A redundancy occurs only when an employee is dismissed and the reason for their dismissal is that their job is no longer available at the place where they work because the factory that employs them was closed, for example or where their employer no longer requires the same number of employees to do what the employee does because of a fall in demand for the. How much redundancy pay and notice an employee should get, consultation, checking your redundancy is fair and when to appeal. If, at the end of the trial period, the post is considered unsuitable, the employee would then be in a redundancy situation and, therefore, entitled to a redundancy payment if no other alternative employment is available. The process of redundancy, and payment of redundancy compensation where this applies, are a last option.
Redundancy, restructure and redeployment nb lawyers. Redundancy and redeployment requirements the australian. Planning for redeployment, redundancy and retrenchment. It was updated on 23 october 2015 by ashok kanani, employment law. How is tax calculated and what are your entitlements. The law sets out various entitlements for employees following redundancy. Redeployment unfair dismissals benchbook fair work commission. There are also various procedures when selecting people for redundancy, alternative work and time off. Employment law is very strict in regards to what employers can and cannot do regarding redeployment and. This article is not a substitute for legal advice and you should talk to a lawyer about your specific situation. This will not affect your employment rights, including your right to statutory redundancy pay. The factors taken into account about the reasonableness and suitability of any proposed redeployment, or offer of employment with another employer in relation to a redundancy, are those also considered by the fwc when determining whether the offer of. The fair work act 2009 cth is prescriptive at some level. She is a native beijinger who has studied and lived in the united states for many years.
Redundancy entitlements redundancy laws employment law. The court of appeal decision is likely to impact of redundancy. Redundancy clause external link employment agreement builder. It is important to note that there is a distinction between alternative employment, typically where a job is very. The fair work act 2010 the act contains the national employment standards nes which outline certain minimum entitlements of employment payable to most employees in australia with some minor exceptions. Employment law unfair dismissal unfair dismissal lawyers constructive. Even if there is no detailed process, there may be some guidance and employers must use this. Scope and application this ci applies to all employing authorities and employees under the psma.
Redundancy and redeployment university of auckland. What does redeployment mean in the context of redundancy and suitable alternative employment. Hayley johnson is a senior solicitor in the employment team of law firm brodies llp. Redundancy and redeployment employment law support since 1995. Redundancy law the definitive uk legal guide being made. Employment downsizing has become a fact of working life as companies struggle to cut costs and. How to implement a redundancy program in the work place law. To end an employment relationship notice must be given by one party the employee or employer to the other party. If an employee elects not to accept a redeployment opportunity then the employee would have their employment terminated due to redundancy and would therefore be entitled to redundancy pay. Guidelines redundancy and redeployment for professional.
These include giving you at least 2 weeks notice and paying your redundancy payment on the date of dismissal. Redundancy can come as a significant shockone which leaves many people feeling uncertain and vulnerable. Acas can will guide you through a number of topics and developments, ensuring that you are kept up to date and have some useful employment law advice. References when making redeployment and redundancy employment decisions and exercising employment. Any federal and state laws discussed in this book are subject to frequent revision. Firstly, should the company offer this role as a redeployment despite the less beneficial employment conditions associated with the position. Enter nolos latest quick reference guide, employment law. Employment law a to z in one easytouse desk reference if youre a human resources professional, its important that you have quick access to the information you need to do your job.
It is relatively common for an employer to have redeployment opportunities arising from a restructure. It is conceivable that an employee may reject an offer of redeployment and the termination is still effected by the employer. Employers are well aware that they are under an obligation to search their organisations for alternative employment for employees in a redundancy situation. Employee denied entitlements after refusing redeployment. The redeployment list and the redeployment process an incumbent on the redeployment list is defined as a likely candidate for a vacant post if the vacant post is in the same payclass as the incumbent, or is one or two payclasses above andor below the payclass of the incumbent. If your job is no longer required to be performed by anyone, then your position has become redundant.
