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prw redundancy

Key Points to Discuss in the Meeting with HR Regarding Redundancy:

  1. Clarify Redundancy Process and Timeline Redundancy Reason: Ask for a clear explanation of why your position is being made redundant (e.g., business restructuring, downsizing, etc.).

Timeline: Confirm the timeline for your redundancy (e.g., when your last day of work will be, how much notice you’ll receive, and when the final payment will occur).

Notice Period: Check the length of the notice period you are entitled to (based on your contract, your length of service, and Fair Work guidelines).

  1. Entitlements and Redundancy Pay Redundancy Pay: Confirm how much redundancy pay you will receive based on your length of service (use the Fair Work guidelines or check your contract for additional terms).

For example, ask, “Based on my [X] years of service, I understand I am entitled to [X] weeks of redundancy pay, can you confirm this?”

Severance Pay: If applicable, ask whether you are entitled to any additional severance pay (for example, if there’s a severance clause in your contract or collective agreement).

  1. Long Service Leave Prorated Long Service Leave: If you haven’t reached the full 7 years, ask if you are entitled to a prorated long service leave payout for the years you’ve worked.

Example question: “I’ve worked for [X] years. Will I be paid for my long service leave entitlement, and if so, how will that be calculated?”

  1. Outstanding Leave (Annual or Personal Leave) Unused Leave: Ask about any unused annual leave or personal (sick) leave you’ve accrued, and confirm how it will be paid out.

Example: “How will my unused annual leave be handled? Will it be paid out in my final paycheck?”

  1. Annual Bonus Bonus Entitlement: Ask how your annual bonus will be handled in the event of redundancy.

For example: “I understand that my contract includes an annual bonus. Can you confirm if I will receive a pro-rata bonus based on my length of service this year, and how it will be calculated?”

Bonus Payment Timing: Confirm when the bonus is typically paid (e.g., end of the financial year) and whether redundancy will affect this.

Example: “When is the annual bonus typically paid out, and will it be included in my final redundancy payout or issued separately?”

Bonus Pro-Rata Calculation: If you’re leaving partway through the year, clarify if your bonus will be prorated.

Example: “Since my redundancy is before the end of the year, will my bonus be paid on a pro-rata basis based on my time worked this year?”

Performance Criteria: If the bonus is performance-based, ask about eligibility.

Example: “Are there any performance-based criteria or eligibility conditions for the bonus that may affect my entitlement upon redundancy?”

Written Confirmation: Request written confirmation of how the bonus will be handled.

Example: “Could you provide written confirmation of how the annual bonus will be handled in my redundancy payout?”

  1. Final Day and Transition Final Day Arrangements: Confirm what your last day of work will be and any steps to complete before leaving (handover process, return of company property, etc.).

Outplacement Services or Support: Ask if the company offers any outplacement services, career counseling, or job search assistance to help with your transition to a new role.

Outplacement credit?
  1. Documentation and Next Steps Redundancy Agreement: Ask for a written document outlining your redundancy entitlements, including redundancy pay, long service leave, unused leave, and any other final payments.

Exit Interview: Confirm if you will have an exit interview, and ask what information will be required from you during the exit process.

  1. Tax and Superannuation Superannuation: Ensure your redundancy pay and any other payouts will include the appropriate superannuation contributions. You may want to ask: “Will my redundancy pay and any unused leave include superannuation, and will it be paid at the applicable rate?”
Genuine redundancy payments (GRP): No super is required on the tax-free portion ($41,955 in your case).
Taxable redundancy payments (amount above the tax-free cap) do not require super unless stated in your contract.
Employers may choose to pay super on redundancy, but they are not legally required to.
🔹 Your redundancy package ($57,324.42):
Tax-free portion: $41,955 – No super.
Taxable portion: $15,369.42 – No super required.

2. Superannuation on Long Service Leave (LSL)
LSL is considered ordinary time earnings (OTE), so super is required.
The superannuation guarantee (SG) rate is 11.5% (from 1 July 2024).
🔹 Your LSL payout: $19,729.14
19,729.14 × 11.5 % = 2,268.85
19,729.14×11.5%=2,268.85
✅ Total Super on LSL: $2,268.85

Tax Implications: Redundancy pay is generally taxed at a lower rate. If you're unsure about this, ask HR if they can provide any advice or guidance regarding the tax treatment of your redundancy pay.

  1. Non-Compete or Restraint Clauses (if applicable) Post-Employment Restrictions: If your contract includes a non-compete or restraint clause (limiting your ability to work for competitors), ask if it will still apply after your redundancy.

For example, ask: “Does my redundancy impact any non-compete or post-employment restrictions that are in my contract?”

  1. Contact for Further Questions Point of Contact: Ask who you can contact if you have any follow-up questions or concerns after the meeting.

Final Redundancy Entitlement (Estimate)

  • Total payout: $77,053.56 (before tax)
  • Breakdown:

Redundancy: $57,324.42 Pro-rata LSL: $19,729.14

Final Tax Calculation

Component   Amount  Tax Rate    Tax Payable
Redundancy Tax-Free $41,955 0%  $0
Taxable Redundancy  $15,369.42  32% $4,918.22
LSL Payout  $19,729.14  39% $7,694.37
Total Gross Payout  $77,053.56  —   —
Total Tax   —   —   $12,612.59
Final After-Tax Payout  —   —   $64,440.97

Winaky (final??? unlikely) April 30 end of buisness transaction Aug 31 (entitlemenmts)