As someone who has sat next to a partner going through redundancy, I know how terrifying the experience can be. Innately, we humans are averse to change – particularly when said change is not of our own making.
But being made redundant doesn’t have to be a terrible thing. In fact, it can be the push for positive change you didn’t know you needed, and come with serious financial benefits.
Being made redundant doesn’t have to be a bad thing, especially if you know how to negotiate your way out the door.Credit: Dionne Gain
First things first, let’s talk about what a redundancy is – and what it isn’t. More often than not, redundancies happen following a restructure, either across the entire company or in a specific section, where it’s deemed the role you’re employed to do is no longer needed.
According to the Fair Work Ombudsman, the most common reasons for redundancies are a slowdown in sales or production, a company closing, the introduction of new technology, restructures relating to mergers or takeovers, or a business relocating interstate or overseas.
Being made redundant is not the same as being fired, for a few important reasons. When you’re fired, you’re only legally entitled to a payout of your annual leave. When you take a redundancy, you receive a lump sum and have the power to negotiate an exit package, which is essentially a leaving fee.
A redundancy also looks much better on your resume than being fired because leaving this way suggests a level of commitment and loyalty to your employer, which we all know is an extremely attractive trait.
A redundancy is symbolic of your employer and what they are experiencing, not a reflection on your self-worth or your capabilities.
While specific redundancy entitlements vary across companies and sectors, generally you’re required to be employed for a minimum of 12 months to be considered eligible. Other caveats exist for employees who are ineligible (or at least likely to be) such as contractors, casuals, trainees and apprentices, and employees of a small business with fewer than 15 employees.
There should be a specific section in your employment contract laying out your company’s redundancy options, and I beg you to read this carefully before signing – it’s very important!
Redundancies aren’t always bad. Here’s what to do if it happens to you
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04.05.2024
As someone who has sat next to a partner going through redundancy, I know how terrifying the experience can be. Innately, we humans are averse to change – particularly when said change is not of our own making.
But being made redundant doesn’t have to be a terrible thing. In fact, it can be the push for positive change you didn’t know you needed, and come with serious financial benefits.
Being made redundant doesn’t have to be a bad thing, especially if you know how to negotiate your way out the door.Credit: Dionne Gain
First things first, let’s talk........
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