Organisations that are considering making redundancies must plan carefully, "being mindful of their competing obligations", to minimise the potential impact on employees and the business, says employment lawyer Natalie Spark.
Employers considering shedding staff in reaction to economic uncertainty must ensure they have updated their redundancy processes, says employment lawyer Lisa Berton.
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.
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