About redundancy
What is a redundancy?
Voluntary redundancy
What is a redundancy?
Redundancy occurs when an employer decides that the job an employee has been doing is no longer needed.
This may occur because of:
- technological change
- workplace restructuring
- employer’s inability to pay employees
- sale of business
The employer must let employees and their unions know of changes in the workplace that may significantly affect them.
The employer has a duty to consult employees affected by the changes and work through ways to minimise the impact on them (e.g. by finding alternative employment).
Most awards and agreements set out employee redundancy entitlements including minimum notice to be given, time off work to look for another job and severance pay, worked out according to the length of continuous service.
You can dispute a redundancy if you believe it is unnecessary, unjust, harsh or unreasonable by applying to the Queensland Industrial Relations Commission (QIRC) for a hearing.
Further information is available on redundancy.
Voluntary redundancy
A business may be downsized by cutting the number of staff in the organisation. If this happens, an employer may ask all employees if they would be interested in accepting a voluntary redundancy or ‘golden handshake’.
In this situation, the employer and employee agree to a lump-sum payout, based on the length of continuous service in lieu of ongoing employment. Other entitlements such as long service leave and annual leave due are also payable.
Further information is available on voluntary redundancy.
Last updated July 21, 2009
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