{"id":78833,"date":"2022-11-19T08:07:43","date_gmt":"2022-11-19T08:07:43","guid":{"rendered":"https:\/\/arielle.com.au\/?p=78833"},"modified":"2024-01-03T23:15:32","modified_gmt":"2024-01-03T23:15:32","slug":"what-is-a-genuine-redundancy","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/what-is-a-genuine-redundancy\/","title":{"rendered":"What Is A Genuine Redundancy? (Avoid Unfair Dismissal)"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>Nobody wants to lose talented people. But the reality is that in the past 18 months, tech giants and consulting companies have already cut over 70,000 staff, and your business may be about to do the same.<\/p>\n\n\n\n<p>Latest ABS statistics show around <a href=\"https:\/\/www.abs.gov.au\/statistics\/labour\/jobs\/job-mobility\/latest-release\" target=\"_blank\" rel=\"noreferrer noopener\">one in 10 Aussies face a retrenchment<\/a> annually as companies downsize.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>When dismissing an employee seems to be your only option, how can you be sure it\u2019s for reasons of genuine redundancy? <\/span><\/div><\/div>\n\n\n\n<p>Not getting it right exposes your business to the risk of an unfair dismissal claim by a disgruntled ex-employee.<\/p>\n\n\n\n<p>Fortunately, you can take clear steps to ensure both parties separate on relatively amicable terms, protecting your business from unnecessary disputes.&nbsp;<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/positive-work-culture\/\">How To Build And Sustain A Positive Work Culture<\/a>).<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Is A Genuine Redundancy?<\/strong><\/h2>\n\n\n\n<p>A genuine redundancy arises:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>When<\/strong> <strong>the<\/strong> <strong>position<\/strong> held by an employee is no longer required due to a change in operational requirements in the business, and<\/li><li><strong>Where the employer&#8217;s business <\/strong>is unable to redeploy the person to a different role.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Additionally, for a dismissal to count as a case of genuine redundancy, an employer must meet obligations under the employees\u2019 award or enterprise agreement to <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.fwc.gov.au\/consultation-obligations\">meaningfully consult<\/a> about the redundancy in advance of giving notice.<\/p>\n\n\n\n<p>That means engaging with the employee before you axe the job, and offering them a real opportunity to influence the decision.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Failure to meet consultation requirements in accordance with a modern award or applicable enterprise agreement will contravene Section 45 of the <em>Fair Work Act<\/em> (which is a civil penalty provision).<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What\u2019s an example of a change in operational requirements?<\/strong><\/h3>\n\n\n\n<p>Your business can consider layoffs when restructuring to increase efficiency, scaling down operations, integrating roles,&nbsp;<a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/arielle.com.au\/transformational-leadership\/\">changing direction<\/a>, or reducing overheads due to a downturn in trade or revenue.<\/p>\n\n\n\n<p>Other scenarios where redundancies may genuinely be on the table include:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>The\u00a0person&#8217;s\u00a0job <\/strong>can be automated and\/or replaced with new technology.<\/li><li><strong>A major project <\/strong>has been completed.<\/li><li><strong>The\u00a0business<\/strong>\u00a0is relocating or closing operations.<\/li><li>Y<strong>ou determine<\/strong> that outsourced contractors are a better fit for the position.<\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>To verify that the job cut is due to genuine redundancy, ask yourself:<\/strong><\/h3>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Is the employee&#8217;s job<\/strong> no longer needed due to changes in your business operations or declining demand for your goods\/services?<\/li><li><strong>Have you communicated<\/strong> with your employee\/team on awards or enterprise agreements about the fact that a position\/s may be made redundant and listened to their feedback before making a decision?<\/li><li><strong>Have you made an effort <\/strong>to identify a suitable alternative position for the person within your business or a sister company?<\/li><\/ul><\/div><\/div>\n\n\n\n<p>One overarching question you need to ask to prevent serious repercussions:<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><em>\u201cHave I taken all reasonable steps to keep the person employed within the business?\u201d<\/em><\/span><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;<strong>What Is NOT A Genuine Redundancy?<\/strong><\/h2>\n\n\n\n<p>The redundancy may not be viewed as genuine, and the employee\u2019s dismissal can be deemed unfair if you:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Need<\/strong> someone to perform the employee&#8217;s job, or<\/li><li><strong>Could<\/strong> have given the employee another job within the business.