For example, it would be a risky strategy to institute a selection process which appears to target employees who are all union members. Setting a communications strategy In tandem with setting a selection process, an employer should set and implement a communications strategy about the redundancy process. Otherwise, an employer may risk damage to its relationship with its employees and other stakeholders and its reputation.
Consequently, an employer should consider what it will communicate, how, to whom, and by what means. Where possible, it should be open and transparent about the process, decisions to be made, timing, and related issues such as whether employees will be required to work out their notice periods.
Implementing redundancies. When an employer moves to the next phase of implementing redundancies it may face a number of legal issues, especially if the process involves significant numbers of employees or levels of change, or a contentious industrial environment. To manage these issues, an employer should implement a staged and procedurally fair redundancy process, in which it:. When communicating with employees and others which may be involved such as unions , an employer must undertake consultation, particularly if obliged to do so under its enterprise agreement or an applicable Modern Award.
Consulting early and throughout the process will assist in ensuring smoother change management. Striking this balance will assist in ensuring the integrity and fairness of the redundancy process, and in turn assists to minimise the risk of any subsequent claims.
The question also arises as to how and with whom an employer will consult. For instance, will it seek buy-in by a cascading strategy starting with senior management, and meet individually or in a group setting? An employer should at least meet with directly affected employees. Following consultation, an employer need not necessarily change its position based on the feedback it receives. However, it is entirely conceivable that an employee may make a persuasive case as to why their position should necessarily be retained.
This will afford an employer an opportunity to better inform employees, offer consistent messages, and reinforce what decisions are or will be made. An employer should assume that no matter is too trivial. Redundancy process You are required to follow the redundancy process as legislated.
It can also differ if any employees take voluntary redundancy. The process includes: Creating a business case for redundancy : To explain the need to make redundancies and explore any alternative options. This should be completed before the decision to make redundancies has been agreed. Selecting employees for redundancy : This should include deciding which employees are being considered for redundancy and setting out a fair selection criteria. Holding redundancy consultations: Redundancy consultations are meetings with the employees being considered for redundancy.
These meetings should detail the factors being taken into consideration and allow staff to provide feedback. Finalise redundancies: Meet with the affected employees to inform them that you have selected them for redundancy. Provide details of redundancy pay and notice periods and confirm everything in writing. The consultation process differs depending on the number of employees facing redundancy. Dismissal process The process of making dismissals for a conduct related reason is a lot less prescriptive than redundancies.
You should take the following steps to make a fair dismissal: Follow a fair disciplinary procedure. Take notes and gather evidence through a fair investigation. Invite the employee to a disciplinary meeting. Adjourn the meeting to make your decision. Ensure you have a valid reason for the dismissal.
Take care not to discriminate. Communicate the outcome to the employee. Remind the employee of their right to appeal. Follow up the meeting in writing. Consider the rest of the business. Stay consistent. Any Questions? Complete the form and an expert will call you. Got a question? Making an employee apply for a position does not qualify as a selection criterion if the employee fails to secure a position.
No concrete evidence was presented to the court to demonstrate in which respects the two applicants — who both had long service — fell short of requirements. The court added that any selection criterion that cannot be measured objectively, such as skills, performance, experience, or qualifications for the position, will be closely scrutinised by the court because there is always an element of subjectivity involved in judging compliance with those kinds of criteria.
Why this was so was never explained. In the case under discussion the employer was ordered to re-employ one of the applicants, while the other was reinstated, as their dismissals were found to be unfair. What is the difference in the process of Termination of Employment between Retrenchment and Redundancy? The following is a comparison between the process of Retrenchment and Redundancy. The process of Termination of Employment due to Retrenchment or Redundancy follows the same four 4 steps.
However, the process performed should consider the elements involved in the Termination of Employment. Specifically, the criteria must be established and the economic or business study involved with the particular type of Termination of Employment. Separation pay equivalent to at least one 1 month pay or at least one 1 month pay for every year of service, whichever is higher, a fraction of six 6 months service is considered as one 1 whole year.
Separation Pay is a requirement for due process to be followed in the Termination of Employment due to either Redundancy or Retrenchment. Termination of Employment due to Redundancy would give higher pay compared to Retrenchment. Logically, Retrenchment is done by an employer who is encountering financial losses and is only terminating the employment of employees due save the company and other employees.
Imposing a higher or the same amount for the Separation Pay would only further hasten the cessation of the business and would therefore result in further losses in jobs. A Human Resource Practitioner and an aspiring Attorney. He writes and answers questions regarding Human Resource Management for fun. If you have found my articles helpful, share them to your friends and follow me on my socials to be updated with my latest posts and insights!
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