YOUR BUSINESS
3 CASUALS, independent contractors, trainees and apprentices are generally not entitled to receive a redundancy payment.
Redundancy rights and entitlements
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our position being made redundant can feel overwhelming if you don’t know where you stand legally — especially given all that’s happening during the COVID-19 pandemic. We asked Alexandra Targett, Lawyer at McDonald Murholme to explain employee rights and entitlements when it comes to redundancy, to help you work out where you stand if you’re facing this situation.
What are reasons for a redundancy? There are a few reasons your position may become redundant. Your employer may determine that your role is no longer required, or the business may become insolvent or bankrupt, Targett says.
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“Businesses may also need to make a position redundant if they are suffering from low sales or are undergoing a restructure, forcing them to cut down on jobs,” she adds.
She says if there’s an obligation to consult about redundancy, your employer must comply with this obligation for the redundancy to be genuine.
Redundancies aren’t considered genuine from a legal perspective if an employer could have, in reasonable circumstances, redeployed the employee into a suitable position within their business or an associated entity.
“Consultation should take place before an irreversible decision has been made by the employer,” Targett explains. “The employee should be afforded the opportunity to influence the decision and provide feedback and input regarding the redundancy.”
In this situation you may be able to file an unfair dismissal claim against the organisation.
Do I get a say in my position being made redundant? “Employers are not required to consult employees about redundancy unless the obligation arises in a modern award or enterprise agreement that applies to their employment,” Targett says.
How much notice do employers have to provide? Employers must provide the minimum notice period outlined in the National Employment Standards — how long this is for you will depend on how long you’ve been with the company. “If you have been working for your employer for one year or less, you are entitled to a minimum of one week’s notice,” Targett says.
