But first, make sure you: This is a legal requirement – unless you provide payment in lieu of notice. The simple answer is yes, you can recruit after making a position redundant. To be entitled to a redundancy payout under the National Employment Standards, Targett says you must have been working with your employer on an ongoing basis for at least 12 months. Yes, you can claim it wasn't a 'genuine' redundancy (although I think it's too late now) but there'd be little to gain – reinstatement doesn't seem very likely good luck with the job hunt User #192025 13838 posts Ask for the Fair Work Infoline 13 13 94 The employer needs to ensure that the redundancy is genuine and must follow the correct process when carrying out either the redundancy or restructuring. Visit our page on how to dismiss staff properly to find out more. If you are making more than 20 staff redundant you will need to go through a consultation period for 30 days. Determination Once these assessments have been made, an employment lawyer will form a view as to whether the redundancy is genuine or unfair/unlawful. Use the checklist below to create a proper redundancy pack. Even though the position of CFO still exists, the position does not need to be filled by two people. If you have a question or concern about your job, entitlements or obligations, please Contact Us. One benefit of voluntary redundancy is the staff member feels like they've had a level of control in their departure from the company. Call through the National Relay Service (NRS): This Employee Termination Letter (Redundancy) is designed to be used by an employer to terminate an employee for redundancy. More information, and a notification template, can be found on the Services Australia website . The job, rather than the employee, becomes redundant. For a quick overview of what redundancy is, watch our short video to understand when redundancy occurs and who is eligible. Fair Work Online: www.fairwork.gov.au Need language help? This case demonstrates the importance of following the correct procedure when making an employee's position redundant. doesn't need an employee’s job to be done by anyone, or, introduces new technology (eg. Keep in mind that unused sick leave is not paid out unless an agreement or award provides for cashing out of unused leave (uncommon). The judgment overruled a decision of the Full Federal Circuit Court, instead holding because the employee’s previous position and new offered position both required him to sell advertising services to … We have information about returning to work, quarantine and self-isolation: pay and leave options, COVID-19 vaccinations and the workplace, work health and safety and more. the job can be done by a machine), slows down due to lower sales or production. ABN - … The Federal Court of Australia recently considered this … Saved from fairwork.gov.au on 6/02/2021 7:34:48 AM, Aboriginal & Torres Strait Islander peoples, Pay during inclement weather & stand down, Award & agreement free wages & conditions, Termination of employment letter – redundancy template, Department of Jobs and Small Business Redundancy Information Statement, Small Business Fair Dismissal Code and checklist, Notice of termination and redundancy pay fact sheet, Starting an apprenticeship or traineeship, Save results from our Pay, Shift, Leave and Notice and Redundancy Calculators. If an employee's job is made redundant while on parental leave, the employer has to: give them the correct notice; pay out any entitlements, including redundancy pay. When you do hold meetings with whole of staff or with individuals keep a written record of what was discussed. The information contained on this website is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or workplace relations professional. Redundancy occurs when an employer no longer requires the jobto be performed by anyone. However, if the worker makes an application to the FWC, it can order the old owner to pay some amount of redundancy pay. Fair Work Australia held that the redundancy was not a 'genuine redundancy' (because the employer had not followed the above steps), and awarded the employee almost $8,000 in compensation for unfair dismissal. Other options are reducing positions with skills easiest to replace, or duties you can move to other positions. Redundancies occur when you no longer need anyone to do a specific job. A position can still be made redundant if th… Log in now to save this page to your account. Kathryn Dent, Director In recent times issues concerning redundancy and restructuring have been of major concern for organisations as they seek to structure their operations in a more effective and efficient manner. These may contain provisions for an employee to be moved to another position within the workplace, where appropriate, when their old position is made redundant. If individuals on long-term leave (such as parental or long service leave) are being retrenched, ensure the process for selection is documented and transparent, and not based on discriminatory grounds. When making the position of an employee or group of employees redundant, it is important that a business can show that the redundancy is genuine. You should also do everything to can to help place them somewhere else within the business and consult their trade union – if they have one. getting help from us if you still can’t resolve it. Check with the Australian Taxation Office (ATO) or your tax adviser about 'eligible termination payments'. You may be entitled to redundancy or severance pay if any of the following applies to you: If you are under an award or agreement that contains redundancy pay entitlements. Sensis Pty Ltd v Gundi, the Full Federal Court recently held that an employee's position is not redundant when there is a change in the combination of duties to be performed. Either the workers volunteer or the employer chooses who to retrench. If you’ve lost your job, contact the Fair Work Commission (the Commission) first if you think you were sacked because of: You have 21 days starting from the day after you were dismissed to lodge an application with the Fair Work Commission. Once the position is redundant, the person doing its duties may either be redeployed (given another job) or retrenched (lose their job and not be offered another). 1. the person’s job doesn't need to be done by anyone 2. the employer followed any consultation requirements in the award IANAL but I'm pretty sure that in the UK you can only make a position redundant, not … Technological change (“tech sourcing” or automation); 3. If a business is considering redundancy of 15 or more staff, employers must give written notification to Services Australia of the proposed dismissals. Ragnar's employer tells him that the business is closing and his and the other employees’ jobs are now redundant. Probably best to ask a local employment lawyer. For TTY: 13 36 77. This has to be done as soon as possible after the decision has been made to make these changes. Jobs Victoria Workers in Transition (WiT) program is designed to help businesses and workers facing retrenchment and can be contacted to organise an information session for employees. You should also check any workplace policies and employment contracts for notice periods, payments and the correct procedures. SEEK found that 60% of Australians made redundant found another job within two months. That’s 17% in less than two weeks, 20% within three to four weeks and 23% within one to two months. If there are more than 15 people made redundant, under some awards and agreements, and the Fair Work Act 2009, consultations with your staff and relevant unions is compulsory. Redundancy can happen when an employer no longer needs an employee to carry out a particular job, or to perform work at the same location and cannot redeploy the employee a suitable alternative role within the employer’s place or work or any other places of work the employer is associated with. If you have considered making a role redundant to avoid dealing with performance or conduct issues, whether this is because you do not want to humiliate your employee, you do not feel that performance improvement is possible, or you do not feel confident in your own ability to have such difficult conversations; you would not have been the first person to do so. But where is the line? Positions are made redundant, not people. A business relocates or shuts down. 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