|
Where an agreement/ contract is silent on the matter of redundancy,
the employer is not required to pay redundancy
compensation but is required to meet the notice
provisions. If the contract/agreement is silent on notice
provisions the custom and practice of the pay
period will define the notice required subject to
overriding fairness. For instance 1 weeks notice for
an employee with 20 years service would not be
considered fair or reasonable.
Where there is no redundancy provision in the
contract/agreement, some employers do pay compensation over
and above the notice provisions. It is important that
such payment is considered carefully. Having set the
precedent of payment in one instance there is a
strong case for subsequent payments.
| Redundancy compensation has become less common
after the Employment Court ruled the employer
was not required to pay redundancy compensation
where a contract specifically excluded payment
or was silent on the matter of redundancy. |
|
Because redundancy has a significant impact on any
business it is critical that the employer handles the
process with sensitivity and care.
The first step is to provide genuine consultation
in an attempt to avert job loss. The employer must
thoroughly explore options for redeployment of employees
to other parts of the business.
Redundancy
procedure
If you
are considering restructuring it is essential you get good advice and comply
with the procedural requirements.
There
are risks attached to restructuring - but it doesn’t need to be frightening
or stacked against the employer. Restructuring needs to be done in good
faith, with sound reasons and within the procedural requirements.
|
