Under the fair work act 2009, a dismissal will not be regarded as relevantly unfair if, inter alia, the dismissal was a case of genuine redundancy sec 385. Only where an employee unreasonably refuses an offer of suitable alternative employment will redundancy pay be withheld. In an age where employers are becoming increasingly costfocussed in the face of economic stagnation and narrowing profit margins, employees are often made redundant in an attempt to save on wage costs. Redundancy entitlements redundancy lawyers maurice blackburn.
You may lose your right to statutory redundancy pay if you unreasonably turn down suitable alternative employment. Redeployment and redundancy procedures employment instruction number 14 ei no 14 redeployment and redundancy procedures page 1 1. For more information on redundancies and redeployment, check out the redundancy and retrenchment chapter in your employment law practical handbook. There is a crucial court of appeal pending from the readman v devon primary care case. A recent employment court case has shed some light on an employers duty to redeploy an employee to a vacant role as an alternative to making him or her redundant. A demotion or a change in employment conditions that are substantially less favourable to an employee will amount to a breach of the employment contract, and would therefore be a genuine redundancy. Redeployment and redundancy public sector commission.
Finally, the more important aspect in the termination of employment is the payment employees separation pay equivalent to at least one 1 month pay or to at least one 1 month pay for every year of service, whichever is higher. However, in order to minimise any exposure to allegations that the redundancy is not genuine and amounts to unfair dismissal, the possibility of redeployment should not be ignored. While the university has the right to move staff from one position to another whether within the area or to another area of the university for fair and reasonable operational. Redeploymenta restructuring strategy in which at least some employees are offered. Redundancy law the definitive uk legal guide being. You can find more information on redundancy and the law in the labour. Redeployment opportunities are an alternative to termination. Education policy model redeployment and redundancy. Do i have to accept a redundancy if the redeployment options offered are not suitable. The question of whether redeployment is reasonable depends on a range of circumstances. Your obligations employers are exempt from the unfair dismissal jurisdiction if the termination of that employee was a genuine redundancy.
It should only happen after all redeployment options have been exhausted. In cases of redundancy, where you are able to make genuine offers for redeployment, you should. Intent organisational scope definitions guidelines content accountabilities and. The essential hr desk reference, the allinone, easytoread guide every hr pro should have handy. The fair work commission has confirmed that an employers obligation to offer redeployment opportunities to employees does not necessarily extend to similar roles performed for the business by contractors. By hayley johnson on 21 may 2012 in employment law. Must an employer offer redeployment to employees who would. It is important to note that there is a distinction between alternative employment, typically where a job is very. Redundancy and redeployment what are your obligations.
It is important to plan for redundancy in order to maintain an. Here we provide resources and information on termination of employment, voluntary. A persons dismissal will not be a case of genuine redundancy if it would have been reasonable. This will not affect your employment rights, including your right to statutory redundancy pay. You must be selected for redundancy in a fair way, for example because of your level of experience or capability to do the job. If your employer is considering making you redundant, then by law they are required to look at their business and see if there are opportunities for redeployment. Redundancy occurs if an employees role within an organisation is no longer considered necessary for the ongoing operation of the business and the employer may terminate the employees employment. It was updated on 23 october 2015 by ashok kanani, employment law.
If there are other positions available in the business that you would be capable of doing, then they should bring it to your attention as opposed to making you redundant. Redundancy law in the uk the definitive uk legal guide from unlock the law s employment lawyers. Enter nolos latest quick reference guide, employment law. James, partner and head of employment at sa law, takes a closer look. Education policy model redeployment and redundancy 2. Public sector management redeployment and redundancy regulations 2014 the regulations. How much redundancy pay and notice an employee should get, consultation, checking your redundancy is fair and when to appeal. If your job is no longer required to be performed by anyone, then your position has become redundant. Redundancy entitlements redundancy laws employment law online. The employer failed to properly explore redeployment options as suitable vacancies existed at the time of dismissal. Such employees are barred from bringing an unfair dismissal claim under the fair work act 2009 in cases of genuine redundancy. In order to be genuine, the employees termination must have met the following criteria.
