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VIC Employment Rights, Notice and Pending Redundancy

Discussion in 'Employment Law Forum' started by gofinn, 22 September 2014.

  1. gofinn

    gofinn Member

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    I’m 56 years old and my AL & LS is $23k, with notice and redundancy is $50k

    My boss said Due to a merger & restructure, I'm no longer needed and will become redundant.
    He will not give a termination date.

    2 weeks later I asked for an update, I was told not to worry and he will look after me,
    He suggested I should not resign so as not to lose the redundancy payout.

    The company is still going to exist (Family trust Pty Ltd may be as a shell ) and when some money became available he will issue the termination notice & pay me redundancy. I should have my job until Xmas, he said.
    3 days later All equipment has been centralised & moved to another premises

    After merger only 2 staff will remain with no work to perform .
    Note: I believe they trading while insolvent. They rely on selling vehicles (<$30k) for the payout if any.


    There are potentially 3 other persons that may not sign new contracts because of the imposed conditions.
    each has LS & AL ~>$30k.

    After the merger, there will be less then 15 employees.

    My dilemma : if any resign before they sign contracts, there is no money to pay any of us.
    What can I do to secure my entitlements and force the redundancy.
     
  2. Paul Cott

    Paul Cott Well-Known Member

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    Hi Gofinn,

    Generally a small business employer (less than 15 employees) does not have to pay redundancy pay.

    I would check with the FWO (Ombudsman not the Commission) on that.

    Also, you can't generally force the Employer to make you redundant and if you did, it risks it not being a genuine redundancy - however then you may have an unfair dismissal claim.
     
  3. gofinn

    gofinn Member

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    My employer has over 25 people, but after merger there will be <15
    I have been given verbal assurance that he will pay redundancy, But I find it hard to believe that he will keep his word.
    the merger has not occurred yet.
     
  4. Paul Cott

    Paul Cott Well-Known Member

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    The Fair Work Commission would probably measure employee at the particular time of the particular redundancy. If he doesn't have to pay it and you would need to check if he does, and he does pay it, he might request or demand it back later, that's the danger.
     
  5. Rod

    Rod Well-Known Member

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    Definitely do not resign. You can ask to be made redundant now. The employer can refuse but nothing gained if you don't ask.
     

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