Recent research has found that almost a third of employers intended to make staff redundancies.
Australian HR Institute’s quarterly Australian Work Outlook survey indicated that redundancy intentions have risen sharply to 31% in the December 2023 quarter, up from 17% in the September 2023 quarter.
In correlation with this research, our consultants at Allan Hall HR have recently been experiencing daily calls from clients requesting support and advice on employee redundancies.
If you are one of these employers considering redundancies in your business, we have outlined below the key components for you to consider. We also highly encourage you to seek professional guidance to help navigate a smooth and legally compliant redundancy process.
Regardless of whether your employees are award covered or not, redundancy terminations are highly complex, and the specific circumstances of each case must always be considered. There are several rules that apply and steps you should take when managing a redundancy to ensure compliance and reduce your risk of receiving a claim (such as an unfair dismissal claim).
Redundancy Considerations
If you are planning to make an employee redundant, it is important for you to ensure that:
- You have taken steps to ensure you no longer require the person’s role to be performed by anyone
- All reasonable attempts have been made to find suitable alternative employment within the business for the employee
- You have considered and complied with any applicable modern award obligations
- You have undergone a consultation process which is best practice and a requirement under some awards
- You have prepared for, documented and communicated the redundancy process thoroughly
- You pay the employee correctly according to their redundancy entitlements under the National Employment Standards, calculated with reference to their period of continuous service
Allan Hall HR’s Redundancy and Advice Package
At Allan Hall HR we have developed a Redundancy and Advice package which provides employers with an assortment of tools and resources to assist with undertaking a legally compliant redundancy process. The pack includes:
- Letter of Notice to the Employee (regarding proposed workplace changes and an invitation to a consulting meeting)
- Guidance on Consultation Steps and Meeting Discussion Points
- Redundancy Checklist and Consultation Record
- Communication Strategies
- Termination Letter due to Genuine Redundancy.
If you wish to purchase our Redundancy and Advice Package, please click here. We are also able to manage all or part of the redundancy process for you, according to your preference.
Need Assistance?
Before you consider terminating an employee on the basis of redundancy, we encourage you to call us on 1300 675 393 or contact us here. To learn more about our HR services, please click here.