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. This may happen to just one person or to several people within the same department. 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. Either the workers volunteer or the employer chooses who to retrench. When an employer is considering making an employee(s) redundant or restructuring job positions, it is important that an employer shows good faith to its employees. Our Termination of employment letter – redundancy template (DOCX 48.6KB) includes a step by step guide to handling the redundancy process. More information, and a notification template, can be found on the Services Australia website . The good news for employers is that Fair Work Australia has recently ruled 1 that where a position has become genuinely redundant, the selection process by which the employer chooses the particular employee who is to be made redundant is irrelevant when it comes to determining the "fairness" of the dismissal or whether the redundancy is genuine. 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). 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. Fair Work Infoline: 13 13 94 Keep people up-to-date to maintain trust and respect by communicating properly. 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 your business is in a downturn, and you're considering which positions to make redundant, think about what skills are least needed now – and what you'll need when there's a recovery. The information contained on this website is general in nature. If there are more than 15 people being made redundant, you'll need to contact Centrelink . 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. The genuine redundancy part of Sonya’s payment is $140,000. Please enable JavaScript on your browser. Below is a checklist of all the things you should give to a employee if you're making them redundant: There is no one-size-fits-all solution to working out a staff member's final pay. Redundancy occurs when an employer no longer requires the jobto be performed by anyone. The Financial Information Service is a free, confidential service that can help you decide about investment and financial issues. 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. A position is made redundant when an employer no longer needs a role to be performed, or no longer needs the same number of employees to perform certain tasks.. 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. Example: Employee made redundant after a business closure. 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. When you do hold meetings with whole of staff or with individuals keep a written record of what was discussed. All awards and registered agreements have a consultation process for when there are major changes to the workplace, such as redundancies. the job can be done by a machine), slows down due to lower sales or production. If you’ve lost your job and got a redundancy or termination payment, you may be able to get help. Positions are made redundant, not people. a reason that is harsh, unjust or unreasonable, talking to your employer about fixing your notice and final pay if it’s wrong. hires someone else to do the job), has not followed relevant requirements to consult with the employees about the redundancy under an award or registered agreement or. Visitors are warned that this site may inadvertently contain names or pictures of Aboriginal and Torres Strait Islander people who have recently died. The Federal Court of Australia recently considered this … Fair Work Online: www.fairwork.gov.au 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. 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. redundancy pay entitlements (if applicable). If you worked in an organisation that employs 15 or more people for more than 12 months continuous service (some exceptions apply). For a quick overview of what redundancy is, watch our short video to understand when redundancy occurs and who is eligible. Redundancy while on parental leave. Coronavirus information: Find out about workplace entitlements and obligations during coronavirus. One benefit of voluntary redundancy is the staff member feels like they've had a level of control in their departure from the company. Use our workforce planning tools below to plan ahead: Workforce information template (DOCX 36.95 KB). Check the information at the Commission website to find out if you can apply for: If you think you haven’t been paid everything you’re owed: If you might need to read this information again, save it for later so you can access it quickly and easily. View tailored information relevant to you. Source reference: Fair Work Act 2009 s.530. In simple terms, the employer makes a position redundant when its duties are no longer required to be done by anyone. The Fair Work Ombudsman website requires JavaScript. Probably best to ask a local employment lawyer. Log in now to save this page to your account. getting help from us if you can’t resolve it. This case demonstrates the importance of following the correct procedure when making an employee's position redundant. considering employees ideas or suggestions about the changes. Although most people find new jobs quickly, 74% of those made redundant … To prove genuine redundancy and avoid unfair dismissal claims, you might have to provide evidence such as a new organisational chart, or financial records showing the business's losses. 