Inviting an employee who is being retrenched to apply for another position does not constitute redeployment, and could mean the employer fails the Fair Work Act's "genuine redundancy" test, Kemp Strang lawyers told a recent breakfast briefing in Sydney.
Now that the Fair Work Act's redeployment requirements have taken effect, even seemingly "unpalatable" redeployment options should be offered to employees, says Kemp Strang employment lawyer Lisa Berton.
Employers that retrench workers without ensuring their financial wellbeing run the risk of damaging their brands - and facing litigation, says ipac corporate consultant Nola Rihani.
Employers that offer voluntary redundancies when forced to downsize are at risk of losing invaluable knowledge and experience and having their best talent turn into competition.
Poor redundancy strategies are leaving employers vulnerable to having their top talent poached by their competitors, according to human capital firm Chandler Macleod Group.
Employers forced to make redundancies after the Fair Work Act comes into force in July must prove they have proactively pursued all redeployment alternatives before letting workers go - and an internal job board won't cut the mustard, says a workplace relations lawyer.
Redeploying workers instead of cutting headcount during tough economic times can save your business millions of dollars in employment costs, according to Human Capital Management Solutions CEO, Trevor Vas.
Employers compelled to make employees redundant because of the economic downturn are still entitled to enforce restraint clauses, says Minter Ellison Lawyers partner, Gareth Jolly.
Employers that refrain from indiscriminately slashing staff numbers and adhere to the 10 "DOs and DON'Ts" of the redundancy process will be "poised to enjoy a competitive advantage" as the economy rebounds, according to the authors of a white paper from the Human Capital Institute and Taleo.
Concealing a company's shaky financial position from employees during the economic downturn could be grounds for an unfair dismissal case should redundancies ensue, according to a workplace lawyer.