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Remember that redundancy must be focused on the unneeded nature of a <em>person&#8217;s job<\/em> and <em>not the person<\/em> who holds the job.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/talent-management-strategy\/\">Create A Winning Talent Management Strategy<\/a>).<\/strong><\/p>\n\n\n\n<p>Treating staff like they\u2019re disposable will likely land you in hot water. Avoid the temptation to take shortcuts and misuse layoffs for:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Reducing<\/strong> labour costs without any reduction in workloads.<\/li><li><strong>Firing<\/strong> problematic staff members.<\/li><li><strong>Avoiding<\/strong> redesign of jobs to account for workers\u2019 changed needs<\/li><li><strong>Discriminating<\/strong> against specific people or groups.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Practices like that not only open your business up to unfair dismissal claims, but can also lead to stress claims and, more generally, poor morale among the remaining staff.<\/p>\n\n\n\n<p>Even when implemented properly, layoffs are nearly always a controversial move, and one that is currently playing out in big tech companies, as <a href=\"https:\/\/twitter.com\/Josh_Bersin\/status\/1617569628238270464\" target=\"_blank\" rel=\"noreferrer noopener\">this tweet<\/a> from Josh Bersin clearly illustrates:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"916\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/mass-redundancies-1024x916.jpg\" alt=\"mass redundancies in big tech\" class=\"wp-image-83900\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/mass-redundancies-1024x916.jpg 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/mass-redundancies-300x268.jpg 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/mass-redundancies-768x687.jpg 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/mass-redundancies.jpg 1415w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div style=\"height:41px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Your Checklist For Avoiding An Unfair Dismissal Claim.<\/strong><\/h2>\n\n\n\n<p>Defending against dismissal claims is a time-consuming process. Fair Work Commission handles this process in Australia, and it usually takes between 5 weeks and a few months.<\/p>\n\n\n\n<p>Avoid legal issues by:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Keeping clear records<\/strong> about the changes you\u2019ve made to business operations and the reasons behind them.<\/li><li><strong>Knowing and complying<\/strong> with obligations to consult with employees before acting, where mandatory under an applicable award or enterprise agreement.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Take the time to explore how you could potentially keep the person employed in an alternative role that:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Aligns with the person\u2019s skills <\/strong>and competencies. In other words, a job they\u2019re capable of performing even if they needed some retraining first.\u00a0<\/li><li><strong>Is comparable to their current role<\/strong> in terms of salary, tasks, seniority, and location.<\/li><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Expert Tip.<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">However, it\u2019s important to note, you should offer any available vacancy across your business or any associated entity that the person could potentially fulfil.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p>Where you\u2019re still uncertain, seek professional legal advice.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Is Making Genuine Redundancy So Important?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"711\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-australia-1024x711.png\" alt=\"genuine redundancy australia\" class=\"wp-image-78873\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-australia-1024x711.png 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-australia-300x208.png 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-australia-768x533.png 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-australia.png 1074w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>A genuine redundancy is your protection against an unfair dismissal claim. As the Fair Work Commission points out:<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><em>If an employer can prove that the requirements of s.389 of the Fair Work Act have been met, the Fair Work Commission will have no jurisdiction to hear the unfair dismissal claim. However, if the requirements of s.389 of the Fair Work Act have not been met, the Commission must determine if the dismissal was unfair.<\/em><\/span><\/div><\/div>\n\n\n\n<p>When your reasons for ending someone\u2019s employment comply with the law, you won\u2019t have a case to answer.<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>If an affected employee<\/strong> submits an unfair dismissal application, you can file an objection, claiming it was a genuine redundancy.