Woolworths (South Australia and Northern Territory) Award, 2003
AP825337 - Woolworths (South Australia and Northern Territory) Award, 2003
16.1 Definition
Redundancy occurs when an employer decides that the employer no longer wishes the job the employee has been doing to be done by anyone and this is not due to the ordinary and customary turnover of labour.
16.2 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.
16.3 Severance pay
16.3.1 In addition to the period of notice prescribed for ordinary termination in clause 15 - Termination of employment, an employee whose employment is terminated by reason of redundancy must be paid, subject to further order of the Commission, the following amount of severance pay in respect of a continuous period of service:
Period of continuous service |
Severance pay |
Less than 1 year |
nil |
1 year and up to the completion of 2 years |
4 weeks’ pay |
2 years and up to the completion of 3 years |
6 weeks’ pay |
3 years and up to the completion of 4 years |
7 weeks’ pay |
4 years and over |
8 weeks’ pay |
16.3.2 Week’s pay means the ordinary time rate of pay for the employees concerned.
16.3.3 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.
16.4 Employee leaving during notice period
An employee whose employment is terminated by reason of redundancy may terminate his/her employment during the period of notice and, if so, will be entitled to the same benefits and payments under this clause had they remained with the employer until the expiry of such notice. However, in this circumstance the employee will not be entitled to payment in lieu of notice.
16.5 Alternative employment
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.
16.6 Time off during notice period
16.6.1 During the period of notice of termination given by the employer 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.
16.6.2 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.
16.7 Superannuation benefits
16.7.1 Subject to further order of the Commission where an employee who is terminated receives a benefit from a superannuation scheme, he or she shall only receive under 16.3 hereof the difference between the severance pay specified in that clause and the amount of the superannuation benefit he or she receives which is attributable to employer contributions only.
16.7.2 If this superannuation benefit is greater than the amount due under 16.3 hereof then he or she shall receive no payment under that clause.
16.8 Transmission of business
16.8.1 Where a business is before or after the date of this award, transmitted from an employer (in this clause called the transmittor) to another employer (in this clause 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:
16.8.1(a) the continuity of the employment of the employee shall be deemed not to have been broken by reason of such transmission; and
16.8.1(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.
16.8.2 In this clause 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.
16.9 Employees exempted
This clause shall not apply where employment is terminated as a consequence of conduct that justifies instant dismissal including inefficiency within the first fourteen days, neglect of duty or misconduct, and in the case of casual employees, apprentices or employees engaged for a specific period of time or for a specific task or tasks.
16.10 Employers exempted
Subject to an order of the Commission, in a particular redundancy case, this clause shall not apply to employers who employ less than fifteen employees.
16.11 Incapacity to pay
An employer, in a particular redundancy case, may make application to the Commission to have the general severance pay prescription varied on the basis of the employer’s incapacity to pay.
