Amcor appeals redundancy decision

Amcor believe that this appeal will allow the High Court of Australia to determine an important question of law with broad significance for the business community.

As part of an internal restructuring, by which Amcor separated its fine paper business from its packaging business, preparatory to a demerger, the relevant employees were transferred to Paper Australia in March 2000.

Amcor argues that the employees were not made redundant, as they were immediately offered employment by Paper Australia (now PaperlinX) on the same terms and condition as they enjoyed with Amcor and with all entitlements preserved.

Amcor welcomes the High Court’s decision and is in discussions with PaperlinX regarding the potential impact of contracts surrounding the demerger and previous arrangements that could impact any allocation of the liability between the two parties.

Russell Jones, Amcor managing director, says, “Amcor’s consistent position has been that no redundancy payments were payable as employees simply shifted employment from Amcor to PaperlinX with all entitlements maintained. This decision gives Amcor the opportunity to have this important case heard before the High Court of Australia.”

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