Question:
A quick question on an employee’s termination pay.
A staff member worked full time before their maternity leave. Due to the COVID impact and their young child, changed to a different position and worked reduced hours after their return.
However, the new role is no longer available, and the business has decided to pay them their redundancy and in lieu of notice entitlements. I would like to be advised if, in this situation, both the redundancy and in lieu of notice payments should be processed per the reduced ordinary hours?
Please clarify if the same principle/rate applies to both the redundancy and the in lieu of notice payment? My understanding of in lieu of notice is that staff can either work through the notice period or the employer is to pay the amount equal to the period of notice.
Answer
The same principle/rate applies to both the redundancy pay and the in lieu of notice payment. It depends on how the hours were reduced if they were reduced because of JobKeeper then the old hours apply, if they were reduced because of seeking changes then it would be at the reduced rate.