Having the dreaded redundancy conversation with an employee

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    REPLACED, NOT REDUNDANT: FIRED SALES MANAGER FIGHTS DISMISSAL AFTER ARGUING THE NEW HIRE DOES HIS JOB

    Fired Sales Manager argues new hire performed most of their duties at work.

    Spiro Doulos (Manager made redundant), filed for unfair dismissal on 4 September 2023 against their employer Artilux (Australia) a company that supplies retractable screens.

    • The unfair dismissal claim was made 70 days after end of employment.
    • This surpassed the 21 day period specified under the FWA (2009).
    • Nonetheless, Doulos sought legal counsel on 25 August 2023 & applied for an extension. 

    Doulos started working at Artilux on 5 February 2018 and was made redundant on 5 June 2023. 

    • Was informed of redundancy via telephone on 24 August 2023.
    • Doulos was informed that Artilux planned to hire a new sales representative the following week.
    • Doulos argued the sales rep role mirrored his job duties with a different title. 

    FWC Stipulated

    REDUNDANCY REFUGEES: WHEN CUTTING COSTS HITS MIDDLE MANAGEMENT FIRST

    Caroline Szellemes was given just 24 hours’ notice before being made redundant.

    The Sydney Morning Herald – May 2024.

    This highlights a serious issue in Australia today. The Department of Employment and Workplace Relations reports that between January 1, 2023, and March 22, 2024, 554 businesses reported 33,925 redundant positions to Services Australia.

    Job cuts for middle managers – those below the executive ranks who still have direct reporting – increased to 31.5 per cent of total layoffs in 2023, up from a little under 20 per cent in 2018.

    Several factors could be at play for the rise in middle-management redundancies:

    • Automation and AI reduce the need for supervisors to oversee these processes, such as scheduling, data analysis, and reporting.
    • Streamlining Organisations: Australian companies continue to flatten their organisational structure. By eliminating middle-management layers, companies aim to empower lower-level employees and reduce bureaucracy.
    • Economic Pressures: The Sluggish economy leads companies to cut costs by reducing headcount. Middle management positions can be reduced without significantly impacting core operations.

      REDUNDANCIES DON’T HAVE TO BE ROCKY: OUTSOURCE YOUR HR FOR A COMPLAINT AND SMOOTH PROCESS 

      Difficult decisions require careful handling. When downsizing becomes necessary, navigating the redundancy process can be a complex and emotionally charged endeavour. 

      At marvinHR we understand the weight of these choices on both your business and your valued employees.

      That’s why we offer comprehensive outsourced HR support, specifically designed to guide you through redundancies with empathy, efficiency, and legal compliance.

      Letting go of employees is never easy.  Our HR specialists are skilled in delivering difficult news with sensitivity and respect. We help craft clear and concise communication plans, ensuring all parties understand the situation and their rights.

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