Redundancy and Termination
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Redundancy and Termination

Contrary to popular belief, employment law legislation changes have not completely removed all public rights.

Constant legislative change has created tremendous confusion in the mind of the public.  Many people believe they have lost many of their pre-existing rights which is not correct. There are a number of alternative remedies which are still available which are far more valuable than those prescribed by legislation. One area of confusion is how employees redundancy entitlements operate. The simple answer is that entitlements for either redundancy or termination remain intact but at all times they must be genuine. 
 

Although at common law there is no general right to severance it has been enshrined in industrial law for a long period of time.  Currently an employee's entitlements in this area are dependant upon a number of factors.  Essentially an employee's entitlement to redundancy pay needs to be traced back to a redundancy provision applicable to that person.  If there is none then there is no entitlement to redundancy or severance.  Where redundancy is not provided for under an industrial instrument the employee has no statutory right to severance pay when redundant unless provided for in the employee's contract of employment. 

The new changes deal with the entitlements of employees involved in small businesses.  That is, businesses with less than 15 employees rather than the former category of under 100. As for everybody else redundancy pay becomes available on termination where an employer has 15 or more employees and an employee is terminated for operational reasons or the employer becomes insolvent.


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