How To Manage Redundancies And Employees
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Redundancies the name itself sends shivers down the spine for both the employer as well as employees. Staff redundancy is normally on the basis of, where the workforce is to be reduced, on a last come first go basis. Staff redundancy situations can arise also when a fixed term employment contracts end and are not renewed. Many important factors are linked to the staff redundancies, the most common is business cessation when the employer has closed, or is to close, down his business. These kinds of staff redundancies give rise to the eligibility for redundancy payments whether the business is wholly closed or partially shut down.
Another reason for the staff redundancies is the relocation of business, shifting the place of business is quite common, where employer has closed, or is to close, down the business where the business is located, and even if the reason is that in that area there is no longer work, the workers are liable for compensation if they are with an agreement requiring the worker to move to the new place of business, another contributory factors of staff redundancy is the surplus of labour,this situations arises due to the requirement diminishing for the work of the employee’s service, or for work generally, where the employee works.
It is very important to qualify for redundancy an employee must have been with the employer for at least 2 years. f the employee does not qualify for redundancy, it is treated as ordinary dismissal, and employment termination, involves exit interviews if the employee has been with the employer for at least one month, a notice period or monies in lieu, of at least 1 week or as agreed in the employment contract up to a maximum of 12 weeks. Voluntary redundancy is altogether different from the forced redundancy such employment termination less involve redundancy disputes, this case of voluntary staff redundancy arise when there is a death of the proprietor of the business or if upon the appointment of a receiver the business closes down, then usually the employee will have resigned or will have been dismissed or the Employment Contract will have ended by mutual consent.
Usually in voluntary staff redundancy the employees whose employment has been terminated receives a lump sum of money. Redundancy situations can be avoided by an employer by an offer of suitable alternative employment which in Employment Assistance Law makes ineligible an employee for redundancy pay who refuses it unreasonably. The impact of redundancy has not only on the owner, but also to the customers, continuing employees, team morale if affected, profitability and revenues and operational activities suffer.
With staff redundancy being the deep cause of concern for many companies, discrimination on the ground of age will prevail because younger employees is likely to have less service than their older colleagues.
CIQ Career Intelligence helps you with exit interviews, outplacement of workers, EAPs Employee Assistance Programs, staff redundancies solutions, mediation, career transition & career management in Brisbane, Gold Coast, Sydney, Melbourne.
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