When is an employee redundant?

When is an employee redundant?

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When is an employee redundant?

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Would it surprise you if I said that employees do not become redundant?

You see a redundancy occurs when you no longer require a job to be done by anyone because you no longer need it or you can’t afford it or you outsource it, or the business becomes insolvent or bankrupt – so it is jobs that become redundant, not people.

Examples of when redundancy can happen are when a business:

  • introduces new technology (for example, the job can be done by a machine)
  • slows down due to lower sales or production
  • closes down
  • relocates interstate or overseas
  • restructures or reorganises because a merger or takeover happens.

What rules apply to redundancies?  

Under the Fair Work Act, a redundancy must be genuine because, in the past, it has been quite common for organisations to restructure to manufacture a redundancy situation so that a problem employee could be removed without having to go through a bona fide performance management process.

For a redundancy to be genuine, the following criteria must be satisfied:

  • The job is not required to be done by anyone
  • The consultation provisions in any applicable industrial instrument (award or enterprise agreement) are complied with and
  • There are no reasonable opportunities to redeploy the surplus employee to another role in the business of any related entity.

If a redundancy fails to meet any one of those tests, it is considered a sham redundancy and that is a valid ground for a claim of unfair dismissal.

Payments applicable on retrenchment 

In circumstances where an employee’s position becomes redundant and there are no reasonable redeployment options, the employee is terminated by way of retrenchment.

The rules generally applying under National Employment Standards are that an employee who is terminated by the employer is entitled to payment of any outstanding wages and annual and long service leave entitlements and observance or payment in lieu of the required period of notice of termination. That notice period does not apply to summary dismissal due to serious misconduct.

When an employee is retrenched, the employee, if employed in an organisation of 15 or more employees, is also entitled to a severance payment ranging from 4 weeks wages after 1 year of employment to 16 weeks after 9 years of employment reducing to 12 weeks after 10 years of employment.

That reduction was determined by the Australian Industrial Relations Commission on the basis that an employee with 10 years service also received payment in lieu of long service leave (which people now get after 7 years service). So it doesn’t make a lot of sense and it is clearly not fair. Bearing in mind that this is a minimum standard, you don’t have to apply that reduction after 10 years service if you want to be fair.

Employers with less than 15 employees do not have to pay that severance payment on redundancy.

Are there exceptions?

Of course there are.

The Fair Work Act provides that modern awards might have Industry Specific Redundancy Schemes which would operate in lieu of the NES provisions for employees covered by the relevant award.

These exist under the Building and Construction General On-site Award 2020 and the Plumbing and Fire Sprinklers Award 2020. Under these awards, redundancy has quite a different meaning – it “means a situation where an employee ceases to be employed by an employer other than for reasons of misconduct or refusal of duty“. Payment is capped at 8 weeks pay after 4 years service but the different definition means that employees who leave the employer of their own volition (ie if they resign) after 12 months service are entitled to that redundancy payment.

Another exception is the Textile, Clothing, Footwear and Associated Industries Award 2020 which provides for redundancy payments of up to 8 weeks for employees of organisations with less than 15 employees.

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Psychosocial hazard #4 – Lack of Role Clarity

Psychosocial hazard #4 – Lack of Role Clarity

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Psychosocial hazard #4 – Lack of Role Clarity

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The fourth in the list in the Model Code for Managing Psychosocial Hazards at Work is “Lack of role clarity”.

Why is lack of job clarity a psychosocial hazard?

This hazard arises from people being subject to unclear, inconsistent or frequently changing roles, responsibilities or expectations and not having clear and accurate information. 

Some questions that you might ask to assess whether there are any lack of role clarity related psychosocial hazards in your workplace include:

  • Are people properly inducted into the organisation, their team and their role  or do they have to try to work it out by themselves?
  • Are there inconsistencies in work allocations and/or overlap in responsibilities between workers which make people confused about who is supposed to do what?
  • Do people receive instructions from multiple people and are not clear about who they report to?
  • Are there mixed messages or inconsistencies in communications on performance standards or do those standards seem to change from day to day or depending on who you talk to?
  • Is there adequate information on work processes or do people have to work it out for themselves?
  • Do people lack understanding of why work processes are designed as they are?
  • Are there inconsistencies in how people’s individual performance and behaviour is managed that confuses people about what the performance standards are?
  • is there a lack of clarity about work priorities (e.g. which tasks or stakeholder relationships are most important)? 