<\/li><li><strong>It\u2019s likely<\/strong> the application will be dismissed, and no further action will be taken.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>If, however, the job cut is not a case of genuine redundancy, a hearing will be held. If you are unable to defend your dismissal, you may be required to:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Give<\/strong> the person their old job back, or<\/li><li><strong>Compensate<\/strong> them financially.<\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:29px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Much Notice Do I Need To Give To An Employee?<\/strong><\/h2>\n\n\n\n<p>If you&#8217;re making a full-time employee redundant, you must either:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Give<\/strong>\u00a0an adequate amount of notice, or<\/li><li><strong>Pay<\/strong>\u00a0out the notice period (depending on how long the employee has worked for the company).<\/li><\/ul><\/div><\/div>\n\n\n\n<p>The notice period is determined based on the number of years of employment. The&nbsp;<a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.fairwork.gov.au\/employment-conditions\/national-employment-standards\">National Employment Standards<\/a>&nbsp;(NES) guidelines are below:<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Period Of Employment<\/th><th class=\"has-text-align-center\" data-align=\"center\">Minimum Notice Period<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">&lt; 1 year<\/td><td class=\"has-text-align-center\" data-align=\"center\">1 week<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1 &#8211; 3 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">2 weeks<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3 &#8211; 5 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">3 weeks <\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">&gt; 5 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">4 weeks<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Expert Tip.<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">The employer must notify the affected employees of the termination date in writing.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Is Redundancy Pay Calculated?<\/strong><\/h2>\n\n\n\n<p>First of all, let\u2019s establish eligibility for redundancy payments.<\/p>\n\n\n\n<p>Redundant employees are NOT entitled to a severance payment if they:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Have<\/strong> not worked continuously for at least 12 months.<\/li><li><strong>Were<\/strong>\u00a0employed on a specific contract, project, or seasonal basis.<\/li><li><strong>Worked<\/strong>\u00a0as a casual, trainee, or apprentice.\u00a0<\/li><li><strong>Were<\/strong> terminated because of serious misconduct.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Redundant staff are also ineligible for redundancy pay if your business employs less than 15 people.<\/p>\n\n\n\n<p>If you deem the employee facing redundancy eligible for redundancy pay, calculate the exact amount using the handy tool on the&nbsp;<a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/calculate.fairwork.gov.au\/endingemployment\">Fair Work website<\/a>.<\/p>\n\n\n\n<p>The general guidelines are as follows:<\/p>\n\n\n\n<div style=\"height:28px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><thead><tr><th class=\"has-text-align-center\" data-align=\"center\">Minimum Service<\/th><th class=\"has-text-align-center\" data-align=\"center\">Weeks Of Pay<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">1-2 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2-3 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">6<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3-4 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">7<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4-5 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">8<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5-6 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">10<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6-7 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">11<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7-8 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">12<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">8-9 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">13<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">9-10 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">16<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Over 10 years<\/td><td class=\"has-text-align-center\" data-align=\"center\">12<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Is Genuine Redundancy Taxed?<\/strong><\/h2>\n\n\n\n<p>According to the ATO, a genuine redundancy payment is tax-free up to a limit depending on years of continuous service. It\u2019s calculated using this formula:<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span><em>Base amount\u00a0+\u00a0(service amount\u00a0\u00d7\u00a0years of service)<\/em><\/span><\/div><\/div>\n\n\n\n<p>Please consult <a href=\"http:\/\/0.0.0.4\/\" target=\"_blank\" rel=\"noreferrer noopener\">this ATO page<\/a> for 2024 base amounts.