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Not sure about your rights at work? - Ask Neale


question

I have an employment contract. My employer wants to insert a stand down clause into this contract to cover a period of 3 months. This is not really acceptable, so I do not want this clause inserted. As a result my contract will be terminated and I will be been given 4 weeks in leiu of notice. My question is, am I also entitled to a redundancy package?

MJ


answer

Most AWAs and EAs have redundancy provisions. If you are on a contract that does not have them you are not automatically entitled to redundancy payments. If you have been there less than a year you would probably not have redundancy entitlements either. Many high paying contracts have termination/separation provisions that give a payout to the party terminated.

If you have a contract that does not have these but have signed it I doubt you would be able to claim any under common law or legislation.

Most redundancy under awards give about four weeks per year after two years, gradually increasing to a max. of about 10 weeks per year for a long period of service. It varies considerably from award to award.

A redundancy agreement should be in your contract. Also there have been cases where even if no redundancy package is in agreements or contracts, if a company has a general policy on redundancy, then the courts will say that that is an implied term of the contract and employees should be paid out on that basis. A union usually is the best party to ensure your rights are looked after in these situations



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Disclaimer

Ask Neale is a free advice service provided by the New South Wales Labor Council. Whilst all care and due diligence has been taken in preparing this advice, the NSW Labor Council cannot accept any responsibility for any actions or outcomes users may make from viewing this advice.



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