An employment contract provides the parameters for the relationship between an employer and an employee. They also determine the rights an...
Getting redundancy right.
RedundancyAugust 1, 2017
With shifts in business activity, or the type of work a business is completing the requirement for staffing also changes. In some cases, redundancy is necessary for the viability of the business and cannot be avoided. However, employers should ensure their redundancy process includes three essential components: warning, consultation and notice. It is vital employers include all three aspects, and do not miss one step of the correct process.
Meet with staff potentially affected to make them aware of the chance their role will be made redundant, including the reasons why. This should be documented and dates of the meeting recorded.
These meetings are used as an opportunity for the employee to ask any questions and for employers to discuss with staff any potential to avoid redundancy being used. Some suggestions can include: retraining; redeployment in the business; job sharing; reduced overtime.
If redundancy is to take place this needs to be confirmed in writing. Minimum notice periods apply to redundancy, meaning either the notice outlined in the National Employment Standards or the more generous provisions in contracts or agreements must be adhered to.
This infographic is general in nature, and is to be used as a guide only. For specific advice on redundancy processes, employers should contact Employsure on 1300 651 415.
Download our checklist here.