Common use of Redundancy Compensation Clause in Contracts

Redundancy Compensation. (a) Where an employee is not placed in suitable alternative employment prior to the expiry of the notice period, the employee shall be entitled to compensation as follows: (i) One month’s notice of termination of employment or pay in lieu; and (ii) For those employees appointed prior to or on 22 December 1992, one months’ salary for each year of service, up to a maximum payment of six months’ salary; or (iii) For those employees appointed after 22 December 1992, 8% of ordinary pay for the preceding twelve months, plus 2% of ordinary pay for the preceding twelve months for each year of service minus one, up to a maximum of the equivalent of three months’ salary at that time. (b) Redundancy compensation (excluding notice provisions) shall be payable to redundant employees with at least 12 months’ current continuous service.