Case Study: Redundancy turns into Unfair Dismissal Claim
Recently, HR for SmallBiz was instrumental in settling a claim of Unfair Dismissal lodged at the Fair Work Commission against its client, the employer. The matter involved an ex-employee who was made redundant for reasons of a downturn in sales, which required a restructure of the sales team. The correct redundancy calculations and documentation was given to the employer, however, when making the employee redundant the employer did not follow the correct process as advised.
- The employee was not consulted about the potential redundancy prior to being made redundant, and
- The employee was not brought in for a well-documented meeting with the employer and was notified of the redundancy via other means of communication.
As a result of these two breaches, procedural fairness was not met and the employee lodged an unfair dismissal claim with the Fair Work Commission.
The matter was resolved with a $6,000 payment negotiated via a phone conference with a conciliator from the Fair Work Commission.
The main points to highlight from this Case Study are:
- When considering whether to make someone redundant or not, make sure you have the relevant business information to back up a claim;
- Before making someone redundant, make sure you have sought the necessary documentation, payment calculations and advice;
- When carrying out the redundancy process, make sure that you follow the correct redundancy procedure or seek the support of someone who can help you ensure the correct procedure is followed;
- Ensure that you keep a clear paper trail of the redundancy process.
Feel free to call us on (02) 8882-9694 to discuss any redundancy before commencing the process.