Fair Work Commission rules NJE must meet relocation costs for redeployed pilots

Pilots (AFAP) notified the Fair Work Commission of a dispute with National Jet Express Pty Ltd (NJE) about how a redeployment clause in the enterprise agreement should be read. The conflict arose as NJE prepared for the scheduled 1 October end of a freight contract that involved 19 BAe 146 pilots.

NJE identified alternative roles for some pilots after the contract ended. The company later identified 12 available positions, some interstate and involving different aircraft types that required additional training. The enterprise agreement draws a clear line between transfers initiated by employees and those directed by the employer: relocation expenses are payable only for transfers at the employer's direction.

Positions, expressions of interest, and selection

Pilots were asked to submit expressions of interest (EOIs) for the redeployment roles. Selection criteria and the EOI process were among issues resolved before the Commission hearing. The unions involved—AFAP and the Transport Workers Union—were concerned that how the clause is interpreted would affect whether pilots apply for redeployment at all. If pilots were found to bear relocation costs, many could withdraw their EOIs.

The legal question before the Commission

Both parties agreed the Commission should decide whether relocation into a redeployed role is a move at the direction of the employer or a voluntary move by the employee. The outcome determines who must pay for relocation and associated costs, and whether pilots could rely on the enterprise agreement's expense provisions.

Commissioner's considerations and urgency

Commissioner Emma Thornton heard the dispute and emphasised the need for an urgent ruling. The contract end date and the lead time required for necessary training meant any delay could leave NJE exposed to operational gaps or financial consequences if pilots did not take up training in time.

Commission ruled that NJE is liable to cover relocation expenses for redeployed pilots when the transfer is at the employer's direction under the enterprise agreement. That interpretation aligns with the clause's distinction between employer-directed and employee-initiated transfers.

Pilots offered redeployment where the employer directed the move will have relocation costs covered, which reduces the financial barrier to accepting interstate or aircraft-type changes that require training. Where a move is genuinely initiated by the employee outside employer direction, the agreement's wording leaves relocation costs with the employee.

Because the EOI process continued during the dispute, the Commission's finding may prompt some pilots to remain in the redeployment pool rather than withdraw. NJE must factor the relocation expense liability into its redeployment planning and budgets while arranging timely training so transitions occur before the contract's end.

The Commission's finding clarifies the enterprise agreement's application: employer-directed redeployments trigger employer-paid relocation expenses. The ruling removes a significant contractual uncertainty for affected pilots and requires NJE to account for those costs as it implements redeployment decisions.