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An employer has failed to prove it shouldn't have to pay redundancy entitlements to workers who moved to a new labour supplier at the same site after a contract changed hands.

Ready Workforce (a division of Chandler Macleod) had sought an exemption from paying 12 workers' redundancy entitlements (of up to seven weeks each), on the basis it had obtained other acceptable employment for them under section 120 of the Fair Work Act.

The Fair Work Commission heard that after Ready Workforce unsuccessfully re-tendered for a Mount Arthur coal mine contract in September last year, it took steps that "created" employment offers from Programmed, which was taking over the contract.

But Commissioner Ian Cambridge rejected its application in June this year, finding that while Ready Workforce had provided "facilitation and assistance" for potential employment with Programmed, it hadn't obtained alternative employment for the workers...