Anyone familiar with how redundancy works? How is it calculated?
I'm getting conflicting information. A person at dh's work was made redundant and later returned to the company, he was there for 2 years and was paid 16 weeks. Someone else has said you are paid 4 weeks for every year plus bonuses, leave, penalties etc.
There is also a mention of severance pay being paid in line with company policy in dh's contact and when I found this on the web it stated that is up to 16weeks pay.
+ Reply to Thread
Results 1 to 10 of 14
03-12-2013 14:40 #1
Redundancy - how is it calculated?
03-12-2013 14:43 #2
I thought it was 12 weeks pay for every 10 years as my friend's husband was just offered redundancy.
03-12-2013 14:44 #3
If it's voluntary redundancy, the packages might be better. My friend's husband was offered 12 months pay and all his LSL. If he was forced, they could offer less.
03-12-2013 14:51 #4Senior Member
- Join Date
- Aug 2009
the normal is about 4 weeks pay for every year of service plus any outstanding leave and if with the comany more than 5 years, pro rata or long service.
Big Red v- your friends hubby being majorly ripped off and I hope he seeks advice before accepting.
kimberly gal i can not imagine why a company would pay somone out 16 weeks if they were only with the company 2 years unless they took no annual leave at all in the time they were there which would = 8 weeks unused annual + 8 weeks payout.
eta - big red v ...was he given 12 months or 12 week pay? normally, payouts are capped at 12 months worth.
03-12-2013 14:58 #5
Hmmm so confusing, it's doing my head in!
The company dh is working for is restructuring positions meaning dh's position will be made redundant. They said he could apply for the newly made position which includes dh's position and another 2 positions rolled into the 1 position so dh doesn't want that added stress and he is only partly qualified due to the inclusion of the one other position. So if he doesn't want to apply for the position he is to ask for a redundancy is what he was told. Now that's all well and good but how does that sit? Even though his position is to be made redundant, if he asks for a redundancy will that mean it's voluntary? I've told him to advise them that if his position is not going to be available for him they will need to offer a redundancy.
We have an income protection insurance policy and insurance on our car loan for this scenario but neither will cover for voluntary redundancies.
03-12-2013 15:23 #6
03-12-2013 15:25 #7
03-12-2013 15:25 #8
Oh, and he didn't accept the package.
03-12-2013 15:39 #9
I got a redundancy through qld government (for comparison, and this was a voluntary redundancy)
It was 12w pay plus 2 weeks for every year of service. On top of that they paid out long service leave accrued in the package (so it was taxed less). Because it was voluntary I could not go back to work for them during the paid period (I.e. I got a total of 16w pay, so I could not return before 16w after the payout) otherwise I'd have to pay back a portion.
03-12-2013 15:40 #10
I was given an estimate when I was given my letter too, as we had a choice to get the payout or go on a wait list.
Be In BlossomWe offer physiotherapy run pregnancy Pilates, pregnancy Aerobics, and Mummy Pilates & Baby Massage classes with a ...
LATESTWhy it is OK for your child to be differentWhat is a blessing way? How is it different to a baby shower?7 ways to break the ‘mumnotony’ at home
POPULARWhen can I start giving chores to my children?New baby nursery checklist – a guide to newborn essentialsWhat to pack for labour and hospital – a checklist
FORUMS - chatting now ...
Would you breastfeed in public?Viewer Polls
Primary School in St George areaPreschools and Schools
Egg Donation in South Africa #14Egg Donation
IVF babies due Sep/Oct/Nov 2017pregnancy and babies through IVF
Pregnancy test recall!!!Conception & Fertility General Chat
3 year old with mouth ulcersGeneral Child Health Issues
IUI QueryNon-IVF fertility assistance