apply for jobs in New Zealand.

Fair Work says it will now investigate that matter too.


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“CLEANERS RECEIVE NO REDUNDANCY AND TOLD TO MOVE TO NEW ZEALAND TO WORK”

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Lowest paid workers often get raw end of the stick

Employee advocate Miles Heffernan from IR Claims says it is always the lowest paid workers who get the raw end of the stick when contracts are not renewed.

“It’s disappointing that a company like Spotless would go to the mat over $29,000 in redundancies,” he said.

“Especially when you consider these workers have dedicated their lives to the company.

“Lets hope if they are owed the money, Fair Work makes an example of Spotless, and takes it all the way through to trial where a judge can impose some hefty penalties.”

The Federal Court in Perth has a hearing scheduled in March.

Spotless faces maximum penalties of $25,500 to $51,000 for each contravention of the Fair Work Act.


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