Retrenched executive is allowed to keep a “mistaken” redundancy payment
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31 October 2011
Posted in
General Employment
A company which mistakenly paid its national operations manager a $27,000 severance payment, believing it was require do so under an award, has failed in its attempt to recoup the money.
The Supreme Court of Victoria has upheld Magistrate Lauristen’s decision, finding that the operations manager had sound defences against the repayment. These defences were, firstly, change of position –the operations manager had been denied an unemployment benefit by Centrelink when she disclosed she had received the severance payment and, secondly, estoppel by representation.
TRA Global Pty Ltd v Kebakoska [2011]VSC 480.
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