Redundancy Policy

Overview

The purpose of this policy is to set out the processes and entitlements applicable in the event that an employee’s position is to be made redundant by [the Company].

The provisions of this policy are not intended to form part of an employee’s contract of employment.

[Clause 1.3 is an Optional paragraph] Where there is any inconsistency between provisions of this policy and entitlements, requirements and obligations provided under applicable legislation, contracts of employment, awards, enterprise agreements or other industrial instruments, such policy provisions do not apply to the extent of the inconsistency.

[The Company] may amend (including withdraw) this policy without notice at any time in its absolute discretion.

Scope

This policy applies to all employees of [the Company] except:

  • employees whose period of continuous service with [the Company] is less than 12 months;
  • apprentices;
  • trainees;
  • employees who are subject to industry-specific redundancy scheme under a modern award or enterprise agreement;
  • employees engaged for a specific period of time, for a specified task, or for the duration of a specified season; and
  • casual employees.

What is redundancy?

A redundancy is where [the Company] terminates an employee’s employment because [the Company] no longer requires the job done by the employee to be done by anyone.

A redundancy may arise in many circumstances, for example:

  • due to a change in the way [ the Company] plans to do things;
  • re-organisation or restructuring which might consolidate the work done by several people into one role, or which might redistribute the work done by one person among several others;
  • changed business practices or processes;
  • technological change; and/or
  • a down-turn in business.

Consultation

If an operational or business change is likely to bring about a redundancy, [the Company] will endeavour to (as soon as practicable after the decision to make the change is made and before redundancy has been effected):

  • Inform the employees that are likely to be retrenched (“affected employees”) of the decision to introduce the change;
  • Notify (in writing) the affected employees of relevant information about the change, its nature and effect (including the proposed redundancies) and any other relevant matter;
  • Subsequently, discuss with the affected employees:
    • the matters raised in the notice;
    • measures that [the Company] may be taking in avoiding or minimising the adverse consequences of the change on the employees (eg redeployment opportunities; see further below);
    • the affected employees’ views in respect of the change including matters raised by [the Company];
  • Consider the views expressed by the affected employees and respond if considered appropriate;
  • Consider redeploying the affected employees into other (vacant) positions, and inform any affected employees of the redeployment opportunity/ies.
  • [The Company] will proceed to effect the redundancies – if
    • there are no suitable redeployment opportunity/ies; or
    •  redeployment opportunity/ies have been offered but declined by the affected employee(s); and
    • having considered the views of the affected employees, [the Company] has determined that redundancies should proceed.

[The Company] will not, in the context of the process above or at any other time, disclose to the affected employees or their representatives any of its confidential information or commercially sensitive information.

The affected employees may appoint a representative in respect of the consultation process.

Voluntary redundancy

A voluntary redundancy is when an employee volunteers for redundancy.

Where redundancy is contemplated, [the Company] may by notice seek applications from employees interested in taking a voluntary redundancy.

The period in which an employee can apply for voluntary redundancy and the process in effecting a voluntary redundancy, will ordinarily be specified in the notice seeking applications.

[The Company] has the sole discretion:

  • whether to pursue voluntary redundancy; and
  • to determine whether to accept or not accept any application for voluntary redundancy made by an employee.

[The Company] will endeavour to ensure that any decision in respect of voluntary redundancy (or non-voluntary redundancy) does not contravene unlawful discrimination laws.

Redeployment

Redeployment is the agreed transfer of an employee from a vacant position that is to be made redundant into another position at [the Company].

[The Company] will consider redeploying the employees whose positions are to be made redundant to another position in [the Company] including an associated entity if this is reasonable in all the circumstances.

If an employee chooses to take up the redeployment opportunity, then the employee may not be entitled to redundancy pay.

However, if an employee agrees to be transferred to a position involving lower paid duties by reason of redundancy, the employee may be entitled to notice of termination or payment in lieu equal to the pay difference between the former (redundant) position and the new position, in accordance with the terms of any applicable industrial instrument.

 Redundancy pay and entitlements

Redundancy pay and notice of termination will be provided in accordance with the National Employment Standards in the Fair Work Act 2009 (Cth), and any applicable award or enterprise agreement.

Redundancy pay will be paid at the employee’s base rate for their ordinary hours.

Upon retrenchment, an employee can expect to be paid:

  • ordinary wages for all time worked up to the date of termination;
  • accrued annual leave;
  • accrued or pro-rata long service leave, if applicable;
  • pay in lieu of notice or [the Company] may require you to work out any notice period; and
  • redundancy payment (calculated in accordance with the National Employment Standards).

Where an employee is required to work out the notice of termination period, the employee will be permitted to take time-off for job seeking in accordance with the terms of any applicable industrial instrument.

Retrenchment of 15 of more employees

Where [the Company] is proposing 15 or more redundancies, it will endeavour to notify and consult with the union(s) for each employee that it is intended to be retrenched.

In accordance with its legal obligations, if [the Company] decides to dismiss 15 or more employees for reasons of an economic, technological, structural or similar nature, [the Company] will give a written notice about the proposed redundancies to Centrelink, as soon as practicable after the decision is made and before the employees’ employment is terminated because of redundancy.

Re-employment [Optional section]

An employee that has been retrenched (ie terminated because of redundancy) will not be eligible for re-employment with [the Company] in any position for a period of 12 months from the date the employee was retrenched.

Free Redundancy Policy Template

Download this free Redundancy Policy template for Australian businesses to ensure all of your employees know how redundancy works at your organisation.

By downloading this template, you agree to use it at your own risk and under your own legal advice. Nothing on this site should be considered legal advice.