Been Made Redundant...

ladolcevita on 15/03/2018 - 23:13
Last edited 16/03/2018 - 07:49

Hi everyone,

About 4 weeks ago I was given a letter by my boss to inform me that I will be made redundant. I work full time in retail, small business mon-fri and sales have dropped significantly, hence the letter.

He told me that he will still need me to work at the shop but for only 3 days out of the 5 and he will pay me cash…but nothing has been set in concrete.

It sounds like to me he just wanted to cut my hours. I thought a job was made redundant when the employer doesn't need an employee’s job to be done by anyone? He did mention the shop in the near future might be trading online only but that is not happening now.

Appreciate your thoughts on this. Tomorrow is my last day and i just want to be clear to the boss on everything and do not want to be taken for a ride.

Thanks

Education & Work

Comments

  • coco1458 on 15/03/2018 - 23:17
    +3

    Start looking for a new job in the mean time, the payout will give you some breathing room but being paid in cash isn't all so bad since it's tax free. If it's the same pay per hour just take it while you're looking for a new job.
    Such a shame you couldn't milk the sick leave but at least he's chosen to give you some cash flow while you find a new job.

    Make sure you get a statement of separation and all that stuff.

    In this case, being made redundant is because there's not enough work for that position. Hence the full time position not existing but a casual or part time role still existing

  • JimmyF on 15/03/2018 - 23:21
    +4

    I thought a job was made redundant when the employer doesn't need an employee’s job to be done by anyone?

    Your 5 day a week job is gone and won't be done by anyone.

    A new 3 day week job has opened up.

    • Halo375 on 16/03/2018 - 07:43

      The issue is also whether or not they’re entitled to a payout - the OP has indicated they’re not gettingg one. https://www.fairwork.gov.au/how-we-will-help/templates-and-g…

      • JimmyF on 16/03/2018 - 09:11

        They didn't? I don't see them saying that.

        They did say

        About 4 weeks ago I was given a letter by my boss to inform me that I will be made redundant

        So that was the 4 weeks notice period and depending on how long they have been there, there might not be much of a payout to pay, other than leave and the OP clearly hasn't said either they have or haven't been paid out.

        • Halo375 on 16/03/2018 - 14:37
          +1

          They posted a reply below to mikeyphoto48 that they’re not getting a payout because its a small business (which doesn’t mean redundancy payouts aren’t required in my opinion!)

        • JimmyF on 16/03/2018 - 15:59
          +1

          @Halo375: Oh ok. Yeah thats not right! OP will need to take them to fairwork I guess to get it sorted out.

        • ladolcevita on 21/03/2018 - 19:54

          I will get no pay out as there are less than 15 employees that work there.

  • [Deactivated] on 15/03/2018 - 23:25
    +3

    Two days a week just opened up for you to pursue new and better possibilities.

  • Mikeyphoto48 on 15/03/2018 - 23:29
    +1

    Sorry to hear about your setback,, happened to me a couple of times and it does come as a blow to your self esteem, but in this day and age shouldn’t be taken personally.
    Honestly I think you may have landed on your feet, if you aren’t paying tax, your effective take home pay can’t be a massive reduction from your full time position.? I’m assuming you won’t get holiday pay/super/sick leave under the new employment?
    Just the same it does give you a buffer while you look for full time work. You didn’t mention how long you have worked there, but you should check on one of the Gov. sites your redundancy entitlements. Good luck in the future.

    • ladolcevita on 16/03/2018 - 07:37

      Hi Mikey its a very small business so i wont get paid for redundancy. I have been there full time a little over 2 years. :)

      • JimmyF on 16/03/2018 - 16:00
        +1

        OP size of the business has nothing to do with if you get a payout or not!

  • Quantumcat on 15/03/2018 - 23:50

    You're better off this way, especially if he is paying the pre-tax amount. You can get Centrelink as well as long as you don't mind having to go to Centrelink appointments. Plus some extra holiday days each week.

    • tsunamisurfer on 16/03/2018 - 03:32
      +5

      Do I have this right? You are encouraging him to avoid tax and on top of that rort the Welfare system by claiming benefits whilst he is gainfully employed and likely not eligible for most Centrelink payments?

      • Nugs on 16/03/2018 - 03:59

        only if you don't get caught…..

        Dodgy as

      • ladolcevita on 16/03/2018 - 07:44

        In the end i dont know if he will even offer me those shifts as he mentioned that the business might work online only.

      • coco1458 on 16/03/2018 - 09:24
        -3

        No one is encouraging him to avoid tax but that's the benefit of a cash job.
        At the end of the day, the system has loopholes and one of them is having a cash job. Declare no income and claim Centrelink

    • ladolcevita on 16/03/2018 - 07:41

      Yes ill apply for centre link today and see what happens..just untill i find another full time job or maybe do a course in something.thanks!