This list is not exhaustive and, while we have based these posts of the model code produced by Safe Work Australia, there can be differences in the specific details for each State or Territory. So you need to check that in the jurisdiction in which your workplace lies.

Need help?

Give us a call on 1300 108 488 to arrange your free first consultation to see how we can help with advice and support on this or any other HR matter. 

 

 

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ABN : 24 091 644 094

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Time to get serious about sexual harassment

Time to get serious about sexual harassment

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Time to get serious about sexual harassment

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In December 2022, a new positive duty on employers and persons conducting a business or undertaking (PCBUs) to eliminate workplace sex discrimination and harassment commenced.

The Anti-Discrimination and Human Rights Legislation Amendment (Respect at Work) Act 2022 (Cth) amended the Sex Discrimination Act 1984 (Cth), introducing a positive duty on employers and PCBUs to eliminate:

  • workplace sexual harassment, sex discrimination and sex-based harassment;
  • conduct that amounts to subjecting a person to a hostile workplace environment on the ground of sex; and
  • certain acts of victimisation.

Now employers and Persons Conducting a Business or Undertaking (PCBUs) have a legal obligation to take proactive and meaningful action to prevent all of the above offending behaviours from occurring in the workplace or in connection to work.

This is a big step up from what had been the case where it was a complaints-driven process – action was only required if someone made a complaint after the fact ie after the sexual harassment had already occurred.

Respect@Work  

The Australian Human Rights Commission has established a website with lots of resources to help organisations to learn about sexual harassment and what the positive duty means. See https://www.respectatwork.gov.au.

The first step in the process of exercising your positive duty is to actually understand what the issues are and what your obligations to exercise the positive duty mean in practice. You then need to conduct a risk assessment to ascertain whether there are any risks that need to be eliminated or controlled relative to sexual harassment and the other offensive behaviours noted above.

Above is the risk management model published via Respect@Work which is an adaptation from Safe Work Australia’s model for managing work health and safety risks.

There are two points with this which are important to note:

  • Workers must be consulted at every step in the process and the best results will be obtained by educating and engaging them in the mission to eliminate sexual harassment from your workplace; and
  • This is a continuous process – not something that you just do once and then you have ticked the box. The positive duty means that you must keep assessing risks and the effectiveness of control measures and making necessary adjustments on an ongoing basis.

Please note that sexual harassment also features as one of the psychosocial hazards in respect of which Australian organisations are progressively being required to deal with as a workplace health and safety positive duty.

What is sexual harassment?  

 Australian law states that sexual harassment occurs when:

  • a person makes an unwelcome sexual advance, or an unwelcome request for sexual favours, to the person harassed; or engages in other unwelcome conduct of a sexual nature in relation to the person harassed;
  • in circumstances in which a reasonable person, having regard to all the circumstances, would have anticipated the possibility that the person harassed would be offended, humiliated or intimidated.

Examples of behaviour that constitutes sexual harassment include:

  • inappropriate physical contact;
  • intrusive questions about a person’s private life or physical appearance;
  • sharing or threatening to share intimate images or film without consent;
  • unwelcome touching, hugging, cornering or kissing;
  • repeated or inappropriate invitations to go out on dates;
  • sexually suggestive comments or jokes that offend or intimidate;
  • requests or pressure for sex or other sexual acts;
  • sexually explicit pictures, posters or gifts;
  • actual or attempted rape or sexual assault;
  • being followed, watched or someone loitering;
  • sexually explicit comments made in person or in writing, or indecent messages (SMS, social media), phone calls or emails—including the use of emojis with sexual connotations;
  • sexual gestures, indecent exposure or inappropriate display of the body;
  • unwelcome conduct of a sexual nature that occurs online or via some form of technology—including on virtual meetings;
  • inappropriate staring or leering;
  • repeated or inappropriate advances on email or other online social technologies.

