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General => General Discussion => Topic started by: edz on November 11, 2012, 09:32:28 PM

Title: Work place Redundency ???
Post by: edz on November 11, 2012, 09:32:28 PM
MY work it seems is soon going to start offering  Redundency pay outs to us long term permanent's .. The company is wanting to rid itself of permanent staff and re-employ through an employment company ..Though nothing official has yet been said, We have it on good authority it is coming ..
Question I have is what sort of deal / package have others been offered as a redundency, ??? what sort of deals did you bargain for  ???..
Just wanting  to get an all round idea of what might be a standard package  ??
Ive got almost 20 years on the job up, We are in the Hostpitality industry and yes we do have a union, though members at our facility are now very much in a minority compared to years gone by.. Any one been through it like to share their thoughts .   
Title: Re: Work place Redundency ???
Post by: Yimmy on November 11, 2012, 09:49:52 PM
Hi edz,

You need to find out the basis I of your employment contract, do you work under an enterprise agreement for your site or the general award for hospitality.

Either your enterprise agreement or the award will nominate the redundancy provisions, normally they range anywhere from 2 to 4 weeks per year of service, some are capped at a limit.

You didn't mention whether you were a member of the union or not. Anyway best option to ensure you get your full entitlements is to have the union involved at a high level.

I am laughing at myself at the moment as I sit at a senior level of management and the bane of my life can be the union.

But if you don't know your options then they can give you the clarity

I can't believe I am saying this  ;D ;D
Title: Re: Work place Redundency ???
Post by: edz on November 11, 2012, 10:07:26 PM
Thanks Yimmy appreciate the reply, yes to union member and general award ,Was really wondering about the amount of weeks etc per year of service thing .
As to the union being able get much of a deal, well that will remain to be seen.
Title: Re: Work place Redundency ???
Post by: Yimmy on November 11, 2012, 10:14:05 PM
Hey edz,

Get ready to read ... Your award will detail the basis of the redundancy provisions.

The union should be able to provide you with a copy of the award or failing that google is not bad

At the minimum you should be looking at 2 weeks per year of service in my experience

Jim
Title: Re: Work place Redundency ???
Post by: Jason B on November 12, 2012, 10:39:24 AM
My work place has been going through the same thing. As a general rule the type of deals offered are pretty standard here.

Usually 13 weeks pay as the incentive + 3 weeks pay for each year of service up to a maximum of 13 years. This works out at 52 weeks pay if you have been in longer than 13 years. This is in addition to whatever long service or rec leave entitlements you have.

A VR is a fantastic opportunity depending on your age and employability. As long as you can get a job on similar $$$ quickly you would be in front, however if employment opportunities are limited where you are then maybe it is frawt with danger.


Regards

Jas

Title: Re: Work place Redundency ???
Post by: Swannie on November 12, 2012, 10:47:48 AM
As others have said your award/Enterprise bargaining agreement will set out your entitlements.
One thing a lot of people don't ask for and should is the support to get new employment, whether it is you existing HR department helping you with a resume and interviewing techniques or an external employment agency/consultancy business, after 20 years in a company it helps to get a refresher.
Put the onus on your employer to support the transition both financially and emotionally.

Good Luck
Swannie

Title: Re: Work place Redundency ???
Post by: D4D on November 12, 2012, 10:50:18 AM
There are also tax advantages as the first $50K is tax free then there is a lower tax amount on the rest of the payout.
Title: Re: Work place Redundency ???
Post by: Mallory Black on November 12, 2012, 11:21:09 AM
Some good advice here for you Edz
My 2 cents worth- My wife and I have been retrenched twice each. Not pleasant but that's how it goes. Each time we've managed to stay positive and sometimes have had to forge a new career path to keep the bills paid.

If a redundancy is either taken or shoved on you, read the documention thoroughly to the best of your ability. It's a legal document

It is also wrapped in a minefield of legislation and conditions so you might need some advice.

Some Lawyers are good with that, but I have personally found that industrial relations specialists/consultants are more on top of that business.

They should be able to tell you if the deal is:

A crook deal, or:

Standard package, or:

A good deal that is sweeter than what the employer is obligated to offer, and:

If the offer or deal is correct or incorrect.

If you are at a disadvantage you can take action against the employer to correct the mistake or compensate you for getting it wrong.

If they have made an error in your favour, then (from memory) you and they have 90 days from the termination date to do something about it, after that it's all yours/theirs. (yes it has happened to us like that :cheers: but that was in the '90's so I'm not sure about current rules but it was a nice windfall LOL!)
Title: Re: Work place Redundency ???
Post by: Wortho on November 12, 2012, 11:26:29 AM
More on the tax on redundancy payouts......

