You have a right to continued employment if you are employed on a permanent basis, and you are meeting your job specification and KPIs. If you are terminated for anything other than poor performance or other due cause, then chances are you have a good claim for unfair dismissal.
However, there is one scenario in which your employer can terminate your employment, even if everything else is going well from your perspective. That is, if you are made genuinely redundant.
What is genuine redundancy?
If your employer no longer requires the job you are doing to be performed, then you are genuinely redundant from and employment law perspective. ‘You’ are not redundant. Your ‘job’, ‘role’ or ‘position’ is redundant. This means that after your employment ends your employer won’t be replacing you. Your job will either cease to be done, or will be done as part of someone else’s existing role.
When does redundancy arise?
Redundancy can arise for several reasons. The most common are:
- Changes in technology – resulting in your job no longer needing to be done by anyone;
- Mergers and consolidations – which arise because two businesses (or two units) are merged into one, and you were one of two or more people doing the same thing; and
- Changes in the business fortunes of the firm you work for, i.e. a downturn in work.
What can your employer do?
It’s not just a simple matter of your employer pulling the plug and letting your go. They have an obligation to consult with you about your impending redundancy, and to see if you can be ‘redeployed’ to another role. Your termination may be unfair or unlawful if your employer fails to follow this process.
What happens if you are genuinely redundant?
If there is nothing that can be done, and you are genuinely redundant, then your employer is required to give you the appropriate notice of termination under your contract and award, and pay out all of your accrued entitlements.
Your employer may also be required to give you redundancy pay. The amount of this pay will depend on a number of things, including your period of service, the terms of your employment contract, your award, and potentially the terms of any applicable enterprise agreement.
But note that small business employers are not required to pay redundancy pay.
What should you do?
If you have been approached about redundancy, or you believe it could be in the wings, then call us on (02) 9199 8597 for a no-obligation and confidential chat with one of our lawyers. We will ensure that interests are properly protected.