In more difficult scenarios, like delivering a notice of redundancy, it’s more important than ever that business managers and HR professionals adhere to the right way of doing things. As well as ensuring that the employee has a clear understanding of why they are being maderedundant, and that the relationship between the departing employee and your business is maintained, the required written notice protects you from sizeable fines and claims of unfair dismissal.
Why you need a written redundancy notice
It’s a requirement of the Fair Work Act 2009 that employers give their employees written notice of redundancy. If this is not completed, it may be considered a contravention of the provisions of the National Employment Standards, which can carry a fine of up to $10,800 for an individual and $54,000 for a corporation.
What to include in a written redundancy notice
There are a number of elements that must be covered in the termination letter. As per the Fair Work Act 2009, these include:
- The reason for the termination of the employee’s employment.
- The notice period and whether the employee will be paid in lieu of notice.
- The date of the employee’s last day of work.
- Details of the employee’s redundancy pay entitlements.
- Any other entitlements to be paid (like annual leave and long service leave).
- A note that redundancy pay will usually result in waiting periods for any applicable Centrelink payments.
When it’s time to deliver the notice of redundancy, first refer to our Checklist for managing redundancy and make sure that you’re mentally prepared for what may be a difficult experience. Your aim is to deliver the news in the best possible way for both parties, so don’t be afraid to seek help if you’re unsure about your approach.
Need advice on how to have difficult conversations with staff?
From absenteeism to underperformance, at Randstad, we understand the people issues managers and HR professionals face every day. This is why we’ve created The Human Resource Guide, an always-evolving online HR resource that delivers the answers to your day-to-day concerns. It’s like having your own personal HR advisor by your side, 24/7.
Learn more about the best-practice approach to people management with The Randstad Human Resource Guide.