Media release from Member for Page Janelle Saffin on 19 November 2010:
Page MP Janelle Saffin has welcomed new redundancy provisions that mean from next year workers will receive redundancy pay for every year of service if their company goes broke.
From January 1, 2011, the Gillard Government will remove the cap on redundancy payments so that workers’ payouts will be based on how many years they have served.
Ms Saffin said at present, if an employer becomes insolvent and cannot fund redundancy entitlements, the redundancy pay is capped at 16 weeks.
“This means that an employee who has been with a company for 35 years can receive the same as someone who had worked there for only five years.
“It is a big blow to any employee if the company they work for goes broke and they lose their job, but it is even tougher for those who don’t get their full entitlements
“However, under the Government changes, from next year workers will receive a payout of up to four weeks pay for every year of service.
“This is a fairer system, and ensures employees are paid what they deserve if their employer goes into liquidation,” Ms Saffin said.
“The global financial crisis led to an increased need for redundancy payments and the Government is committed to funding entitlements.”
The changes will be made by amending GEERS (General Employee Entitlements and Redundancy Scheme) Operational Arrangements.
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