Redundancy Calculations

[Joayf]

Can you explain redundancy payments made when an employee has for example 5 years of service, the first 3 years worked part-time and the last 2 years full-time. Can you advise how the payments are made. Is it length of service x ordinary hours of work currently or is the part-time work hours factored in and pro-rate payments made as part of the final redundancy payment?

[Moz]

The minimum is 10 weeks pay at the current weekly base rate of pay (normal hours).

I am reasonably sure there is no pro rata deduction for the years the person worked part time.

[Cottoneyes]

Agree, have seen the other way where and employee went from full time to part time and got redundancy payments based on part time hours. The employee was understandably upset about it, but it turned out nothing they could do about it

[Qld IR Consultant]

Correct. Current rate of pay by weeks based on years of service.....

[Moz]

For what it's worth, I think the way redundancy is calculated is grossly unfair.

More often than not it's the other way around, where people have worked full time for many years then return part time after maternity leave, or are winding down as they approach retirement, yet if they are made redundant they get paid out at their reduced weekly rate.

[Qld IR Consultant]

I agree Moz. To place more context I have agreements where employees can work a 9 and 10 day fortnight. Most work the 10 days because of the higher wage, higher super, and higher payout if they are made redundant...and that is the employees themselves telling me why they opt for it!!.....

[Cottoneyes]

Very little is generally fair about redundancy. I've seen my fair share of them come across my desk and too often when a restructure occurs, the company uses it as a way of cleaning out the dead wood that too many managers had failed to performance manage. The best workers rarely get a package and are left to then take up the slack left by the reduced headcount.

[Joayf]

Thankyou, I thought it was based on current hours. I agree redundancy should be audited because it really often is an exercise used when managers have failed to performance manage.

[danjazzman]

I changed my position at my work and my wage was reduced by around $10000 per annum. A few weeks later I have been informed my job is redundant, does this mean that my employer will calculate my redundancy on my current wage??

[Job Media]

... does this mean that my employer will calculate my redundancy on my current wage??

Unfortunately, yes it does.

I know, it sucks