On paper it’s easy.

When you need to cut costs in tough economic times, there’s a big chunk of it sitting on your wage bill.

Moving some of that cost off your P&L gives your balance sheet an instant shot in the arm. If revenues are down, it’s the quickest way to redress the balance.

In reality, though, it’s very different…

Making someone redundant is the most difficult and legally complicated thing you’ll ever have to do as a manager.

And it is harder now than ever.

Major recent changes to Australian workplace legislation – i.e. the Fair Work Act – have tied us all up in knots. There’s now so much more for managers of people – in any industry – to be aware of.

Here are 6 vital new legal redundancy requirements you must be aware of:

1. If you employ 15 or more staff, you now have to pay retrenched employees minimum notice and redundancy pay.
2. If you employ less than 15 staff, you may now have to pay the same amount of redundancy pay to retrenched award-based employees as larger employers.
3. The decision to retrench an employee is no longer yours alone to make – you must consult with an employee BEFORE you decide to retrench them.
4. Previously, WorkChoices exempted you from unfair dismissal in redundancy cases. Now, an employee you retrenched may be able to bring an unfair dismissal claim against you!
5. Your redundant employees may now be entitled to ‘interview leave’.
6. You will now only be able to terminate an employee by delivering them a written notice that clearly states their last day of employment.

It’s a minefield isn’t it? You’d be forgiven for wanting to avoid the situation altogether – but you don’t have to rule it out just yet…

The Employment Law Practical Handbook can help you to implement redundancies quickly, cleanly, sensitively and legally…

Here’s just a sample of the practical information you’ll find in chapter R2 Redundancy and Retrenchment when you have to take the tricky decision to make someone redundant:

• How to prove that a redundancy is ‘genuine’ – if you want to avoid prosecution for unfair dismissal, you must be able to do this… more information on Page R2/5
• 4 ways you can be exempt from making a redundancy payment… more information on Page R2/11
• 4 reasons you may have to pay a higher amount of redundancy pay – and how to avoid it!… more information on Page R2/17
• How to tax redundancy payments properly and avoid landing yourself in hot water… more information on Page R2/19
• How to meet your 5 new redundancy consultation requirements under the Fair Work Act… more information on Page R2/21