Redundancies & Redeployments

Clubs have an obligation to consult with affected employees as to what may be done to mitigate the impact of the redundancy decision on them. These measures may include: 

●    Redeployment; or

●    Obtaining other acceptable employment for the employee.

While both these alternatives are similar, they have different meanings under the Fair Work Act 2009 (Cth) (the Act). Furthermore, if implemented correctly, clubs may minimise their risk of liability under the Act.

Redeployment

Under the Act, a dismissal for redundancy will not be ‘genuine’ if the employee could have been reasonably redeployed within a club’s business or a related entity. 

A recent decision of the Fair Work Commission (the FWC) has further underlined the importance for clubs to consult employees when looking at redeployment options. Telecommunication company Isoton Pty Ltd was found to have failed to establish that it genuinely made a software engineer redundant as it could have offered the employee a lower-paying role that was available with a related company in India. The FWC found that the company had incorrectly assumed that the employee would not accept the role given its location and the fact that it paid less than the Australian role. 

The FWC noted that if the company had correctly consulted with the employee, then the employee would have been able to advise that they were “keen to work in different cultures”. As a result, the FWC warned that it was dangerous for employers with redeployment options to “fetter offers based on their own prejudices”. 

Obtaining Other Acceptable Employment 

The Act allows clubs to apply to the FWC to reduce the amount of redundancy pay to be given to the affected employee, including to nil, if it can be shown that the club “obtains other acceptable employment for the employee”. 

When considering whether the alternate employment is “acceptable”, the FWC will turn its mind to a number of factors including but not limited to the alternate roles: 

●    Rate of pay 

●    Hours of work 

●    Location

●    Seniority

●    Continuity of service

●    Probationary periods.

To secure any reduction of redundancy pay, the FWC has repeatedly confirmed that employers must ‘obtain’ employment for the employee, in that they must make the offer of employment available to the employee which they can either accept or reject. Furthermore, clubs may apply to the FWC for a reduction of redundancy pay if an employee refuses an acceptable offer of other employment. 

Should you need any advice or assistance regarding redundancies at your club, please contact the Workplace Relations team on 1300 730 001 or via [email protected].