{"id":82160,"date":"2023-02-06T22:00:37","date_gmt":"2023-02-06T22:00:37","guid":{"rendered":"https:\/\/arielle.com.au\/?p=82160"},"modified":"2024-06-04T22:33:39","modified_gmt":"2024-06-04T22:33:39","slug":"redundancy-process","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/redundancy-process\/","title":{"rendered":"Redundancy Process Explained: Step-By-Step Guide For Employers"},"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\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>Few things are as stressful as organising redundancy agreements in your business.  Many ex-employees are eligible for redundancy pay if their job has been deemed redundant. <\/p>\n\n\n\n<p>Australian workplace laws regulate the financial elements of the process, and it\u2019s essential to prepare for these.<\/p>\n\n\n\n<p>Below are our best practices for redundancy packages. Our 6-step checklist will reduce stress and support the affected employees throughout the process.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/outplacement-services\/\">Best Outplacement Services In Australia<\/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 Redundancy?&nbsp;<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"667\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-in-australia-1024x667.jpg\" alt=\"redundancy process australia\" class=\"wp-image-83474\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-in-australia-1024x667.jpg 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-in-australia-300x195.jpg 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-in-australia-768x500.jpg 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-in-australia.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><u><a href=\"https:\/\/arielle.com.au\/what-is-a-genuine-redundancy\/\">Redundancy is a corporate term<\/a><\/u> that describes a scenario when someone\u2019s job or role is no longer required. <\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>If a business makes an employee redundant, it will terminate their contract and, in most cases, must provide severance pay.\u00a0<\/span><\/div><\/div>\n\n\n\n<p>Australian employers who lose their jobs because of genuine redundancy are eligible for various levels of support. Be sure to check the standards <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.fairwork.gov.au\/tools-and-resources\/fact-sheets\/minimum-workplace-entitlements\/notice-of-termination-and-redundancy-pay\"><u>here.<\/u><\/a><\/p>\n\n\n\n<p>Some reasons a role might become redundant include the following:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>A business<\/strong> restructuring.<\/li><li><strong>Closed operations<\/strong> or expanding to different territories.\u00a0<\/li><li><strong>A need to reduce<\/strong> expenses for large teams.<\/li><\/ul><\/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>Who\u2019s Eligible For Redundancy Pay In Australia?&nbsp;<\/strong><\/h2>\n\n\n\n<p>An employee is eligible for redundancy pay in Australia if:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>They were contracted<\/strong> full or part-time.<\/li><li><strong>They worked for at least a year<\/strong> at a company with 15 or more staff.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Casual and time-based workers (like seasonal workers) are not eligible for termination payments in Australia. Neither are trainees nor apprentices that do not hold a long-term company contract.&nbsp;<\/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\">Expert Tip.<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">You could deny a person\u2019s redundancy pay if they are removed from the business because of misconduct. Find out the grounds for dismissal <a href=\"https:\/\/www.fairwork.gov.au\/taxonomy\/term\/452\" target=\"_blank\" rel=\"noreferrer noopener\"><u>here.<\/u><\/a><\/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 Much Is Redundancy Pay?<\/strong><\/h2>\n\n\n\n<p>The <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.fairwork.gov.au\/tools-and-resources\/fact-sheets\/minimum-workplace-entitlements\/notice-of-termination-and-redundancy-pay\"><u>amount of severance pay<\/u><\/a> due to redundancy depends on how long an employee worked with the company and any pre-existing agreements.&nbsp;<\/p>\n\n\n\n<p>Some scenarios are as follows:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>If someone has worked full-time for one year<\/strong>, they may be entitled to four weeks of severance pay.\u00a0<\/li><li><strong>If they have worked for a company for nine years<\/strong>, they may receive 16 weeks of pay.<\/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\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Those with ten or more years in a role are eligible for 12 weeks of pay, following a <a href=\"https:\/\/www.smh.com.au\/business\/commission-extends-redundancy-to-16-weeks-for-10-years-20040326-gdim79.html\" target=\"_blank\" rel=\"noreferrer noopener\"><u>decision made in 2004<\/u><\/a> by the Australian Industrial Relations Commission.