  • Sage on 16/03/2018 - 00:38
    +2

    Get a work reference.

  • Almost Banned on 16/03/2018 - 00:48
    +2

    https://www.fairwork.gov.au/ending-employment/redundancy

    I won't recommend tax fraud

  • xoom on 16/03/2018 - 01:35
    +1

    Sh*t happens. Happened to me twice. Took my payout and went looking for another job.

    • ladolcevita on 16/03/2018 - 07:45

      Awesome! I dont get a pay out its a small business.

  • onetwothreefour on 16/03/2018 - 06:25
    +1

    Happened to me once, I used the money to go traveling to Australia, 14 years later I'm still here. See it as a positive and use the money for good.

    • ladolcevita on 16/03/2018 - 07:45

      Lol lol i would do the same but travel italy!

  • dasher86 on 16/03/2018 - 08:08
    +1

    Report your boss and don't forget to pay taxes on the cash.

    • Hardlyworkin on 16/03/2018 - 08:36
      -1

      Report him for what? Trying to help out his employee? Sounds like he has been treated far better than a lot of employees.

      Employee was given notice, by the sounds of it paid what he is owed. Boss has put the offer of some cash work to tie him over for a bit. The world isn't black and white.

      • dasher86 on 16/03/2018 - 09:04
        +3

        Firstly for giving a redundancy which doesn't appear to be a genuine redundancy.
        And offering cash jobs to avoid paying taxes and employee entitlements etc.

        • Hardlyworkin on 16/03/2018 - 10:58

          Why isn't it a genuine redundancy? I didn't see where it was mentioned that the same full time position still exists. Which part is not fair, just and reasonable? OP even got more notice than the NES. Hopefully the OP gets paid all his annual leave as required.

          I'm sure the ATO will get right onto someone's intentions :) If by chance the ATO does do something, do you think the employer will still be giving a glowing reference for his ex employee who is looking for work?

        • ladolcevita on 21/03/2018 - 19:57

          See this is what he is up too..i believe. When i was under a contract he paid me the correct award wage. Now that i will go casual i believe he will offer me the same rate as full time but the casual rate should be more..ill find out tomorrow!

        • dasher86 on 22/03/2018 - 09:38
          +1

          @ladolcevita:
          This is by no means advice I am stating some things.
          If you get paid cash and choose not to pay tax on it you might be better off than a casual rate.
          If you get paid out a redundancy that's cash to you upfront, and you may be eligible for income support payments from centrelink whilst still working for cash. You will still need to attend centrelink etc.
          All of the above is dodgy.
          taking the redundancy and finding a new job immediately could be a benefit to you.

        • ladolcevita on 22/03/2018 - 16:01

          Ciao Dasher,

          Ok I see what you mean…there is no pay out..I wish there was lol, I'm looking for a new job as we speak. Thanks for taking out the time to write- appreciate it :)

      • norrisrules on 16/03/2018 - 11:02

        It's fairly black and white when it comes to tax evasion

  • original15 on 16/03/2018 - 15:29
    -1

    HOW many employees does the business have?
    May impact if you should get a payout or not, if over 15 (including those being made redundant you might be in luck)

    • ladolcevita on 21/03/2018 - 19:51

      Hey original i do not get a pay out there are less than 15 employees.

      • original15 on 21/03/2018 - 20:09
        +1

        Sorry to hear that mate, hope you’ve been able to find a positive outcome

        • ladolcevita on 21/03/2018 - 23:58

          Many thanks..worse things can happen in life..ill find something else :)

        • xoom on 22/03/2018 - 08:04
          +1

          @ladolcevita: thats the spirit. Its not the end of the world. Luck out on one job move onto the next. Which is exactly what i did when i was made redundant. Not worth losing sleep over it.

  • ladolcevita on 21/03/2018 - 19:59
    +1

    Update….this is the first week of my cut down hours…im now casual and he should be paying me the casual award rate…tomorrow ill find out what is on offer…meaning the rate…ill report tomorrow.

  • ladolcevita on 22/03/2018 - 15:57

    Ok, so I haven't seen my bosses yet, and I'm thinking I should text and ask…so now that I'm casual how much will you pay me?

    I guess I should have asked beforehand but I just assumed he would pay me the award wage of casual…but now I'm not so sure.

    If he pays me my old rate without the benefits and doesn't pay me the casual rate what should I say? arghh

    Thanks everyone!

    • spook290 on 27/03/2018 - 15:35

      If you're a casual employee you're entitled to a 25% loading.

      If you receive the same rate as when you were full time, you are being paid significantly less, you don't get holiday pay, sick pay or any other benefits.

      You mentioned in the OP he's paying you cash? is this correct? Seems very dodgy if so….

      I imagine it will be tough to move from a salary to uncertain work hours, I would encourage you to search elsewhere.

      Have you been paid your redundancy yet, I imagine you would've as you've started casual hours.

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