In determining whether an advance, request or other conduct may be sexual in nature, the intention of the alleged harasser is not relevant. An advance, request or other conduct may be sexual in nature even if the person engaging in the conduct does not have a sexual interest in that person or is of a different sexual orientation to the person harassed.

Equally, the behaviour may be unwelcome to a person even if it is accepted or tolerated by others or is part of the culture of the organisation.

As to whether the behaviour offend, intimidates or humiliates someone, that also is a subjective test – it is about the how a person perceives and is affected by the behaviour and about how a reasonable person could expect that to happen.

What are the drivers of sexual harassment? 

There are 4 key drivers of sexual harassment noted on the Respect@Work website. They are:

  1. Condoning of sexual harassment against women (are these behaviours justified, excused or trivialised in your workplace?)
  2. Men’s control of decision making in public and private life (how well represented and how much of a voice do women have in management decisions in your workplace?)
  3. Rigid adherence to gender roles and stereotyped constructions of masculinity and femininity (in your workplace, are there any perspectives that some jobs are best done by men and some best done by women?)
  4. Male peer relations that emphasises aggression and disrespect towards women (in your workplace, is there a culture of sexist language or jokes or commentary that is disrespecting of women?)

The questions posed above are just a few of those you need to be asking.

The Exposures 

From December 2023, the Australian Human Rights Commission will be able to enter workplaces to inspect them for issues of sexual harassment and will be able to initiate prosecutions and penalties of offending employers.

Workplace Health and Safety authorities around the country are progressively becoming able to do likewise via legislation for PCBUs to have a positive duty to eliminate or control psychosocial hazards.

The Fair Work Commission already had a jurisdiction in which workers could seek orders to stop sexual harassment. As from March 2023, they also have a new jurisdiction where workers can take complaints of sexual harassment and seek compensation.

So, yes, it is time to get serious about stamping out sexual harassment.

Note: much of this content has been drawn from the Respect@Work website.

Need help?

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Psychosocial hazard #3 – Poor Support

Psychosocial hazard #3 – Poor Support

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Psychosocial hazard #3 – Poor Support

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The third psychosocial hazard identified in Safe Work Australia’s Model Code for Managing Psychosocial Hazards at Work is “poor support”.

Why is “poor support” a psychosocial hazard?

There are a range of ways in which people might be poorly supported – like how their supervisors or other workers interact with them or not having the availability or the quality of resources available to enable them to do their job and lots more.

Some questions that you might ask to assess whether there are any poor support related psychosocial hazards in your workplace include:

  • Do people receive insufficient, unclear or contradictory information related to their work?
  • Do people have all of  the things they need to do their job properly or on time and/or do they have to wait or compete for what they need ?
  • Are tools and systems and other resources  poorly maintained or inadequate for the work that is supposed to be undertaken? 
  • Are people given the instruction, training and time to develop skills that are necessary for the work they are to do? 
  • Can workers access supervisors consistently to make decisions and provide them with the guidance that they need?
  • Are there sufficient workers available to perform tasks safely?
  • Is it difficult for workers to call out for help when they need it because they cannot leave their workstation, or because they are working on their own or remotely?
  • is the workplace culture competitive and discouraging of people helping each other out?
  • Is it hard to find somewhere psychologically safe to talk to someone because there are no private facilities or meeting rooms in the workplace? 
  • Do people think that management doesn’t listen and doesn’t respond if anyone raises a concern?
  • Do people not get good performance feedback as it is not constructive, or helpful or it is non-existent?

This list is not exhaustive and, while we have based these posts of the model code produced by Safe Work Australia, there can be differences in the specific details for each State or Territory. So you need to check that in the jurisdiction in which your workplace lies.

Need help?

Give us a call on 1300 108 488 to arrange your free first consultation to see how we can help with advice and support on this or any other HR matter. 

