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WORKPLACE RELATIONS ACT 1996 - SECT 654 Remedies on arbitration

This legislation has been repealed.

WORKPLACE RELATIONS ACT 1996 - SECT 654

Remedies on arbitration

             (1)  Subject to this section, the Commission may, on completion of the arbitration, make an order that provides for a remedy of a kind referred to in subsection (3), (4) or (7) if it has determined that the termination was harsh, unjust or unreasonable.

             (2)  The Commission must not make an order under subsection (1) unless the Commission is satisfied, having regard to all the circumstances of the case including:

                     (a)  the effect of the order on the viability of the employer's undertaking, establishment or service; and

                     (b)  the length of the employee's service with the employer; and

                     (c)  the remuneration that the employee would have received, or would have been likely to receive, if the employee's employment had not been terminated; and

                     (d)  the efforts of the employee (if any) to mitigate the loss suffered by the employee as a result of the termination; and

                     (e)  any other matter that the Commission considers relevant;

that the remedy ordered is appropriate.

             (3)  If the Commission considers it appropriate, the Commission may make an order requiring the employer to reinstate the employee by:

                     (a)  reappointing the employee to the position in which the employee was employed immediately before the termination.

                     (b)  appointing the employee to another position on terms and conditions no less favourable than those on which the employee was employed immediately before the termination.

             (4)  If the Commission makes an order under subsection (3) and considers it appropriate to do so, the Commission may also make:

                     (a)  any order that the Commission thinks appropriate to maintain the continuity of the employee's employment; and

                     (b)  subject to subsections (5) and (6)--any order that the Commission thinks appropriate to cause the employer to pay to the employee an amount in respect of the remuneration lost, or likely to have been lost, by the employee because of the termination.

             (5)  In determining an amount for the purposes of an order under paragraph (4)(b), the Commission must have regard to:

                     (a)  the amount of any income earned by the employee from employment or other work during the period between the termination and the making of the order for reinstatement; and

                     (b)  the amount of any income reasonably likely to be so earned by the employee during the period between the making of the order for reinstatement and the actual reinstatement.

             (6)  If, as a result of an application under section 663, a court has awarded an amount of damages for a failure to give notice of a termination as required by section 661, any amount ordered to be paid by the Commission under paragraph (4)(b) in respect of the termination is to be reduced accordingly.

             (7)  If the Commission thinks that the reinstatement of the employee is inappropriate, the Commission may, if the Commission considers it appropriate in all the circumstances of the case, make an order requiring the employer to pay the employee an amount ordered by the Commission in lieu of reinstatement.

             (8)  Subject to subsections (9), (10), (11) and (12), in determining an amount for the purposes of an order under subsection (7), the Commission must have regard to all the circumstances of the case including:

                     (a)  the effect of the order on the viability of the employer's undertaking, establishment or service; and

                     (b)  the length of the employee's service with the employer; and

                     (c)  the remuneration that the employee would have received, or would have been likely to receive, if the employee's employment had not been terminated; and

                     (d)  the efforts of the employee (if any) to mitigate the loss suffered by the employee as a result of the termination; and

                     (e)  any misconduct of the employee that contributed to the employer's decision to terminate the employee's employment; and

                      (f)  any other matter that the Commission considers relevant.

             (9)  An amount ordered by the Commission under subsection (4) or (7) to be paid to an employee may not include a component by way of compensation for shock, distress or humiliation, or other analogous hurt, caused to the employee by the manner of terminating the employee's employment.

           (10)  If the Commission is satisfied that misconduct of the employee contributed to the employer's decision to terminate the employee's employment, the Commission must reduce the amount it would otherwise fix under subsection (7) by an appropriate amount on account of the misconduct.

           (11)  In fixing an amount under subsection (7) for an employee who was employed under award‑derived conditions (see subsection 642(6)) immediately before the termination, the Commission must not fix an amount that exceeds the total of the following amounts:

                     (a)  the total amount of remuneration:

                              (i)  received by the employee; or

                             (ii)  to which the employee was entitled;

                            (whichever is higher) for any period of employment with the employer during the period of 6 months immediately before the termination (other than any period of leave without full pay); and

                     (b)  if the employee was on leave without pay or without full pay while so employed during any part of that period--the amount of remuneration taken to have been received by the employee for the period of leave in accordance with the regulations.

           (12)  In fixing an amount under subsection (7) for an employee who was not employed under award‑derived conditions (see subsection 642(6)) immediately before the termination, the Commission must not fix an amount that exceeds:

                     (a)  the total of the amounts determined under subsection (11) if the employee were an employee covered by the subsection; or

                     (b)  the amount of $32,000, as indexed from time to time in accordance with a formula prescribed by the regulations;

whichever is the lower amount.

           (13)  For the avoidance of doubt, an order by the Commission under paragraph (4)(b) or under subsection (7) may permit the employer concerned to pay the amount required in instalments specified in the order.