Termination and Redundancy under the Building Award

Termination and Redundancy under the Building Award

The Building and Construction General On-Site Award 2020 (the Award) is an industry award, which applies to all employers and their employees working in on-site building, engineering and civil Construction.

Key Facts:

• The Award provides industry specific redundancy scheme, all of which apply to businesses and is different to the obligations of redundancy under the National Employment Standards (NES).  If the award applies to your business, you must apply the industry specific scheme.
• Get your facts right before you do anything!!
• Terminating or making an employee redundant is a complex area that requires careful consideration.
• You must comply with a range of obligations both under the Award and NES when terminating any employee or making any employee redundant.
• This has always been in the award.  It isn’t a new addition.

Under the NES you need to provide at least the following notice period (or pay the employee in lieu):

1 Year or less of Continuous Service         =             1 Week Notice

More than 1 year – 3 years Continuous   =             2 Weeks

More than 3 Year – 5 years Continuous =             3 Weeks

More than 5 years Continuous                   =             4 weeks

What notice must my employee give me?

Employee must give you, with a notice period in accordance with the above table, notice of their resignation.  There is no requirement to give additional notice based on age.

If an employee does NOT provide the required notice period, you may be able to withhold an amount no more than 1 week’s wages from their final pay.

Apprentice employees will accumulate credit towards the payment of a redundancy benefit.  However, the redundancy benefit is only payable if the employee completes the apprenticeship and remains employed for a further 12 months.

Daily Hire Employees

Daily Hire employees are only required to provide one day’s notice of termination (or 1 days pay will be forfeited).

Job Search Entitlement

Where notice has been given, you must give your employee up to one day’s time off without loss of pay to look for another job.  The time off is to be taken at a time convenient to you and the employee.

When is redundancy pay not payable?

An employee is not eligible for redundancy payment if:

• They are terminated due to misconduct or refusal of duty, or

• They have been engaged for less than 12 months and the employee resigns.  Although they may still be entitled to a redundancy equal to 1.75 hrs per week of service.

• Any period of service as a casual should not be counted when working out redundancy pay.

For further information including redundancy scheme payments  please check out Termination and Redundancy under the Building Award.

Share this