Redundancy for Small Businesses

A Redundancy occurs when an employer no longer wishes the job an employee has been doing to be done any anyone. Positions may become redundant if they are excess to the employers requirements because of factors such as technological change, company restructure, an internal reorganization of the way work is performed, merger or economic change.

Sometimes Small Business unfortunately have to make positions redundant for reasons stated above.

There is often confusion relating to entitlements that need to be provided to employees such as Annual Leave, Notice periods, Long Service Leave (if entitled) and Severance payments.

"When a position of Small Employer who has 14 or less employees is made redundant, there might not be an obligation for the employer to pay redundancy payments depending on the industrial instrument the employee is covered by. Members are encouraged to ring the ARA telephone advisor service for guidance as to whether redundancy pay is necessary in their circumstances"