Business & Finance Workforce & Business Changes, Layoffs, BCPs

Scotland

TheBrownDog
May 5, 2006
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AFL Club
West Coast
If you make someone redundant who has been there 3 years and has 4 weeks annual leave accrued you would have to pay them out 4 weeks annual leave, plus 7 (IIRC) weeks as a redundancy payment that would be taxed differently for them but the same cost to the business. So an 11 week hit up front. They would then be eligible for Newstart or similar once the criteria for that is met.

If you stand them down, you are at most up for paying out the 4 weeks annual leave over 4 weeks then the $1500 thing kicks in. It's meant to be in place for 6 months so if you want to make them redundant after 6 months you are still up for the 7 week payout (8 if they tip over to 4 years service) plus another two weeks of annual leave which will have accrued.
 

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