Failure To Consult - Employment Update: Financial Penalty For Consultation Failure


All Enterprise Agreements Impose Mandatory Obligations On Employers To Consult With Employees About "Major" Changes In The Workplace. These Obligations Are Not Only Relevant To Unfair Dismissal Claims, But A Failure To Comply Can Result In Fines And Penalties. A Recent Decision Of The Federal Circuit Court Of Australia Emphasizes The Importance Of The Obligations And Demonstrates The Willingness Of Courts To Impose A Penalty Even For A Single Contravention.

In CEPU v ThyssenKrupp Elevator Australia Pty Ltd1 a penalty of $15,300 was imposed on the employer for neglecting to consult with an employee whom it made redundant. The Court stressed that consultation was an "important and valuable right" and it is imperative for employers to properly understand the nature of their obligation....

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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