Case study · Redundancy

He said no to a new role and lost 16 weeks' redundancy pay

Redundancy pay cut from 16 weeks to nilFair Work Commission · 19 September 2025
A manager stands by a work ute holding a folded sheet of paper while his underground-locating crew scans the road behind him.

Alexander Jones had worked for Utility Mapping, a business that searches for underground utilities, for almost 10 years. By 2025 he was its Victorian State Manager, based in Melbourne, with eight direct reports, a salary of $157,500, a car allowance and a bonus.

In mid-2025 the company told him his state manager position was redundant and offered him a new National Technical Lead role. The salary, allowances and conditions were the same. At a final meeting on 6 June 2025, after getting legal advice, Mr Jones read a prepared statement declining it as "not a suitable alternative employment". His employment ended. Under the National Employment Standards he would otherwise have been owed 16 weeks' redundancy pay.

The company asked the Commission to reduce that to nil under s 120, which allows a reduction when the employer finds the worker "other acceptable employment". Mr Jones pointed to real differences. The new job was less senior, reported to a less senior manager and had far fewer direct reports. It was likely to mean more interstate travel, and he had two young children. Its bonus targets had not been set.

The Deputy President agreed the role was less senior, but found it was still acceptable. The work was of a like nature, he would not have had to relocate, and the pay was the same. The company genuinely wanted to keep him. Mr Jones was not obliged to take the role or to raise his concerns, the Deputy President said, but in his view Mr Jones "acted hastily", turning the role down on legal advice before the company could deal with his concerns about bonus targets and travel. The safest option, he said, would have been to take the role and look for other work from there. His redundancy pay was reduced from 16 weeks to nil.

What it means for you

If your employer offers you another job when your role is made redundant, think carefully before saying no. Put your concerns to them and give them a chance to answer: turning down an acceptable offer can cost you some or all of your redundancy pay.

Mr Jones sought to appeal. On 6 November 2025 a Full Bench refused permission to appeal, finding no arguable error (Jones v Utility Mapping (Aust) Pty Ltd [2025] FWCFB 255). It also said there was a real question whether the employer had ended his employment at all. Redundancy pay under s 119 is owed only where the employer ends the employment because it no longer needs the job done, and at the appeal hearing Mr Jones's own counsel said the employment ended by agreement. The original decision made no finding on that point.

A published decision of the Fair Work Commission, retold in plain English. Lawcaptain did not act in this case. Every outcome depends on its own facts. General information, not legal advice about your situation.

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