Redundancy of employment can be both a complicated and emotional process. If you are facing redundancy, or need to make someone redundant, it’s important to know your obligations and rights to ensure you are acting within the law and being treated fairly. For example, an employer may be required to consult with the employee prior to a redundancy taking effect, or there might be an obligation to redeploy the employee to another role within the organisation.
A genuine redundancy may occur when the employee’s job is no longer required and the employer has followed all requirements within the contract or registered agreement. If a redundancy is genuine, then an unfair dismissal claim cannot be made. Genuine redundancy is not uncommon in any profession, so it is vital that both employers and employees are aware of their rights and obligations under the Fair Work Act 2009 (Cth).
It is important to be aware of all applicable employee entitlements. In addition to the payment of redundancy there is the notice of termination or payment in lieu, accrued and unused annual leave and long service leave. There may also be additional payments provided for in the contract of employment. Redundancy pay may also be payable under a contract with the employee under the provisions of the Fair Work Act 2009 (Cth).
On the flip side, an employer can apply to the Fair Work Commission to have the amount of redundancy they have to pay reduced if the employer finds other acceptable employment for the employee, or. the employer can’t afford the full redundancy amount.
If you are facing the redundancy process as an employee or as an employer, PH Solicitor have the experience and expertise to provide the right advice and to help guide you through the process as efficiently and cost effectively as possible.