advice online - Redundancy

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Scientists & Managers, Australia

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Advice Online > Entitlements - Redundancy

Redundancy

Members should always seek advice from APESMA in this area. Contact adviceonline@apesma.asn.au if you are a member and require assistance on retrenchment issues.

What is redundancy?
What are my rights and what are the employer's obligations in relation to redundancy?
What minimum standards apply for redundancy payments?
Are outplacement services worth pursuing?
I think I am being unfairly targeted for redundancy. What should I do?
Can APESMA help me get another job?
Can APESMA give me financial advice?

What is redundancy?

A redundancy is a termination of employment by the employer because the employer:

does not need that job done by anyone; or
needs fewer people to do that type of job.

Redundancies commonly arise where an employer is:

closing part or all of the business;
restructuring;
cutting staff to save costs;
introducing new technology.

What are my rights and what are the employer's obligations in relation to redundancy?

There are a range of legal obligations regarding the process of redundancy. These obligations vary from case to case and may be contained in awards, agreements, employment contracts and unfair dismissal legislation.

Because of this complexity, it is important to contact the Association for information on your rights and obligations regarding issues such as:

consultation requirements with employee(s) and the Association;
notice periods;
redundancy pay entitlements;
additional termination pay;
superannuation implications.

What minimum standards apply for redundancy payments?

The federal award minimum standard for redundancy payments is as follows:

Employees of small business:
Period of service	Severance pay
Less than 1 year	Nil
1 year and less than 2 years	4 weeks' pay
2 years and less than 3 years	6 weeks' pay
3 years and less than 4 years	7 weeks' pay
4 years and over	8 weeks' pay
All other employees:
Period of Service	Severance pay
Less than 1 year	Nil
1 year and less than 2 years	4 weeks' pay
2 years and less than 3 years	6 weeks' pay
3 years and less than years	7 weeks' pay
4 years and less than 5 years	8 weeks' pay
5 years and less than 6 years	10 weeks' pay
6 years and less than 7 years	11 week's pay
7 years and less than 8 years	13 weeks' pay
8 years and less than 9 years	14 week's pay
9 years and less than 10 years	16 weeks' pay
10 years and over	12 weeks' pay

These arrangements are award minimums and are therefore legally enforceable for those employees covered by an award. Actual arrangements often vary from situation to situation and may in fact be more generous. In fact, most APESMA members would be entitled to one month's notice under their award or contract of employment, so you should discuss redundancy entitlements with an APESMA industrial officer if you are unclear.

Are outplacement services worth pursuing?

Outplacement services have developed significantly in Australia in recent years and are now recognised as a legitimate means of providing employees with an important source of advice and support in the event of job loss.

The Association urges members to make use of any outplacement services provided by the employer. If those services are not provided as part of your package, we can assist in seeking their inclusion.

I think I am being unfairly targeted for redundancy. What should I do?

Under WorkChoices, if you are terminated for "operational requirements", you do not have access to unfair dismissal remedies. However, you should contact your APESMA Industrial Officer for advice as soon as possible.

Can APESMA help me get another job?

ETM Placements Pty Ltd is an APESMA-owned placement agency which operates commercially, specialising in engineering, scientific and management positions. There is no charge for members to have their details entered on the database. All that is required is that you complete a data registration form available on the ETM Placements website.

Can APESMA give me financial advice?

Because of the complexity of the taxation rules regarding superannuation and lump sum payments, those facing redundancy must seek expert advice in the area. The Association has entered into arrangements with leading financial advisory companies who can assist you in these matters.

Obtaining appropriate financial advice is also recommended to ensure that your entitlements to unemployment benefits and other forms of government financial support are not prejudiced by particular investment decisions. Refer to the Services area of this website for contact details for financial advisors.