Managing redundancy entitlements in loss of contract situations

Employers who lose contracts to a competitor or outsource work can lessen the impact of redundancies if they plan ahead and engage with incoming contractors.

Under current legislation, an employer may apply to the Fair Work Commission to reduce the amount it owes to staff that have been made redundant in two situations, either, where the employer:

“cannot pay”; or
“obtains other acceptable employment for the employee”.

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