KK 7 Flashcards
Termination definition
Where the working relationship ends up due to the employee leaving the business either voluntarily or involuntarily.
Voluntary termination methods
Resignation and Retirement
Involuntary termination methods
Retrenchment and dismissal
Voluntary termination definition
when an employee decides to leave a business either by resigning to go to another job or by retiring from the
workforce.
Resignation
when an employee decides to leave a business in pursuit of employment somewhere else.
Retirement
Voluntary termination where an employee decides to leave the paid
workforce with no intention of pursuing future employment opportunities.
Entitlement considerations for retirement
9.5 % minimum of wages is paid into nominated superannuation fund during their time of work -> able to access when you retire
any accrued entitlements e.g. annual leave and long service leave that has not yet been taken (retire with that leave untaken) -> you should be paid whatever that leave is worth
Employer must be advised in writing + period of notice
Transition retiree
Retiree: Counselling, investment advice services (superannuation advice to make sure funds are well managed), lifestyle counselling
employer and employee normally negotiate end date, such as end of calendar year or financial year.
Business: succession planning (Compensate loss of talent + experience) -> identifying people who are well positioned to take over role or recruits for the vacancy
a farewell function to thank the employee.
Why is an exit interview recommended for resignation?
This can highlight any areas of
dissatisfaction that caused the
employee to leave -> implement corrective action to ensure future employees aren’t faced with the same factors that may drive them away from the business
Exit interview resignation example (boredom)
boredom -> expand roles + responsibilities to make sure its’ more stimulating
Resignation entitlements
Payment for completed work + accrued benefits (legal requirements)
Business is entitled to terms of notice (usually 4 weeks)
Transition resignation
Succession planning -> lose access of skills + experience of an employee -> knowing where business can look for recruits or employees who can be promoted (bring in before employee leaves to assist with the transitioning into role)
Staff farewell employee (celebrate contributions the employee has made to the business + help build a supportive culture
Impact of voluntary leave
Loss of talent
Cost of replacement
Decline in morale
Breakdown of effective teams
Productivity could increase or decrease
(depends on effectiveness of employee
that’s leaving)
Redundancies arise when..
An employer is closing part or all of its business
Internal organisational restructure occurs
New technology is introduced
A business is relocating
The duties of the position are allocated to other employees
The business mergers or is acquired by another business
Main reasons for dismissal
Unsatisfactory work performance or Illegal behaviour.
redundancy
An employee leaves the business because their job no longer exists, and the people who held those jobs are retrenched
Reasons for redundancy
An employer is closing part or all of its business
Internal organisational restructure occurs
New technology is introduced
A business is relocating
The duties of the position are allocated to other employees
The business mergers or is acquired by another business
Redundancy employee entitlement notice
Employee must be notified in writing:
Reasons for termination
Period of notice
Actual date of termination
Redundancy payment
Voluntary redundancy
Employee nominate themselves to take up redundancy
Involuntary redundancy
Where the employee is forced to leave the job because it no longer exists
Entitlements for redundancy
redundancy package- financial payment based on how long they have been working at the business. The amount they will receive will be outlined in their workplace agreement.
Time off work to attend job interviews and look for new employment + pay for the work they have completed
Transition redundancy
Counselling, career counselling, assistance writing resumes, outplacement services and/or extra training to enhance their employability.
Dismissal entitlements
A business must conduct appropriate counselling and disciplinary procedures before dismissal occurs.
Employer must provide employee with written notice – with the reasons for termination.
Notice period is based on the number of years of service.
Dismissal
An employee is forced to leave the business for issues such as poor performance or serious misconduct.
