Redundancy Termination Letter Template
Making sure you provide all the required information within a redundancy termination letter requires careful wording. This popular fairly™ product gives you specific guidance, a redundancy termination letter template and an example to assist you get it right.
The Fairly termination letter
This redundancy termination letter template takes the guesswork out of how to write up an effective redundancy termination letter. This redundancy letter is the next step following from a formal consultation meeting with an employee whose position has become redundant for genuine reasons.
Why purchase this redundancy termination letter template?
- Provides employers with a customised letter to an employee whose position has become redundant
- High-quality redundancy termination letter template to provide make the creation of the letter very easy
- Clearly sets out prior actions of employer to comply with the requirements of the Fair Work Act, such as consultation and formal redundancy termination letter
- Easy to understand with clear examples provided
Did you know??? This product is included in the fairly Terminating for Redundancy Toolkit
How does a termination for redundancy differ from dismissing an employee for misconduct or poor performance?
While the Fair Work Act treats employers needing to make staff redundant as quite distinct from other employer initiated dismissals and specifies that an employee terminated by way of a genuine redundancy cannot be found to be unfairly dismissed in a manner possible if you have terminated them for misconduct or poor performance. As such, an employee found to be the subject of a genuine redundancy will not be eligible to seek the assistance of the Commission for reinstatement or payment of compensation by their former employer. To achieve this outcome the employer must follow and comply with the very specific requirements of the Act needed for a genuine redundancy.
For a genuine redundancy the termination must be based on genuine operational requirements. The term ‘operational requirements’ is stipulated but not defined in the Fair Work Act, but permits consideration of many matters including:
- The past and present performance of the business;
- The state of the market in which the business operates;
- Steps that taken to improve efficiency by installing new processes, equipment or skills, or by arranging staff to be used more productively; and
- The application of good management to the business.
- Possible examples of a change in the operational requirements of a business include:
- Updated technology ie a new machine, is now available to do the job previously performed by the position under review; or
- The employer’s business is experiencing a downturn and therefore only needs three people to do a particular task or duty instead of five people; or
- The employer is restructuring their business to improve efficiency and the tasks done by a particular employee are distributed between several other employees and therefore the person’s job no longer exists; or
- A site or business closure; or
- The completion of a project; or
How do I need to deal with a sudden financial downturn?
While the need to vary position numbers to cope with changes in markets, products, services or sales is often able to be predicted in advance, the same is not normally the case when a sudden financial downturn compels a business to restructure its operations.
Be it in reaction to a general downturn in the domestic or global economy, dealing with the need to reduce headcount due to financial downturns often comes with little or no notice.
While such situations can be tough for everybody concerned, the good news is:
- Most businesses taking appropriate action do manage to come out of the downturn, albeit in a trimmed down size; and
- The Fair Work Commission normally adopts a reasonable approach – provided the impact of the downturn on the business can be substantiated with details of loss of orders or major clients.
What is included within the Fairly redundancy termination letter template?
The Fairly redundancy letter carefully guides employers through all the necessary elements required by the Fair Work Act to constitute a genuine redundancy. While best approached with guidance from our extensive range of support materials especially designed for “employers only”, the Fairly redundancy termination letter template is a reliable way to demonstrate to both your now former employee and the Fair Work Commission that you as an employer have covered off on all the necessary steps needed for a valid and legal redundancy termination.
What else is included in addition to the redundancy letter template?
Employers will find instantly available an extensive range of support materials especially designed for “employers only”, providing step by step guidance through the somewhat complicated process specified by the Fair Work Act for a compliant redundancy termination which will greatly reduce the risk of it being appealed to the Fair Work Commission. Fairly guides include practical tips on how to legally select staff positions for redundancy, how to conduct consultation meetings and even provide suggested scripts on what to say.
Why do you need a redundancy template letter?
Without a redundancy template letter, an employer will be faced with allegation they failed to undertake all the necessary processes needed to comply with the Fair Work Act. Using the Fairly redundancy template letter demonstrates genuine circumstances in the operational requirements of your business have resulted in the need to reduce staff numbers and you have accordingly proceeded in a fair and legal manner to select nominated employee/s for redundancy.
The Fairly redundancy template letter then shows how you have consulted with the selected employee/s in a manner required by the Fair Work Act prior to making a final decision to terminate their services.
What is the difference between the Fairly redundancy termination letter compared with a custom letter from an employment lawyer?
Apart from the cost to you in legal fees and your valuable time, not much! At the end of the day you will end up with a letter that assists you to legally make employees redundant in your business.
The big difference for you is in the amount of your money and time required to consult with an employment lawyer, with even a couple of hours with an employment lawyer expected to be well over $600.00, and many lawyers wanting to charge in the thousands for their advice.
In addition, you will need to factor in the time taken to arrange a visit to their law practice and then to actually attend to provide the facts of your matter so they can then provide you with advice and hopefully the letter you need to make the employee redundant.
Compare this to the instant availability of the Fairly redundancy template letter and all the supporting guidance materials you need – all written by fully qualified Law Society specialist employment lawyers for much less than even an hour’s fees with a much less qualified and experienced employment lawyer.
Are all online redundancy termination letter templates the same or is there something special about the Fairly product?
The experience of many of our clients, and a reason they come back again and again to use our products, is that much of the advice and letters written by other employment lawyers or industrial relations advisors are full of legalise and are hard to understand. These lawyers and advisors make a complex area of the Fair Work Act even more complicated and often provide lengthy advising you need to wade through, possibly to justify their high fees. What’s more, they have a habit of advising what you cannot do rather than what you can.
Fairly products in comparison are developed especially for employers who want to quickly understand their position and act in a legal manner to make staff redundant. Being “employer only” they are not written with unions or employees in mind like much of the other redundancy template letters found on the web.
Fairly products have been thoroughly tested with employers like your business to ensure they are:
- Easy to read
- Provide practical action points
- Avoid ‘legalise’
- Up to date
- Written by highly experienced Law Society accredited employment law specialists.