Redundancy 

Reasons for redundancy
A redundancy can occur when a position/s is not required to be filled by anyone in a practice or if the practice becomes insolvent or bankrupt. Redundancy can happen when the practice:

• introduces new technology (for example the job can be done by a machine)
• slows down due to loss of patients
• closes down
• restructures or reorganises

What is a genuine redundancy?
A genuine redundancy is when: 

• the job doesn’t need to be done by anyone, or
• the employer followed any consultation requirements in the award. Note: When an employees dismissal is a genuine redundancy, the employee is unable to make an unfair dismissal claim.

A redundancy is not genuine when the employer:

• still needs the job to be done by someone (for example hires someone else to do the job)
• has not followed relevant requirements to consult with employees about the workplace change that have resulted in redundancy under an award 
• could have reasonably given the employee another job within the practice.

Consultation
The Health Professionals and Support Services Award and Nurses Award include a consultation process for when there are major changes to the workplace which have the potential to result in redundancies.

The consultation process sets out the process the employer is required to take when they decide to make changes to the practice that are likely to result in redundancies. This has to be done as soon as possible after the decision has been made.

Consultation requirements include:

• notifying the employee who may be affected by the proposed changes
• providing the employees with information about these changes and their expected effects
• discussing steps taken to avoid and minimise negative effects on the employees
• considering employees ideas or suggestions about the changes

Redundancy payments
When a position is made redundant, the employer may need to pay redundancy pay to the employee no longer required to do the job. Under the National Employment Standards (NES), redundancy pay doesn’t need to be paid in some circumstances such as: 

• the practice employs less than 15 people
• the employee is casual
• the employee's continuous service is less than 12 months
• the employee was terminated because of serious misconduct. 

The amount of redundancy pay the employee receives is based on their continuous service with their employer. Continuous service is the length of time they are employed by the practice and doesn’t include extended periods of unpaid leave. 

How to support exiting employees 
Supporting an impacted employees next move is not only the right thing to do and is covered under the award but also beneficial to the employee leaving and their colleagues. 

Providing support for impacted employees helps to retain the reputation of your practice by making the end of their employment journey with you a more positive experience. There is nothing wrong with a going away morning tea or lunch to celebrate the contribution they made to the practice as you would if the employee had resigned.

Support for employees can be one or all of the below:

• provide counselling and helpful resources to the employee and their immediate family
• provide additional face-to face meetings
• help them get financial advice, if they might be close to retirement
• outplacement service which:
  • provide clear plans for the future which could involve practical advice on finding suitable positions, preparing for job interviews or linking them to a recruiting expert
  • assist with updating their resume and Linkedin profile (if applicable)
  • assist with training and workshops to be job ready
  • practical advice on finding suitable positions
  • time off as outlined under the award for those selected for redundancy to look for new jobs without loss of pay

In summary, you must ensure that the entire redundancy process has been well prepared from a fair selection process, through consultation to the final exit day of the employee. Clear communication is important with all staff, as well as practical support will make a positive difference to their feelings about the practice and will ensure they meet their new challenges with a positive outlook. This prevents assumptions and rumours, producing a negative working environment – an additional hurdle for you to jump over that could have been avoided.

	Workplace Relations Support  Workplace Relations Support can assist members with general advice on Redundancy and determine whether legal advice is appropriate for your situation. You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au.
	Workplace Relations Toolkit  Workplace Relations Toolkit subscribers receive priority service and support on all matters of the employment lifecycle including when staff exit the practice.
	Workplace Relations Consultancy Workplace Relations Consultancy can help guide practice owners and managers through their practice strategy to consider if redundancy is the best long-term option.