Redundancy

When your employer deems that your job role is no longer required, it means that job is redundant and if you are in that job you are offered a bona fide redundancy.

Not all redundancies are equal. The factors when calculating a redundancy are: years of service, how many weeks the payment in lieu of work is given, the amount of long service leave, the amount of recreational leave and your employment contract.

Should your redundancy be voluntary there will be many points to consider. When talking to clients we see clients that are younger often being confident of getting another job at a similar income level but the net amount of the redundancy is often less than someone that has more years of service. The more mature people may not be as assured of getting a job at the same income level but the net amount of the redundancy is often significant enough to either think about retirement, paying off a home loan or contributing to super and getting a job with less pay than the current job.

There is often no clear cut correct choice and the best way to make an informed decision is often to talk through your options with an adviser than give you the educated implications of your choices.

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