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Closing Loopholes Act - Changes Redundancy Provisions

australian capital territory changes closingloopholes new south wales northern territory payments redundancy reundancypay small business south australia tasmania victoria western australia Feb 28, 2024

Welcome to the next update in our Closing Loopholes series! 

 

Change 2: Introduction of small business redundancy exemption provisions

Usually, small business (15 employees or less) employers are not required to pay redundancy pay to employees made redundant. Previously, this was also applicable in the case of a non-small business becoming a small business due to bankruptcy or liquidation.

However, due to the recent changes, a business that falls into the small business category due to liquidation or bankruptcy, may now be required to pay redundancy payments to their employees. This means employees faced with this situation may no longer be disadvantaged.

 

Note: There will be no change to small business redundancy exemptions for viable small business OR for larger business that have restructured and continue to trade.

 

If you have any questions regarding the changes above, please feel free to reach out via [email protected]  or give us a call on 0401 510 559.

 

Stay tuned for more articles explaining the Closing Loophole changes!

 

 Author: Jess Roughsedge (HR Officer)