Workplace change: managing restructuring and redundancy
New and existing financial constraints can have a significant impact on the operational requirements of a business. In some instances it is necessary for a business to make the difficult decision to review existing structures and arrangements. This review may result in the determination of existing roles as redundant.
VECCI’s industrial relations - workplace relations team can help ensure that your business restructuring meets the requirements of the Fair Work Act 2009.
In addition to the many demands facing business today, the Fair Work Act 2009 contains new and sometimes complex requirements around redundancy and termination. As of 1 January 2010, all national system employees may now have access to redundancy pay under the National Employment Standards. The term ‘redundancy’ was also re-defined by the Fair Work Act 2009. Fair Work Australia may consider a range of factors to determine whether a position was genuinely redundant, including whether or not it was reasonable for the employee to be redeployed to an associated entity.
Businesses making restructuring decisions without seeking expert advice are likely to encounter difficulties with the statutory and legal complexities. These may include defending decisions made in the arena of Fair Work Australia dealing with industrial disputes. In some instances it may also include defending employee claims that the redundancy is not genuine or was a result of discrimination.
Severance pay is also an extremely complicated matter due to current transitional arrangements in the Fair Work Act. This includes service before January 2010 which does not count towards the new redundancy entitlement introduced by the Act.
VECCI Industrial Relations - Workplace Relations advisers will ensure that you manage your workplace change effectively.
VECCI’s team of Industrial Relations - Workplace Relations consultants can assist employers with the review, drafting and offering of common law contracts. VECCI’s consultants will ensure common law contracts are enforceable and legitimate, thereby reducing exposure to future claims. Speak to one of our Workplace Relations Consultants for advice on how we can tailor our services to suit your needs today on 03 8662 5333.
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Case Study
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A new member contacted VECCI for restructuring advice. For the first time in their lives, their business was shrinking due to outside influences and it was becoming increasingly clear that they would soon struggle to make payroll.
A new member contacted VECCI for restructuring advice. For the first time in their lives, their business was shrinking due to outside influences and it was becoming increasingly clear that they would soon struggle to make payroll.
The member ran a small business and said that they considered their employees to effectively be family, but could no longer afford to keep them all on. After extensive consultation with a VECCI workplace relations consultant, the employer was able to take a restructuring plan to his staff in which they would all be able to keep their jobs in return for working reduced hours. A year later, the same VECCI consultant was engaged by the employer to renegotiate a restructure in which all the employees on reduced hours were offered full time contracts with overtime conditions.
- For more information on these questions and any others relating to employment contact VECCI on 03 8662 5333. |
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Frequently Asked Questions
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What is the process for making employees redundant?
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How much do I have to pay redundant employees?
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Is severance pay applicable?
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Do I have to pay redundancy if I can find employees other jobs?
- For more information on these questions and any others relating to employment contact VECCI on 03 8662 5333. |
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VECCI members have access to hundreds of documents including Frequently Asked Questions which are available under Tools & Templates.