What is Redundancy?
Redundancy occurs when an employer decides that
that the job an employee has been doing is no longer needed. This decision is based on circumstances other than the ordinary and customary turnover of labour and include:
- New technology or a new system has made your job unnecessary.
- The job you were hired for no longer exists.
- The need to cut costs means staff numbers must be reduced.
- The business is closing down or moving.
What are my entitlements?
If you are made redundant there are minimum provisions you must receive, depending on the employment agreement you are under.
Some industries such as building services, or building and construction, may require an employer to pay money into a specific fund for future redundancy payments. These requirements are usually set out in the employment agreement.
When you are made redundant you may be entitled to a payout.
The usual scale of redundancy payout's is:
- less than one year, nothing
- one year, four weeks
- two years, six weeks
- three years, seven weeks
- four years, eight weeks
- five years, 10 weeks
- six years, 11 weeks
- seven years, 13 weeks
- eight years, 14 weeks
- nine years, 16 weeks
- 10 years and over, 12 weeks
The rationale for the reduction in severance pay after 10 year's service is to take into account employees' entitlement to long service leave.
Am I able to seek compensation if I have been made redundant?
In some cases you may be eligible to file an unfair dismissal claim. If you believe that your position was not genuinely redundant. However you do need to be covered by unfair dismissal legislation. Please see our page on unfair dismissal or contact us for more information. In some circumstances your redundancy may constitute unlawful dismissal. This occurs when the reason that your employment has been terminated includes a prohibited reason such as age, sex, race, sexual preference, marital status, disability or illness or injury.
|
