Common use of Redundancy/Redeployment Clause in Contracts

Redundancy/Redeployment. This clause does not apply to a casual employee. Redundancy occurs where a position or role is no longer required by the employer or the employee’s role is substantially altered due to restructuring by the employer. CatholicCare Canberra & Goulburn shall consult with staff as set out in clause 16- Consultation The employer may offer a redundant employee an alternate role. Provided the role offered to the employee provides an equivalent remuneration to the redundant role and the employee has sufficient skills to perform the role then, subject to an application to the Fair Work Commission pursuant to section 120 of the Fair Work Act there is no obligation to provide redundancy payment. If as a result of a position becoming redundant an employee's contract is terminated, then the employee will be entitled to the standard period of notice plus redundancy pay. Redundancy pay is calculated on an employee's period of continuous service: Period of continuous service Severance pay Less than 1 year Nil 1 year and less than 2 years 4 weeks’ pay 2 years and less than 3 years 6 weeks’ pay 3 years and less than 4 years 7 weeks’ pay 4 years and less than 5 years 8 weeks’ pay 5 years and less than 6 years 10 weeks’ pay 6 years and less than 7 years 11 weeks’ pay 7 years and less than 8 years 13 weeks’ pay 8 years and less than 9 years 14 weeks’ pay 9 years and less than 10 years 16 weeks’ pay 10 years and over 20 weeks’ pay During the notice period, an employee whose position is made redundant may take up to eight (8) paid work hours each week of notice at a mutually convenient time, (which need not be consecutive), to seek other employment. Transfer to lower paid duties Where an employee is transferred to lower paid duties by reason of redundancy, the same period of notice must be given as the employee would have been entitled to if the employment had been terminated and the employer may, at the employer's option, make payment instead of an amount equal to the difference between the former ordinary time rate of pay and the ordinary time rate of pay for the number of weeks of notice still owing.

Redundancy/Redeployment. This clause does not apply to a casual employee. Redundancy occurs where a position or role is no longer required by the employer or the employee’s employee‟s role is substantially altered due to restructuring by the employer. CatholicCare Canberra & Goulburn shall consult with staff as set out in clause 16- Consultation The employer may offer a redundant employee an alternate role. Provided the role offered to the employee provides an equivalent remuneration to the redundant role and the employee has sufficient skills to perform the role then, subject to an application to the Fair Work Commission pursuant to section 120 of the Fair Work Act there is no obligation to provide redundancy payment. If as a result of a position becoming redundant an employee's contract is terminated, then the employee will be entitled to the standard period of notice plus redundancy pay. Redundancy pay is calculated on an employee's period of continuous service: Period of continuous service Severance pay Less than 1 year Nil 1 year and less than 2 years 4 weeks’ weeks‟ pay 2 years and less than 3 years 6 weeks’ weeks‟ pay 3 years and less than 4 years 7 weeks’ weeks‟ pay 4 years and less than 5 years 8 weeks’ weeks‟ pay 5 years and less than 6 years 10 weeks’ weeks‟ pay 6 years and less than 7 years 11 weeks’ weeks‟ pay 7 years and less than 8 years 13 weeks’ weeks‟ pay 8 years and less than 9 years 14 weeks’ weeks‟ pay 9 years and less than 10 years 16 weeks’ weeks‟ pay 10 years and over 20 weeks’ weeks‟ pay During the notice period, an employee whose position is made redundant may take up to eight (8) paid work hours each week of notice at a mutually convenient time, (which need not be consecutive), to seek other employment. Transfer to lower paid duties Where an employee is transferred to lower paid duties by reason of redundancy, the same period of notice must be given as the employee would have been entitled to if the employment had been terminated and the employer may, at the employer's option, make payment instead of an amount equal to the difference between the former ordinary time rate of pay and the ordinary time rate of pay for the number of weeks of notice still owing.