Redundancy

Redundancy occurs when the work performed by an employee is no longer required to be done by anyone.

 

This can happen because:

  • the job is replaced by technology
  • the business is restructured and the job no longer exists
  • the business can no longer afford to retain the employee due to economic circumstances.

Most awards require employers to consult with their employees or their representatives if the redundancies are going to occur as a result of the workplace being restructured.

 

Suggestions put forward by employees to discuss the changes and ways to avoid redundancy, such as re-training (for a different job within the organisation) or re-deployment (changing job roles) should be considered by the employer.

 

Termination or severance pay

 

If you are made redundant your employer should pay you any outstanding entitlements.

 

Except in special cases, an employee cannot be legally 'stood-down' without pay and special termination provisions.

 

Your termination must include accrued leave and pay for any time already worked.

 

In relation to redundancy, severance pay may also be included. This is a sliding scale, based on how many years you have worked for your employer.

 

Contact the OIR on 131 628 for more information if you position is being made redundant.