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Below is a simple guide to genuine redundancy.
A redundancy is genuine if you no longer need a position because of business changes and there has been consultation with the employee per any award or enterprise agreement that applies.
And, it won’t be a case of genuine redundancy if redeployment was an unexplored option in the employer’s entity or an associated entity.
Next, let's look at some ideas to help you avoid legal trouble.
Now, it's wise to consult with your employees and follow the process that's typically included in an award (even if an award does not apply) for risk management.
So, here's what it takes to comply with a consultation clause:
You should also explore and offer suitable jobs.
Also, you should get legal advice if you are unsure about any of the steps.
Further, here are some easily avoidable scenarios that usually lead to an employee making a claim against an employer:
Now, let's look at when employees are paid redundancy pay.
When employees are paid
Redundancy is paid if these criteria below are met:
However, a small business with fewer than 15 employees won't have to pay (section 121 Fair Work Act 2009 (Cth)).
Minimum redundancy pay is in section 119 of the Fair Work Act and below.
Finally, if an employment contract or enterprise agreement has more favourable terms, then those will apply and override the Fair Work Act.
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