$42,000 in redundancy for woman sacked after 10 years

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$42,000 in redundancy for woman sacked after 10 years

A Canberra marketing professional who was made redundant after more than 10 years with her employer has received over $42,000 in termination payments, after intervention from the Fair Work Ombudsman.

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A Canberra marketing professional who was made redundant after more than 10 years with her employer has received over $42,000 in termination payments, after intervention from the Fair Work Ombudsman.
 
After the woman lodged a complaint, workplace inspectors contacted the employer to discuss termination entitlement obligations under workplace relations laws for workers made redundant.
 
Fair Work Ombudsman Executive Director Michael Campbell said an amount of $42,918 in redundancy entitlements and other termination payments including accrued annual leave and pay in lieu of notice was made voluntarily by the employer within two weeks of the woman lodging her complaint.
 
Lack of awareness
 
Campbell said the reason for the underpayment was the company’s lack of awareness of its obligations under workplace relations laws.
 
‘It was encouraging that the employer co-operated and rectified this underpayment so promptly,’ he said.
 
‘However, while tough economic conditions represent challenging times for business, they are no excuse for failing to pay workers their proper entitlements.
 
‘Redundancy entitlements play a vital supporting role for people while they attempt to pick themselves up, find a new job and get back on their feet,’ Campbell said.
 
Employers who fail to pay full redundancy entitlements to workers can face fines of up to $33,000 per breach of workplace law.
 
Note on redundancy from 1 January 2010
 
Redundancy entitlements under federal workplace relations laws will change when the new system is fully operational from 1 January 2010.
 
Redundancy provisions provided by modern awards that are more beneficial to employees will continue to be enforceable, while some previously unenforceable severance pay provisions may become enforceable with the introduction of modern awards.
 
From 1 January 2010, there will be a national statutory minimum provision for the payment of redundancy pay when an employee’s position becomes redundant. This will apply to any employee whose employer is incorporated.
 
Because most pre-reform federal awards, NAPSAs and pre-reform federal and state agreements already provide a scale of redundancy pay, the NES will mainly apply to those employees who are not currently covered by an industrial instrument.
 
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