What to look out for post JobKeeper
November 16, 2020
JobKeeper Series. Part 1: Risk Assessment
November 16, 2020
This article has been prepared by Colin Biggers & Paisley Lawyers.
A clear business case is an essential in planning for upcoming redundancies. Redundancies are complicated, situation-specific, and no two are exactly the same; accordingly, a structured business case helps make sense of the confusion. When planning for a redundancy, it is useful to put together a proposal detailing:
- The business driver behind the possible redundancy, e.g. significant downturn in profit or productivity; restructure of the business as a whole;
- Any evidence to support the above;
- Any action that has been taken to mitigate/avoid the need for redundancies;
- Costing of final payouts due under the Act, any modern awards, any applicable enterprise agreement, or any contract or policy;
- Process for selecting employees for redundancy; and
- Preliminary investigation of redeployment options.
A detailed business case is not only a useful planning tool in ensuring compliance when enacting a redundancy, but is also a defence to any possible unfair dismissal claim. FWC claims have short statutory timeframes; accordingly, having a business case already planned not only eliminates the need to justify past decisions under present time pressure, it also enables us to approach implementing redundancies in an organised manner that ensures compliance with relevant instruments.
Business cases have always been an important step in a redundancy situation, but have become essential in the current environment. If an employee has been made redundant for operational reasons while still on JobKeeper, they could become disgruntled and make an unfair dismissal claim purely for the sake of it. These situations are infinitely easier to manage when equipped with a business case that details the reasoning and explanation behind a genuine redundancy.
Read Part 4: Being aware of obligations and options
Disclaimer: This is commentary published by Colin Biggers & Paisley for general information purposes only. This should not be relied on as specific advice. You should seek your own legal and other advice for any question, or for any specific situation or proposal, before making any final decision. The content also is subject to change. A person listed may not be admitted as a lawyer in all States and Territories. © Colin Biggers & Paisley, Australia 2020.
