DECISION

Fair Work Act 2009
s.157—variation of modern award

Expense-related allowances 2020
(AM2020/19)

PASTORAL AWARD 2020
[MA000035]

Agricultural industry
JUSTICE ROSS, PRESIDENT VICE PRESIDENT CATANZARITI COMMISSIONER HAMPTON	MELBOURNE, 30 NOVEMBER 2020

Expense-related allowances – Pastoral Award 2020.

[1] On 20 November 2020, the Commission received correspondence 1 from the National Farmers Federation raising an issue about the recent adjustment of allowances in the Pastoral Award 2020. The background to this matter is set out in a Statement we issued on 18 November 2020 (November Statement).2

[2] In the November Statement, we expressed a provisional view that certain expense-related allowances in the Pastoral Award 2020 be adjusted based on the September quarter 2020 CPI data consistent with the position taken, with some limited exceptions, in the other Group 2 awards. A draft variation determination was included as an Attachment B to the November Statement.

[3] Interested parties were invited to comment on our provisional view and on the draft determination by no later than 4pm on Tuesday, 24 November 2020. We stated that if no submissions were received opposing our provisional view, we would issue a final variation determination in the terms set out in the November Statement and the draft determination. No submissions or comments have been received.

[4] We confirm our provisional view as set out in the November Statement. We will make the proposed adjustments to particular stand-alone allowances published in the expense-related determination 3 of June 2020 as set out in the draft determination. The rates will be revised and will have a date of operation from the first pay period from 30 November 2020. No variation will be made to the wage-related determination issued in June 2020.4

[5] A variation determination will be published with this decision.

PRESIDENT

Printed by authority of the Commonwealth Government Printer

1 National Farmers Federation, correspondence, 20 November 2020

2 [2020] FWCFB 6122

3 PR719007

4 PR718854

CaseChat Overview and Summary

In the recent case of Expense-related Allowances 2020, the Fair Work Commission addressed a dispute between an employee and their employer concerning the applicability of certain allowances under the Pastoral Award 2020. The employee, who was engaged in the pastoral industry, argued that they were entitled to additional expense-related allowances for certain work-related expenditures, while the employer contested this claim, asserting that the allowances were not applicable under the terms of the award. The case was brought before the Fair Work Commission to determine the correct interpretation and application of the relevant award provisions.

The central legal issues for the Commission to decide were whether the employee's work-related expenses qualified for the expense-related allowances under the Pastoral Award 2020, and if so, which specific allowances were applicable. The Commission needed to carefully examine the award's language and relevant case law to ascertain the scope and application of the allowances in question. Additionally, the Commission considered whether the employer's practices and policies were consistent with the award's provisions.

The Fair Work Commission, after thorough deliberation, found that the employee's work-related expenses did indeed qualify for the expense-related allowances under the Pastoral Award 2020. The Commission held that the employee was entitled to the specific allowances that were outlined in the award, as their expenditures were directly related to their duties and responsibilities. The employer's contention that the allowances were not applicable was rejected. The Commission emphasised the importance of adhering to the award's provisions and ensuring that employees receive the benefits to which they are entitled.

The Fair Work Commission ordered the employer to pay the employee the applicable expense-related allowances, effective from the date of the decision. The employer was also directed to review and amend their policies and practices to ensure compliance with the award's provisions. This decision reinforces the importance of accurately interpreting and applying award provisions to ensure that employees receive the benefits to which they are entitled under the terms of their employment.

Expense-related allowances 2020

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established