Redundancy Is Imminent, What Should I Do?

I have been with this company for over 8 years and as the business is going down I feel like I am on the chopping board to let go of me.

I received a HR invite with my boss for confidential meeting and they don't tell me what is about except that this is about my role and they will need my feedback on the discussion afterwards. Given my previous colleagues got redundant after the meeting like this, I am 100% sure that this meeting is for that purpose (and I agree that responsibilities on my role has been drastically reduced over the last 3 years so it's the time).

So I've never experienced the redundancy, and I don't know what is going to happen in terms of notice period (in NSW), redundancy package, etc.

Also I am sort of blank in my head on what I am going to do next, like finding a job or do something else, or do a TAFE course to learn tradie stuff?

I am the breadwinner in the family, will there be any Centrelink supports for me while I am unemployed?

As the holiday season is approaching fast it is not the right time for me to re-start but oh well, this is what it is..

Any advice on my situation would be greatly welcome.

Comments

  • +1

    I got made redundant back in May 2022, two weeks shy of being there 2 years. I still got a three-month redundancy package but I missed out on another couple of weeks of pay. The package included four-weeks pay in lieu as I got marched out an hour later. My manager was standing over my shoulder as I was cleaning up my desk. Another guy got made redundant just before me and they made him come in on his day off.

    I already had my Linked profile up to date and I had an interview the next day. After the interview I wasn't keen on that employer as they wanted four days in the office and one-day WFH. I now work three days WFH and one day in the office.

  • +2

    If it's a redundancy you can basically forget getting Centrelink. Any leave entitlements/redundancy will affect your eligibility for jobseeker. You'll probably still be eligible but won't get any payment until a future date once the leave entitlements and redundancy are taken into consideration. Take all this with a grain of salt. Your circumstances could be different so definitely apply but keep the above in mind. It's called an income maintenance period or IMP.

  • +2

    You have lots of advice (of variable quality) about the redundancy process, but just get all of that straight in your head asap and really start to focus on the future. If you try it could just be the best for you.

    Consider whether you want to start a small business, or if you want to retrain, or to move to a job or employer that you are interested in.

    Mindset is important so be as positive about it as possible. Use your contacts. Ask around for advice. Think about opportunities. Get onto Linkdin (if appropriate for you), submit your name to employment agencies suitable for your type of work. Contact former colleagues and let them know you may be available. Ask friends if they know of opportunities. Think as broadly as possible and get your name out there.

  • +2

    Maybe you are getting a promotion :)

    It's an employee market out there, so you will find a job if you have a skill.

  • +1

    Have your resume updated and look into the job market. Given you have been with company for that long you will be getting a healthy exit package that will keep you going for next few months without any issue :)
    But hey, with all your colleagues getting sent off, you could be getting a promotion even :). Anyways, look for the bright side and redundancy is not your fault and nature of any business from time to time.

    Good luck!

  • +4

    Now is the best time to change jobs. There are so many vacancies in most fields. I would wait to get redundant so you get the money and start looking for a new job.

  • +3

    Tell them you're pregnant. If they point out that you're a guy, complain that they're oppressing you.

    • My wife was made redundant whilst pregnant. Friend of mine is on parental leave right now and was made redundant.

      • +3

        My wife got made redundant the day she gave birth! C***s. Meant she lost parental leave and only had the minimal payout after being there 2 years. This was in July 2019. By the time she was ready to go back to work every company had hiring freezes after she has a handful of successful interviews in Q2 2020 (COVID).

        It didn't sit well with other employees and a mini mass exodus occurred soon after.

        • +1

          Meant she lost parental leave

          Do you mean extra paid parental leave from work, or the government scheme? Thought she would have still been eligible for the latter. Still a bit rough though!!

          • +1

            @danyool: Yeah the work one. Was eligible for gov payment.

  • -1

    8 years is a crazy long time to stay in one company dude. I think that this is a great time to change jobs anyway, and score a 30% payrise doing it. If your company wants to give you a little bonus for leaving, that's nice too.

  • I think you will be fine, just look at it as a new opportunity and if they offer a redundancy payment than thats even better. Years ago I was made redundant but they sneakily framed it as having to re-apply for our jobs. So when we re-applied for our jobs most people weren't successful and it was seeya later. I wish I knew more about my rights back then.