\u00a0<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"784\" src=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-payment-tax-free-1024x784.jpg\" alt=\"redundancy payment tax free\" class=\"wp-image-83471\" srcset=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-payment-tax-free-1024x784.jpg 1024w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-payment-tax-free-300x230.jpg 300w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-payment-tax-free-768x588.jpg 768w, https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-payment-tax-free.jpg 1500w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/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\">Some companies have different pre-arranged agreements regarding severance pay and redundancy processes. Be sure to check your employees&#8217; contracts for the specifics.<\/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>What Is The Redundancy Process In Australia?<\/strong><\/h2>\n\n\n\n<p>In Australia, all employers must communicate and consult with employees when terminating an employment contract due to redundancy.<\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span> Failure to do so can result in penalties or accusations of <a href=\"https:\/\/www.fairwork.gov.au\/ending-employment\/unfair-dismissal\" target=\"_blank\" rel=\"noreferrer noopener\"><u>wrongful termination.<\/u><\/a><\/span><\/div><\/div>\n\n\n\n<p>You should follow the below process to support your employees best:&nbsp;<\/p>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step One: Preparation &#8211; Determine The Redundancy.&nbsp;<\/strong><\/h3>\n\n\n\n<p>The first step of the redundancy process is to determine where the overlaps in roles occur and how you can best maximise costs within your company budget.&nbsp;<\/p>\n\n\n\n<p>You should:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Analyse job descriptions<\/strong> and role responsibilities.<\/li><li><strong>Hold internal audits<\/strong> to gain group feedback on roles.\u00a0<\/li><li><strong>Prepare data to present<\/strong> to employees (especially when downsizing) to outline roles under assessment.<\/li><li><strong>Explain<\/strong> why you are conducting this research &#8211; and the risk of potential redundancies.\u00a0<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Consult your upper management to analyse the information and decide which roles will be removed or restructured.<\/p>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step Two: Communication &#8211; Inform Staff About Redundancies.&nbsp;<\/strong><\/h3>\n\n\n\n<p>An employer must communicate with staff that the redundancy process is commencing, which can look like this:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>A general conversation<\/strong> around redundancy.\u00a0<\/li><li><strong>Official announcements<\/strong> in team meetings.\u00a0\u00a0<\/li><li><strong>One-on-one discussions<\/strong> with roles that are under review.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>Employees and team leaders must feel adequately supported to prepare for the transition.<\/p>\n\n\n\n<p>To do this, you must act per the <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.fairwork.gov.au\/ending-employment\/redundancy#consulting-with-employees-about-major-workplace-changes\"><u>Australian Government Fair Work Ombudsman<\/u><\/a>, ensuring that:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><a href=\"https:\/\/www.servicesaustralia.gov.au\/redundancy-information-for-employers\" target=\"_blank\" rel=\"noreferrer noopener\"><u><strong>You notify affected employees<\/strong><\/u><\/a> from the start.<\/li><li><strong>You communicate necessary<\/strong> information (like timelines).\u00a0<\/li><li><strong>Your company aims to minimise<\/strong> the adverse effects of the changes on employees.\u00a0<\/li><li><strong>You remain open to ideas<\/strong> and suggestions from the wider team.<\/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\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Transparency throughout the redundancy process is the best policy for employers to avoid hefty payouts incurred due to unfair dismissal claims.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step Three: The Consultation Process.&nbsp;<\/strong><\/h3>\n\n\n\n<p>After an employer has communicated company-wide changes, employers must hold meetings with various staff members at risk of being let go.&nbsp;<\/p>\n\n\n\n<p>Your consultations should involve the following:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Presenting data<\/strong> and findings around roles.\u00a0<\/li><li><strong>Outlining<\/strong> how a loss in positions will change the structure of the team.