Termination Redundancy Clause Samples
The TERMINATION & REDUNDANCY clause outlines the conditions and procedures under which an employment relationship may be ended, either by the employer or the employee, and addresses the rights and obligations related to redundancy situations. Typically, this clause specifies notice periods, severance pay, and the criteria for determining when a role is considered redundant, such as organizational restructuring or technological changes. Its core practical function is to provide a clear framework for ending employment fairly and legally, protecting both parties from uncertainty and potential disputes during termination or redundancy events.
Termination Redundancy. Clause 7.1
Termination Redundancy. (1) This clause shall apply where an employee ceases, for any reason, to be employed by an employer respondent to this Award, other than for reasons of misconduct.
(2) Severance Pay:
(a) An employee, leaving his/her employer on account of a decision in accordance with subclause (1) hereof, shall be entitled to the following amount of severance pay in respect of continuous periods of service: Period of Continuous Service Severance Pay Less than one year $20.00 for each completed week service, to a maximum of two weeks pay. One year but less than two years Two weeks' pay plus $20.00 for each completed week of service, to a maximum of four weeks' pay. Two years but less than three years Four weeks' pay plus $20.00 for each completed week of service, to a maximum of six weeks' pay. Three years but less than four years Seven weeks' pay. After four years of service Eight weeks' pay.
(b) In lieu of the $20.00 specified in paragraph (a) hereof, after 31 October 1991, the rate of accrual shall be $25.00 for each completed week of service, with a maximum accrual as specified.
Termination Redundancy. Clause 8.1 Termination of Employment 8.
Termination Redundancy a) Upon termination of employment on the grounds of redundancy, eligible Employees will be entitled to a redundancy payment. This will be in addition to any applicable payment in lieu of notice as detailed in Table 4 above. The redundancy payments due to an Employee whose employment is terminated on the grounds of redundancy, are reproduced in Table 5 below.
b) To avoid doubt, the entitlement to a redundancy payment under this clause is subject to the same exclusions and limitations as the corresponding entitlement to redundancy pay under the NES. Not more than 1 year Nil More than 1 year but not more than 2 years 4 weeks’ pay More than 2 years but not more than 3 years 7 weeks’ pay More than 3 years but not more than 4 years 10 weeks’ pay More than 4 year but not more than 5 years 12 weeks’ pay More than 5 years but not more than 6 years 15 weeks’ pay More than 6 years continuous service 18 weeks’ pay 23. Standing Down Employees Stand down is provided for in the Fair Work ▇▇▇ ▇▇▇▇ – section 524.
Termination Redundancy