Council njc agreement, the green book, the scottish joint council sjc or the. Aug 05, 2014 the fair work commission has confirmed that an employers obligation to offer redeployment opportunities to employees does not necessarily extend to similar roles performed for the business by contractors. Covid19 employment law faqs local government association. If there are other positions available in the business that you would be capable of doing, then they should bring it to your attention as opposed to making you redundant. For all the latest employment law uk information please visit the acas website and see when the changes will take effect. May 23, 2016 working out of seattle and beijing, grace is harris brickens lead attorney on china labor and employment law matters and the author of a book, the china employment law guide. Regards, charles power editorinchief employment law practical handbook. The court of appeal decision is likely to impact of redundancy legislation, so vanessa james, partner and head of employment at sa law, takes a closer look. But, as the reader will see from the cases below, this has not happened in the area of redundancy and redeployment. Redundancy and redeployment policy and procedure version 2. The essential hr desk reference, the allinone, easytoread guide every hr pro should have handy. Many employees who are made redundant feel powerless to contest this decision and are often forced to consider unsuitable options for redeployment or face unemployment. Redeployment refers to the transferring of an employee from one job to a broadly comparable job to ensure continuity of employment.
Saying this for some employees redundancy can be a very attractive option. The commissioner found great difficulty in accepting that there could be any real consideration of options for redeployment in circumstances where there has been no consultation or discussion with the employee concerned before the decision to terminate the employees employment was made. It was found that the redeployment of the employee could have been accommodated at the time of dismissal. You may lose your right to statutory redundancy pay if you unreasonably turn down suitable alternative employment. Redundancy and an employers redeployment obligations. Education policy model redeployment and redundancy. A persons dismissal will not be a case of genuine redundancy if it would have been reasonable.
Employees may not suffer any professional detriment or dismissal while they are absent. Does an employer have to redeploy a redundant employee. Youll lose your right to claim statutory redundancy pay if you do not give notice within the 4. It should only happen after all redeployment options have been exhausted. If a business is considering redundancy of 15 or more staff, employers must give written notification to the department of human services of the proposed dismissals. This article discusses what redeployment is and what you and your employer should be doing during the redeployment period. If the employer is not meeting their duties on redeployment, you may have been unfairly dismissed. Redundancy and redeployment more info call 7779 page 4 of 12 rights and responsibilities as with most employment matters there are rights and responsibilities. Some workers may have further entitlements negotiated in an individual employment contract, an award or a collective agreement but in this blog, the information is in. By hayley johnson on 21 may 2012 in employment law.
Redundancy entitlements redundancy laws employment law online. Manage staff redundancies how to make a redundancy plan, consult your employees, select employees fairly and what notice and pay you must give. However, difficult issues can arise in practice where the employee at risk of redundancy suffers from a disability which might disadvantage them during the redeployment selection process. Workforce planning is essential for avoiding the situation of redundancy where the position of employment of an employee is or will become surplus to the requirements of the business of employer davey, fearon and mclaughlin 20. An unfair dismissal application cannot be made if the dismissal was a case of genuine redundancy. What are the redeployment obligations of employers. Failure to offer redeployment to redundant employees can attract legal exposure for employers. It was concluded that it was not a genuine redundancy. This is likely to occur as a result of redundancy, but that is not always the case. In hp industries nz ltd v davidson the employment court held that even though there was a genuine redundancy situation the employer hp was in breach of its good faith obligations under the employment relations act 2000 the act. Employees who accept an offer of redeployment will be allowed a. Redundancy and redeployment what are your obligations. Our team of highly qualified lawyers specialise in all aspects of employment law issues including. Under the employment relations act 2000, it is part of an employers good faith obligation that when they are proposing to make a decision that will or is likely to have an adverse effect on the continuation of employment for 1 or more employees, the employer must provide the affected employees access to information relevant to the.
Redundancy and redeployment finding an alternative role. In addition to the provisions in the legislation as regards collective redundancies your employer must follow certain fair procedures. Observations on redeployment were made even more recently in a nonbinding. Redeployment opportunities are an alternative to termination. A redundancy occurs when an employer no longer requires a job to be performed by an employee. In many cases the selection process will be set out in the relevant employment agreements and workplace policies. James, partner and head of employment at sa law, takes a closer look. The redeployment obligation requires an employer to actually transfer the employee rather than simply assist the employee to find an alternative position.