''For the current 2011-12 year, you can have as a tax-free redundancy payment $8435 for the base amount and, in addition to that, there can be an amount of $4218 for every completed year of service. If you've done 8½ years, you get eight times $4218 plus the $8435 tax-free. So if someone has been there for a long time it can mean their entire payout might be tax-free.''

Under a redundancy payout, the annual leave and long-service leave (long-service leave is accrued after five years on a pro rata basis) will have the benefit of being taxed at 31.5 per cent, rather than the normal marginal tax rates of up to 45 per cent.

The remainder of the redundancy is called the eligible termination payment and is taxed at the normal threshold, with some concessions calculated on the age of the person, linked to the superannuation preservation age, Bembrick says.


Read more: http://www.smh.com.au/money/planning/we-have-to-let-you-go--20110906-1junu.html#ixzz1Xga8IN7a (http://www.smh.com.au/money/planning/we-have-to-let-you-go--20110906-1junu.html#ixzz1Xga8IN7a)

Title: Re: Work place Redundency ???
Post by: Doug.b on November 12, 2012, 12:24:40 PM
Here is a link to fair work ombudsman http://www.fairwork.gov.au/termination/redundancy/pages/default.aspx (http://www.fairwork.gov.au/termination/redundancy/pages/default.aspx) which has some good information about the national employment standards.

Just remember there are 4 things that they could include into the redundancy package;
1. Long Service leave (if you have any owing to you)
2. Redundancy (length of service)
3. Annual Leave ( if you have any owing to you)
4. Notice of termination (http://www.fairwork.gov.au/factsheets/FWO-Fact-sheet-Notice-of-termination-and-redundancy-pay.pdf (http://www.fairwork.gov.au/factsheets/FWO-Fact-sheet-Notice-of-termination-and-redundancy-pay.pdf))
 
Title: Re: Work place Redundency ???
Post by: edz on November 12, 2012, 04:05:57 PM
Thanks all, Appreciate the replies,  been doing a lot of reading the government net sites too, as suggested..
If the terms of  redundency are agreeable enough, Im thinking it might not be a bad thing...
Title: Re: Work place Redundency ???
Post by: areyonga on November 12, 2012, 04:20:45 PM
I have just received one from the Comm Govt and what they give are 2 weeks for each year you have been employed up to a max of 20 years, then 5 weeks pay for over the age of 45 and 4 weeks pay in lieu of notice of termination.  On top of that will be any payout for annual leave, flex leave credits and any long service leave.  Good luck

Trevor
Title: Re: Work place Redundency ???
Post by: Patt31 on November 12, 2012, 07:23:30 PM
my hubby did 26 years service and got 8 weeks pay plus 8 weeks of long service leave that was owing to him. Unfortunately for him he was employed by a company and at the time that was the maximum payout due to him because of the award the company used, as he had done more than 12 years service he was due LSL which reduced the amount that the company had to pay him. (The size of the company also impacts on the amount that they have to pay you to, under so many employees etc)

You look at some people who get alot of money for redundancy payments, but unfortunately for us this was the maximum amount payable. I phoned work choices or whatever it was called at the time and was told he was getting the right amount. Still think that 8 weeks for 26 years service was so wrong.  Was only 2007 too. :(

All I can say is do your research, get it all in writing, and good luck.
Title: Re: Work place Redundency ???
Post by: JRF1973 on November 12, 2012, 09:05:24 PM
Hi Edz

I'm a financial planner and have dealt with a few of the Qld Government staff being put off at the moment.  They were offered $6,500 or 12 weeks pay (which ever was the highest) plus 2 weeks pay for every year of service.

The first $8,806 is tax free, plus $4,404 for each year of service.  The rest is taxed at your normal tax rate (34.5% if you earn between $37,000 & $80,000).  38.5% if you earn between $80,000 & $180,000.

If you want some advice, send me a message.  No charge for a myswagger. :cheers:

Regards

Justin
Title: Re: Work place Redundency ???
Post by: jetcrew on November 12, 2012, 09:21:36 PM
Don't forget your super ..you can claim hardship and get some $$$ of the superfund straight up in most cases, but each fund has rules and regs etc, so contact them and ask about your options, a good mate is getting 15K per year as a pension from now at 40 odd instead of waiting till retirment age Because he took a VR.. his workmate did not check and now the 3 mth period has expired he can't get at it so has to wait 25yrs.

