Federal Court decision in FWO v Woolworths & Coles – Squire Patton Boggs

On Friday September 5, the Federal Court of Australia handed down a significant ruling on employers’ use of salary setoff clauses in Fair Work Ombudsman v Woolworths Group Limited & Ors.

In a detailed 195 page ruling, the court clarified that statutory provisions under the Fair Work Act 2009 (Cth) (FW Act) and relevant modern awards impose strict limits on the operation of such set-off clauses, mandating full and timely payment of entitlements in each pay period without cross-period pooling or deduction.

The implications of this Federal Court ruling extend well beyond the immediate respondents, Woolworths and Coles, and carry significant ramifications for employers with modern award-covered employees within their businesses.

Read Squire Patton Boggs' full article here.