The legalities and rules around redundancy and what lawyers recommend

When planning redundancies employment lawyers are vital. I can provide outplacement services but I always listen to lawyers, such as Margaret Kaukas, when it comes to the legalities. 

In this week’s AHRI Redundancy and Redeployment webinar it was reinforced that consultation, two-way communication and career transition support are the keys to success. It’s inspired me to write this blog as a reminder of the keys to successful, legal redundancy.

Do I have to consult with people on parental leave when their role is being made redundant?

Did you know people on parental leave MUST receive consultation by law about changes (such as redundancy) to their role? Consultation is a key part of redundancy. Its best practice to consider what alternatives there could be such as re-deployment. 

What three documents must I read before I take redundancy action?

There are 3 key pieces of paper you must read – industrial instruments (laws); the awards that apply to your employees; and employment contracts.

These may all specify what type of consultation is required prior to making redundancies – and it must be genuine consultation. 

Redeployment

You will also need to investigate what other possible employment opportunities there may be in your organisation and all associated entities (within and outside of Australia).

If we find possible re-deployment opportunities, can I ask people to apply for these other roles in my organisation and associated organisations?

Did you know that asking redeployees to go through a competitive selection process to apply for a role may not be legal (unless the others are also redeployees)?

What do lawyers recommend?

The best lawyers recommend employers engage a career transition or outplacement service – this also helps support the individuals directly impacted, the managers and helps you avoid survivor syndrome (where those who are remaining then voluntarily resign or become discouraged by their perception of the culture and what was “done to” their colleagues).

Communication Channels

One key learning for some employers is to match the channel of their communication to the channels that employees use – apps and online systems are not often the best means of communicating with hands on staff such as those in nursing or on a factory floor.

Do I have to tell Centrelink?

Remember, if you are an organisation, retrenching over 15 employees, you must give written notification to Centrelink of the proposed dismissals as soon as possible and before an employee is made redundant.

Key learnings and messages:

  1. The most successful employers go over and above what they are legally obliged to do and offer
  2. Employee engagement is likely to drop after redundancies so focus on managing that
  3. Survivor syndrome can be avoided if employers show the people in the roles being made redundant have been well treated and very well supported. Tailored face to face career transition services that care are a key part of this.

For an overview of Bridget’s outplacement services or to book career transition / outplacement help call 0477 016966 or email bridget@developmentatwork.com.au

Authored by Bridget Hogg of Outplacement Adelaide, a brand of Development at Work Australia. Bridget is an experienced outplacement consultant who has helped hundreds of people to take their next step. Many retrenched workers that Bridget has helped have spontaneously told her during the outplacement process “this is the best thing that’s happened to me” – it just takes time and effective psychological support. Bridget holds full membership of both the Australian Human Resources Institute (CAHRI) and the Career Development Association of Australia. She won the Career Development Association of Australian award for excellence (SA) in 2020 and was nominated by the CDAA for national award in 2022. Bridget has researched the effectiveness of her service and knows that it helps people to improve their mental health and wellbeing and find their next step

Bridget offers face to face flexible, responsive outplacement services around the Adelaide area. 

Bridget’s services are positive psychology based. She uses her psychology degrees and NLP training to help retrenched workers manage their emotional state during the outplacement process. To see who are past clients are and to see testimonials from past clients go to www.outplacementadelaide.com.au

For more useful free information contact the Fair Work Ombudsman and see their redundancy information and proforma letter on their website: https://www.fairwork.gov.au/ending-employment/redundancy

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