Employment Lawyer in Sydney Recommendations Please - Predicament at Work

Hi All. Hopefully not a complex issue, I have done a fair bit of reading but lack the confidence to be sure when facing my boss and CEO next week. Here's the situation:

  • I've been employed here 3.5 years, full time
  • Hired as a sales team leader, I've since been promoted to Head of channel in Oct 16 after a merger
  • Currently managing 2 x TLs and a total of approx. 18-20 FTEs (inc TLs)
  • I am currently (and always have been) responsible for the team target, I have never been responsible for an individual target of my own
  • I have never been on the phones or directly selling, only managing those that do.

Last Thursday the exec team suggested they wanted to flatten the hierarchy a little and that I will be carrying a target myself. I haven't carried a target myself for 5 years +, having managed teams for a while now. They have proposed an 85% target.

To me, this is a pretty significant change of role. It sounds a little like constructive dismissal (just from Googling!) - I do not think it is manageable to keep an eye on the team whilst also successfully hitting my own targets. I've also not been on the front line for some time, and this doesn't really align with my career goals.

They have said that legally it would not be classified as redundancy, but if I choose to opt out then they understand, and they will pay me a redundancy pay as sign of good will. If it doesn't technically fall under redundancy, essentially I'd like to know what would happen if I say no?! They say it is happening October 1 regardless; I need to confirm by COB Monday.

Keen to hear peoples thoughts!

Comments

  • +2

    It's not a constructive dismissal. It's a lawful and reasonable direction.

    It's a non-genuine redundancy, so probably fully taxed, be aware of that.
    If you don't take it, then you would continue working, albeit under slightly new conditions.

    • Any other advice would depend on the industrial instrument you are under (EA, Award, etc) and other specific workplace details.

    • Actually, I'll pull back slightly on the direction part, depending on what changes they are making to your pay scheme.

      • +2

        Seconded. It seems to be adding to OP's responsibilities without taking any away. So long as any pay changes are commensurate with these additional duties, I can't see this as being constructive dismissal either. Not even remotely.

  • +3

    Given the situation, they already done right by you by giving you a redundancy option when it technically isn't one. I've seen cases where people were offered jobs that they totally didn't sign up for just so the company doesn't pay the additional redundancy and made it seem like they tabled an offer and you left out of your own will.

    You really only have 2 options here:

    • Take redundancy. Get a nice payout and look for another job

    • Take on the targets. It seems backwards in career progression if you are now head of some department and still have to take on personal sales targets.

    It may be the culture of the new company and they may do things differently but ultimately you need to decide if you are willing to take on the new (old?) role

    • OP needs to be aware that this is not a genuine redundancy for tax purposes, and would be fully taxed.

  • I think it is possible this could be constructive dismissal, if the essence of the role changes.
    But it doesn't matter because they have offered to treat it as a redundancy anyway.

    So it is very easy.
    Your redundancy rights after 3 years are pretty small, so you need to decide if taking that few weeks pay and looking for a new job is a better bet, or taking the target, seeing how you go is better.

    Personally, I would not like to return to a personal target, but if you are not fussed, I would take the change, maybe ask for a bonus or reduced target for 3 or 6 months, and then start looking for another job. That way you will have an income for quite a while yet (even if you miss target) and time to find a new position right for your career trajectory.

    • The test for constructive dismissal is very high. This does not meet it.

      OP needs to be aware that this is not a genuine redundancy for tax purposes, and would be fully taxed.

  • Seems OK for me, but if they want flatten the hierarchy, they need to spread the extra work load you just inherited.

  • Take it, see how you go if you dont like it leave. Getting back in the game might improve your outlook a bit.

  • 3 years redundancy probably isn't worth taking. I would take on the extra work,if possible I would delegate less leads to staff and more myself to try and get targets,but before doing anything else I would contact a recruitment agency and start interviewing for another job.
    To me it looks like they want to flatten the hierarchy by getting rid off the Head of channel and having the TLs report direct to your boss

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