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. If you make any errors here, it could mean claims being made against you later on for unlawful or unfair dismissal. If your employer told you that your position has been made redundant, you … Please note that comments aren’t monitored for personal information or workplace complaints. Whilst restructuring employees can have lucrative cost saving benefits employers need to ensure they are aware of and avoid the … A position can still be made redundant if th… could have reasonably, in the circumstances, given the employee another job within the employer’s business or an associated entity. Keep in mind that unused sick leave is not paid out unless an agreement or award provides for cashing out of unused leave (uncommon). Or, alternatively, if the level of work in a particular role has decreased significantly. However, declaring that a role is ‘redundant’ means that you no longer require the duties, functions and res… Ragnar has worked full-time as a level 3 employee at a manufacturing facility for 4 years under the Food, Beverage and Tobacco Manufacturing Award. Use the checklist below to create a proper redundancy pack. A dismissal is not a genuine redundancy if the employer: All awards and registered agreements have a consultation process for when there are major changes to the workplace, such as redundancies. 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. If you don't advise the employee in writing – or hand them an insufficient notice period – this may be a breach of: Payment equal to the wages for the notice period is an alternative to giving an employee notice, and is generally used if you decide to retrench them immediately or before the end of the notice period. 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. Australia's employment laws are largely based off of the UK, so perhaps similar to NI. Ask for the Fair Work Infoline 13 13 94 Technological change (“tech sourcing” or automation); 3. 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 … Visit our section on long service leave to help you understand your responsibilities. Redundancies occur when you no longer need anyone to do a specific job. The simple answer is yes, you can recruit after making a position redundant. This has to be done as soon as possible after the decision has been made to make these changes. An employee may still be genuinely made redundant when there are aspects of the employee's duties still being performed by other employees. – aroth Mar 24 '14 at 1:46. Acas conciliation is free, and it is an opportunity to try to settle the dispute without a tribunal claim. Source reference: Fair Work Act 2009 s.119, 139, 388, 389. Visit the Fair Work Ombudsman website to check a list of reasons why a position could be made redundant before you begin the process. getting help from us if you still can’t resolve it. Simply dismissing a member of staff does not necessarily make it a genuine redundancy. Redundancy occurs when an employee’s work, for one reason or another, is no longer required. The employer is unable to redeploy or offer the employee an alternative role within the same company/establishment. Call through the National Relay Service (NRS): 1. the person’s job doesn't need to be done by anyone 2. the employer followed any consultation requirements in the award This may arise because of: 1. June 15, 2016 If you no longer require a person for a role in your company or your company is wound up, restructured or relocating then you may like to look at making the position redundant rather than terminating the employees’ employment agreement. Ask for the Fair Work Infoline 13 13 94. A restructure (a redistribution of duties amongst other existing roles, or the creation of a new, different role); 2. The tax-free part of the payment is $65,949, based on 10 years' service. If your position has been, or is about to be, made redundant and you have been offered alternative employment, the Andersons Employment and Industrial team lawyers can give you advice and assistance about your entitlements. In simple terms, the employer makes a position redundant when its duties are no longer required to be done by anyone. Find tools, resources and information you might need on our. This redeployment obligation exists for all redundancies, regardless of … the person’s job doesn't need to be done by anyone, the employer followed any consultation requirements in the award, enterprise agreement or other, still needs the employee’s job to be done by someone (eg. For TTY: 13 36 77. Contact the Translating and Interpreting Service (TIS) on 13 14 50, Hearing & speech assistance Ragnar's employer tells him that the business is closing and his and the other employees’ jobs are now redundant. Visit our page on how to dismiss staff properly to find out more. Actually, what's important to remember is that a person is not made redundant, but their position. This should include performance and other transparent processes. A downturn in work (reduction in “headcount”); 4. ... Services Australia. But where is the line? Coronavirus (COVID-19) business information, prove genuine redundancy and avoid unfair dismissal claims, Jobs Victoria Workers in Transition (WiT), Make sure you know and understand all the legal requirements, Find support through the transitional period, outstanding wages, including penalty rates and allowances, accrued annual leave and annual leave loading entitlements, accrued or pro-rata long-service leave (if applicable). “A person can be selected for redundancy based on any reasons that are not prohibited at law,” Gleeson told HC Online. Determination Once these assessments have been made, an employment lawyer will form a view as to whether the redundancy is genuine or unfair/unlawful. This means reducing or eliminating positions that make the least contribution to safety, compliance or income. 