VIC From Full-time Permanent Employment Contract to Fixed Term - Redundancy?

[rexhvn]

Hi All,

I am hoping for some guidance.

I am currently employed under a full-time permanent contract and due to a recent acquisition of my employer being bought out, I have now been given a fixed term contract (with an end date).

Given the new fixed term employment contract is not matching the existing contract (permanent / fixed term), I raised concerns about the possibly of falling into the redundancy category, but the question continues to be avoided. If I do not sign the new contract, it has been communicated that I effectively resign on the spot.

I know it may not necessarily be a simple yes or no, but if I am moving from a full-time permanent contract to a fixed term 12-month contract, does this mean my existing role has been made redundant?

Your help is appreciated.

Thanks,

 

[Rod]

You are correct, there is no simple answer. Depends partly on whether all your accrued benefits carry over with the new employer. Also depends on whether the new employer is really the old employer just in another name.

Both the old and new employer should be answering these kinds of questions so you can make an informed decision.

 

[rexhvn]

Hi Rod,

Thank you for your response.

The new employer is indeed a separate entity (different owners completely) where the existing business will be obsolete in the near future. The terms of my current contract do differ from the new contract received. Any 'special' conditions that were on my previous contract are no longer valid with the new contract. The new employer is a rather large organization, therefore, have standardized terms with no flexibility.

In terms of accrued benefits, it is only annual leave, sick leave etc that is transferred. Anything over 20 days accrued leave is paid out (only allowed max 20 days).

Thanks,

 

[Rob Legat - SBPL]

When businesses are sold the general method is:

- the buyer elects which employees to make an offer of employment to.
- those that accept are considered terminated/re-employed on settlement.
- those that aren't offered or don't accept remain employees of the seller, who must then either make the employee redundant or provide them alternate duties.

This is different than if a company is taken over by buying its shares. There is no change of employer in that case.

 

[Rod]

Redundancy should carry over if annual leave and sick leave do. I believe, but not 100% sure, it tends to be an all or nothing approach.