Employment law
Redundancy: employer and employee considerations
A redundancy involves more than a payment and a termination letter. MAKIN Advisory helps employers plan workplace change and helps employees understand a proposed or completed redundancy, including the process, available alternatives and entitlements.
Look at the change, the process and the entitlements
The starting point is what happens to the job. A business may be changing its operations, reallocating work or reducing roles. The explanation should be considered alongside applicable consultation obligations, possible redeployment and the employee’s entitlements.
Those are connected but distinct issues. Paying an amount labelled “redundancy” does not, by itself, establish that a dismissal meets the genuine redundancy requirements or resolve every possible claim.
How MAKIN Advisory can help
Advise employers on proposed changes before decisions are implemented.
Review relevant contracts, awards or agreements and consultation requirements.
Assess redeployment questions and the documents supporting the process.
Help employees understand a redundancy proposal, letter or settlement document.
Advise on disputed entitlements and potential dismissal-related issues.
For employers: prepare before announcing the outcome
Document the operational reason and how the work will be performed afterwards. Identify the affected roles, relevant instruments and alternatives to consider. Consultation should not be treated as a label added to a completed decision; the applicable requirements and timing need attention.
Keep a clear record of proposals, questions, responses and the consideration of alternatives. Where redeployment is relevant, assess actual roles and circumstances rather than relying on an unexplained statement that nothing is available.
For employees: ask what is changing and what is being offered
Request the reasons, proposed timing, information about alternative roles and a breakdown of the payments. Distinguish wages and accrued entitlements from notice, redundancy pay and any additional amount offered in exchange for a release.
If a deed is proposed, examine the obligations as well as the total amount. Confidentiality, releases and other commitments can have continuing consequences. Preserve correspondence and act promptly if dismissal has occurred.
Discuss a redundancy proposal or dispute
Redundancy FAQs
What is a genuine redundancy?
Broadly, the unfair dismissal framework considers whether the job is no longer required because of operational changes, relevant consultation requirements were met and reasonable redeployment was available. The actual requirements need to be applied to the employer and circumstances, not just the wording of the letter.
Does every employee receive redundancy pay?
No. Entitlement depends on the applicable rules and circumstances, including possible exclusions. Contracts, awards or agreements may also matter. Check the individual position rather than assuming everyone receives the same payment.
Can the employer redistribute my duties?
The future allocation of duties is relevant, but it does not automatically answer whether a redundancy is genuine. Examine the job before and after the change, the operational explanation and the process followed.
Does accepting payment mean I have settled all claims?
Payment of entitlements and signing a settlement agreement are different things. The effect of any acceptance, release or deed needs assessment. Do not assume either that every payment ends all rights or that a signed release has no consequence.
Can a redundancy be challenged?
Potential issues depend on eligibility, the facts and the claim pathway. Concerns may involve the genuine redundancy requirements, entitlements or an alleged prohibited reason. Dismissal-related applications can have short deadlines, so obtain prompt advice rather than waiting for every payment dispute to conclude.
What should I provide and what will it cost?
Begin with the proposed or effective termination date and a brief description of the issue. Relevant documents may include the contract, consultation correspondence, payment breakdown and proposed deed. Scope, urgency and complexity determine the work and cost to discuss.
Plan the next step with clarity
MAKIN Advisory assists employers and employees on the Gold Coast, in Brisbane and remotely, with in-person meetings by appointment. Enquire about redundancy advice or email sam@makinadvisory.com.au.
Related: Unfair dismissal advice and general protections. Official resource: Fair Work Ombudsman redundancy guidance.
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