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AP781451CRV - Federal Meat Industry (Processing) Award 2000

10. REDUNDANCY

[10 substituted by PR948993 from 02Jul04]

10.1 Definitions

10.1.1 Business includes trade, process, business or occupation and includes part of any such business.

10.1.2 Redundancy occurs where an employer has made a definite decision that the employer no longer wishes the job the employee has been doing done by anyone and that decision leads to the termination of employment of the employee, except where this is due to the ordinary and customary turnover of labour.

10.1.3 Small employer means an employer who employs fewer than 15 employees.

10.1.4 Transmission includes transfer, conveyance, assignment or succession whether by agreement or by operation of law and transmitted has a corresponding meaning.

10.1.5 Week's pay means the ordinary time rate of pay for the employee concerned. Provided that such rate shall exclude:

10.2 Transfer to lower paid duties

Where an employee is transferred to lower paid duties by reason of redundancy the same period of notice must be given as the employee would have been entitled to if the employment had been terminated and the employer may at the employer's option, make payment in lieu thereof of an amount equal to the difference between the former ordinary rate of pay and the new ordinary time rate for the number of weeks of notice still owing.

10.3 Severance pay

10.3.1 Severance pay - other than employees of a small employer

An employee, other than an employee of a small employer as defined in 10.1, whose employment is terminated by reason of redundancy is entitled to the following amount of severance pay in respect of a period of continuous service:

Period of continuous service

Severance pay

 

 

Less than 1 year

Nil

1 year and less than 2 years

4 weeks' pay

2 years and less than 3 years

6 weeks' pay

3 years and less than 4 years

7 weeks' pay

4 years and less than 5 yeas

8 weeks' pay

5 years and less than 6 years

10 weeks' pay

6 years and less than 7 years

11 weeks' pay

7 years and less than 8 years

13 weeks' pay

8 years and less than 9 years

14 weeks' pay

9 years and less than 10 years

16 weeks' pay

10 years and over

12 weeks' pay

Week's pay is defined in 10.1.

10.3.2 Severance pay - employees of a small employer

An employee of a small employer as defined in 10.1 whose employment is terminated by reason of redundancy is entitled to the following amount of severance pay in respect of a period of continuous service:

Period of continuous service

Severance pay

 

 

Less than 1 year

Nil

1 year and less than 2 years

4 weeks' pay

2 years and less than 3 years

6 weeks' pay

3 years and less than 4 years

7 weeks' pay

4 years and over

8 weeks' pay

Week's pay is defined in 10.1.

10.3.3 Provided that the severance payments shall not exceed the amount which the employee would have earned if employment with the employer had proceeded to the employee's normal retirement date.

10.3.4 Continuity of service shall be calculated in the manner prescribed by clause 3.5. Provided that service prior to 2 July 2004 shall not be taken into account in calculating an entitlement to severance pay for an employee of a small employer pursuant to 10.3.2.

10.3.5 Application may be made for variation of the severance pay provided for in this clause in a particular redundancy situation in accordance with the Redundancy Case Decision [PR032004, 26 March 2004] and the Redundancy Case Supplementary Decision [PR062004, 8 June 2004].

10.4 Employee leaving during notice period

An employee given notice of termination in circumstances of redundancy may terminate his/her employment during the period of notice set out in clause 9 - Notice of Termination. In this circumstance the employee will be entitled to receive the benefits and payments they would have received under this clause had they remained with the employer until the expiry of the notice, but will not be entitled to payment in lieu of notice.

10.5 Alternative employment

10.5.1 An employer, in a particular redundancy case, may make application to the Commission to have the general severance pay prescription varied if the employer obtains acceptable alternative employment for an employee.

10.5.2 This provision does not apply in circumstances involving transmission of business as set in 10.7.

10.6 Job search entitlement

10.6.1 During the period of notice of termination given by the employer in accordance with 9.1, an employee shall be allowed up to one day's time off without loss of pay during each week of notice for the purpose of seeking other employment.

10.6.2 If the employee has been allowed paid leave for more than one day during the notice period for the purpose of seeking other employment, the employee shall, at the request of the employer, be required to produce proof of attendance at an interview or he or she shall not receive payment for the time absent. For this purpose a statutory declaration will be sufficient.

10.6.3 The job search entitlements under this subclause apply in lieu of the provisions of clause 9.3.

10.7 Transmission of business

10.7.1 The provisions of this clause are not applicable 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), in any of the following circumstances:

10.7.1(a) Where the employee accepts employment with the transmittee which recognises the period of continuous service which the employee had with the transmittor and any prior transmittor to be continuous service of the employee with the transmittee; or

10.7.1(b) Where the employee rejects an offer of employment with the transmittee:

(i) in which the terms and conditions are substantially similar and no less favourable, considered on an overall basis, than the terms and conditions applicable to the employee at the time of ceasing employment with the transmittor; and

(ii) which recognises the period of continuous service which the employee had with the transmittor and any prior transmittor to be continuous service of the employee with the transmittee.

10.7.2 The Commission may vary 10.7.1(b) if it is satisfied that this provision would operate unfairly in a particular case.

10.8 Employees exempted

This clause does not apply to:

The provisions of this clause do however apply to daily hire employees.

10.9 Incapacity to pay

The Commission may vary the severance pay prescription on the basis of an employer's incapacity to pay. An application for variation may be made by an employer or a group of employers.

10.10 Permanent close-downs of Meat Processing Establishments.

10.10.1 Where an employer has made a definite decision to permanently close down a meat processing establishment, as defined, employees of such establishment shall be entitled to all of the provisions of this clause.

10.10.2 In circumstances where a meat processing establishment referred to in 10.10.1 is closed and not re-opened within a period of eight consecutive calendar months from the date of the closure, it shall be deemed to be permanently closed down and the provisions of this clause shall apply.

10.10.3 For the purposes of this sub-clause, a meat processing establishment, shall include parts thereof including but not limited to a chain, rail, section, department, room or sub-room of such meat processing establishment.

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