Text Size

Redundancy

Attention: open in a new window. PrintE-mail

A redundancy can occur when an employer no longer wants the job the employee is doing to be done by anyone and that the employee cannot be redeployed to another job within the business. Redundancy can occur for a number of reasons, for example:

  • a downturn in production, sales, or the economy generally
  • the introduction of new technology
  • business relocation
  • the business merges with another business, or is sold, or
  • an internal company restructure occurs.

If a dismissal is a genuine redundancy it will not be considered an .

The National Employment Standards provide for severance pay in certain circumstances based on an employee's length of service. Notice of termination must be:

  • provided in writing, and
  • delivered personally to the employee, or
  • left at the employee's last known address, or
  • sent by pre-paid post to the employee's last known address.

Whilst the majority of employees who are made redundant will be eligible for notice of termination and severance or redundancy pay, there are certain circumstances where notice of termination is not required, such as where the employee:

  • was employed for a specified period of time, a specific task or for a specific season;
  • was terminated for serious or wilful misconduct;
  • is a casual;
  • is subject to a training arrangement and whose employment is for a specified period of time or limited to the duration of the training arrangement, except in the case of apprentices;
  • was a daily hire employee in the construction industry; or
  • was a weekly hire employee working in the meat industry whose employment was determined by seasonal factors.

Redundancy pay is generally not payable if:

  • the employee has less than 12 months of continuous service;
  • the employee was employed for a specified period of time, a specific task or for a specific season;
  • the employee was terminated for serious or wilful conduct;
  • the employee is casual;
  • the employment is subject to a training arrangement for a specified period of time or limited to the duration of the training arrangement;
  • the employee is an apprentice;
  • the relevant modern award or enterprise agreement provides for an industry-specific redundancy scheme; or
  • the employee's award provides for other situation in which redundancy is not payable.

If your employment has been terminated due to a redundancy, or you are am employer who is looking at making one or more staff members redundant, then we can provide you with advice to assist you in the process, including advice about the length of notice and amount of severance pay required.

If you have been dismissed and you believe it was not a redundancy, you may be eligible to lodge a claim for . If you believe that you have been unfairly dismissed, you must act immediately to be eligible to enforce your rights.

Call one of our Commercial Lawyers for free initial telephone advice on your circumstances on (02) 9525 8688.

 

Key People

Dean Groundwater 

 has 17 years experience including 7 years in the Business Services, Taxation and Insolvency Divisions of a major accounting firm. Dean’s practice includes drafting all types of commercial agreements, dispute resolution and commercial litigation ...read more


 

Denis BowlesDenis Bowles 

Denis Bowles has specialised in commercial law for the last 20 years. Denis has wide and valuable experience in commercial transactions and large scale sales and acquisitions, advising on contractual disputes and conducting commercial litigation ...read more 


sutherland shire lawyer craig pryorCraig Pryor 

 Craig Pryor has extensive experience advising on commercial contracts, conducting commercial litigation and civil litigation generally. Craig regularly advises clients on commercial matters relating to the Corporations Act and drafting commercial ...read more

 

Denis BowlesJayne Humphreys 

Jayne Humphreys, Senior Associate, works exclusively in estate planning and can prepare your Wills, Powers of Attorney and Enduring Guardianship documents. Jayne can provide you with detailed advice upon testamentary trusts, avoiding estate claims, protecting assets for beneficiaries and tax minimisation ...read more


Anika Fleet 

Anika is now a member of the WMD Corporate and Commercial Group where she is primarily involved in acting for clients in Local, District, Supreme and Federal Court proceedings, providing commercial and corporate advice, providing employment advice, and drafting a range of commercial documents.  ...read more  


Kathryn Harris 

Kathryn has experience advising clients on commercial matters and drafting, reviewing and negotiating commercial contracts, including business sale and purchase agreements, services agreements, agency and distribution agreements and terms and conditions of trade.  ...read more  


Michael Terry-Whitall 

Since joining the firm Michael has worked predominantly in the Criminal and Commercial law divisions where he has gained experience in both criminal and civil litigation. Michael is experienced in the drafting of extensive legal documents and briefing Counsel for complicated matters.  ...read more