Redundancy - Trade Out
Workers arrive for work on a Friday morning at the gates to find the factory is shut and an employer representative is handing out redundancy notices.
Why a Friday?
The employer has found a reason to change the business strategy or forced to cut production and a number of jobs have had to be cut. Current practice will find employees are given short notice of redundancy despite the fact the employer has known of the redundancy option for some time. Redundancy is common in the workforce. Employers should now be trading employees over to another company where the skills set of the worker is compatible and avoid redundancy payments. The worker can be given an option to work in another company given the position on offer and the individual’s circumstances. Did you know- Redundancy pay does not have to be paid if the employer can find work that is similar and reasonable within the enterprise, according to the Fair Work Australia Act, sec 122?