IN BRIEF
There is increasingly an expectation amongst employees that they
will be paid a lump sum – over and above pay in lieu of
notice and any leave entitlements – when their role in the
company has been terminated (other than for issues of
misconduct).
In the past, this right was limited to award employees or those
under various company schemes, but with the introduction of the
Fair Work Act in 2010, the payment of redundancy became a universal
right in such circumstances.
In previous articles, I have discussed when a redundancy arises.
It arises where the job the person was doing no longer needs to be
done. This usually is because it is either outsourced or staff
numbers are cut and the duties involved in that role are shared
equally amongst other staff. It may just be that the company ceases
to make that line of product or provide that service. A final
situation may be that a business unit is sold.
