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On-hire provider loses appeal over transitioning workers' entitlements

In an important ruling for the on-hire sector, Ready Workforce has failed to prove it shouldn't have to pay redundancy entitlements to workers who transitioned to a new staffing provider at the same site.

Ready Workforce (a division of Chandler Macleod) had sought an exemption from paying 12 workers' redundancy entitlements (of up to seven weeks each), on the basis it had obtained other acceptable employment for them under section 120 of the Fair Work Act.

The Fair Work Commission heard that after Ready Workforce unsuccessfully re-tendered for a Mount Arthur coal mine contract in September last year, it took steps that "created" employment offers from Programmed, which was taking over the contract.

But Commissioner Ian Cambridge rejected its application in June this year, finding that while Ready Workforce had provided "facilitation and assistance" for potential employment with Programmed, it hadn't obtained alternative employment for the workers...