Download Your Free Checklist Redundancy Process

 

Access EI’s Redundancy Process Checklist. Making an employee redundant, like any other termination of employment, is always a risky business. Another matter to consider is some employees (but not all!) are also entitled to redundancy pay, calculated by their length of service. This checklist will help guide you through the legal maze of redundancies and help protect your business from the risk of claims.

 
Simply fill in the following form and access your Free Checklist Redundancy Process.

What is a genuine redundancy?

High Performing Teams

A genuine redundancy occurs when an employer decides to eliminate a particular job position, leading to the redundancy of the employee occupying that role. This decision is typically driven by changes in the business, such as restructuring, downsizing, or technological advancements, which result in the job becoming unnecessary or superfluous. For a redundancy to be considered genuine, it must meet certain criteria, including the absence of alternative suitable employment within the organisation for the affected employee. A genuine redundancy reflects a legitimate business decision to streamline operations and adapt to evolving circumstances.

To ensure the fairness of the redundancy process, employers are usually required to follow established procedures, such as consulting with affected employees, providing adequate notice, and exploring alternative employment options within the company. These measures aim to protect the rights of employees and mitigate the impact of redundancy on their livelihoods. Additionally, the redundancy must not be a guise for terminating an employee for reasons unrelated to the genuine operational needs of the business. Employment laws and regulations often govern the process of redundancy to ensure that it is conducted ethically and transparently.

In some jurisdictions, employers may be obligated to offer redundancy payments or severance packages to employees who are made redundant. These financial compensations are designed to assist employees during the transitional period following job loss and acknowledge their contributions to the organisation. Overall, a genuine redundancy reflects the dynamic nature of the business environment, where organisational changes may necessitate the removal of certain positions to ensure the long-term viability and competitiveness of the company.

High Performing Teams

A genuine redundancy occurs when an employer decides to eliminate a particular job position, leading to the redundancy of the employee occupying that role. This decision is typically driven by changes in the business, such as restructuring, downsizing, or technological advancements, which result in the job becoming unnecessary or superfluous. For a redundancy to be considered genuine, it must meet certain criteria, including the absence of alternative suitable employment within the organisation for the affected employee. A genuine redundancy reflects a legitimate business decision to streamline operations and adapt to evolving circumstances.

To ensure the fairness of the redundancy process, employers are usually required to follow established procedures, such as consulting with affected employees, providing adequate notice, and exploring alternative employment options within the company. These measures aim to protect the rights of employees and mitigate the impact of redundancy on their livelihoods. Additionally, the redundancy must not be a guise for terminating an employee for reasons unrelated to the genuine operational needs of the business. Employment laws and regulations often govern the process of redundancy to ensure that it is conducted ethically and transparently.

In some jurisdictions, employers may be obligated to offer redundancy payments or severance packages to employees who are made redundant. These financial compensations are designed to assist employees during the transitional period following job loss and acknowledge their contributions to the organisation. Overall, a genuine redundancy reflects the dynamic nature of the business environment, where organisational changes may necessitate the removal of certain positions to ensure the long-term viability and competitiveness of the company.

Commonly asked questions about redundancies at work

What alternatives are available during the redundancy process?

Employers should explore options like retraining, redeployment, or other suitable alternative roles within the organisation to help mitigate the impact of job loss.

Will I need to give my employee notice during a redundancy?

Yes. Notice periods vary based on elements such as employment contracts and employment duration, but are outlined in employment laws. Employers must adhere to these legal requirements.

Will I owe employees redundancy pay?

In many cases, employees made redundant may be entitled to redundancy pay, depending on employment laws, the length of service, and the terms of their contracts.

Can an employee appeal the decision to be made redundant?

Yes, employees often have the right to appeal a redundancy decision. The appeal process allows for a review of the decision and ensures fairness in the redundancy procedure.

Need more help?

All advice is general in nature, for advice specific to your situation, please get in touch with one of our HR Partners.

Our team at Employment Innovations are able to offer tailored workplace advice. If you need any assistance with payroll processing, employment contracts, Modern Awards, enterprise agreements, workplace advice or require access to our full HR document library, contact us to speak with one of our HR experts.

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