alternatives to redundancy

Providing alternatives to redundancy is not only an employer’s obligation, but is also considered good practice in relation to retaining vital skills and knowledge within the business.

There is an obligation for employers to search for alternative roles within associated companies (for example where one company owns another) to try to avoid redundancy.

Economic uncertainty and the multi-speed economy has seen some industries in Australia face the need to consolidate and realign their workforces, but many have also found other ways to keep their skilled workers ready for the economic upturn, such as:

  • recruitment freeze
  • terminating contract/fixed term employees where appropriate
  • stopping overtime
  • offering early retirement
  • retraining or redeployment
  • pay freezes or cuts
  • pay deferral schemes(a temporary cut in salary which will be given back at a later date)
  • short-term or flexible working
  • unpaid leave
  • sabbaticals
  • asking/directing employees to take annual/long service leave where awards and agreements allow
  • secondments to other organisations
  • closing graduate training schemes
  • internships (although these should be seen as a way to enable young people to get experience, rather than as inexpensive labour pools.

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