Termination & Redundancy

Termination of employment may occur in a number of different ways: resignation, retirement, abandonment, dismissal, redundancy and breach of contract.

6 things an employer needs to know about termination

Employers should note the following issues when a termination of employment occurs:

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‘Out of the ordinary’ terminations

Some types of termination situations only happen rarely. These may include abandonment of employment by the employee, repudiation of the employment contract by either the employer or employee, death of the employee, or the employee is unable to continue working (or to resume work), because of long-term injury or illness.

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What is redundancy?

Termination of employment due to redundancy is a form of dismissal by the employer. It carries with it the concept of involuntary termination of the employee’s employment. However, rather than being a fault-based dismissal, redundancy is usually caused by factors such as economic conditions, business efficiency, or technological development.

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Redundancy severance payments and exclusions

The National Employment Standards sets out a scale of redundancy payments based on an eligible employee’s years of continuous service with the employer and the employee’s age.

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NES – amount of redundancy pay

The NES scale of redundancy payments is as follows:

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Working with the HR Advance Termination and Redundancy documents

When dealing with Termination and Redundancy it helps if you have appropriate Policies in place. The best way to pull the necessary information together is to compile a policies and procedures manual.

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