BlandsLaw - Blog posts from redundancy
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An employer, who lost a large contract to supply security services, has recently been ordered to make redundancy payments to 49 affected employees.

The employer, FBIS International Protective Services (Aust) Pty Ltd, had previously applied to and was granted an exemption by the Fair Work Commission (FWC) from having to make redundancy payments. The exemption was granted, at first instance, on the basis that the majority of these employees were taken on by AGC National Pty Ltd who ended up with the contract for security services.

The decision was successfully appealed and the full bench of the FWC ruled that FBIS were not in fact the motivating factor for organising acceptable alternative employment for the employees. FBIS’s involvement in obtaining other employment for the employees was limited to providing the employee’s names and contact details to AGC. Although most of the employees were subsequently employed by AGC, the actions of FBIS were not found to be sufficient for the purposes of securing alternative employment for the employees.

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Redundancies can be a difficult issue for all involved.
Understanding how to conduct a redundancy properly, fairly and in compliance with the Fair Work Act, will help to avoid a sensitive situation becoming a painful problem further down the track. If you do not follow the correct procedures when making a redundancy, you may find yourself dealing with a claim of unfair dismissal. 
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