It’s about the position, not the person
A genuine redundancy is about the job, not about the person. An employee’s actions do not cause redundancy: it is defined by a position or duties no longer being required in a business.
The importance of the word “genuine”
Section 389 of the Fair Work Act defines the meaning of “genuine redundancy”:
Redundancy, redeployment and retrenchment: same same or different?
An employer makes a position redundant when its duties are no longer required to be done by anyone. Once the position is redundant, the employer performing those duties may either be redeployed (given another job) or retrenched (lose their job and not be offered another).
What is not a redundancy?
A dismissal is not a genuine redundancy if the employer:
Redundancy pay: who gets it?
Under section 119 of the National Employment Standards, an employee may be entitled to redundancy or severance pay if any of the following applies:
Redundancy pay: who doesn’t get it
Some employees don’t get redundancy payments when their job is made redundant. This includes:
Some small businesses don’t have to pay redundancy pay when making an employee redundant.
While the concept around redundancy is simple (providing you know where to look for the right information), the risks and emotions in dealing with redundancy are often challenging for employers to manage. Bare Bones Consulting takes pride in navigating clients through the maze of employment legislation, redundancy obligations and alternatives to ensure you do the right thing…for your business and your people. Contact us here or give us a call for a chat and a coffee…be confused no more!
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