Redundancy, Termination & Dismissal of Employment

Redundancy arises when an employee’s labour is no longer required due to a business-affecting economic downturn, technology advancement, corporate merger, reorganisation, and changes to operational procedures. There are no reasons for redundancy that have anything to do with an employee’s performance or behaviour.

 

Procedural Fairness

Choosing which employee to make redundant can sometimes be a challenging procedure. The recommended strategy is for you to choose who is to be rendered redundant by referring to the abilities, experience, training, and performance of personnel in comparison to the existing and future demands of your organisation. This strategy has been authorised by numerous tribunals.

We advise you to inform the affected employee of your decision to make them redundant as soon as possible after making it, and to look into any other options for their continued employment.

To casual workers, apprentices, or employees hired for a brief duration, a specific purpose, or both, these payments are often not required to be given.

 

 

Unfair Dismissal

Even though the aforementioned conditions have been followed, if the redundancy processes are not correctly followed, the termination of a redundant employee may be deemed unfair. The failure to consult the employee after the decision to fire them is an illustration of this. Employees should be informed of the prospect of redundancy and asked their opinion on how likely it is that they will lose their jobs. Additionally, employers should be considered to offer sufficient opportunity for workers to look for other jobs and, if appropriate, should offer assistance during this process.

If an employer is unable to perform any of these duties, it may be deemed that procedural fairness was not provided, making the redundancy unfair.

 

How HR Connect can help

If you require assistance with dealing with disciplinary issues concerning staff, HR Connect can help. Our HR Advisors will be able to guide you through each step of the disciplinary process and we have template documents (e.g. direction to attend a disciplinary meeting, written warning, letter of termination, etc) available as part of our subscription packages.

 

 

About HR Connect

HR Connect is one of Australia’s leading providers of HR & workplace safety advice services, designed to help small business owners make confident and compliant business decisions.

 

Disclaimer

The information provided in these knowledge base articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact HR Connect for advice. The information in this summary is correct as of August 2021.

 

This knowledge base article will change over time, as Modern Award legislation relating to this Industry or Occupation is passed by the Fair Work Commission. Originally published on 21 September 2021 and last updated on 18 February 2022.

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