<\/p>\n\n\n\n<p>Redundancy payments will be concessionally taxed as an employment termination payment (ETP) above the tax-free limit.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Can I Support the Employee Being Made Redundant?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"864\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-1024x864.png\" alt=\"what is a genuine redundancy\" class=\"wp-image-78852\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-1024x864.png 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-300x253.png 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy-768x648.png 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/genuine-redundancy.png 1074w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Emotional stories of layoffs after years of loyal service aren\u2019t hard to find. These have the potential to cast your organisation in an unfavourable light, decreasing your ability to attract star talent.<\/p>\n\n\n\n<p>Conversely, handling an employee\u2019s dismissal with empathy and meaningful support elevates the employer brand in the eyes of past, current, and future employees.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>Employees who receive assistance from an organisation after redundancy are likely to experience\u00a0<em>less emotional or psychological impact<\/em>\u00a0and to\u00a0<em>speak favourably of the organisation<\/em>\u00a0and its leaders.<\/span><\/div><\/div>\n\n\n\n<p>I recommend that employers support outgoing staff with&nbsp;<a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/arielle.com.au\/outplacement-services\/\">outplacement services<\/a> to help them rebuild confidence and offer them the best chance to continue building their careers. These typically include:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Strategic<\/strong> career coaching.<\/li><li><a href=\"https:\/\/arielle.com.au\/resume-writing-services\/\"><strong>Resume<\/strong> preparation<\/a>.<\/li><li><strong>Support<\/strong> in creating a LinkedIn presence.<\/li><li><a href=\"https:\/\/arielle.com.au\/interview-coaching\/\"><strong>Interview<\/strong> coaching<\/a>.<\/li><li><strong>Ongoing<\/strong> job search support.<\/li><\/ul><\/div><\/div>\n\n\n\n<p><strong>(Related: <\/strong><a href=\"https:\/\/arielle.com.au\/what-are-outplacement-services\/\" rel=\"noreferrer noopener\" target=\"_blank\"><strong>What Are Outplacement Services?<\/strong><\/a><strong>)&nbsp;<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions About Genuine Redundancy.<\/strong><\/h2>\n\n\n\n<p>Learn about severance pay, time limits, consultation obligations and making employment lump sum payments.<\/p>\n\n\n\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can I Reduce The Redundancy Pay?<\/strong><\/h3>\n\n\n\n<p>Quite simply, no! Only the Fair Work Commission can decide to reduce the amount of redundancy pay based on the circumstances. <strong>&nbsp;<\/strong><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is There A Time Limit For Hiring After Redundancy?<\/strong><\/h3>\n\n\n\n<p>There is no statutory time limit for rehiring after a redundancy. <\/p>\n\n\n\n<p>However, from a legal standpoint, the longer the period between the redundancy and position re-advertisement, the lesser the risk that the original redundancy decision could attract an unfair dismissal application from an employee.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is The Difference Between Awards And Enterprise Agreements?<\/strong><\/h3>\n\n\n\n<p>Many of your employees\u2019 employment conditions fall under an applicable modern award or an enterprise agreement.<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Awards<\/strong> describe the employee&#8217;s conditions of employment in the employer&#8217;s enterprise. Most cover entire industries (e.g., the hospitality industry or legal services). Wages, leave periods, and overtime conditions are typically covered.<\/li><li><strong>Enterprise<\/strong> <strong>agreements<\/strong> are similar to awards, but can be customised to a specific employer&#8217;s business. An agreement is a powerful instrument because it overrules an employee&#8217;s applicable award. To ensure fairness, Fair Work Commission reviews and approves all enterprise agreements in Australia.<\/li><\/ul><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is Voluntary Redundancy, And Why Is It Offered?<\/strong><\/h3>\n\n\n\n<p>Redundancy will generally be positioned as voluntary rather than mandatory when the employer doesn\u2019t want to choose a specific employee to retrench.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>Lessening the emotional fallout\u00a0is the main reason for offering voluntary redundancy.<\/span><\/div><\/div>\n\n\n\n<p>Also, a successful unfair dismissal claim against the employer is less likely when the employee enters this agreement by choice.