Workforce planning is essential for avoiding the situation of redundancy where the position of employment of an employee is or will become surplus to the requirements of the business of employer davey, fearon and mclaughlin 20. If the employer is not meeting their duties on redeployment, you may have. How to implement a redundancy program in the work place law. Failure to offer redeployment to redundant employees can attract legal exposure for employers. Redeployment enables the organisation to retain skills and to create a flexible workforce. Redundancy and redeployment policy and procedure version 2. You only need this step if your employee asks for a meeting to discuss the restructure and redundancy. May 23, 2016 working out of seattle and beijing, grace is harris brickens lead attorney on china labor and employment law matters and the author of a book, the china employment law guide. The redeployment obligation requires an employer to actually transfer the employee rather than simply assist the employee to find an alternative position. This article was originally published on 21 may 2012. Our termination of employment letter redundancy template docx 48.
Under the employment relations act 2000, it is part of an employers good faith obligation that when they are proposing to make a decision that will or is likely to have an adverse effect on the continuation of employment for 1 or more employees, the employer must provide the affected employees access to information relevant to the. Further details regarding redeployment are outlined in point 17. Redeployment unfair dismissals benchbook fair work commission. If the employer is not meeting their duties on redeployment, you may have been unfairly dismissed. Secondly, if the employee refuses the offer of redeployment is she entitled to redundancy pay. Redundancy and redeployment finding an alternative role. Public sector executive mayjune 12 in the marchapril edition of pse, we covered the cipds report into trust at public and private sector organisations, and the high praise it gave to the way sunderland city council has handled budget cuts without resorting to redundancies. Employees lose their right to statutory redundancy pay if they unreasonably. It was concluded that it was not a genuine redundancy. Sep 04, 2017 we have a number of questions relating to this situation. An unfair dismissal application cannot be made if the dismissal was a case of genuine redundancy.
Employment law is very strict in regards to what employers can and cannot do regarding redeployment and redundancy. Redeploy employees outplacement career consultants. Manage staff redundancies how to make a redundancy plan, consult your employees, select employees fairly and what notice and pay you must give. Asking surplus staff to relocate abroad or at the other end of the country is unlikely to be deemed a reasonable offer of redeployment. If your employment agreement or policies includes voluntary redundancy, then make sure this is offered as appropriate. Guidelines redundancy and redeployment for professional. The question as to whether an employee is required to accept a redundancy is dependent on whether the redundancy is genuine. All information contained in this document is correct at time of publication but all links to external government websites should be checked regularly as official advice is likely to be updated as the situation continues to develop. Many employees who are made redundant feel powerless to contest this decision and are often forced to consider unsuitable options for redeployment or face unemployment. Am i entitled to redundancy pay if my employer provides me.
In many cases the selection process will be set out in the relevant employment agreements and workplace policies. An eligible nbn employee as above, this does not include employees engaged on a casual or fixed term basis, unless otherwise specified by law will be paid redundancy pay if the employees employment is terminated. Does an employer have to redeploy a redundant employee. In addition to the provisions in the legislation as regards collective redundancies your employer must follow certain fair procedures. If you are made redundant, you are entitled to a redundancy payment that is proportionate to the length of your employment, ranging from 4 weeks to 12 weeks of pay. Employees may not suffer any professional detriment or dismissal while they are absent. Davidsonmorris experienced hr consultants and employment law specialists offer guidance and support to employers in relation to staff redeployment rights and redundancy processes. Firstly, should the company offer this role as a redeployment despite the less beneficial employment conditions associated with the position. Council njc agreement, the green book, the scottish joint council sjc or the. It happens when employers need to reduce their workforce.
Employee denied entitlements after refusing redeployment. If youre being made redundant, you might be eligible for certain things, including. The court of appeal decision is likely to impact of redundancy. This redeployment obligation is important for employers in order to avoid a redundancy being found to be an unfair dismissal. In many instances, redeployment will not be an available option. Saying this for some employees redundancy can be a very attractive option.