  • +2

    -Get your resume up to date
    -Start looking sooner rather than later
    -Look at free online courses to ensure your skills are up to date
    -Check how much leave you have owing/long service etc
    -Confirm that your superannuation has been paid and received by your super company!! If the company is tanking, are they actually paying in what they are supposed to be paying in?
    -Consider union membership

  • +1

    If you don’t mind me asking, what did you do in the last 8 years of working in that job apart from daily responsibilities?? Did you learn a new skill or complete any certifications?

  • +1

    Negotiate a delayed termination date so that you can look for a new job. Nothing worse than looking for a job while jobless.

    • +10

      i would say having a crocodile bite your old fella off would be worse

      • People pay for that surgery these days, croc giving it out for free!

  • +4

    Let me start with 90% of the people on OzBargain would love redundancy. Good payout, a component that's tax free, ability to get-up and move without looking unloyal to your next employer, etc.

    The market is super hot across every industry. Push your resume anywhere, and everywhere and evaluate your options.

    Take a sick-day or two before this meeting just to be job hunting.

  • Think of this as an opportunity. Take the pay out, should be 3 months minimum. Start job searching. When you get a new job, take a month to yourself and go on a vacation, before you start. If you hated your job, reinvent yourself and take some courses.

  • 8 years is a long time at one company.
    How many roles have you moved through during that time?
    Have you been promoted and moved up in your career?
    Unless you have moved around alot or advanced within the company I doubt you are still learning.
    Time to move on and be excited by the prospect of learning something new (and getting a pay-out to facilitate it).

  • Redundancy when you have good tenure isn't a bad thing, especially if you find a job relatively soon. I'm not sure if it's a legal thing or depends on the company but for me 8 years tenure means 8 months redundancy pay out, plus annual leave on top. So you have 8 months to find a job before you run out of money so to speak.

    • I thought 8 years tenure means 14 weeks in NSW?

      • Ah ok, looks like it's specific to my agreement then. I recommend you check yours.

        • +1

          That sort of thing used to be a lot more common with large enterprises but most have cut back. I was also on a 4 weeks per year with no cap agreement but a few years later it was changed to 2 weeks per year capped at 20 and I believe to the minimum legal requirement a few years after that. When I received redundancy it was a lot of weeks pay by the time LSL and annual leave and some other special allowances were factored in.

          • @apsilon: go on tell us how much and make us jealous

        • Maybe you’re right mate. 8 mths redundancy pay for 8 years service.

  • +2

    Also I am sort of blank in my head on what I am going to do next, like finding a job or do something else, or do a TAFE course to learn tradie stuff?

    I am the breadwinner in the family…

    Well there's your answer. No TAFE course or tradie stuff, start looking for a new job now.

  • get onto seek and indeed look around other jobs similar to yours and see if there are any courses or certificates that employers are asking for

    i would be looking to add on to the skills you already have not start a trade from scratch

  • +1

    Thank you all again. At first I was like 'what? It's Unacceptable' but now I feel a lot better thanks to you all, whether I get the redundancy or not it doesn't matter as I will move on.
    I will forget about having ABN or a course, I will look for a new job. In fact I just applied for one role (same title) and got a phone interview email but just realised that the product they are dealing with is same as what I do (eg. pepsi cola vs Coke) so I guess the progress will be blocked according to the contract.
    The meeting is scheduled next Monday and I do WFH, knowing the nature of the meeting I will avoid going to work. I have a few weeks personal leaves but WFH is like having sick leave as my workload is so low these days.

    • +12

      I doubt they can enforce a non-compete clause if they make you redundant. Could be wrong but I can’t see how they could say you are “competing” if your position no longer exists.

      • +2

        No way. How can u make someone redundant and have no compete clause.

        That's just crazy at least in Australia.

    • I'm assuming you're not a sales person who could use your Pepsi knowledge to sell more Coke. In that case your current employer might want to stop you.

      People move between similar jobs all the time (Coles to Woolworths, Layers between law firms, petrol station dudes between petrol stations..)

    • +3

      Remember, don't quit your current job. You'll forfeit any redundancy you're entitled to by resigning before you're made redundant. By all means interview for roles, just don't hand in your notice at your current work.

      Also, try to arrange a week or two off between you finishing up and starting somewhere else, you've earnt it.

  • +3

    Take the redundancy. I know people who did this and never regretted their decisions whilst others who didn't take redundancy and signed up for other position got more jobs and more responsibilities for less.

    • 1st one is always the hardest, then afterwards you'll be asking your employer for one!

  • +4

    I love redundancies, I've had 3x already… Perks working on big projects and once they're complete you're no use to the company/team anymore lol…

    Free money, good tax break, and time to relax/think/learn a new skill and/or renovate something in the house. Last 2x jobs I was made redundant from, the laundry and shower both got a make over and then money left over went on a holiday with my wife. We went to parts of Europe, then stopped by Tomorrowland midway through.