Best of luck mate

Jet ;D
Title: Re: Work place Redundency ???
Post by: Moopla on November 13, 2012, 11:56:56 PM
You would not beleive the redundency entitlements @ my workplace!!!  We get 4weeks per year of service (uncapped). Some employees have been around for 40yrs. Plus they pay out our sick pay.....Our EBA is currently up for negotiation and the company wants to take it all off us. I am not surprised! The company wants to cap the payout to 40 weeks, which is still awesome, and no longer payout sick leave. It's very hard to listen to the bullShit yarn from the union when it sounds like every average joe aussie isn't entilted to half what we are!
Title: Re: Work place Redundency ???
Post by: fishfinder on November 14, 2012, 05:29:22 AM
I think I will be posting on here after todays meeting with the GM ... he has only once payed a visit with out warning ( his assistant slipped up about asking me where is a motel close to our work ) and that was to hand out dcm's or redundency.
Title: Re: Work place Redundency ???
Post by: Slipus on November 14, 2012, 09:17:08 PM
I took a Voluntary Redundancy after 31 years.  All the tax advise seems spot on. 
Being 50 plus helps.  It took me 6 months to find another job but i wasn't looking to hard. I don't regret it one bit, I am debt free. My new job has payed for a new driveway (to make it easier to get camper in the yard), solar power for the house, a new bedroom suite, hot water system and i have been able to help the kids out and give them some money.

   
Title: Re: Work place Redundency ???
Post by: speewa158 on November 14, 2012, 09:23:25 PM
I took a Voluntary Redundancy after 31 years.  All the tax advise seems spot on. 
Being 50 plus helps.  It took me 6 months to find another job but i wasn't looking to hard. I don't regret it one bit, I am debt free. My new job has payed for a new driveway (to make it easier to get camper in the yard), solar power for the house, a new bedroom suite, hot water system and i have been able to help the kids out and give them some money.

 
You poor Bastard ,,,so why did it take so long to do it >:D       :cheers:
Title: Re: Work place Redundency ???
Post by: Barry G on November 14, 2012, 09:36:12 PM
You would not beleive the redundency entitlements @ my workplace!!!  We get 4weeks per year of service (uncapped). Some employees have been around for 40yrs. Plus they pay out our sick pay.....Our EBA is currently up for negotiation and the company wants to take it all off us. I am not surprised! The company wants to cap the payout to 40 weeks, which is still awesome, and no longer payout sick leave. It's very hard to listen to the bull**** yarn from the union when it sounds like every average joe aussie isn't entilted to half what we are!
Moopla, not sure what you are calling bull**** ... the workers in your workplace over time bargained for these conditions. No doubt, at the time they were achieved, they were a choice as against higher wages, for example.
Of course management would like to take them away, but why would the work force agree to give them up unless they were to be compensated by wage rises in advance of what others are getting.
When workers bargain poorly they don't get to make up ground next time round, but employers are forever trying to claw back previous gains in wages and conditions.
Title: Re: Work place Redundency ???
Post by: Barry G on November 14, 2012, 09:44:14 PM
Edz,
A redundancy needs to be 'genuine' - i.e. not just the employer wanting to get rid of permanent employees and replace them with casuals.
As such, it would have to be genuinely 'voluntary'.  Having said that, if it works for you hen all well and good.
However, in the past 20 years I have seen a number of people come to realise that the $$$ aren't as good as they seem, especially if replacement secure work is hard to come by.
Bottom line is, if you are a good long term permanent employee and their is ongoing work you have a legal right to keep your permanent employment and conditions.  After all, that is what permanent means.
Title: Re: Work place Redundency ???
Post by: Nomad on November 14, 2012, 10:33:25 PM
When workers bargain poorly they don't get to make up ground next time round, but employers are forever trying to claw back previous gains in wages and conditions.

As a medium sized business owner, you might consider that in the current climate that alot of businesses are actually trying to protect themselves from becoming non existent.....................................

Small and medium businesses are the largest employers in this country and in all honesty dealing with the red tape and requirements placed on them have become ridiculously expensive and time consuming, obviously this creates more strain on what may be an otherwise very stressful position.

Not all business owners are money grabbing pricks looking to underpay their labour. I met a guy today, who because of Suncorp not paying out 2.5million for flood damage is going to lose his commercial enterprises, have to sack 60 employees and lose his house. Yet all he cares about is his workers. What a ****ing legend. Yet he, after all his investment is going down alone..........don't see the unions stepping in to help him out, and keep their members gainfully employed.