What are the redeployment obligations of employers. Covid19 employment law faqs these faqs refer to the situation in england and wales only. The process of redundancy, and payment of redundancy compensation where this applies, are a last option. The commissioner found great difficulty in accepting that there could be any real consideration of options for redeployment in circumstances where there has been no consultation or discussion with the employee concerned before the decision to terminate the employees employment was made. What hr needs to know about redeployment during redundancies. Redundancy and redeployment more info call 7779 page 4 of 12 rights and responsibilities as with most employment matters there are rights and responsibilities. Appendix three redundancy and redeployment policy 6 the head of service will also inform employees that they are being placed on the redeployment register from the date of the meeting and that the period of redeployment will run concurrently with their respective notice periods. A redundancy occurs only when an employee is dismissed and the reason for their dismissal is that their job is no longer available at the place where they work because the factory that employs them was closed, for example or where their employer no longer requires the same number of employees to do what the employee does because of a fall in demand for the. These include giving you at least 2 weeks notice and paying your redundancy payment on the date of dismissal. In a redundancy situation, an employer is obliged to consider suitable alternative employment for the employees who are facing redundancy. The redeployment list and the redeployment process an incumbent on the redeployment list is defined as a likely candidate for a vacant post if the vacant post is in the same payclass as the incumbent, or is one or two payclasses above andor below the payclass of the incumbent. Redundancy clause external link employment agreement builder.
An overview of redundancy, with links to more detailed information. You also have specific rights if your employer is insolvent. It is conceivable that an employee may reject an offer of redeployment and the termination is still effected by the employer. What does redeployment mean in the context of redundancy and suitable alternative employment.
References when making redeployment and redundancy employment decisions and exercising employment. Modification order 1983, an employee who takes up employment with another organisation covered by the order in any capacity within four weeks of the termination of their employment with dcc will be required to repay the redundancy payment in full. Employment law is very strict in regards to what employers can and cannot do regarding redeployment and. Redundancy and redeployment requirements the australian. Emplex, based in datchet, berkshire, provides employment law advice to local businesses and private clients at competitive rates. It is relatively common for an employer to have redeployment opportunities arising from a restructure. Guidelines redundancy and redeployment for professional employees guidelines to be used in conjunction with redundancy and redeployment policy guideline owner. Redeployment to another job may be undertaken in order to avoid dismissal due to redundancy. Redundancy and redeployment university of auckland. Redundancy and redeployment guide for australian employers. The fair work act 2010 the act contains the national employment standards nes which outline certain minimum entitlements of employment payable to most employees in australia with some minor exceptions. Acas can will guide you through a number of topics and developments, ensuring that you are kept up to date and have some useful employment law advice. Observations on redeployment were made even more recently in a nonbinding.
It was held that the dismissal was not a genuine redundancy. This is how to implement a redundancy program in the work place. It is important for employers to take legal advice at the time. Aug 05, 2014 the fair work commission has confirmed that an employers obligation to offer redeployment opportunities to employees does not necessarily extend to similar roles performed for the business by contractors. In hp industries nz ltd v davidson the employment court held that even though there was a genuine redundancy situation the employer hp was in breach of its good faith obligations under the employment relations act 2000 the act. The court of appeal decision is likely to impact of redundancy legislation, so vanessa james, partner and head of employment at sa law, takes a closer look. Guidelines redundancy and redeployment for academic employees. Employment law unfair dismissal unfair dismissal lawyers constructive. The factors taken into account about the reasonableness and suitability of any proposed redeployment, or offer of employment with another employer in relation to a redundancy, are those also considered by the fwc when determining whether the offer of.
This article discusses what redeployment is and what you and your employer should be doing during the redeployment period. United kingdom labour law regulates the relations between workers, employers and trade. Some workers may have further entitlements negotiated in an individual employment contract, an award or a collective agreement but in this blog, the information is in. If an employee elects not to accept a redeployment opportunity then the employee would have their employment terminated due to redundancy and would therefore be entitled to redundancy pay.