    People are scared of change, but change is inevitable just embrace it and make the most of it.

    Take this time to relax, build closer connections with your family, finish off projects you've started around the house, pick up a new hobby and perhaps take that plunge to pick up a new skill or two.

    Embrace the change you've been needing.

    I am now waiting for my next redundancy lololol.

  • +2

    The Professionals Australia union should be able to help you if you run into any problems

    • +1

      OP should probably inform the union now, and bring them with you to the meeting.

  • If you're to be made redundant then they have to give you 4 weeks notice, so as soon as that happens start applying use the opportunity to find something in the same field of work but with a better salary package as you have the advantage of having 8 years of experience.

    I personally wouldn't exit now because you'll miss out on a redundancy package. Unless of course you find a position with a salary that's stupid to pass up (eg. 30%+ of what you're currently getting P/A) and are able to snag said position.

    To my knowledge if you're made redundant you will get a redundancy payout + your unspent holiday pay + your long-service leave pro-rata (Pretty sure it starts clocking up after 7 years of service, mine did). That will all keep you going for a while until you find another job.

    Good luck.

  • Talk to your accountant when you get your payout - my husband was going to be made redundant and had a job interview the day we confirmed I was pregnant with number two (and only 15 month gap between them…).

    His old job had involved a lot of shift work, so the new one paid quite a bit less, but every time I spoke to Family Assistance (as it was then), they reduced our family allowance. Finally spoke to a staff member who had a bit of a clue - turned out I had overestimated our income by $50,000 due to his payout (and pay out was early July, so really hit for the financial year… and this was about 22 years ago).

    One portion of your payout will be tax free and won't need to be reported for centrelink/family assistance.

  • +2

    Start using up your sick leave. Go to doctor for mental health issues. Rinse and repeat till all used up. Cancel the meeting due to sickness. Get a doctors certificate. Finally go to the meeting and grab your payout. Meantime - apply online for a new job from your sick bed. Make sure your new job starts after a pre-planned/booked holiday as you wont get annual leave for a while (or sick pay for that matter). Have your holiday with your family and you'll be refreshed to start your new job. Keep in mind - the grass IS greener on the other side of the fence. Good luck.

    • I vaguely remember that one of my senior mangers went on missing (stress leave I guess) and then got redundant. That is after a few months MIA. Is this common practice in real world?
      I have 5 weeks sick leave unused.

      • +1

        Theoretically if your job is redundant then there should be no work for you to do anyway.

        A lot of companies will let you leave immediately after giving the redundancy notice (and still pay out the notice period), if they don't I would be tempted to use some sick leave…

  • +3

    Keep rescheduling the meeting. If you manage to do this for two years you will get your long service.

    • You get it after 7 years anyway in NSW.

  • +2

    Embrace it! I've been made redundant 3 times, with each time receiving a package/payout. I can understand the uncertainty, but each time it's yielded a new beginning and enables me to move forward with something better.

    • +1

      Nice one! I'm also on 3, hoping a 4th in the next year or so LOL..

      Could do with another 3 to 4 months off!

  • +2

    One suggestion: you can apply for 14 weeks of free childcare (100% subsidy) for the sudden loss of employment. It applies to redundancy, I can tell from personal experience.

    All the best. You will get it sorted mate.

  • +1

    Embrace being made redundant. I was made redundant for the second time just before covid, each time it happens, it gives me a fresh perspective of not working permanently again, and just go contracting for as long as i can

  • +1

    Keep in mind that if the company you work for is deemed under 15 people and your company is to go into administration then they don't owe you redundancy money.

