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During a redundancy process, an employer is required to offer redeployment (where available) to an employee whose original role has been made redundant. This can be within the employer’s enterprise or an associated entity of the employer. This requirement is part of the test as to whether the redundancy is considered as genuine.
Where the employer has found other acceptable employment for the employee, and the employee rejects this offer, the employer can apply for an order under s 120 of the Fair Work Act to reduce the amount of redundancy pay that would be payable to the employee.
The test to be applied to determine whether the alternative employment offered is acceptable is an objective one – it does not depend upon the subjective views of the parties. The relevant court or industrial tribunal will consider a range of factors which are set out below in the checklist. Usually, the tribunal has discretion whether to award a total or partial exemption from the obligation to provide redundancy pay.
This checklist is intended to be used by employers to gauge whether an offer of redeployment may or may not be viewed as acceptable alternative employment. Where a tick indicates that the offer of redeployment may not be reasonable, members are encouraged to seek further advice from the Workplace Advice Line on 1300 55 66 77.
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