Employsure urges businesses to take the right steps at the right time for redundancy

Published September 22, 2020 (last updated September 23, 2020) Author: Employsure
employee still working after being being redeployed

As Australia begins to reopen, businesses have difficult decisions to make in order to stay afloat and ensure continued success. Officially in a recession, our economic prosperity hinges on the success of businesses to climb out of the past six months with a profitable and successful future in sight.

These difficult decisions more often than not refer to employee retention and pay. There are plenty of options to support your growth and financial security, but while large businesses are everyday standing down employees and making staff redundant, Employsure Managing Director, Ed Mallett, says it’s important to plan ahead but not rush into these decisions.

“While business owners should be looking at ways of preserving their cash flow, letting staff go might not be the cheapest option. However, if they feel redundancy is the only option for their business, they shouldn’t put it off.”

The federal government announced changes to JobKeeper and JobSeeker, hoping to continue to support businesses but with far more reserved provisions. With this in mind, it’s important employers are making redundancy decisions before the end of JobKeeper, so subsidies are available when it comes time to pay.

“When JobKeeper ends, I think you’ll find business owners will be much more prone to fight against making a redundancy.”

The concerns around rushing into making staff redundant stem from the complications and steps involved in the process. Including first and foremost providing warning to staff.

“Employers need to be fair and transparent about what they are proposing to do when it comes to letting someone go, and the number of steps to be taken,” said Mr Mallett.

Businesses that don’t plan ahead before the end of the JobKeeper wage subsidy in March, may face further financial strain. Mr Mallett is urging those employers to be organised and make redundancies only where truly necessary and via the right channels.

For more information on redundancy and your options access our free resources here.

Further enquiries:

Matthew Bridges

0448 173 203

[email protected]

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