<\/li><li><strong>A support person<\/strong> for each employee.\u00a0<\/li><li><strong>Planning a follow-up meeting<\/strong> to keep staff in the conversation continually.<\/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\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Employees should be allowed to present alternative options to the redundancy. Remember, you should wait for a final decision until you hold initial consultation meetings.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step Four: Selection &#8211; Be Open To New Ideas.&nbsp;<\/strong><\/h3>\n\n\n\n<p>The previous steps should take approximately one month whilst you work out solutions to the redundancy with your upper management team.&nbsp;<\/p>\n\n\n\n<p>When holding discussions:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Employees should feel safe<\/strong> to express their ideas.<\/li><li><strong>You should consider ideas<\/strong> presented that retain current employees.\u00a0<\/li><li><strong>Consider restructuring roles<\/strong> and moving employees to other teams<\/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\">Failure to offer redeployment for redundancy terminations could be grounds for an unfair dismissal claim. As an employer, you must be genuinely open to realistic solutions to avoid termination.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step Five: Termination &#8211; Issue A Termination Letter.&nbsp;<\/strong><\/h3>\n\n\n\n<p>If, after extensive consulting with your employees and upper management, you are still convinced that a role needs to be made redundant, you should hold a final meeting and provide the employee with a termination letter.&nbsp;<\/p>\n\n\n\n<p>There are <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.davidsonmorris.com\/reasons-for-redundancy\/\"><u>many situations<\/u><\/a> where someone may still lose their job due to redundancy, despite offering solutions. Some include:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Business closure<\/strong>.\u00a0<\/li><li><strong>Relocation<\/strong> of the business.\u00a0<\/li><li><strong>A staff member\u2019s lack of experience<\/strong> level or qualifications.<\/li><li><strong>Team or company-wide<\/strong> restructure.\u00a0<\/li><li><strong>Disagreements<\/strong> surrounding salary.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>For the final meeting, you should ensure a clear agenda is set, supported by company data. <\/p>\n\n\n\n<p>Your termination letter should include the following information:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>An outline of the reasons<\/strong> for redundancy.\u00a0<\/li><li><strong>The notice period <\/strong>and their last date of work.\u00a0<\/li><li><strong>Details of redundancy payment<\/strong> and other severance payments.<\/li><li><strong>Next steps\/what you need<\/strong> from the employee before they go.<\/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\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Losing a job can be highly stressful and upsetting for some. Be sure to offer counselling or <a href=\"https:\/\/www.nsw.gov.au\/mental-health-at-work\/managing-mental-health-your-workplace\/get-and-give-support-now\" target=\"_blank\" rel=\"noreferrer noopener\"><u>additional support services<\/u><\/a>, and respond with empathy for this person\u2019s situation.\u00a0<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Step Six: Payment &#8211; Pay Out Redundancy Rates.&nbsp;<\/strong><\/h3>\n\n\n\n<p>Employees can expect to receive their redundancy pay the same way they usually receive paychecks. You and the employee can negotiate this date.<\/p>\n\n\n\n<p><strong>(Related: <a href=\"https:\/\/arielle.com.au\/employee-turnover-rate\/\">How To Calculate Employee Turnover Rate Correctly<\/a>).<\/strong><\/p>\n\n\n\n<p>Earlier, we mentioned redundancy rates are subject to how long an employee has worked for a company. Some of the redundancy severance rates include the following:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>One year:<\/strong> 4-week salary.\u00a0<\/li><li><strong>Two years:<\/strong> 6-week salary.<\/li><li><strong>Three years: <\/strong>7-week salary.<\/li><li><strong>Five years: <\/strong>10-week salary.<\/li><li><strong>Seven years: <\/strong>13-week salary.<\/li><li><strong>Eight years: <\/strong>14-week salary.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>If you have negotiated separate redundancy packages, you must fulfil these. If you rescind on this agreement, an employee has grounds for legal action and can seek severance compensation.&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>Frequently Asked Questions About Redundancy.<\/strong><\/h2>\n\n\n\n<p>Learn more about the redundancy process in Australia with these frequently asked questions:<\/p>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How Long Does The Redundancy Process Take?