Comments on: Can you reduce an employee’s redundancy payment?

By: Shannon Louise

Shannon Louise — Fri, 30 Jul 2021 00:29:48 +0000

It’s important to check whether any unusual definition of ‘redundancy’ applies in specific circumstances. For example, under some construction industry Awards, ‘redundancy’ can include resignation (the definition of ‘redundancy in the Plumbing and Fire Sprinkler Award 2020, as recognised by case law, can cover resignation where employment is over 12 months in duration). Similar glitches may exist elsewhere in Enterprise Agreements.

By: Max Underhill

Max Underhill — Wed, 28 Jul 2021 23:29:28 +0000

The key is to get the base pay correct in the beginning. Great position valuation systems were developed in the 1990’s; these also can be used to value the applicant or incumbent but fell out of use a lot after the economy recovered. This separates the base salary from performance pay (base salary is for performing at target) and any other remuneration element. This will include any negotiated amounts above the true value.

It is a little to late to close the gate after the horse has bolted.