Effective from July 2020

Approved by: Chief Executive Officer

At a Glance

It is understood that it is important to provide for the job security of employees. There may be instances however when, for example, a position held by an employee is no longer required or ceases to exist, and so the position is declared redundant. In some cases that may result in the employment of the employee being terminated.

Scope

All permanent employees within Five Good Friends. It is the responsibility of Directors and Managers to maintain this policy.

Objective

To ensure a clear approach to employee redundancy within Five Good Friends.

Definitions

• Redundancy – Redundancy occurs when an employee’s job in a business is no longer required to be performed by anyone and their employment is terminated.
• National Employment Standards (NES) – Are set out in the Fair Work Act and from 1 January 2010, company’s and employees in the national workplace system became covered by the National Employment Standards (NES). Under the NES, employees have certain minimum conditions.
• Prescribed Minimum Notice Period – Is the notice period set out in the table below relevant to the employee’s period of continuous service with the employer on the employee’s termination date, or such greater period of notice as may be prescribed in the NES or an applicable award or Collective/Enterprise Agreement.

Policy Statement

• Where an Award or Enterprise Agreement applies, the Award or Enterprise Agreement shall have precedence, as long as its redundancy provision is greater than those as outlined within NES. If not NES will apply.
• Redundancy is a traumatic event for an employee. Therefore, it is important that discretion, tact and empathy are used by management in dealings with employees who may be made redundant.
• Redundancy should not be used as a replacement for performance management or the disciplinary process.
• In the event that redundancy is to be carried out:
  • The Chief Executive Officer or the Chief Operating Officer must formally approve all proposed redundancies prior to the consultation process.
  • Redundancy letters are to be signed by the Chief Executive Officer. The Chief Operating Officer will sign the letter in any absence of the CEO.
  • Payment authorisations are to be made by the Chief Operating Officer.
  • The Senior Manager of the Department should ensure that the situation has been discussed or addressed with the employee involved.
  • A period of consultation should be provided to the employee for the employee to review the redundancy circumstances, ask relevant questions and explore other opportunities which may be available within the organisation.
  • Award or Agreement consultation requirements should be reviewed and complied with; the consultation period should generally be at a minimum one day prior to the termination being affected.
  • The Department Manager should make themselves available to counsel the employee and assist him/her through the process.
  • Management should communicate clearly down the line post the redundancy the intention and purpose of the redundancy in order to dispel concerns that the remaining employees may have (where applicable).