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Redundancy – getting it wrong proves expensive

A recent case saw an employer ordered to pay $3,000 to a redundant worker despite having a genuine reason for redundancy.

The error the employer made was to give the employee insufficient notice of the redundancy situation arising and therefore they had no opportunity to seek advice, arrange representation or comment on the redundancy proposal.

The employee was first told of the possibility of a redundancy on a Friday.  He was given no opportunity to make any representations or seek advice and was then told on the following Monday that he was redundant.

Damages were awarded for the emotional and financial difficulties suffered and for the lack of preparation for being without work.  As there was a genuine commercial reason for the redundancy there was no award for lost wages.