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Client Story
Tom worked at a large corporation for almost 40 years. He took extended leave and told his employer he was thinking about retiring at the conclusion of his leave.
Tom’s employer restructured its operations while he was on leave. They didn’t consult him about the restructure but through documents they sent he realised that his position had been abolished.
Tom’s employer refused to pay him any redundancy entitlements, and insisted that Tom had resigned.
We commenced proceedings in the Fair Work Commission on behalf of Tom and asserted that his employer was treating him adversely because he had a right to redundancy pay. We successfully negotiated for Tom to receive a six figure settlement.
Statistics from etax.com.au and the Sydney Morning Herald
Frequently Asked Questions
If you have been made redundant or are facing redundancy, you should get legal advice. Some employers may be unaware of their legal obligations to employees. You may have rights to challenge the employer’s decision to declare your position redundant, or you may have a right to refuse a position that is offered to you. You should ensure that you receive all your statutory and contractual entitlements to notice, leave and redundancy pay.
The payments that the employer proposes to make to you should be checked to ensure that you are paid the correct amount and that any non-salary rights (such as bonuses or share options) are paid.
With the introduction on 1 January 2010 of the National Employment Standards (NES) under the Fair Work Act 2009, most employees will have an entitlement to a redundancy payment.
Many employees may also have an entitlement to redundancy pay arising out of the terms of:
- an award
- an enterprise agreement
- a contract of employment
- a company policy.
- If you are employed by a state government department, you may also have a right to redundancy pay under state legislation.
Under the National Employment Standards (NES), the following employees are not entitled to redundancy pay:
- Employees of a business which has fewer than 15 employees.
- People employed on a casual basis.
- People employed on a fixed term contract.
- People whose employment is terminated as a result of the ‘ordinary and customary turnover of labour’.
- Apprentices.
An employee who is made redundant is also entitled to receive notice and a payment equivalent to any accrued but untaken annual leave. Some employees may also be entitled to long service leave and sick leave.
There are complex laws that govern the situation when a business is sold.
In most circumstances, if an employee accepts a job with the new employer, the employee is not entitled to redundancy payments from the old employer. Service with the old employer may be recognised for the purpose of long service and other entitlements.
However, each situation is different and employees should seek the advice of a lawyer if faced with a transfer of employment from one business to another.
Experts in Employment law
Our team has an outstanding record of achieving terrific outcomes for employees in both the private and public sector. We assist our clients with a combination of strategy, tenacity and compassion.