There is a level playing field somewhere for both business owners and employees but no one seems to know were it is. I wish I could pay myself 40 weeks pay, leave loading entitlements, sick pay and superannuation..............I would make myself reduntent tomorrow.
Title: Re: Work place Redundency ???
Post by: D4D on November 15, 2012, 08:35:28 AM
I did some research on this yesterday. The one thing that hasn't been mentioned is any long service or annual leave is taxed at your normal rate. Only the redundancy payment benefits from a lower tax rate.
Title: Re: Work place Redundency ???
Post by: Barry G on November 15, 2012, 09:52:16 AM
Nomad,
My comment was directed specifically at Moopla's anti-union remark.  Good small - medium employers are probably the best of the best, but they aren't necessarily the majority experience of ausie workers in 2012. 
Only yesterday I was asked where would a hairdresser go to deal with the problem that he is employed 'full time' - including opening and closing the shop - but is paid as a 'casual' i.e. no sick pay, holidays, long service leave etc, and can be instantly dismissed.  When he asked about becoming permanent he was told "we don't do that here".  Of course this is illegal, but what can he do???
Last week I was told of an instance in my own industry - local government - of a pregnant staff member who had used up all of her sick leave with a difficult pregnancy being told she would have to go on un-paid leave if she couldn't return to work up until her due date.  And that by the type of arrogant scum that too often constitute H.R. 'experts' these days.
As a workplace delegate of my union I have seen far too much of this over the past 25 years to believe it is not increasingly becoming the norm.
I agree with you that insurance companies can be b@st@rds, but I'm not sure what you think unions could 'step in' to do about that... and if they did the anti-union push would no doubt use it as another opportunity to scream about unions bullying 'private enterprise'.
Anyway, to return to the theme of the thread, we can all at least be thankfull that redundancy provisions exist.  I'm damn sure that they wouldn't but for the work of previous generations of unionists.
Title: Re: Work place Redundency ???
Post by: Bird on November 15, 2012, 09:56:42 AM
I was in a union once.. The TWU - what a farce they are.
I'd never join a union ever again
Title: Re: Work place Redundency ???
Post by: Barry G on November 15, 2012, 10:12:10 AM
I was in a union once.. The TWU - what a farce they are.
I'd never join a union ever again
Presumably they didn't do enough for their members in your opinion. 
Moopla criticises unions for doing too much...

A bit hard to win...
Title: Re: Work place Redundency ???
Post by: Bird on November 15, 2012, 10:31:30 AM
Quote from: barry1956
Presumably they didn't do enough for their members in your opinion

they did zero for us, they even refused to talk with is.. could it be the fact that the union rep and the second incharge both got new $200k prime movers?
The only contact we had was to threaten us 2 months after we got the arse with legal bullShit cause our fees were 2 weeks overdue... Sadly the Union rep didnt want to discuss it with us when we fronted him at CTAL, he took off and nearly bounced off a containership and would have landed in the water

again unions are a farce.
Title: Re: Work place Redundency ???
Post by: Barry G on November 15, 2012, 11:26:12 AM
they did zero for us, they even refused to talk with is.. could it be the fact that the union rep and the second incharge both got new $200k prime movers?
The only contact we had was to threaten us 2 months after we got the arse with legal bull**** cause our fees were 2 weeks overdue... Sadly the Union rep didnt want to discuss it with us when we fronted him at CTAL, he took off and nearly bounced off a containership and would have landed in the water

again unions are a farce.

So, you had a 'rep' and 'deputy' who were in the bosses pocket - in more ways than one...
In my union (ASU) the 'rep' is elected by the members in the workplace.  My members wouldn't stand for that sort of cr@p.

It has been said that a good reputation arrives on a snail and departs on a galloping horse.
I.e. a bad experience turns people off far faster than good experiences win support.
This is equally true for unions and employers.  (And in both cases the good and the bad get tarred with the same brush.)

My suggestion to those who are dissatisfied with their level of representation is for them to take on the role of union delegate.  That way you can be assured that the Union organisers / industrial officers are kept aware of issues before it is too late.  No doubt in your case the 'reps' would've made sure the organisers were kept in the dark.
Title: Re: Work place Redundency ???
Post by: stepheng on November 20, 2012, 12:51:47 PM
I have accepted a VR and my last day is 30/11/12, I cant wait. I am a public servant and been there for 10 years but am so over it I jumkped at it. They arent offering that great a deal I am getting 2 weeks per year plus four weeks, ie 26 weeks....when you do the tax it works out to be more, so I am getting about 11 months salary..plus a good kick into the super.

