Redundancy and Employer Obligations

Employees who are considering redundancy must ensure they are up to date with the Fair Work Act introduced in 2009. The Work Act is considerably different to the previous Work Choices legislation which made it easier for companies to make redundancies.

It’s worth engaging with external HR consultants who’ll be able to look at your HR policies and procedures with fresh eyes to ensure your redundancy processes are fully up to date.

According to the Fair Work Act, the employer must prove that the redundancy is genuine by establishing that the employer:

• No longer requires the person’s job to be performed by anyone because of changes to the operational requirements of the employer’s enterprise.

• Must abide by any obligation in a Modern Award or Enterprise Agreement to consult about redundancy; and

• Must show that it would not have been reasonable to reassign the employee a different position but within the same company or associated company.

A redundancy can also be offered where an employee’s duties have been reallocated to other departments or existing employees. This option is fairly common during uncertain economic times.

Consider if redeployment is an option, and if so, take into account the employee’s experience and qualifications in relation to other positions available within the company. Studies have shown that often employees welcome this option even if a reduction in hours and wages is necessary.

The Fair Work Act has also placed an emphasis on the consultation obligations with the affected employee by aiming to minimize the impact of the redundancy and ensuring employees are giving adequate support.

End2End Business Solutions can assist with the redundancy process by working with your business on a career transition program and employee consultations. We can provide hr strategies such as resume workshop and one to one career management sessions to ensure those employees affected by redundancy have the beset chance of moving forward with their careers. Contact End2End Business Solutions a call today to find out more or visit our website www.end2endbusinesssolutions.com.au