A recent Court of Appeal ruling provides another warning to employers to put everything in writing, including termination pay and entitlements.
Redundancy and termination pay can be a difficult area. The Fair Work Ombudsman provides a redundancy pay calculator to help. Click here for a link to the redundancy pay calculator and to other useful sources of information.
Accurate records, checking of “estimates” and keeping minutes of meetings are all absolutely necessary to avoid disagreements and unfavourable court rulings when calculating termination payments.
In this latest case an employer was ordered by the Victorian Court of appeal to pay over $470,000 more than they thought they had agreed. The Court agreed with the employee – there had been a verbal agreement for a redundancy payment and a retention bonus.
The lesson is clear – put everything in writing and check everything before it is provided to an employee.
Need more advice and help?
Employers can get free information about things to consider when planning and managing redundancy at a free information session for employers in Adelaide on 29th March 2017. Speakers include Kris Hanna, a respected employment lawyer, Kerry-Anne Jenkins, industrial relations specialist, and Bridget Hogg, outplacement specialist. Employers and HR staff can book a free place here.
Check out the other sections of the Outplacement Adelaide website to find out more about good practice when it comes to organising redundancy and outplacement services in Adelaide:
If you would like the contact details of someone who can help you, call 8322 8455.