Many employers find redundancy one of the most difficult business decisions to implement. Often economic urgency leads to employers failing to properly plan for, or implement redundancies effectively. Many genuine redundancies have been deemed unfair or discriminatory by courts and tribunals because companies have failed to consult or failed to otherwise apply the terms of their awards, enterprise agreements, workplace policies or employment contracts when the decision is made.
Employers should be aware that to be regarded as a "genuine redundancy" and to therefore be protected from an unfair dismissal claim being lodged against the employer for a termination arising from a restructure, the Fair Work Act 2009 imposes significant obligations on employers to consult with employees and/or unions prior to implementing redundancies, and to consider redeployment as an alternative to redundancy.
Ai Group can assist in all stages of the redundancy process to ensure that all laws and minimum obligation are adhered to together with providing advice on the strategies to effectively implement the change process. Ai Group workplace relations advisers can also make assessments regarding the redundancy payments and other entitlements owed to your employees and advise on more complex issues that might arise in a business restructure including transfer of business, incapacity to pay severance pay entitlements and exemptions to the NES severance pay scale and notice of termination.