Hr Tips For Handling Redundancies

By Author: fivestarhrseo1
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Employers considering getting rid of staff in reaction to economic uncertainty must ensure they have updated their redundancy processes and may be advised to use a professional HR Consultancy.

It was significantly easier to make redundancies during the 2008/09 financial crisis (under the WorkChoices legislation), she says, but under the Fair Work Act, which introduced new requirements, using the same processes could land employers in hot water.

Not only do companies need to grapple with the pressures of cutting staff when making redundancies, theyve also now got to ensure they aren't relying on redundant legislation and out-dated practices to do it. A qualified HR Consultant is often best placed to advise on these matters.

The Fair Work Act provides that a dismissal is not considered unfair if it is for reasons of genuine redundancy. To prove this, employers must

no longer require the persons job to be performed by anyone because of changes in the operational requirements of the employers enterprise

comply with any obligation in a Modern Award or Enterprise Agreement to consult about redundancy ...
... and

show that it would have not been reasonable to redeploy the employee within the employers enterprise or within an enterprise of an associated entity of the employer.

Five Star HR, a qualified HR Consultancy, has clarified that genuine redundancy can be offered where the employees duties under the previous job still exist, but are merely redistributed to other existing employees a common occurrence when redundancies are made due to economic uncertainty.

However, it is also clear that compliance with consultation obligations will be under scrutiny, and employers should consider engaging with directly affected employees and explaining their individual circumstances to minimise or mitigate the consequences of the decision, says Kirsty Peters, HR Consultant with Five Star HR.

When considering redeployment opportunities, employers have to take into account what is reasonable in all the circumstances, Peters says, including the qualifications and experience of the employee in relation to other roles available within the employers broader structure.

HR Consultant, Kirsty Peters, highlights five important dos and donts when considering redundancies under the Fair Work Act

Do know the minimum severance entitlements contained in the National Employment Standards and remember these minimum standards apply to all employees

Do understand and comply with any notification and consultation procedures in applicable Modern Awards or Enterprise Agreements and the Fair Work Act

Do consider whether redeployment is an option before making redundancies. Dont assume the employee will not be interested - give them the option to decline the offer

Do keep written documentation of redeployment considerations, consultations and offers, as these may prove beneficial should an unfair dismissal or adverse action claim be brought by terminated employees

Do ensure that employees are provided with the right benefits where Modern Awards or Enterprise Agreements provide for paid leave to seek other employment

Five Star HR provides human resources outsourcing,training and consulting services in Sydney. Coaching on policies and procedure drafting, and full human resource planning process.For more information please visit us http://www.fivestarhr.com.au/