Court finds in Commonwealth Bank’s favour

18 March 2004

The Commonwealth Bank today said it was very pleased with the decision by the Federal Court to dismiss the proceedings commenced by the FSU in relation to former Bank employees who chose to move to EDS Australia in 1997.

The Bank outsourced its IS department to EDS in 1997. Most employees chose to resign and accept employment with EDS. The FSU subsequently sued the Bank for redundancy pay for those employees who voluntarily left and joined EDS.

The Bank said this latest decision by the Court reaffirms similar decisions previously handed down on this matter and vindicates the actions of the Bank in vigorously defending its position.

Staff who chose to resign from the Bank and move to EDS in 1997 were in no way disadvantaged. They retained terms and conditions that were equal to or better than the terms and conditions of employment with the Bank on an overall basis, including the Bank’s redundancy arrangements. As well, they received a special payment from EDS.

The decision vindicates the Banks position that redundancy monies should not be paid to employees that have ongoing employment.

For further information, please call:

Bryan Fitzgerald
General Manager,
Media and Community
Telephone (02) 9378 2663