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The A B Cs of redundancy

RedundancyJuly 24, 2015

The A B Cs of redundancy (Last Updated On: August 9, 2016)

After 35 years ABC stores around the country will close their doors. A significant decline in the sales of CDs and DVDs has resulted in the business’s decision to make the roles of 300 retail staff redundant.

Mark Scott, the Managing Director of the Australian Broadcasting Corporation, said that he has been advised, ‘after running at a loss in recent years, it would not be profitable to run the chain of stores selling these good into the future’. Scott identified that the nature of the products have changed and now content is migrating to digital downloads.

The ABC will still host their online store and have buying partnerships with other retailers such as David Jones. However for the 300 staff Scott said, “it is a grim outlook for them, they understand that”.

The ABC have provisions in their employment policies to look for redeployment of those made redundant. An employer must find alternative positions within 21 days after redundancy. The redeployed position must meet the same level of skill set, within reason, to the previous position.

Due to the large skill set of the current ABC retail workforce, this is not an easy feat. There will not be many immediate positions when the stores close. Any company with more than 15 redundancies at a time must alert Centrelink of the redundancies or risk fines.

The Head of ABC Retail, Regina Hoekstra, said “the welfare of our staff will be a primary focus over the next few months. We are conscious that the ABC Shop is close to the hearts of our teams and we appreciate their ongoing hard work and dedication”.

The current nature of business means that many companies change and evolve with technological advancements, redundancy is a response to these changes. If you are an employer and the nature of business is changing, you may need to consider redundancy in order to remain profitable. However with this decision comes the responsibility to treat your staff reasonably and fairly.

Here are some tips to ensure it is reasonable to make a role redundant:

A)  When an employer does not require an employee’s job to be done by anyone, or if the company becomes insolvent or bankrupt;

B)  When the employer followed any consultation requirements in the award, enterprise agreement or other registered agreement;

C)  When a company introduces a new technology, slows down due to lower sales of production, relocates interstate or overseas, restructures or reorganises due to a merger/takeover.

Employsure can legally support employers through the redundancy process to ensure that you are meeting your employment obligations under the Fair Work Act. If you have any questions about redundancy, call Employsure today on 1300 651 415.

Sourced: ABC News

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