BlandsLaw - Blog posts from Redeployment Options
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Employers must consider opportunities for redeployment within the company or its associated entities in order for a redundancy to be genuine, according to the Fair Work Act 2009. Typically the courts have applied and interpreted these provisions quite widely; for example consideration of redeployment options should include positions that are more junior or on less pay. But does this include employee redeployment to an overseas operation?

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We regularly provide advice around redundancy and know from practice that it can be an area fraught with pitfalls. To meet the test for genuine redundancy under the Fair Work Act the redundancy process must include the employer exploring, with the employee, any available redeployment options. Related to this concept is that of ‘alternative acceptable employment’ which may affect the redundancy pay.

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Don’t Discount Redeployment Options to a Junior Role When Making Employees Redundant

The Fair Work Act 2009 (Cth) ("the Act") provides guidelines and provisions on the process of dismissing an employee, and in what circumstances a dismissal may be consider unfair. Under the Act, an employer will be exempt from an unfair dismissal remedy if the dismissal is made by way of a redundancy. However, the redundancy must be one that is considered genuine. At s389 of the Act, a person’s dismissal is not classed as a genuine redundancy if "it would have been reasonable in all the circumstance for the person to be redeployed within (a) the employer’s enterprise; or (b) the enterprise of an associated entity of the employer".

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