Redundancy, redeployment to related entity

I have been employed for 30 years at a business that is voluntarily closing. I have been told that there will be a role for me at a related entity business. This new role though will be substantially different to my current role as a manager. It is likely that I will no longer be managing staff and will have a title of "Administrator"; basically doing admin-type work.

I have been told that my remuneration will be reduced though by how much is yet to be decided. I am interested in the new role as I do not wish to be unemployed though I feel as though I am actually being made redundant and am being offered a completely different job. Am I entitled to redundancy pay even if I accept the substantially different role at a reduced remuneration?

I am in Queensland an come under a Modern Award and the NES.

Thanks for any advice,

Michael.

Hi Michael,

As the offer of further employment is with a related entity business, I presume that your 30 years of service, and your existing leave balances, will be fully recognised by your new employer. In those circumstances, you won't be entitled to a redundancy payment if you accept the new role, even if your pay is reduced (ref Fair Work Act 2009, ss122(2) ).

However, you might choose to not accept the offered role because of reduced pay and/or status.

Because of ss122(3) of the Act -

• You would NOT be entitled to a redundancy payment if the offered job (which you refuse) would have recognised your prior service and given you "no less favourable" conditions, and
• You PROBABLY would be entitled to a redundancy payment if you refused a "lesser" job that was offered to you.

Please don't just take my word for this. If you are not happy with the job that you are offered, I would suggest that you seek a statement from your current employer that you will be entitled to redundancy pay, and/or you get legal advice about your options and entitlements once you know the details of the offer.

There may also be applicable Redundancy provisions in a relevant Modern Award or Enterprise Agreement, or even in your employer's policies.

Greg

Quote:

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Originally Posted by Greg Schmidt

Hi Michael,

As the offer of further employment is with a related entity business, I presume that your 30 years of service, and your existing leave balances, will be fully recognised by your new employer. In those circumstances, you won't be entitled to a redundancy payment if you accept the new role, even if your pay is reduced (ref Fair Work Act 2009, ss122(2) ).

However, you might choose to not accept the offered role because of reduced pay and/or status.

Because of ss122(3) of the Act -

• You would NOT be entitled to a redundancy payment if the offered job (which you refuse) would have recognised your prior service and given you "no less favourable" conditions, and
• You PROBABLY would be entitled to a redundancy payment if you refused a "lesser" job that was offered to you.

Please don't just take my word for this. If you are not happy with the job that you are offered, I would suggest that you seek a statement from your current employer that you will be entitled to redundancy pay, and/or you get legal advice about your options and entitlements once you know the details of the offer.

There may also be applicable Redundancy provisions in a relevant Modern Award or Enterprise Agreement, or even in your employer's policies.

Greg

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Actually, your situation will depend on several factors: 1) the size of the business ie number of employees, 2) whether the alternative role offered takes into account your skills (ie you can actually do the alternative job being offered). If the employer offers an alternative role (your employer has done the right thing so far) and you ultimately refuse to accept it, then the employer may have recourse to go to FW for dispensation to not pay you full redundancy because you rejected the alternative job offer - so in other words, employer makes reasonable alternative offer, employee rejects it so employer can apply to posibly not have to pay you full redundancy.
I recommend you contact FW put the full scenario to them, including your reasons, if any, for not accepting the alternative role.
The reality of all this is that the chance of any alternative role being at the level (and pay rate) you attained after 30 years, is probably not likely. So you need to make a considered decision on whether to take (possibly) some element of redundancy -after 30 yrs under FWA, this is limited to 12 weeks' severance after 10 yrs of service. Of course, your employer may have a more generous redundancy policy and you would also need to inform FW which pre Modern Award you were covered under, to establish what you might be entitled to but most of the transitional arrangements from the old award system to the Modern Awards, finished in 2014.
If you really want to continue working, it may come down to accepting the lessor role with lessor $$ or cutting your losses and hoping you can find something else out there which recognizes your seniority. But also think about whether, at your age - I'm thinking in your 50s - you actually still want all that responsibility. Perhaps you might consider more time for family and chance to do other things.. Just some ideas for you to consider.
Tiger