Tag archives: redundancy pay

New law to ensure furloughed employees receive full redundancy payments

The UK Government has published legislation, which will ensure that all furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (the Regulations) ensure that various statutory entitlements based on a week’s pay and connected with the termination of employment are not reduced as a result of an employee being furloughed under the Coronavirus Job Retention Scheme. The entitlements included in the Regulations are:

  • redundancy pay for those with more than 2 years’ continuous service who are made redundant and
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Obtaining alternative employment and redundancy pay: Does the offer meet the test of acceptability?

If an employee is entitled to redundancy pay on termination, but their employer has obtained other acceptable employment for them, the employer can apply to the Fair Work Commission (FWC) for an order under the Fair Work Act 2009 (Cth) (FW Act) to reduce (including to nil) the amount of redundancy pay that is due to the employee.

The employer is required to demonstrate that:

  • it “obtained” the alternative employment for employees; and
  • the alternative employment was “acceptable”.

In the recent decision of Sodexo Australia Pty Ltd T/A Sodexo [2016] FWC 4012, Deputy President Sams of … Continue Reading

Do you need to pay redundancy when you lose a client contract?

Section 119(1)(a) of the Fair Work Act 2009 (Cth) states that an employee is entitled to be paid redundancy pay by the employer  if the employment is terminated at the employer’s initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour (the Exception).

The Exception was most recently considered by a Full Bench of the Fair Work Commission in December 2015 in Compass Group (Australia) Pty Ltd v National Union of Workers and another [2015] FWCFB8040 (CompassContinue Reading

Entitlements to redundancy pay for employees who consent to an internal transfer upon redundancy of their position

A recent decision of Judge Cameron of the Federal Circuit Court (the Court), in the matter of Fair Work Ombudsman v F.L. Press Pty Ltd & Anor[1] (FL Press), has highlighted a potential discrepancy between the approach of the Court and that of the Fair Work Commission (FWC) to redundancy pay entitlements under the National Employment Standards (NES) where an employee’s position becomes redundant and the employee consents to a transfer to a different position with the same employer.… Continue Reading

Full Bench rules on the meaning of “redundancy” in an enterprise agreement

Employers may have granted entitlements to redundancy pay through enterprise agreements in wider situations than provided by the National Employment Standards (NES). The Full Bench of the Fair Work Commission has ruled that the entitlement to redundancy pay in an enterprise agreement should not be ‘read down’ to exclude the ‘ordinary and customary turnover of labour’ concept, which can be found in the redundancy provisions of the NES.… Continue Reading