Redundancy

Genuine redundancy is when an employer no longer needs anyone to work in the relevant role because there has been changes in the operational requirements of the employer’s enterprise; AND the employer has complied with any obligations imposed by the relevant modern award or enterprise agreement about the redundancy.

Reasonable deployment

Your employer instead of dismissing you from your work may take steps to reasonably deploy you to another position to avoid redundancy.

Your dismissal will not be genuine redundancy if there was an opportunity for you to be deployed in another position within:

●      the employer’s enterprise; or

●      the enterprise of an associated entity of the employer.

Whether redeployment of an employee is considered reasonable will depend on the circumstances that exist at the time of the dismissal.

In determining whether redeployment was reasonable a number of matters may be relevant, including:

●      whether there exists a job or a position or other work to which the employee can be redeployed;

●      the nature of any available position;

●      the qualifications required to perform the job;

●      the employee’s skills, qualifications and experience, and

●      the location of the job in relation to the employee’s residence and the remuneration (pay and entitlements) which is offered.

The Fair Work Act 2009 sets out periods of notice that your employer must give you if they are making you redundant.

Section 117 of the Fair Work Act 2009  sets out the requirement for the period of notice of termination or payment in lieu if your employer makes you redundant. This period increases by one week if you are over the age of 45 and you have completed over 2 years of continuous service (does not include casual employment) with the employer at the end of the day the day your notice is given.

Your notice of redundancy can be delivered to you personally, left at your last known address, or being sent by post to your last known address. Notice must be in writing and the termination cannot be backdated.

Section 119 of the Fair Work Act 2009 sets out your entitlement to redundancy pay.

You are entitled to redundancy pay if your employment is terminated because;

●      The employer no longer requires the job done by you to be done by anyone; or

●      Because of the insolvency or bankruptcy of the employer

Your redundancy payment is based on your base rate of pay outlined in your employment contract for ordinary hours worked.

In some circumstances an employer can apply to the Fair Work Commission to pay you a reduced rate of redundancy pay, if;

●      The employer finds other acceptable employment for the employee, or

●      The employer can’t afford the full redundancy amount.

There are some situations in which the employer does not have to pay you redundancy pay;

●      Your period of continuous service (does not include as a casual employee) with the employer is less than 12 months;

●      Your employee is a small business employer (less than 15 employees)

○      Some small businesses may have to pay you redundancy pay under their award or agreement.

You will not receive redundancy pay if;

●      You are employed for

○      A stated period of time;

○      An identified task or project; or

○      A particular season.

●      You are terminated because of serious misconduct

●      You are a casual employees

●      You are a Trainees engaged only for the length of the training agreement

●      You are an apprentice

●      Your employer is a small business employer.

If you think you have been made unfairly redundant please get in touch with us – your first phone call will always be free.