Redundancy Business

Redundancy & Debt Recovery

Redundancy - Start to 2015

The start of the 2015 calendar year has seen an increased need for legal advice regarding:

  • redundancies, particularly for businesses servicing the CSG industry; and
  • slow paying debtors, payment claims & debt recovery.

Redundancy

Due to operational requirements, several employers have been making some positions redundant.

With a redundancy, an employer needs to ensure it is a “genuine redundancy”.

A genuine redundancy occurs when an employer no longer requires a certain job to be performed by anyone because of a change to the employer’s operational requirements. It also requires an employer to comply with the consultation obligations in an applicable award or enterprise agreement.

Before making the decision to make a position redundant, an employer needs to consider any opportunity for redeployment within the business or an associated entity of the business.

It is dangerous for an employer to use a redundancy process to replace a worker with another worker. If an employee’s termination is not a genuine redundancy, their employer will be exposed to a number of potential claims.

Before making a position redundant, we recommend employers carefully consider their legal obligations and consult in the manner required at law.

The process of consultation is very particular and involves, among other things:

  • exploring alternative options;
  • exploring the reasons for making a position redundant;
  • appropriately consulting with the affected employee(s) and their representative(s);
  • providing certain information in writing;
  • fairly selecting a position to be made redundant;
  • supporting the affected employee(s);
  • correctly calculating and paying any redundancy pay (if applicable);
  • correctly calculating and making other final payments; and
  • notifying the appropriate persons.

Contact Information

Direct Line: 07 4616 9860