Any continuity of service that there might otherwise have been will normally be broken, provided that there has been no agreement between the parties to preserve continuity and the new contract makes clear that it is a new period of employment.
To err on the side of caution, a minimum two-week break in service would be advisable. The position is different if the offer of new employment is made before the original employment has ended, ie if the employee is given notice of redundancy but, before the employment ends, the employer offers them a new job. In these circumstances, continuity will be preserved if the new job starts no more than four weeks after the redundancy date. For statutory redundancy payment purposes, continuity of employment is broken where a redundancy payment has been paid to the employee and the employee is then re-engaged under a new contract of employment.
This prevents the employee's service counting twice for statutory redundancy payment purposes. Welcome back, let us show you around. Discover the power of our expert insight, trusted resources, data analysis and practical tools today. Proceed with caution and diligence, say Calerdone and Bradica. Seek advice on a case-by-case basis because much of this will turn on the facts.
If the employer is able to demonstrate there was a genuine redundancy at the time of termination, but due to a positive turn of events there was opportunity to re-employ staff, and a decision is made in good faith on that basis, it would seem reasonable and manageable to do so. Extraordinary times call for extraordinary measures. We are certainly living and working through those. Part two of this article speaks with organisations and employees who have made the re-hiring process work.
Keep an eye out over the coming weeks. This is an extract of an article that appeared in the November edition of HRM magazine. Want to bring former employees back into the fold but unsure about your legal obligations? Read this. Was it a genuine redundancy? Inability to identify any suitable redeployment opportunities at the time of the termination, within your business or any associated entities.
Continuity of service issues and returning payments Generally, the termination of an employee by way of a genuine redundancy, and the subsequent re-employment of that employee, is not sufficient to maintain a continuity of service for the purpose of the Fair Work Act.
Continuity of long service leave entitlements While long service leave LSL entitlements differ from state to state, each state has provisions which recognise previous services when an employee is terminated and then re-employed by the same employer within a specific period of time. Tax on redundancy payouts There are generous tax concessions in circumstances of genuine redundancy. So, can a company re-employ after redundancy? However, there are a few things to keep in mind:.
However, you may need to allow some time typically one week in between the termination of one period of employment and the commitment of the new employment. Continuity of employment is when an employee has worked for you without a break. This period can determine certain rights afforded to employees such as maternity leave, redundancy pay and requests for flexible working.
Still not sure how to go about the redundancy process? Speak to a Croner expert today for help with your selection process or general redundancy guideline.
Call us free on However, the Applicant claimed that the position description for this new role included all of his former obligations and performance requirements, together with some additional obligations. The Commissioner was satisfied that the company had made the decision to make the positions of the Applicant and five other retail store specialists redundant because of changes in its operational requirements. The company gave evidence regarding the drop in petrol sales during April , that there was a great deal of pressure on the business to reduce rents and that a large number of employees were either stood down completely or partially because there was not enough work.
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