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. 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. SEEK found that 60% of Australians made redundant found another job within two months. 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. The Fair Work Ombudsman is committed to providing advice that you can rely on. Check with the Australian Taxation Office (ATO) or your tax adviser about 'eligible termination payments'. However, if the worker makes an application to the FWC, it can order the old owner to pay some amount of redundancy pay. notifying the employees who may be affected by the proposed changes, providing the employees with information about these changes and their expected effects, discussing steps taken to avoid and minimise negative effects on the employees. For more information, please see the Jobs Victoria Workers in Transition page. 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 If you have a question or concern about your job, entitlements or obligations, please Contact Us. The requirements for a ‘genuine redundancy’ Section 389 of the Fair Work Act 2009 (Cth) (“the Act”) requires an employer to offer an employee whose original role has been made redundant reasonable redeployment opportunities within the employer’s enterprise or the enterprise of an associated entity. Financial Information Service. 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. If you want to claim that your selection from redundancy was unfair, you must submit the Form to Acas within three months (less one day) of your dismissal date, otherwise the tribunal will not be able to consider your claim. But first, make sure you: This is a legal requirement – unless you provide payment in lieu of notice. A full bench of Fair Work Australia found that events which occurred after Rodney Cross, Karin Thompson and Denis Payne were made redundant could have a … Redundancy happens when an employer either: When an employee's dismissal is a genuine redundancy the employee isn't able to make an unfair dismissal claim. Visit our page on communication skills for managers to find out what makes an effective communicator. Need language help? Speak & Listen: 1300 555 727. doesn't need an employee’s job to be done by anyone, or, introduces new technology (eg. ABN - … This might happen because an employer is going out of business or is restructuring and has transferred tasks to other employees. If you are making more than 20 staff redundant you will need to go through a consultation period for 30 days. A business relocates or shuts down. Sonya’s payment is a genuine redundancy payment because her position is no longer required. The consultation process sets out the things the employer needs to do when they decide to make changes to the business that are likely to result in redundancies. Even though the position of CFO still exists, the position does not need to be filled by two people. Visit the Centrelink website to find out more information about redundancy for employers. 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. The employer needs to ensure that the redundancy is genuine and must follow the correct process when carrying out either the redundancy or restructuring. It can include: Get detailed information about redundancy pay, including: Special tax rules apply to some termination payments — such as unused annual leave. The test is whether the previous job has survived the restructure or downsizing, rather than a question as to whether the duties have survived in some form. This Employee Termination Letter (Redundancy) is designed to be used by an employer to terminate an employee for redundancy. You should also check any workplace policies and employment contracts for notice periods, payments and the correct procedures. restructures or reorganises because a merger or takeover happens. The short answer is the employer has done nothing untoward the employee they have made redundant if they have restructured and used an existing employee to cross over (in full or in part) to the role that was made redundant. That’s 17% in less than two weeks, 20% within three to four weeks and 23% within one to two months. IANAL but I'm pretty sure that in the UK you can only make a position redundant, not … If a business is considering redundancy of 15 or more staff, employers must give written notification to Services Australia of the proposed dismissals. According to the Fair Work Ombudsman, the redundancy policy in Australia is simply tagged as something that can happen once the business decides to automate an employee's job, once production slows, declares bankruptcy, restructures and/or merges with another business, and relocates whether interstate or overseas. Redundancies do not relate to any performance-based or personal issue with an employee. If the employer is terminating the employee for another reason, such as poor performance, use our Employee Termination Letter (General).. Redundancy occurs when the employee's job no longer needs to be done by anyone. A redundancy situation may occur where the duties performed by an employee change so substantially that there is no longer any function or duty attached to the position. The job, rather than the employee, becomes redundant. Other options are reducing positions with skills easiest to replace, or duties you can move to other positions. 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