Managing employee redundancy can be one of the most unpleasant and stressful tasks an employer has to perform. As well as having to meet Industrial Relations requirements, you are ending another person’s employment and possibly causing them financial strain, when it is in no way the employee’s fault.
A redundant employee has various legal entitlements. These may include notice periods (or pay in lieu of notice), severance pay, and a provision of a reference or certificate of service. You need to study the employee’s award, agreement or employment contract to identify any entitlements that may apply in addition to the basic legal ones.
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This document covers the key issues to consider when making an employee redundant. It covers topics including:
- Alternative options
- Remaining objective
- Problems that may arise
- A redundancy implementation checklist.