However, employers must still be able to justify such a. This redeployment obligation is important for employers in order to avoid a redundancy being found to be an unfair dismissal. Lump sum payments in compensation for loss of employment are subject to tax. Must an employer offer redeployment to employees who would. Redeployment to another job may be undertaken in order to avoid dismissal due to redundancy. Under the fair work act 2009, a dismissal will not be regarded as relevantly unfair if, inter alia, the dismissal was a case of genuine redundancy sec 385. While the university has the right to move staff from one position to another whether within the area or to another area of the university for fair and reasonable operational. Jul 30, 2016 we revisit below what is a genuine redundancy as well as explain what an employers redeployment obligations are. This is essentially considering whether any of those employees could be redeployed elsewhere in the organisation.
If your employer is considering making you redundant, then by law they are required to look at their business and see if there are opportunities for redeployment. Asking surplus staff to relocate abroad or at the other end of the country is unlikely to be deemed a reasonable offer of redeployment. Redundancy and redeployment laws fair work legal advice. Employment law is very strict in regards to what employers can and cannot do regarding redeployment and redundancy. Our termination of employment letter redundancy template docx 48. It is important to plan for redundancy in order to maintain an. Redundancy payments are in addition to payments for notice, accrued annual leave and accrued long service leave. Public sector management redeployment and redundancy regulations 2014 the regulations. Under subsec 389 2 a persons dismissal is not capable of being a case of genuine redundancy if it would have been reasonable in all th.
Emplex, based in datchet, berkshire, provides employment law advice to local businesses and private clients at competitive rates. It had rushed its consultation process, had not provide timely and relevant information about alternatives to. This is often due to changes in the organisational structure and operational requirements of the workplace. Only where an employee unreasonably refuses an offer of suitable alternative employment will redundancy pay be withheld. All information contained in this document is correct at time of publication but all links to external government websites should be checked regularly as official advice is likely to be updated as the situation continues to develop. Redundancy occurs if an employees role within an organisation is no longer considered necessary for the ongoing operation of the business and the employer may terminate the employees employment. Departmental reshuffles and changes in job duties are often used to improve the efficiency of teams and these may lead to reductions in headcount.
In many instances, redeployment will not be an available option. It is important for employers to take legal advice at the time. Issues do arise in relation to redeployment where an employee may. An overview of redundancy, with links to more detailed information. Employees lose their right to statutory redundancy pay if they unreasonably. You only need this step if your employee asks for a meeting to discuss the restructure and redundancy. For more information on redundancies and redeployment, check out the redundancy and retrenchment chapter in your employment law practical handbook. What hr needs to know about redeployment during redundancies. Model redundancy and redeployment policy denbighshire county. Redeployment enables the organisation to retain skills and to create a flexible workforce. May 29, 20 there is a crucial court of appeal pending from the readman v devon primary care case. Employers should be in a position to substantiate why, in a redundancy situation, they did not offer options for continuing employment in alternative roles. You can find more information on redundancy and the law in the labour.
If you are made redundant, you are entitled to a redundancy payment that is proportionate to the length of your employment, ranging from 4 weeks to 12 weeks of pay. Intent organisational scope definitions guidelines content accountabilities and. Under the employment rights act 1996, a redundancy arises when employees are. Public sector executive mayjune 12 in the marchapril edition of pse, we covered the cipds report into trust at public and private sector organisations, and the high praise it gave to the way sunderland city council has handled budget cuts without resorting to redundancies. Such employees are barred from bringing an unfair dismissal claim under the fair work act 2009 in cases of genuine redundancy. Redeployment and redundancy procedures employment instruction number 14 ei no 14 redeployment and redundancy procedures page 1 1. United kingdom labour law regulates the relations between workers, employers and trade. If your employment agreement or policies includes voluntary redundancy, then make sure this is offered as appropriate. Redundancy and redeployment procedure academic staff. You must be selected for redundancy in a fair way, for example because of your level of experience or capability to do the job. You also have specific rights if your employer is insolvent. In a redundancy situation, an employer is obliged to consider suitable alternative employment for the employees who are facing redundancy.
