Resignation during redundancy notice: how much do you pay?

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Resignation during redundancy notice: how much do you pay?

We gave a redundant employee five weeks' notice last week and she has already found another job. Do we have to pay the rest of the notice?

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We gave a redundant employee five weeks' notice last week and she has already found another job. Do we have to pay the rest of the notice?
 
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Q Our company recently gave notice to an executive assistant whose position had become redundant. The manager she reported to left late last year. Since that time, the company has been investigating redeployment opportunities but no suitable alternative positions are available. Last week, the employee was given five weeks’ notice of termination as required under the National Employment Standards (NES).
 
Yesterday, the employee advised she had obtained employment elsewhere and her new employer wanted her to start work as soon as practicable. She will leave us at the end of this week. While we are happy she has obtained alternative employment, our question is, as she has elected to leave prior to the date of termination, is the employer obliged to pay her till the original date of termination or is she only entitled to payment up till the date of her resignation? The employee’s duties are covered by the Clerks – Private Sector Award 2010.
 
A A term common to modern awards provides that an employee who is given notice of termination in circumstances of redundancy may terminate his or her employment during the period of notice. The employee is entitled to receive the benefits and payments she would have received under the award had she remained in employment until the expiry of the notice period, but she is not entitled to payment instead of notice. The Clerks – Private Sector Award 2010 (cl 14.3) contains the terms which apply to this situation.
 
Consequently, your employee is not entitled to be paid the balance of the period of notice given by the employer (three weeks in this case). Payment would only be for the period of notice worked by the employee.
 
Note: This article was corrected on 4 March 2014. Due to a mistake in the editing process, the last sentence originally stated that the employee was entitled to be paid the balance of the notice period.
 


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