Today redundancy is a part of working life. No matter how much we think it won’t happen to us, research shows it will happen to all of us a few times in our careers. If that is the case by default, it can’t mean we are all not very good at our jobs. Therefore it stands to reason that redundancies are most commonly used by businesses to restructure or 
downsize. As such, it is not a reflection on who you are or your abilities (though this may not be how you see it or feel at the time).
Knowing that we are all going to go through this process, then rather than waiting for it to happen and being unprepared, why not spend some time familiarizing yourself with your employment contract, your organization’s HR policies and procedures and having a plan in the event you do find yourself without a job.
Questions to think about:
• What are your entitlements going to be, if any?
• Are you in a position to re-negotiate your contract and redundancy provisions?
• How long can you survive financially?
• Is your resume in great shape and ready to send out?
• Do you know what jobs you are targeting?
• What happens if the business becomes insolvent?
Australian Redundancy Case Study
A friend, John, recently found that his company had gone into administration. Like most of us, John had not looked at his employment contract for five years. He thought it was a given in the event of redundancy that he would be entitled to some sort of severance. Unfortunately, this was not the case as no provisions were made in John’s contract. As someone who earned over $75K, worked for an organization of 15 or less staff, and who was classified by the Common Law Agreement as ‘award free’, the Common Law does not provide for severance pay (i.e. redundancy payout). Unless stipulated in John’s contract, the employer was not required to provide any severance. In the event that his employer was required by legislation to pay John, and the company was bankrupt, the government does make some provisions for this.
Redundancy amounts vary widely between workplaces and between states. Ensure that you are familiar with relevant legislation or seek the appropriate legal advice. Effective 1 January 2010 the common law will be changing to include minimum standards for redundancy (i.e. minimum standards for severance pay).
For Redundancy information visit the Workplace Authority site for further information about redundancy noting that the Termination of Employment Page which has some links at the bottom regarding the law and the workplace ombudsman that is useful.
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