Author Topic: Redundancy payout entitlements  (Read 1271 times)

Luckyvik

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Redundancy payout entitlements
« on: March 10, 2018, 02:24:48 PM »
Hi, I work for company A who has sold part of the company to Company B. Two weeks ago, they told us and offered every one in my department jobs in Company B. They sent an email saying if we didn’t take the job in Company B, then they will see if there is another job for us at Company A otherwise we get a redundancy payout and they linked to the fair work redundancy web page.
On Friday, they’ve sent another email saying that even if they don’t find us another job in Company A then we are not entitled to the redundancy (which I think is correct from looking at the fair work act).

My question is, could you argue that on the basis that they told us there would be redundancy pay that that stands and they can’t turn around and change their minds?

marty998

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Re: Redundancy payout entitlements
« Reply #1 on: March 10, 2018, 02:38:46 PM »
What exactly did they tell you the first time around? If it wasn't a formal letter listing your entitlements then I wouldn't bank on it.

They're probably guilty of having an incompetent HR department more than anything else. If they've offered you an equivalent job in the new company then I'd say fair play to them and you're probably not entitled to a severance.

mustachepungoeshere

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Re: Redundancy payout entitlements
« Reply #2 on: March 10, 2018, 03:09:39 PM »
I'm guessing from the reference to Fair Work that you're in Australia?

Do you have a contract? Is your industry covered by a specific award?

Luckyvik

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Redundancy payout entitlements
« Reply #3 on: March 10, 2018, 03:29:37 PM »
What exactly did they tell you the first time around? If it wasn't a formal letter listing your entitlements then I wouldn't bank on it.

They're probably guilty of having an incompetent HR department more than anything else. If they've offered you an equivalent job in the new company then I'd say fair play to them and you're probably not entitled to a severance.
Extract from initial email, Company names changed:
·       If you choose not to accept the offer with ‘Company B’ you are not automatically entitled to redundancy pay. Rather, your role with ‘Company A’ will be made redundant on completion of the sale, and at that point in time ‘Company A’ will look to redeploy you within the company.  If another comparable position is found for you within the company you will not be entitled to redundancy.
 
·       Only after every effort has been made to redeploy you elsewhere within ‘Company A’s’ business and no roles are found, will your employment be terminated for redundancy.
 
·       If a decision is finally made to terminate your employment for redundancy you will be provided with relevant details as to any likely payments you might receive on termination.
 
If you wish to find out more about what your redundancy entitlements, would be please refer to the relevant page on the fair work website hereand/or the factsheet

‘Here’ and ‘here’ were links to the fair work page that states you get 2 years per year of service etc.
« Last Edit: March 10, 2018, 03:31:38 PM by Luckyvik »

Luckyvik

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Re: Redundancy payout entitlements
« Reply #4 on: March 10, 2018, 03:33:43 PM »
I'm guessing from the reference to Fair Work that you're in Australia?

Do you have a contract? Is your industry covered by a specific award?
Yes, I’m in Australia, I have a contract that doesn’t go into specifics about redundancy, there is no specific award applicable that I’m aware of, we don’t have a union, I’m in an office job.

mjr

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Re: Redundancy payout entitlements
« Reply #5 on: March 11, 2018, 04:18:46 AM »
You don't have a leg to stand on, I'm afraid.  Your job has moved to company B.  You haven't been made redundant.

ozbeach

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Re: Redundancy payout entitlements
« Reply #6 on: March 11, 2018, 04:19:10 PM »
‘Here’ and ‘here’ were links to the fair work page that states you get 2 years per year of service etc.

Two years redundancy pay for every year of service! No wonder you were keen for it :)

Luckyvik

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Re: Redundancy payout entitlements
« Reply #7 on: March 13, 2018, 06:38:21 PM »
Yes. 2 weeks pay per year.

My case is with HR at the moment as in my individual case my job offer at Company B is not the same as my job at Company A. I work 50% in the Department being sold say Department X and 50% in another department, department Y. Technically I was in department Y which has different duties to department X, they said they would let me know in the next few days.

If they say I’m not entitled to anything then I’ll leave it at that, I just thought I would ask the question to HR.

Luckyvik

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Re: Redundancy payout entitlements
« Reply #8 on: March 19, 2018, 07:31:24 AM »
So I’ve heard back from HR, they’ve said that they agree that I belong in Department Y and that as that department is not being sold then I won’t be made redundant, instead I get to keep my job in department Y. That was unexpected, I thought they would just say that I was or wasn’t entitled to the redundancy payment.