I havent got a job, and have only started to look (not seriously) but in reality have a number of months up my sleeve. I was going to leave anyway and it depends upon your options, local employment and how your industry is going.

For me I am financially OK, got the Govt to pay for my MBA, Melb is not that bad employment wise and I work in health, which is a growing industry. I am taking the change, although my wife is a bit concerned.
Title: Re: Work place Redundency ???
Post by: Patt31 on November 20, 2012, 07:53:44 PM
just think of the time you can spend relaxing in your camper now Stephen. :-) hope it all goes well for you.
Title: Re: Work place Redundency ???
Post by: fishfinder on January 16, 2013, 07:15:32 PM
As Freddy Murcury once said " Another on bites the dust " - got my redundancy this morning I mite have enougth $ in my pay out  to last me a month
Title: Re: Work place Redundency ???
Post by: Nomad on January 16, 2013, 07:24:03 PM
Thats a bugger ff.

I hope things improve for you.

Kind regards
Nomad.
Title: Work place Redundency ???
Post by: Big Tread on January 16, 2013, 07:36:30 PM
X2

Hope things work out.

Cheers
Big Tread


Sent from my iPod touch using Tapatalk
Title: Re: Work place Redundency ???
Post by: JU5T1N on January 16, 2013, 08:00:35 PM
I was in a union once.. The TWU - what a farce they are.
I'd never join a union ever again
I also was in TWU and interestingly enough, when I left Tooheys after 13.5 years I was still chasing my long service. The 2IC for the TWU was a driver at the brewery at the time and he said sorry he can't help me with this matter even when I had all my Group Certificate's as proof. During my service several transport managers had come and gone yet one left with a heap of files so they had lost everyones start dates. They tried to say I had only done 9.5 years. Then I remembered that the 2IC of the TWU's son was employed within the same fortnight as I. So I asked him if he had received his yet.
Hmmm shock horror, suddenly the TWU hit them hard.....I got my dues  ;D
Personally I see good and bad with the unions, if you have them backing you and theres no brown paper bags in their hand it usually gets an agreeable worthy solution.

Its just unfortunate that sometimes people (members) can get sold out.
Title: Re: Work place Redundency ???
Post by: chester ver2.0 on January 17, 2013, 12:42:26 PM
Put the money aside for a minute as you need to look at a few other things first

1. What is your age if you are close to retirement and a redundancy will get you over the line then go for it if not maybe read on

2. Where do you live what are the other employment opportunities like, what is your family situation like will you be able to travel for work if required
3. What are your skills now dont take offence you have been working with the same company for 20 years have you been doing the same job or different ones, when is the last time you did a training course related to what you do etc etc i.e do you have skills transferrable to different roles
4. What is your network like do you know people outside of where you work to leverage off and get connections a lot of jobs are not even advertised it is word of mouth
5. What industry are you in and is the industry itself struggling meaning will there be a flood of other people like yourself on the market that you will have to compete with
6. What is your drive and be honest with yourself finding a new job is a job so you need to be keen

Some food for thought before looking at the dollars
Title: Re: Work place Redundency ???
Post by: fishfinder on January 17, 2013, 02:49:01 PM
woo hoo just realised got time to go camping - beauty point here i come  -it is time to live up my name this fishfinder is going to prove himself wrong and will find fish in tassie
Title: Re: Work place Redundency ???
Post by: bussoboy on January 17, 2013, 03:18:23 PM
I was in a union once.. The TWU - what a farce they are.
I'd never join a union ever again

same same................... they have a place in society, but from my prospective they have caused more bad than good
Title: Re: Work place Redundency ???
Post by: Bunyip on January 21, 2013, 09:52:12 PM
Just got made redundant today.

Probably the best thing that could have happened, I was not happy there but too lazy to do anything about it.

Now they have made the decision for me. Had a quick look at seek this evening and have four jobs that look good, so hopeful that I will find something in the next 4 - 8 weeks.

In the mean time LB has a house husband!

Bunyip
Title: Re: Work place Redundency ???
Post by: fishfinder on January 22, 2013, 05:19:24 AM
Just got made redundant today.

Probably the best thing that could have happened, I was not happy there but too lazy to do anything about it.

Now they have made the decision for me. Had a quick look at seek this evening and have four jobs that look good, so hopeful that I will find something in the next 4 - 8 weeks.

In the mean time LB has a house husband!

Bunyip
good luck