What Is Redundancy & When Can It Happen?

An introduction to the concept of redundancy and some discussion as to the situations where it may be appropriate for a business to consider a redundancy or restructure process.

Please see below for a full transcript of the video.

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Transcript

0:00
So, I wanted to start with some sort of high level thoughts on redundancies, what it is and when it can happen. So first and foremost, we just want to be clear on what a redundancy is for those who may never have encountered it. So redundancy is essentially, when either an employee’s job is not required to be done by anyone anymore, or when a business effectively doesn’t require that job because they’d become insolvent or bankrupt and redundancy can happen within a business when a business introduces new technology, for example, when a job can be automated or partially automated, and that might reduce the need for the human element of the person doing that particular work. It may be because of a slowdown due to lower sales or production.

So if we’ve got less production, we need less people to produce the products that we’re producing. If we’ve got less sales coming in, for whatever reason, well, we either try and continue to see if we can generate more sales with the people we’ve got or we make a permanent adjustment to accommodate for that reduction in sales depending upon how the business views the market. redundancy can also occur if a business closes down. It can also occur if a business relocates interstate or overseas. So if we are moving from one site to another, and the movement in that site is significant, well, then the chances are that there will be redundancy, matters that will be applicable to the employees that are employed in that site presently. So that is something that is a factor that is becoming an increasingly blurred line, though with obviously everything that’s happened with COVID-19, with people working from home.

And the question, I guess, that we really have these days is that well, if I’m only required to attend the office once a week, then and even if that location is further away, is that really a redundancy situation as it would have once been in the past, had the whole site move from one location and substantially moved to another location. So interesting times on that front.

It can also occur when we have a restructure you due to a merger or takeover. And we’ve got a couple of clients in this situation right now where obviously, they’ve been subject to a merger or takeover. And as a result of that takeover, there has been operational efficiencies that have been identified that there may be certain jobs that are duplicated from the the entity that’s coming in to take control and the other entity that exists or the business activity that’s been purchased. So again, that’s another area where restructuring and redundancies can occur, particularly after that that early settlement period where the new organization finds out a bit more about the business that it’s purchased. So that’s a little bit about redundancy. And when it can happen.

We have put together this what we call a limited time restructure package for anyone who’s looking at undertaking a restructure. And that is and that would offer the following services as part of the restructure package that we will provide you with a restructuring and redundancy plan. We provide you with advice on the payments and the related obligations. We give you the initial meeting plan the initial consultation letter, we would give you advice about the alternative jobs and selection criteria if it’s applicable, we give you advice on the further consultation discussions. The final meeting plan, the final meeting and the discussions and letters around those things. We can organize for you outplacement and EAP. And we can give you a discount for the Fair Work Commission proceedings should you need us to represent you should any matters go before the commission for any for any clients with 1-3 redundancies or one three employees in that restructure costs $1500 plus GST. It’s a limited time offer that we’re offering only for the purposes of this because we come to the end of job keeper. We don’t normally offer this as a one off service. We do have it included in all of our support packages for clients which are essential support performance and risk and HR managers for any clients are interested in ongoing support arrangements. They are included at free of charge as part of those support packages. So if anyone’s interested in those things, please get in touch with us at ondemandhr.com.au and we can talk you through either a limited time restructuring service or assisting you on an ongoing basis with this being at no extra cost for you as part of a monthly support.