When do I have to pay my employees redundancy or severance pay?
Redundancy is generally defined as occurring when an employer decides that they no longer wish the job an employee has been doing to be done by anyone, and this is not due to the ordinary and customary turnover of labour. This may happen due to operational requirements, the introduction of new technology, economic downturns, company mergers, take-overs or restructuring. In addition to notice or payment in lieu of notice, many awards and agreements contain provisions requiring employers to pay severance when an employee’s employment is terminated in a redundancy situation.
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