CONTACT US

Ridgeline Human Resources Pty Ltd
ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Psychosocial hazard #2 – Low job control

Psychosocial hazard #2 – Low job control

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Psychosocial hazard #2 – Low job control

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The next psychosocial hazard that is listed in Safe Work Australia’s Model Code of Practice on Managing Psychosocial Hazards at Work is “low job control”.

Why is low job control a psychosocial hazard?

This hazard involves workers who have little control or say over the work or aspects of the work including how, when and where the work is done

Some questions that you might ask to assess whether there are any low job control related psychosocial hazards in your workplace include:

  • Do people require permission or sign-off before being allowed to progress routine or low risk tasks?
  • Are people not permitted to make decisions that are within the scope of their abilities?
  • Is work subject to prescriptive processes that do not allow workers to apply their skills or judgment?
  • Are changes made to people’s work areas without consulting them?
  • Are changes made to work processes, systems or resources without consulting the affected workers?
  • Do you have managers who micro manage people to ensure that they are on top of things and people don’t make mistakes?
  • Do work processes and systems limit people’s ability to take breaks or change tasks?
  • Do excessive work demands make it difficult for workers to take breaks or to maintain reasonable working hours?
  • Are workers often in situations which expose them to aggression or abuse?
  • Is the physical work environment something that workers cannot control or get relief from (eg working in adverse climatic conditions or dusty or smoky environments)?

This list is not exhaustive and while we have based these posts on the model code produced by Safe Work Australia, there can be differences in the specific details for each State or Territory. So you need to check that in the jurisdiction in which your workplace lies.

Need help?

Give us a call on 1300 108 488 to arrange your free first consultation to see how we can help with advice and support on this or any other HR matter. 

 

 

CONTACT US

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ABN : 24 091 644 094

enquiries@ridgelinehr.com.au

0438 533 311

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Psychosocial Hazard #1 – Job Demands

Psychosocial Hazard #1 – Job Demands

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Psychosocial Hazard #1 – Job Demands

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This is the first in a series of blogs in which we will unpack the 14 psychosocial hazards identified in the Model Code for Managing Psychosocial Hazards at Work published in 2022 by Safe Work Australi.

The first of those is “Job demands”.

    Why are job demands a psychosocial hazard?

    This hazard involves sustained or intense levels of physical, mental or emotional effort which are unreasonable and chronically exceed a worker’s skills or sustained low levels of physical, mental or emotional effort.

    Some questions that you might ask to assess whether there are any job demand related psychosocial hazards in your workplace include:

    • Are there long, irregular or unpredictable hours of work?
    • Are there insufficient breaks or not enough recovery time between work periods?
    • Are there people who don’t take time off (and perhaps might have an excessive annual leave balance)?
    • Does anyone struggle with the amount of work that they have to do?
    • Does anyone struggle with the complexity of the work that they have to do?
    • Are timelines for completion of work too demanding?
    • Is the level of concentration required to do a job too intense?
    • Do people have challenges in managing competing priorities?
    • Is anyone concerned about the impact that making a mistake would have?
    • Does anyone’s work involve managing stressful or distressing situations?
    • Do people have to manage others’ emotions or perhaps suppress their own?
    • Is there anyone who doesn’t have enough work to do?
    • Do people have to wait on others to complete work before they can do their own or before they can access the tools and resources that they need to do their jobs?
    • Does anyone do very monotonous and repetitive work?
    • Is there anyone who finds the work just too easy and unchallenging because they have higher abilities? 

    This list is not exhaustive and, while we have based these posts of the model code produced by Safe Work Australia, there can be differences in the specific details for each State or Territory. So you need to check that in the jurisdiction in which your workplace lies.

    Need help?

    Give us a call on 1300 108 488 to arrange your free first consultation to see how we can help with advice and support on this or any other HR matter. 

    CONTACT US

    Ridgeline Human Resources Pty Ltd
    ABN : 24 091 644 094

    enquiries@ridgelinehr.com.au

    0438 533 311

    PARTNER LINKS

    TELL US WHAT YOU NEED HELP WITH