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Does Business Size Matter?<\/strong><\/h3>\n\n\n\n<p>Yes. The&nbsp;<a href=\"https:\/\/www.fwc.gov.au\/about-us\/legislation-regulations\/small-business-fair-dismissal-code\" target=\"_blank\" rel=\"noreferrer noopener\">Small Business Fair Dismissal Code<\/a>&nbsp;provides a checklist you can follow to ensure the redundancy is genuine in the context of your business size. <\/p>\n\n\n\n<p>The majority of small businesses need to offer redundancy payments to their employees.<\/p>\n\n\n\n<div class=\"wp-block-create-block-tip-block tip-wrapper\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"card-wrapper\"><div class=\"card-title\"><div class=\"icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M7.5 14.33a5 5 0 1 1 5 0v4.17h-5v-4.17Zm4.25-1.3-.75.44V17H9v-3.53l-.75-.44a3.5 3.5 0 1 1 3.5 0Z\" fill=\"#656E83\"><\/path><path d=\"M9.25 1v2h1.5V1h-1.5ZM5.53 4.47l-1.5-1.5-1.06 1.06 1.5 1.5 1.06-1.06ZM15.53 5.53l1.5-1.5-1.06-1.06-1.5 1.5 1.06 1.06ZM1 10.75h2v-1.5H1v1.5ZM17 10.75h2v-1.5h-2v1.5Z\" fill=\"#656E83\"><\/path><\/svg><\/div><h3 placeholder=\"Tip Title Goes Here\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\"> Employers must still pay a redundant employee their final pay entitlement under the applicable award or enterprise agreement, regardless of whether a genuine redundancy payment is due. This includes unpaid or owed wages, accumulated annual leave, and accrued long service leave (where applicable).<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Final Takeaway On What Is A Genuine Redundancy.<\/strong><\/h2>\n\n\n\n<p>Despite the turbulent business conditions and an ever-evolving technological landscape that forces businesses to transform, loyal staff are an incredible asset.<\/p>\n\n\n\n<p>Making an employee redundant can be a very costly and traumatic decision, especially when the employee has worked for the company for a long time.<\/p>\n\n\n\n<p>Keep this top of mind: where it\u2019s practical and within your scope of power and possibility, you must explore all available options to retain the employee.<\/p>\n\n\n\n<p>A genuine redundancy is a last resort and must be carried out with respect and empathy for the humans involved. Managing dismissals thoughtfully is in your business&#8217;s best interest.<\/p>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Irene<\/p>\n\n\n\n<div style=\"height:29px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Nobody wants to lose talented people. But the reality is that in the past 18 months, tech giants and consulting<\/p>\n","protected":false},"author":14,"featured_media":78842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_uag_custom_page_level_css":"","_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[222,8],"tags":[],"class_list":["post-78833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resource-management","category-leadership"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Is A Genuine Redundancy? 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During my 20+ year career, I've reported for Australian business publications and bodies, including Forbes, The Chainsaw and NSW Business Chamber.","sameAs":["https:\/\/www.linkedin.com\/in\/contentquill\/"],"url":"https:\/\/arielle.com.au\/author\/jody\/"}]}},"modified_by":"Steven McConnell","uagb_featured_image_src":{"full":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy.jpg",1490,838,false],"thumbnail":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy-150x150.jpg",150,150,true],"medium":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy-300x169.jpg",300,169,true],"medium_large":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy-768x432.jpg",768,432,true],"large":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy-1024x576.jpg",1024,576,true],"1536x1536":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy.jpg",1490,838,false],"2048x2048":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy.jpg",1490,838,false],"alm-thumbnail":["https:\/\/arielle.com.au\/wp-content\/uploads\/2022\/11\/what-is-a-genuine-redundancy-150x150.jpg",150,150,true]},"uagb_author_info":{"display_name":"Jody McDonald","author_link":"https:\/\/arielle.com.au\/author\/jody\/"},"uagb_comment_info":1,"uagb_excerpt":"Reading Time: 7 minutesNobody wants to lose talented people. But the reality is that in the past 18 months, tech giants and consulting","_links":{"self":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/78833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/comments?post=78833"}],"version-history":[{"count":69,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/78833\/revisions"}],"predecessor-version":[{"id":99437,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/78833\/revisions\/99437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/media\/78842"}],"wp:attachment":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/media?parent=78833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/categories?post=78833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/tags?post=78833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}