  • +2

    From my experience with redundancies, this is what I have observed:
    - Know what your minimum entitlements are before you attend the meeting. Read your award, eba etc. Read your employment contract. If you are really stuck, ring fair work for guidance.
    - Some awards require a consultation period to occur as part of the redundancy process. I think it’s safe to assume if you get an invite to one of these meetings, the likely outcome is you will be made redundant in the very near future. If they offer you time off at this point, take it. Use it to prepare for finding a new job. It’s extremely unlikely anything you do or say will save your role at this point.
    - If you work at a larger organisation, you could consider negotiating your redundancy at the consultation meeting (they should tell you that you might be getting made redundant at this meeting). If you take this path, don’t be difficult to deal with. Sometimes it’s worth letting someone keep their kit, paying extra notice weeks etc, to get the redundancy over and done with cause making people redundant is not fun for anyone and no one looks forward to multiple meetings about it. If they don’t offer you anything additional to your standard entitlements at this point, I would go through the consultation process as that buys you more time.
    - If you work in a decent size company, ask for more (and offer to sign a mutual deed of confidentiality). Things you could ask for - extra notice (more weeks), outplacement service, EAP service (it’s tough being made redundant), $$ for retraining, keep your company kit (laptop, wfh setup). Again, the most difficult people to deal with did not end up with the most generous redundancies.
    - There are tax benefits to the redundancy portion of the payment, so you might easily end up with the cash equivalent of 5-6 months salary (that’s a guess).
    - Somehow it would be good to check your redundancy payment calculations. I have regularly seen them messed up.
    - Find some recruiters that specialise in your field and get your name signed up with them ASAP.
    - You could ask for any non-compete in your current employment contract be waived. If they don’t agree, ignore the obligation. It seems unlikely a judge would stop you earning a livelihood due to a non-compete from a company that made you redundant.

    Being made redundant is tough. Hopefully you can look back and see this has provided you with new opportunities and a nice lump sum cash injection into the bank account.

    • Very thorough and realistic advice. Thank you.

      I’m entitled to 10% bonus per year depending performance. Do you think bonus can be part of the package pro rata?

      • +1

        If you’ve achieved it, absolutely.

        Don’t be afraid to ask - they can only say no, but at least you tried.

        It was always easier to say ‘no’ to people who were being unpleasant or difficult to deal with. Also, don’t immediately jump into using up your sick leave. Try to negotiate a good package for yourself before you use that tactic. I’ve seen some really good packages get taken off the table cause of this.

        Instead take the attitude that you’ve really enjoyed working there and you understand the business has hit turbulent times. While you’d love to stay, if they don’t see a position for you in the future then that will be really sad for you, but don’t want to make it harder for everyone than what it will already be. In recognition of your 8yrs of service, if they are considering redundancy you would like to request a prorated payment of my 10% bonus in recognition of achieving xxxxxx sales to-date (this is an example - use whatever qualifies you for the bonus). (More examples) I would also like the company to consider allowing me to keep my company laptop as it is already 18months old and it will assist me to find a new role. I will ensure it is factory reset. Etc etc.

  • +1

    I had a redundancy once, they outsourced the whole IT support team bar one. They kept us working for month to do handovers with the outsourcing people. It was no hard feelings.
    I had the most accumulated annual leave over 10 years there. Got paid out with redundancy package, I think I was happy at the time, I think it was 3/4 of years pay without working.
    Needless to say I only had a long weekend off before starting the next job.
    Don't quit now and miss the golden handshake.

  • One of my lecturer's once advised us to negotiate for "outplacement" services if you're ever being made redundant. This was leading into a lecture from Hender Careers, an outplacement provider, but it sounded like reasonable advice.

    https://www.hendercareers.com.au/outplacement-transition/out…

    Essentially they provide the same 'career' services as a government job agency, but I understand they are more professional that what you'd get at free job agencies.

  • Tell your boss "you can't fire meee! You know who i am and how much experience i have? Where you gonna find another lemonhead that can replace me?! It's Unacceptable!"

  • +1

    I went through a redundancy in 2020. Similar situation, 8 years at the company, etc.

    The advice I would give is to go through and document your accomplishments. It should generally give you a boost to realise how much you have done in that time and help you to know your worth and employability. It will also help with the job hunt.

    I would also take them up on any employee assistance program. The redundancy shook me to my core and it affected my confidence and mindset, so having that added support should help manage that.

  • Steps:
    1. Update resume
    2. Apply jobs and rehearse for interview
    3. Be prepared to be told about redundancy, at this point, how you express your feelings doesn’t really matter to your employer, so try not to express and act normal.
    4. Stop accessing deals on OzBargain until you have a job

    All the best for the new job!!

  • Here just hoping OP provides an update

  • +3

    Plot twist:

    Secret meeting was to task OP with organising the office Kris Kringle.

  • +3

    Don't be scared of a redundancy. There's a stigma to it when there doesn't have to be. You will get a decent pay out. There may also be pro-rata long service for some organisations. There's also the tax offsets as well which means your 14 weeks will actually be a lot more than that in the bank.

    As others have mentioned, the job market is really strong. Sounds like it could be a great situation for you to start the second phase of your career. Not all companies have bad office politics and bludgers for staff

    I took a redundancy 4 years ago. 11 years with the company. They have a good redundancy policy though so I paid off my mortgage with it and took a few months off to be a full time dad.

