Redundacy after issuing a new employment contract
Hi Everyone,
Are there any laws in place within Australia limiting the time frame between issuing a new employment contract and making the employee redundant? We are thinking about changing our employment contracts to include detailed KPI's/ STI's and also a CPI wage increase each year. However we also believe that there may be some volatile times ahead >6 months and need to make sure that we can still give employees genuine redundancies in the event we need to.
Any feedback will be appreciated.
Careful What You Include in Contracts of Employment
Quote:
Originally Posted by
Squid
Hi Everyone,
Are there any laws in place within Australia limiting the time frame between issuing a new employment contract and making the employee redundant? We are thinking about changing our employment contracts to include detailed KPI's/ STI's and also a CPI wage increase each year. However we also believe that there may be some volatile times ahead >6 months and need to make sure that we can still give employees genuine redundancies in the event we need to.
Any feedback will be appreciated.
Hi Squid
"changing our employment contracts to include detailed KPI's/ STI's and also a CPI wage increase each year"
When setting up contracts of employment it is strongly recommended that KPI's and anything relating to variable pay is NOT included in a contract of employment. They can be referred to but details should be captured in a separate document that has the flexibility to allow the organisation to change it as it wishes and only run it as a year to year proposition.
KPI's, STI's, CPI and wage increases vary from year to year and you don't want to be issuing Contracts of Employment on a yearly basis. It is best to set up a structure that provides the organisation with flexibility.