What is the purpose of this policy?

This policy is designed to meet minimum legislative requirements set out by the Fair Work Act 2009 (Cth) (Fair Work Act) surrounding redundancy.

The purpose of the policy is to provide employees with details regarding when redundancy may occur and their entitlements if it does. It also sets out what the employer is required to do in the event of redundancy.

Who can use this policy?

Any National System Employer can use this policy.

Some National System Employers may have separate and sometimes distinct redundancy obligations, and as such should always ensure they check the particular Modern Award that applies to its employees, or where an enterprise agreement applies, that should be given primary precedence in respect of any redundancy provisions.

Employers operating under the following Modern Awards should consider the special redundancy provisions applying to relevant employees:

• Black Coal Mining Award 2020: This award includes a redundancy scheme that provides higher redundancy payments than the National Employment Standards (NES).
• Mobile Crane Hire Award 2020: This award also has a redundancy scheme with potentially higher entitlements than the NES.
• Building and Construction Award: This award has its own industry-specific redundancy scheme.
• Plumbing Award: This award may also include an industry-specific redundancy scheme.
• Dredging Award: Similar to the above, this award may have its own redundancy provisions.

Who is covered by this Grievance Policy?

This Policy applies to employees who are:

• permanent full-time
• permanent part-time; and
• fixed-term employees (where their employment is terminated due to redundancy, prior to the end of the fixed term of their contract term).

This Policy does not apply to casual employees as casual employees are not entitled to redundancy pay (section 121(1)(a) of the Fair Work Act 2009) and/or notice of termination of employment (section 117(4) of the Fair Work Act 2009) under the National Employment Standards.

Considerations for employers

As this policy has been drafted to meet minimum legislative requirements, care should be taken when making changes to the policy, particularly changes which restrict the entitlements of employees, as these changes may not be compliant with the Fair Work Act.

Some employers’ workforces may be covered by modern awards or enterprise agreements which provide a more generous redundancy entitlement than the Fair Work Act. Employers should check any applicable modern award / enterprise agreement before implementing this policy.

Does this policy require consultation with employees prior to adoption?

In Australia, some workplace policies require consultation with employees before they can be implemented by a company. This requirement is set out in legislation, awards, and enterprise agreements.

This policy may not require consultation with employees before it is implemented, but a company should consult with their employees before implementing any new or amended workplace policy as a matter of best practice, even when they are not legally required to do so.

This is a general statement. Always refer to the modern award(s) or enterprise agreement relevant to the company’s employees to determine if the company needs to consult with its employees before implementing this policy.