In more challenging 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 clearly understands why they are being made redundant 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
The Fair Work Act 2009 requires employers to 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
Several elements must cover 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 instead 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, refer to our Checklist for managing redundancy and ensure you're mentally prepared for what may be a challenging experience.
You aim 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?
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