LIR v GUNST [2001] NSWSC 344

New South Wales Supreme Court

CITATION : LIR v GUNST [2001] NSWSC 344 CURRENT JURISDICTION: Equity Division FILE NUMBER(S) : SC 5155/00 HEARING DATE(S) : 06/04/2001 JUDGMENT DATE : 6 April 2001

PARTIES : LIR AUSTRALIA PTY LIMITED v ANDREW GUNST JUDGMENT OF : Master Macready at 1

COUNSEL : Mr J.P. Phillips for plaintiff Mr D.P. Robinson for defendant SOLICITORS : Murrays Lawyers for plaintiff Toomey Pegg Drevikovsky for defendant CATCHWORDS : Corporations Law. Applicatgion to set aside statutory demand under s 459G. No matter of principle. DECISION : Paragraph 12

1 MASTER: This is an application to set aside a statutory demand under s 459G of the Corporations Law. The statutory demand was dated 4 December 2000 and claimed the sum of $139,166.67, being an amount equalling ten months payment of salary package value at the time of termination of the defendant's employment with the plaintiff. The defendant was employed by the plaintiff under a contract of employment which commenced on 20 July 1999. Importantly, cll 9, 10 and 11 of that contract provide as follows:

"9. Notice period: The employee is to give 3 months notice of termination of employment if giving notice within the first 3 years of service. The employer is to give notice of termination of employment equal to 3 months plus one month for each completed year of service to a maximum of 12 months or a payment of the equivalent amount of package value in lieu thereof.

10. Redundancy: In the event that the position becomes redundant for any reason such as a reduction of size or if the ownership of the business changes or the business is wound up and no equivalent position based in Sydney is available with the new shareholder or with the PECHINEY Group, then a redundancy payment equal to 9 months package value is to be paid in addition to the period of notice or payment in lieu under point 9 above.