<\/strong><\/h3>\n\n\n\n<p>The redundancy process in Australia typically takes between 30 to 45 days.&nbsp;<\/p>\n\n\n\n<p>After initial conversations around company changes, staff will meet with management over the next month to develop alternative solutions to contract termination. <\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>If you can find no solution, the employee will receive a notice of termination.\u00a0<\/span><\/div><\/div>\n\n\n\n<p>Alternatively, companies can pay employees additional packages instead of a timely termination notice.&nbsp;<\/p>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Will Unions Be Involved?<\/strong><\/h3>\n\n\n\n<p>Unions represent the interests of workers in particular industries or occupations, particularly in times of difficulty.&nbsp;<\/p>\n\n\n\n<p>Some of their key roles include:&nbsp;<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Being able to resolve<\/strong> workplace issues.\u00a0<\/li><li><strong>Acting as a voice<\/strong> for employees.<\/li><li><strong>Negotiating better conditions<\/strong> and pay for employees.<\/li><\/ul><\/div><\/div>\n\n\n\n<p>An employer can choose whether to seek additional support from their workplace union, as can you. We recommend keeping conversations internal unless disagreements require mediating.&nbsp;<\/p>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can Employees Resign Before Redundancy?<\/strong><\/h3>\n\n\n\n<p>If an employee has worked for your company for more than two or three years, they are likely eligible for redundancy. <\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>Be prepared for employees to request speaking with HR and management to discuss concerns around severance packages.<\/span><\/div><\/div>\n\n\n\n<p>They can resign, but they would not be eligible for a redundancy payment. As unlikely as this is, it can and does happen, particularly with aggrieved employees.&nbsp;<\/p>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is An Enterprise Agreement?<\/strong><\/h3>\n\n\n\n<p>An enterprise agreement is an agreement between an employer and a trade union that act on behalf of employees. Sometimes, employees represent themselves. <\/p>\n\n\n\n<div class=\"indent-wrapper\"><div class=\"indented-text\"><span>An agreement is the outcome of a negotiation and is often used for collective redundancies.<\/span><\/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\">Important!<\/h3><\/div><div class=\"card-content\"><p placeholder=\"Tip Content Goes Here\">Enterprise agreements may give employers greater rights and entitlements than those provided by the National Employment Standards (NES), which is especially beneficial when negotiating redundancy.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:55px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is The Fair Work Act?<\/strong><\/h3>\n\n\n\n<p>The&nbsp;<em>Fair Work Act 2009 <\/em>is one of the most important laws that governs the employment relationship in private sector organisations across Australia. <\/p>\n\n\n\n<p>It is the cornerstone of the entire national system of workplace regulations, and employers of all types and sizes should be familiar with it, especially when subject to legal claims.<\/p>\n\n\n\n<p>In a nutshell, it aims to do this by:<\/p>\n\n\n\n<div class=\"arrow-wrapper\"><div class=\"arrow-list\"><ul><li><strong>Outlining<\/strong> the conditions of employment.<\/li><li><strong>Enforcing<\/strong> the Act to ensure compliance.<\/li><li><strong>Giving provision<\/strong> for the administration of\u00a0the Act, through <a href=\"https:\/\/employsure.com.au\/guides\/fair-work-australia\/fair-work-commission\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>the Fair Work Commission<\/u><\/a>\u00a0and\u00a0<a href=\"https:\/\/employsure.com.au\/guides\/fair-work-australia\/fair-work-commission\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>the Fair Work Ombudsman<\/u><\/a>.<\/li><li><strong>Specifying the rights<\/strong> of employees, employers, and organisations.<\/li><\/ul><\/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>Bottom Line About Redundancy Process In Australia.<\/strong><\/h2>\n\n\n\n<p>The redundancy process in Australia can be a stressful time. Following the details in this guide will protect you from false claims of wrongful dismissal and prepare employees for redundancy.&nbsp;<\/p>\n\n\n\n<p>While stressful, you can minimise difficulty by ensuring clear communication and presenting alternative solutions to redundancy throughout the entire process. <\/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\">Remember, redundancy should always be a last resort, and all other options should be explored before any termination letters are issued.