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FAIR WORK ACT 2009 - SECT 141

Industry-specific redundancy schemes

When can a modern award include an industry-specific redundancy scheme?

             (1)  A modern award may include an industry-specific redundancy scheme if the scheme was included in the award:

                     (a)  in the award modernisation process; or

                     (b)  in accordance with subsection (2).

Note:          An employee to whom an industry-specific redundancy scheme in a modern award applies is not entitled to the redundancy entitlements in Subdivision B of Division 11 of Part 2-2.

Coverage of industry-specific redundancy schemes must not be extended

             (2)  If:

                     (a)  a modern award includes an industry-specific redundancy scheme; and

                     (b)  the FWC is making or varying another modern award under Division 4 or 5 so that it (rather than the modern award referred to in paragraph (a)) will cover some or all of the classes of employees who are covered by the scheme;

the FWC may include the scheme in that other modern award. However, the FWC must not extend the coverage of the scheme to classes of employees that it did not previously cover.

Varying industry-specific redundancy schemes

             (3)  The FWC may only vary an industry-specific redundancy scheme in a modern award under Division 4 or 5:

                     (a)  by varying the amount of any redundancy payment in the scheme; or

                     (b)  in accordance with a provision of Subdivision B of Division 5 (which deals with varying modern awards in some limited situations).

             (4)  In varying an industry-specific redundancy scheme as referred to in subsection (3), the FWC:

                     (a)  must not extend the coverage of the scheme to classes of employees that it did not previously cover; and

                     (b)  must retain the industry-specific character of the scheme.

Omitting industry-specific redundancy schemes

             (5)  The FWC may vary a modern award under Division 4 or 5 by omitting an industry-specific redundancy scheme from the award.



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