Redundancy

A genuine redundancy occurs when an employer decides a position is no longer required to be performed by anyone, and the employer has complied with its consultation obligations. While a common misconception is that an employee becomes redundant, it is the job itself. Even so, the result is the same, the loss of employment.

Reasons for Redundancy

Several factors can lead to redundancy, among them:

• The introduction of technology which means a job becomes automated
• Downsizing due to lower sales or production
• Business closure or relocation interstate or overseas
• Restructuring or reorganising as the result of a merger or takeover

Will I Receive a Redundancy Pay/Package?

An employee who is covered by the national workplace relations system, who has at least 12 months of continuous service, and who works for an employer with 15 or more employees, may be entitled to redundancy or severance payments (to a maximum of 16 weeks’ pay) under the National Employment Standards.

Employees not entitled to redundancy pay include:

• Employees with less than a year of continuous service with an employer,
• Employees terminated because of serious misconduct,
• Most casual employees,
• Trainees engaged only for the length of the training agreement, and
• Apprentices