Is casual employee entitled to redundancy pay and notice?

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Is casual employee entitled to redundancy pay and notice?

When making a casual employee redundant after one year’s employment, is redundancy pay applicable, and what notice of termination is required?

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When making a casual employee redundant after one year’s employment, is redundancy pay applicable, and what notice of termination is required? 
 
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Q  We have a clerical employee employed on a casual basis who has been employed with us for approximately 12 months. The employee has been offered full-time employment; however, she has declined our offer because she is currently undertaking tertiary studies. Because of changes in the company’s business, we require a full-time employee to perform her work. Consequently, we intend to terminate the employee’s casual employment. This raises two questions — firstly, is the employee entitled to redundancy pay because she has completed one year’s service; and, secondly, what amount of notice (if any) must be given to her?
 
A  Presuming the employee has been employed as a casual, the Fair Work Act 2009 (s123(1)(c)) states that there is no entitlement to redundancy pay if the person was employed as a casual employee. The employee may argue that they were, in fact, employed on a full-time basis; however, the refusal of the employee to accept full-time employment would suggest the understanding between the employer and the employee was that the nature of the employment relationship is that of a casual employee.
 
With respect to notice of termination of employment, the minimum periods of notice of termination provided under the Fair Work Act do not apply to casual employees. The terms of the applicable modern award may contain provisions that require a period of notice or, more commonly, a minimum payment for each engagement of a casual employee. In this case, the Clerks — Private Sector Award 2010 does not provide a period of notice to terminate the employment; however, the award provides that a casual employee is entitled to a minimum payment of three hours work at the appropriate (casual) rate.
 


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