Back dating changes to company redundancy policy - Is it legal?

[halo9]

I have been employed with a large Australian company for over 10 years now and fall under a national award. In my employment contract under redundancy it just states as per company policy, herein lies my dilemma.

A couple of years ago (3Q/14) the company announced it was going to be changing its redundancy policy effective from the start of 2015. Up until that point the company had a very generous policy in which employees could accrue up to 52 weeks of redundancy payout. I was already entitled to nearly 40 weeks by that stage based on service if I was made redundant. The change to the policy made it so that the maximum payout would be capped at 20 weeks (still above entitlements), but that it would be backdated to apply to all employees who started after the 1/7/2006. This is more than 8 years prior to the announced change. Also under the new policy employees who started prior to the 30/6/2006 get to stay on the old policy and keep accruing up to 52 weeks.

I have just found out that my role will be ending next year and that another position is unlikely, redundancy would be the most likely outcome. To make matters worse I was actually working for the same company from early 2006 but through an agency so my "official" employment with them began 60 days after the new policy restrictions came into affect.

So my question, is this kind of change even legal? How can they change a policy going back 8 years, it doesn't seem right. I can understand changing the policy and saying it is effective from today or a future date, but how can they back date it so far. Do I have any rights to challenge this? I have already spoken to HR and they have basically said tough luck and no individual agreements will be entered into.

Thanks for any help guys and gals.

[Moz]

I'm expert so I can't give you a definitive answer. My guess is that given the award defers to company policy, and as they are paying above the statutory requirement, then there is probably not much you can do. However the fact that you worked for them through an agency and then were made permanent may work in your favour. A court may deem that as continuous employment, but you would probably need to talk to an specialist employment lawyer. Most will have an initial chat with you and give you an indication of your chances of success with charging you anything. When it comes down to it, your employer may make you an offer rather than get into a legal battle. It might depend on how many others are in the same situation.

[halo9]

Hi Moz, thanks for the reply. I know I am in a better situation than many and wouldn't normally bother about such stuff but when it is nearly half a years worth of salary I think it is worth making sure. I will talk to a lawyer when the time comes as you suggest. Cheers