Looking at the future surplus of human resources the organisations have to prepare action plan for redeployment, redundancy and retrenchment. Departmental reshuffles and changes in job duties are often used to improve the efficiency of teams and these may lead to reductions in headcount. Under subsec 389 2 a persons dismissal is not capable of being a case of genuine redundancy if it would have been reasonable in all th. This is likely to occur as a result of redundancy, but that is not always the case. However, employers must still be able to justify such a. This often occurs with the introduction of new technology into a workplace, business operations slowing down due to lower sales, business closing down, or workplace relocation interstate or overseas or if there has been a restructure or reorganisation because a merger or takeover happens. Redundancy and redeployment what is a suitable alternative role. A redundancy occurs when an employer no longer requires a job to be performed by an employee. Redeployment refers to the transferring of an employee from one job to a broadly comparable job to ensure continuity of employment. Redundancy is a complex area of law and it is important to obtain independent legal advice to ensure the legality of the redundancy itself and to safeguard your redundancy entitlements, pay and rights. How is tax calculated and what are your entitlements. Youll lose your right to claim statutory redundancy pay if you do not give notice within the 4. Employers are well aware that they are under an obligation to search their organisations for alternative employment for employees in a redundancy situation. Scope and application this ci applies to all employing authorities and employees under the psma.
Redundancy and redeployment employment law support since 1995. Redundancy payments are in addition to payments for notice, accrued annual leave and accrued long service leave. Redundancy and redeployment procedure academic staff. This is essentially considering whether any of those employees could be redeployed elsewhere in the organisation. Jul 30, 2016 we revisit below what is a genuine redundancy as well as explain what an employers redeployment obligations are. Our team of highly qualified lawyers specialise in all aspects of employment law issues including. May 29, 20 there is a crucial court of appeal pending from the readman v devon primary care case. The law sets out various entitlements for employees following redundancy. Employment law a to z in one easytouse desk reference if youre a human resources professional, its important that you have quick access to the information you need to do your job. Employers should be in a position to substantiate why, in a redundancy situation, they did not offer options for continuing employment in alternative roles. Redundancy law the definitive uk legal guide being made. However, difficult issues can arise in practice where the employee at risk of redundancy suffers from a disability which might disadvantage them during the redeployment selection process. Hayley johnson is a senior solicitor in the employment team of law firm brodies llp. Resolution123 makes resolving your employment law problem as easy as 123.
She is a native beijinger who has studied and lived in the united states for many years. Regards, charles power editorinchief employment law practical handbook. If possible, employers should attempt to redeploy redundant staff within their firm. But, as the reader will see from the cases below, this has not happened in the area of redundancy and redeployment. If, at the end of the trial period, the post is considered unsuitable, the employee would then be in a redundancy situation and, therefore, entitled to a redundancy payment if no other alternative employment is available. Redundancy, restructure and redeployment nb lawyers. Employees who accept an offer of redeployment will be allowed a. If a business is considering redundancy of 15 or more staff, employers must give written notification to the department of human services of the proposed dismissals. To end an employment relationship notice must be given by one party the employee or employer to the other party. Job offers, redeployment and redundancy pay redundancy. Any federal and state laws discussed in this book are subject to frequent revision.
Read this article to learn about measures and plan in planning for redeployment, redundancy and retrenchment. Redundancy can come as a significant shockone which leaves many people feeling uncertain and vulnerable. It was found that the redeployment of the employee could have been accommodated at the time of dismissal. Under the terms of the redundancy payments continuity of employment in local government etc. This article is not a substitute for legal advice and you should talk to a lawyer about your specific situation. The fair work act 2009 cth is prescriptive at some level. Even if there is no detailed process, there may be some guidance and employers must use this. Redundancy and an employers redeployment obligations. We have extensive experience in helping employers identify and manage the legal risks, providing advice that protects your best interests while supporting the. Redundancy entitlements redundancy laws employment law.
It had rushed its consultation process, had not provide timely and relevant information about alternatives to. Model redundancy and redeployment policy denbighshire county. Covid19 employment law faqs local government association. Lump sum payments in compensation for loss of employment are subject to tax. There are also various procedures when selecting people for redundancy, alternative work and time off. Issues do arise in relation to redeployment where an employee may. Employment downsizing has become a fact of working life as companies struggle to cut costs and. For all the latest employment law uk information please visit the acas website and see when the changes will take effect. This is often due to changes in the organisational structure and operational requirements of the workplace.
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