A redundancy is a termination of employment by the employer because the employer:
Redundancies commonly arise where an employer is: closing part or all of the business; restructuring; cutting staff to save costs; introducing new technology.
Employees who have been made redundant may be entitled to redundancy pay. The purpose of redundancy pay is to compensate employees whose job has become redundant, for lost personal leave, long service leave, and inconvenience and hardship imposed on the employee such as loss of security of employment and other kinds of losses.
The National Employment Standards (NES) under the Fair Work Act 2009 entitle employees to a redundancy payment and sets out the minimum requirements. Redundancy entitlements may also arise out of the terms of: an award; an enterprise agreement; an Australian Workplace Agreement (AWA) or other statutory agreement; a contract of employment; or a company policy. If you are employed by a partnership or a state government department, you may also have a right to redundancy pay under State legislation.
Employees that are not entitled to redundancy pay are employees of a business which has:
It is important that you know and understand your individual redundancy entitlements. If you have been made redundant or are facing redundancy, you should contact Andersons Solicitors on 8238 6666 where our team of specialist will guide you through the redundancy process to ensure your rights and entitlements are protected.