Secondly, if the employee refuses the offer of redeployment is she entitled to redundancy pay. In an age where employers are becoming increasingly costfocussed in the face of economic stagnation and narrowing profit margins, employees are often made redundant in an attempt to save on wage costs. We have extensive experience in helping employers identify and manage the legal risks, providing advice that protects your best interests while supporting the. Appendix three redundancy and redeployment policy 6 the head of service will also inform employees that they are being placed on the redeployment register from the date of the meeting and that the period of redeployment will run concurrently with their respective notice periods.
Education policy model redeployment and redundancy 2. There is a crucial court of appeal pending from the readman v devon primary care case. In order to be genuine, the employees termination must have met the following criteria. In cases of redundancy, where you are able to make genuine offers for redeployment, you should. Finally, the more important aspect in the termination of employment is the payment employees separation pay equivalent to at least one 1 month pay or to at least one 1 month pay for every year of service, whichever is higher. However, in order to minimise any exposure to allegations that the redundancy is not genuine and amounts to unfair dismissal, the possibility of redeployment should not be ignored. Redundancy entitlements redundancy lawyers maurice blackburn. The fair work commission has confirmed that an employers obligation to offer redeployment opportunities to employees does not necessarily extend to similar roles performed for the business by contractors. Read this article to learn about measures and plan in planning for redeployment, redundancy and retrenchment. Sep 04, 2017 we have a number of questions relating to this situation. If youre being made redundant, you might be eligible for certain things, including. A recent employment court case has shed some light on an employers duty to redeploy an employee to a vacant role as an alternative to making him or her redundant. Do i have to accept a redundancy if the redeployment options offered are not suitable.
A demotion or a change in employment conditions that are substantially less favourable to an employee will amount to a breach of the employment contract, and would therefore be a genuine redundancy. Modification order 1983, an employee who takes up employment with another organisation covered by the order in any capacity within four weeks of the termination of their employment with dcc will be required to repay the redundancy payment in full. Under the terms of the redundancy payments continuity of employment in local government etc. The question as to whether an employee is required to accept a redundancy is dependent on whether the redundancy is genuine. Your obligations employers are exempt from the unfair dismissal jurisdiction if the termination of that employee was a genuine redundancy. Here we provide resources and information on termination of employment, voluntary. This is how to implement a redundancy program in the work place.
It happens when employers need to reduce their workforce. Redeploymenta restructuring strategy in which at least some employees are offered. This often occurs with the introduction of new technology into a workplace, business operations slowing down due to lower sales, business closing down, or workplace relocation interstate or overseas or if there has been a restructure or reorganisation because a merger or takeover happens. Davidsonmorris experienced hr consultants and employment law specialists offer guidance and support to employers in relation to staff redeployment rights and redundancy processes. Redeployment and redundancy public sector commission. If the employer is not meeting their duties on redeployment, you may have. Redundancy and redeployment what is a suitable alternative role. The employer failed to properly explore redeployment options as suitable vacancies existed at the time of dismissal. If possible, employers should attempt to redeploy redundant staff within their firm. Am i entitled to redundancy pay if my employer provides me. An eligible nbn employee as above, this does not include employees engaged on a casual or fixed term basis, unless otherwise specified by law will be paid redundancy pay if the employees employment is terminated. The question of whether redeployment is reasonable depends on a range of circumstances. Redundancy law the definitive uk legal guide being.
This article was originally published on 21 may 2012. Looking at the future surplus of human resources the organisations have to prepare action plan for redeployment, redundancy and retrenchment. Covid19 employment law faqs these faqs refer to the situation in england and wales only. It was held that the dismissal was not a genuine redundancy. Redundancy law in the uk the definitive uk legal guide from unlock the law s employment lawyers. Further details regarding redeployment are outlined in point 17. Resolution123 makes resolving your employment law problem as easy as 123. Redundancy is a complex area of law and it is important to obtain independent legal advice to ensure the legality of the redundancy itself and to safeguard your redundancy entitlements, pay and rights. Redeploy employees outplacement career consultants.
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