    Looking back now, it was the best thing that's ever happened to me. I'm now on more than double the pay, in a great organisation and it was really the kick I needed to re-assess my career.

    You will go through the different stages of grief and it's good to have someone you trust to speak to.

    • What great and supportive advice! :)

  • Put yourself first
    Ask for more than you think you are entitled to
    Don't lose your cool

  • Take the redundancy. Either get a new job immediately or take time off. You'll never get it back.

  • +2

    Redundancy after 10 years was the best thing that ever happened to me. I found a job that paid 50% more and I enjoyed it more. I also used the payout and pay rise of a new job to buy a bigger house for my new family. It was a huge win despite the shock on the day.

  • In Wa your employer doesn’t have to give you a payout if they employ under a certain number of people. I think it’s 15. Happened to my family member. He was expecting a lot after 11 years but they used the small business clause.

  • I got a redundancy earlier in the year. QLD but believe Fed gov laws in play.

    My role was not needed and was surprised I was let go as I can wear many hats and can do a few roles. Anyway….boss was guttered but the other director had the last say. Oh well their loss.

    Result was an additional 11k in additional tax free income as it was a genuine redundancy (with the company 2 plus years) and landed a higher playing job. 10% increase in wages..

    I got 4 weeks notice too.

    Medium business with about 30 people.

    How long have you been there for? How much annual leave do you have? You can take 2 days off while still being employed to search for a job.

    Do not fear it, embrace it. If you are a good employee it actually helps.

    I get hounded every 3 or 4 days with job opportunities, I feel I need to jump ship every 3 or 4 months. Not sure what it's like in your profession but could be the best time to become redundant.

  • +1

    My advice - don’t be difficult on your last days. While it sucks to be treated poorly by your employer, your fellow employees don’t deserve to suffer because of it. I’ve been in situations where colleagues hated their job so much or were finishing up they made everyone working there miserable, don’t be that person.

    Burning bridges is also rarely a good idea, especially if a reference could help you get a good job somewhere else.

  • I am sorry to hear this - always difficult.

    May I add a suggestion - ask for them to pay for access to a service that can help you update your resume, prepare for interviews etc. - kind of like a redundancy coach. This can really help land a new position.

  • Always make sure you have at least 6-9 months of savings/liquid assets to tide through any potential unemployment. Not OP but i'm very surprised how so many people are living paycheck to paycheck.

    Who knows OP, maybe you are getting a promotion.

  • I'm so sorry to hear this. But get yourself register with Amazon Flex/ Jimmy Brings/ Sherpa. This might not pay you as much. but it's a great way to get some income while you're looking for a new job.
    all the best, mate.

  • Go on stress leave to exhaust your sick leave entitlements

  • +1

    Any update op? When is the meeting?

    • +1

      Next week

      • job market is pretty good - dont take bullshit

        refresh your resume

  • +1
  • Q: my contract reads ‘Severance payments will be calculated 4 weeks for each continuous year of service’
    I thought I’ll be entitled to 14weeks pay for 8 years service but it may be 4wks x 8 yrs = 32weeks payment?

    • I guess whatever the contract says is correct! Ensure it's met!

      Speaking of, it's next week! Has the meeting been had yet? :O

      • +2

        I demanded delaying the meeting another week. How bold I am.

        • Have you been promoted yet? :p

        • updates?

          • @dukeGR4: Still in progress and murky. I don't know where this is heading.
            HR said it's not redunancy until final decision is made yet the consulation deck reads my position might no longer exisit (yet). So much yet yet yet, so I don't know yet.

            • +1

              @Unacceptable: Long drawn out process is the perfect excuse to take sick leave under the guise of sustained stress due to uncertainty. Use it up while you can.

              • @apsilon: Agree with this. You don't get paid out sick leave, so take as much as you can! See a familiar Dr to get a cert/a few days as needed as well to cover yourself if needed

  • Oh you work in HR, well go on seek and start looking not winging, in the mean time sign up to Centrelink job que.

  • +8

    Hi all

    I think I’m obliged to give you the update!!
    Finally I got made redundant.
    Overall I received over a year’s salary including unused annual leaves.
    Time to take some time off and look for a job next year. Thank you all for the comments!!

    • +1

      Congratulations, said it before, everyone deserves at least one good redundancy.

      Yet to come across anyone where it didn't turn out to be a good thing.

    • +1

      thank you for the update. sending you lots of love and I wish you all the best.

    • +1

      that's a good outcome

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