Employers Resources

Thinking of Downsizing?

Thinking of Downsizing
Greg Goudie
Written by Greg Goudie

Are you an employer who may be thinking of downsizing?

The Federal Government has released a set of online resources to help employers navigate the redundancy process.

Minister for Employment, Senator Eric Abetz, launched the What’s Next website on Friday the 4th of September 2015, which is primarily aimed at providing assistance to employees who are made redundant, but also has some good links and advice to employers on what steps need to be taken to meet the Fairwork and other guidelines in managing redundancy arrangements.

Before you formally advise any employees of their termination, there are a number of steps that you should consider in relation to a redundancy.

Step 1  Communicate changes to the employees affected – some awards will require consultation with employees prior to any redundancy notifications.

Step 2  Find out about notice periods and redundancy entitlements – Notice of termination and redundancy entitlements are contained in the National Employment Standards, however awards and enterprise agreements often include additional redundancy entitlements for employees.

Step 3  Inform Centrelink (If more than 15 employees)

Step 4  Create your letter of termination of employment – If an employee’s position becomes redundant you need to give the employee written notice of the termination of their employment.

Step 5  Meet with the employee to provide notice of termination – Meet with the employee to give them the letter, explain the reasons the position has been made redundant and provide them with the opportunity to ask questions. Carefully explain the information in the letter and ensure the employee understands.

More details on each of these steps is available here What’s Next-Employers

If at any time you need more information or assistance, call the Fair Work Info-line on 13 13 94 or visit the Fair Work website.

DOME can offer an outplacement service to assist your workers find employment.

Source http://whatsnext.employment.gov.au/information-employers

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About the author

Greg Goudie

Greg Goudie

Greg Goudie is the Executive Director of DOME and following many years in the automotive parts manufacturing sector, has worked with mature age unemployed for the past 15 years.

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