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Supporting workers facing retrenchment

When an industry experiences structural change, it may mean that businesses have to restructure and this can be a stressful time. To help both employers and employees during this time, the Australian Government has released the Redundancy Information Statement.

The Redundancy Information Statement is a resource available to employers to help underpin being socially responsible as part of restructuring their business.

Restructuring in a way that is socially responsible can transform a stressful experience into a positive career transition for workers.

Employers are encouraged to provide the Redundancy Information Statement to affected employees to help inform them of their entitlements and support services available.

Early access to this information can assist workers to start planning for their transition from their current work arrangements into new employment.

What is socially responsible restructuring?

Socially responsible restructuring involves employers having effective strategies in place to support retrenched workers.

The Redundancy Information Statement incorporates the lessons learnt through the closure of the Australian automotive manufacturing industry, which saw the development of a Good Practice in Socially Responsible Restructuring guide.

According to the independent National Automotive Facilitator’s report to the National Governance Committee (which oversaw transition assistance), employers who engaged in socially responsible restructuring reported increased productivity, reduced absenteeism and higher worker morale.

There are four themes to the Good Practice guide:

  • Regular information and ongoing support
  • Career and training options for workers
  • Skills, recognition and support for training
  • Support to find a new job.

Employers can use both the Redundancy Information Statement and the Good Practice guide to help them and their employees navigate the transition period.

There are services available to assist employers during this period, including help with tailoring a transition strategy to the size of their business, resources available and number of retrenched workers.

Employers can contact the Department of Jobs and Small Business to find out about support available by calling the Employment Services Information Line on 13 17 15 or emailing retrenchment@jobs.gov.au.

Download the Redundancy Information Statement.

Read the Good Practice in Socially Responsible Restructuring Guide.

Further information and resources for employers and workers about retrenchment are available on the What’s Next website.

Related article: Employers lead the way in socially responsible restructuring.


Correct at time of publication

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Last modified on Monday 7 January 2019 [9361|107331]