When is a guarantee of annual earnings not a guarantee?
The Case
Association of Professional Engineers, Scientists and Managers Australia v Peabody Energy Australia Coal Pty Ltd (2022)
Peabody Energy Australia Coal Pty Ltd (Peabody) retrenched some of its employees when it closed two of its mines in NSW and Queensland. The Black Coal Mining Industry Award 2010 (the Award) provided that any employee who was retrenched would also be paid their accrued untaken personal/carer’s leave. Peabody alleged its retrenched employees were not entitled to receive this as they were not covered by the Award given they were high-income employees (i.e. they had a guarantee of annual earnings for a guaranteed period in excess of the high-income threshold).
The Association of Professional Engineers, Scientists and Managers Australia (APESMA) commenced proceedings against Peabody in the Federal Court claiming the entitlements should be paid.
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