Most people work for money. No matter how much you may love your job, the money you earn is essential to supporting your lifestyle. Of course, money is not the only factor in job satisfaction. However, it is an essential factor when your job is being terminated.
That’s why you need to know what separation pay is and whether you’re entitled to it.
Separation pay s commonly referred to as redundancy pay. It is a payment made to an employee when the job they do is no longer available. There are many reasons why a job may become extinct, these include a downturn in profits, an increase in automated processes, or even a company restructuring.
Whatever the reason, if the company tells you that your services will no longer be required and you haven’t done anything wrong, you’ll be entitled to separation pay.
This pay is on top of your final wage. Your wages will be calculated in the normal fashion, according to what hours you have worked or your salary. Separation pay is on top of this.
By law, you’re entitled to be paid the equivalent of one month’s pay for every year you’ve worked with the company. It should be noted that this is a minimum amount. You may be entitled to more, depending on your contract.
You should note that you are not eligible for separation pay if you have worked for a company for less than one year. In addition, employers with less than 15 employees do not have to offer a severance package.
It’s also possible that your separation pay will be forfeited if your employer offers a different position with the same terms of employment and you reject it.
Finally, if you’re older than 45 and have worked for your employer for at least two years, you’ll be entitled to an extra week’s worth of pay.
Don’t forget, you’re not entitled to separation pay if you quit, it’s only when the employer needs to let you go.
What To Do If Notified Of A Job Loss
The first step is to speak to dedicated employment lawyers Melbourne like jhel.com.au. They will assess your contract for you and confirm the separation pay you should be receiving.
They can also ensure that due process is followed, you need to be given notice and you must be entitled to attend interviews and other meetings during that period to help you locate a new job.
You should also evaluate the reasons why you are being terminated. A business cannot end your contract on the basis that restructuring has made your job obsolete, then employ someone else in a very similar role.
If you suspect that this is the case then the employment lawyers will help you assess the situation, gather the appropriate evidence, and deal with your employer for you. If they have terminated you unfairly you’ll be entitled to additional compensation.
The purpose of separation pay is to help you continue living and paying bills while you locate a new job. A company can only eliminate your job because the role is no longer needed. Any other reason could get the business in trouble and gain you a compensatory payment.
Providing the reason for terminating your contract is not disciplinary related, you are automatically entitled to separation pay. This should be paid, with a full breakdown of what is being paid, at the same time as your final wage.
Any employer that doesn’t follow the proper procedure will be in breach of contract, even if the termination is fair. Again, it’s worth discussing it all with an employment lawyer to ensure you are receiving everything you’re entitled to.
What To Do If You Think There Has Been Foul Play
It’s a fact of business that employees need to be laid off. Providing this is done for the right reasons and due process is followed, there is little an employee can do about it.
However, you should read your employee manual and familiarize yourself with the redundancy procedure. Your employer must follow this procedure, if they don’t they are in breach of contract and you can claim for unfair dismissal.
Equally, if an employer takes someone else on to do your role or a very similar role, they are likely to be in breach of contract. The simple truth is they have got rid of you to save money.
The most important part of this process is speaking to an employment lawyer who specializes in helping employees. They’ll be able to verify if everything is above board and what steps you should take next. It’s essential you get expert advice before querying any payment or offer.
It is possible to negotiate your final separation figure, the employer can agree to pay you more.
When you’ve worked for a business for an extended period of time a redundancy, or separation payment, can seem like a large sum of money. You’ll usually get the entire sum within 7 days of your last working day. This figure will include your normal monthly wage, any holiday accrued, and other benefits according to your contract. The separation pay can be included in the same payment or done separately. However, it must be paid within the designated timescale, as per your contract.
At this point, the key is to calculate your monthly expenses and work out how long the money will last. You don’t know how long it will take you to find a new job. The time to splurge or invest your separation funds is after you’ve secured and started your new job.
You should also consider minimizing your expenses wherever possible, this will help your funds to go further.
Finally, you should be aware that being made redundant has a serious emotional impact. You need to talk to a family member, friend, or professional. This will prevent the feelings from being bottled up, potentially resulting in depression.
Getting help and support is not a sign of weakness, it’s about doing what’s best for you and your future.