Employees: When do I start thinking redundancy?
Redundancy
Employees will often know when a redundancy is coming. The employer’s business may not be going too well, there could be informal discussions about outsourcing or there could be a sale of business. In some circumstances, a redundancy can be a surprise. Either way, an employee should have all the information they can when the situation arises.
Steps
There are steps an employer must take under most modern awards for award covered employees where the employer makes a “definite decision to make major changes in production, program, organisation, structure or technology that are likely to have significant effects on employees”. This includes where there will be a redundancy.
Broadly, the steps the employer must take before making an employee redundant under an award include:
The employer must give notice of the changes to all employees who may be affected by them and their representatives (if any). This is usually provided as a written notice or letter to each affected employee.
The employer must discuss with affected employees and their representatives (if any) the introduction of the changes, their likely effect on employees, and measures to avoid or reduce the adverse effects of the changes on employees. This is what is known as a consultation.
Enterprise agreements have similar terms, but they may be more prescriptive or include additional steps.
General and Contact Information
The article, the content and references made are intended to keep an audience updated with information. It is not intended that the article or part of it should be relied upon as advice. Information provided may not apply to in all circumstances or in particular situations. If you want particular advice or you have any questions, please contact us on (02) 9189 5905
Written by Angus Macpherson