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div style=\"height:49px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Irene<\/p>\n\n\n\n<div style=\"height:32px\" 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\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Few things are as stressful as organising redundancy agreements in your business. Many ex-employees are eligible for redundancy pay if<\/p>\n","protected":false},"author":2,"featured_media":83469,"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":[237,240,238,239],"class_list":["post-82160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-human-resource-management","category-leadership","tag-career-development","tag-redundancy-pay","tag-redundancy-process","tag-unfair-dismissal"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Redundancy Process Explained: Step-By-Step Guide For Employers<\/title>\n<meta name=\"description\" content=\"Support employees and avoid unfair dismissal claims by getting the redundancy process right. Learn to assess eligibility and avoid the common traps.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/arielle.com.au\/redundancy-process\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Complete Guide To The Redundancy Experience In Australia\" \/>\n<meta property=\"og:description\" content=\"A complete guide to follow on how to process redundancy to avoid claims for unfair dismissal and determine who is eligible to redundancy pay.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/arielle.com.au\/redundancy-process\/\" \/>\n<meta property=\"og:site_name\" content=\"Arielle Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ArielleExecutive\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-06T22:00:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-04T22:33:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1490\" \/>\n\t<meta property=\"og:image:height\" content=\"839\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Irene McConnell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Complete Guide To The Redundancy Experience In Australia\" \/>\n<meta name=\"twitter:description\" content=\"A complete guide to follow on how to process redundancy to avoid claims for unfair dismissal and determine who is eligible to redundancy pay.\" \/>\n<meta name=\"twitter:creator\" content=\"@arielleexec\" \/>\n<meta name=\"twitter:site\" content=\"@arielleexec\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Irene McConnell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Redundancy Process Explained: Step-By-Step Guide For Employers","description":"Support employees and avoid unfair dismissal claims by getting the redundancy process right. 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Arielle Executive helps leaders get noticed while Arielle Partners &amp; Talent Avenue connect organisations to Australia's best leadership talent.","sameAs":["https:\/\/www.linkedin.com\/in\/irenekotov\/"],"url":"https:\/\/arielle.com.au\/author\/irene-mcconnell\/"}]}},"modified_by":"Steven McConnell","uagb_featured_image_src":{"full":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia.jpg",1490,839,false],"thumbnail":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia-150x150.jpg",150,150,true],"medium":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia-300x169.jpg",300,169,true],"medium_large":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia-768x432.jpg",768,432,true],"large":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia-1024x577.jpg",1024,577,true],"1536x1536":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia.jpg",1490,839,false],"2048x2048":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia.jpg",1490,839,false],"alm-thumbnail":["https:\/\/arielle.com.au\/wp-content\/uploads\/2023\/02\/redundancy-process-australia-150x150.jpg",150,150,true]},"uagb_author_info":{"display_name":"Irene McConnell","author_link":"https:\/\/arielle.com.au\/author\/irene-mcconnell\/"},"uagb_comment_info":1,"uagb_excerpt":"Reading Time: 6 minutesFew things are as stressful as organising redundancy agreements in your business. Many ex-employees are eligible for redundancy pay if","_links":{"self":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/82160","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/comments?post=82160"}],"version-history":[{"count":29,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/82160\/revisions"}],"predecessor-version":[{"id":104495,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/posts\/82160\/revisions\/104495"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/media\/83469"}],"wp:attachment":[{"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/media?parent=82160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/categories?post=82160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arielle.com.au\/wp-json\/wp\/v2\/tags?post=82160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}