AN120089 – Building and Construction Industry (State) Award
16.1 Definition: Redundancy means:
(a) a situation where an employee who has less than 12 months' employment with their current employer and ceases to be employed by an employer, other than for reasons of misconduct or refusal of duty or termination of employment by the employee.
(b) a situation where an employee who has more than 12 months' employment with their current employer and ceases to be employed by an employer, respondent to the award, other than for reasons of misconduct or refusal of duty.
"Redundant" has a corresponding meaning.
16.2 Redundancy Pay: A redundant employee shall receive redundancy/severance payments, calculated as follows, in respect of all continuous service (as defined by this award) with their employer.
Period of continuous service with an employer |
Redundancy/Severance Pay |
1 year or more but less than 2 years |
2.4 weeks pay plus, for all service in excess of 1 year, 1.75 hours pay per completed week of service up to a maximum of 4.8 weeks pay |
2 years or more but less than 3 years |
4.8 weeks pay plus, for all service in excess of 2 years, 1.6 hours pay per completed week of service up to a maximum of 7 weeks pay. |
3 years or more but less than 4 years |
7 weeks pay plus, for all service in excess of 3 years, 0.73 hours pay per completed week of service up to a maximum of 8 weeks pay. |
4 years or more |
8 weeks pay |
Provided that where the employee is terminated by the employer for reasons other than misconduct or refusal of duty and the employee has been employed for less than 12 months continuous service, then the employee shall be entitled to a redundancy/severance payment of 1.75 hours per week of service.
16.3 "Week's pay" means the ordinary time rate of pay at the time of termination for the employee concerned.
16.4 If an employee dies with a period of eligible service which would have entitled that employee to redundancy pay, such redundancy pay entitlement shall be paid to the estate of the employee.
16.5 (i) Any period of service as a casual employee shall not entitle an employee to accrue service in accordance with this clause for that period.
(ii) Service as an apprentice will entitle an employee to accumulate credits towards the payment of a redundancy benefit in accordance with this clause if the employee completes an apprenticeship and remains in employment with that employer for a further 12 months.
16.6 An employer bound by this award may utilise a fund to meet all or some of the liabilities created by this clause. Where an employer utilises such a fund:
(i) payments made by a fund designed to meet an employer's liabilities under this clause, to employees eligible for redundancy/severance pay shall be set off against the liability of the employer under this clause, and the employee shall receive the fund payment or the award benefit whichever is the greater but not both; or
(ii) where a fund, which has been established pursuant to an agreement between unions and employers, does not make payments in accordance with this clause, contributions made by an employer on behalf of an employee to the fund, shall, to the extent of those contributions, be set off against the liability of the employer under this clause, and payments to the employee shall be made in accordance with the rules of the fund or any agreement relating thereto and the employee shall be entitled to the fund benefit or the award benefit whichever is greater but not both.
16.7 Service as an employee for Crown in the Right of the State of New South Wales shall not be counted as service for the purpose of this clause.
16.8 Employee leaving during notice An employee whose employment is to be terminated in accordance with clause 16.2 may terminate his or her employment during the period of notice and if this occurs, shall be entitled to the provisions of clause 16.2 as if the employee remains with the employer until expiry of such notice. Provided that in such circumstances, the employee shall not be entitled to payment in lieu of notice.
16.9 Transmission of Business
(i) Where a business is, before or after the date of this award, transmitted from an employer (in this subclause called "the transmittor") to another employer (in this subclause called "the transmittee") and an employee who at the time of such transmission was an employee of the transmittor in that business becomes an employee of the transmittee:
(a) the continuity of the employment of the employee shall be deemed not to have been broken by reason of such transmission; and
(b) the period of employment which the employee has had with the transmittor or any prior transmittor shall be deemed to be service of the employee with the transmittee.
(ii) In this subclause "business" includes trade, process, business or occupation and includes part of any such business and "transmission" includes transfer, conveyance, assignment or succession whether by agreement or by operation of law and "transmitted" has a corresponding meaning.
