Just days after claims emerged about employee redundancy entitlements, the cleaning giant has come under fire from the FWO
Spotless has been accused of contravening workplace laws when it terminated the employment of three workers at Perth International Airport.
The Fair Work Ombudsman has now brought proceedings relating to redundancy entitlements, in a new legal action against the cleaning company.
The FWO alleges Spotless contravened the Fair Work Act when it failed to pay a total of $29,013 in redundancy entitlements owing to the three workers, according to the documents lodged in the Federal Court.
The employees were among more than 30 whose employment was terminated by Spotless in 2015 after the company's contracts to provide catering and hospitality services at Perth International Airport expired and were not renewed.
Spotless had employed one of the three workers (an administration/accounts manager) for 32 years and had employed the other two workers, one a retail manager and the other performing various roles, for about four-and-a-half years.
The FWO investigated after the workers lodged requests for assistance.
According to the Fair Work Act, redundancy entitlements are payable when an employee’s job is made redundant unless limited exceptions apply.
However, an exception is where termination of employment is due to the ‘ordinary and customary turnover of labour’. The FWO alleges that exceptions do not apply to these three workers, and that they were entitled to redundancy pay.
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Spotless has back-paid the three workers but has not admitted liability under the Fair Work Act.
The FWO alleges Spotless also contravened the Fair Work Act by failing to adhere to the requirement for employers to give written notice to Centrelink before dismissing 15 or more employees in certain circumstances.
Fair Work Ombudsman Natalie James said that hopefully the legal action will provide greater clarity around the situations in which redundancy entitlements must lawfully be paid.
“Federal Court consideration of this area of the law will serve to provide greater guidance to employers as to situations in which redundancy entitlements must be paid and situations in which Centrelink must be notified,” said James.
Spotless faces maximum penalties of $25,500 to $51,000 per contravention for multiple alleged contraventions of the Fair Work Act. A case management hearing is scheduled for the Federal Court in Perth on 16 March, 2018.
HRD also reported this week that four workers employed by Spotless on a contract are set to lose their jobs without redundancy pay.
The employees - all women in their 50s - worked in Wollongong on the NSW south coast on a full-time basis.
When Spotless decided not to renew their contracts the employees were offered positions outside of Wollongong – the closest being an hour’s drive away at Nowra.
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