Q&A with LHD Lawyers - Staff Redundancy

AFTA @ Work - January Newsletter

• Q) I am the owner of a travel retail business. Due to a decline in work, I have determined that I will need to make one of my staff members redundant. How do I work out how much redundancy pay I owe the employee? Tania-Coffs Harbour

A: Redundancy pay is provided for in the National Employment Standards. The amount payable depends on the length of the employee’s continuous service with your business. Clause 119 of the National Employment Standards sets out the redundancy pay period for each particular length of service.

There are certain circumstances where you are not required to pay redundancy pay. First, you are not obligated to pay redundancy pay where the employee’s period of continuous service with your business is less than twelve months. Second, you are also not obligated to pay redundancy pay if you are a small business. A small business is a business with less than fifteen employees.

You must ensure that the redundancy is a genuine redundancy. This means that the particular employee’s job is not going to be filled by another person, and also that you were not able to provide the employee with another job. By ensuring the redundancy is genuine, you will protect yourself from an unfair dismissal claim.

For more information please contact:

Kayt Hogan
LHD Lawyers
Solicitor

Suite 1, Level 3,
130 Elizabeth Street
Sydney NSW 2000
                                Tel: 9264-6644   Website: www.lhd.com.au/

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