Redundancy

The new system has introduced for the first time a general legislative entitlement to redundancy pay for employees of national system employers with 15 or more employees (on a head count basis, not the “equivalent full time positions” used for unfair dismissal). Casual employees and employees on fixed term contracts are not entitled.

Under the transitional provisions in the Fair Work legislation, unless an employee was previously covered by an award or other instrument that provided for redundancy entitlements, the new entitlement does not commence until the employee has completed a qualifying period of service of 12 months, commencing on 1 January 2010.

Employers in medium sized enterprises that were previously award free should bear in mind this new entitlement will commence for current employees still employed in 2011.

 

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