A term requiring redundancy payments is not implied by law into employment contracts in Western Australia; such a term does not satisfy the BP Refinery requirements of necessity, obviousness, and reasonableness given the employer's existing obligation to give reasonable notice. Payments in lieu of notice and severance payments must be credited against wrongful dismissal damages as they are compensatory in character. The Full Bench cannot reduce a compensation award below the amount fixed at first instance absent a cross-appeal by the employer.
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