Know Your Agreement: Redundancy & resignation improvements

Redundancy

This Agreement provides earlier access to the maximum redundancy pay. Employees will now be eligible for 21 weeks' pay (or 25 weeks' if over 45 years of age) if they have over 12 years of continuous service (compared with 15 years of continuous service under the VCEMEA).

Importantly, this also applies to part-time employees who elect to receive a severance payment because the employer has proposed to substantially reduce the employee's hours of work – if they have over 12 years of service, they will be eligible for a severance payment of 21 weeks salary if under 45, or 25 weeks if they are over 45.

Notice of Resignation

While the same notice of resignation requirements apply, this Agreement removes the financial penalty for employees who do not give at least four weeks’ notice of resignation. Under the previous Agreement, the employer was able to withhold salary equivalent to the difference (so for example if 2 weeks’ notice was given, the employer could withhold 2 weeks’ worth of salary).