As an employer, you may or may not be aware that employees need to meet certain requirements before they are entitled to take paid personal...
RedundancyNovember 5, 2014
A man employed by a prosthetics company was made redundant after 26 years of service. Four days later the man began part time work for Wootten Cordwainer and Leather Craftsman. His previous employer, Orthotic and Prosthetic Centre Pty Ltd (OPC) constructed the idea that they had provided the man with alternative employment at Wootten and wanted to reduce the employees standing redundancy pay by 50%.
The employee however was found to be entitled to all of his redundancy because he had independently gone through an interview process. He arranged the interview, provided his resume and denied any apparent connection between OPC and Wootten. If it was found that OPC had helped in the hiring process of the man, it could have been that they provided alternative employment and therefore reduced his redundancy payout. However the new job was not comparable because it was a part time role and did not have the same wage entitlements.
Redundancy is often confusing and companies try to look out for their best interests, after all they are the ones losing company assets. Employers may not maliciously wish to reduce redundancy pay, they are just unaware of the obligations and entitlements to redundant staff or fail to abide by the correct procedures. If OPC really had made contact with Wootten about the employee they should have recorded the evidence. The employee followed the right procedure in order to acquire a new job and was fully entitled to his redundancy pay.
If you are going through a redundancy and need clarification on the correct procedures call Employsure on 1300 651 415 or fill in the form below.
*Information sourced via Work Express website.