Hi,
We have an employee who is going to be moved from a higher rate paid role to a lower rate paid role. This is because the first role is no longer needed. According to the Fair Work Ombudsman, this qualifies as Partial Redundancy.
The payment would be the weekly rate difference multiply by the required redundancy pay weeks.
While when I'm reading TR 2009/2, clause 16 "....The Commissioner’s view is that a genuine redundancy payment can only arise where there is no suitable job available for the employee with the employer, meaning that he or she must therefore be dismissed", can anyone let me know if this means the partial redundancy can not meet Genuine Redundancy requirement because this employee is still with the the same employer, and the payment not be tax free.
If so, what type of payment this partial redundancy payment would be classified. and what tax rate applies to it?
Many thanks.
Catherine
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