Redundancy Toolkit

This redundancy toolkit has been designed to assist employers facing the prospect of retrenchments, redundancy, or any other form of employment cessation following a major workplace change. It provides important and relevant information that can be helpful to business owners and human resources professionals when going through the redundancy selection process, consultation process and the final decision to make redundancies.

What is redundancy?

Redundancy is when an employer no longer requires a person’s job to be performed by anyone because of operational changes in the employer’s business

• this can include the complete elimination of a role, or,
• redistributing the duties of the role amongst other roles in the business

A genuine redundancy means the employee is being dismissed as you don’t require their role to be filled anymore.

Why is it important to correctly implement a redundancy process?

The Fair Work Act provides that a person will not be unfairly dismissed as a result of genuine redundancy.

Why is it so Important that the Redundancy is “Genuine”?

If a redundancy is genuine, an employee cannot succeed in the event that they pursue an unfair dismissal claim. When undertaking a redundancy, an employer should ensure that it is genuine.

A redundancy is not genuine if the employer:

• still needs the employee’s job to be done by someone
• could have given the employee another job within your business (or associated entity)
• has not followed consultation requirements as provided by the relevant Modern Award or enterprise bargaining agreement (if applicable)

There are several things that need to be considered when embarking on a redundancy:

Obligations to notify, discuss and consult with employees are triggered by a “definite decision” made by the employer to restructure or make major workplace changes.

Below are the steps you should follow for a legally compliant and best-practice redundancy process. Our redundancy toolkit provides you with everything you need.

Step 1 – Selection Process

Before selecting an individual or team for redundancy, it is important to have followed a sound selection process. Three easy to use templates included to assist you with the selection process.

1. Redundancy and redeployment flow chart
2. Template redundancy business case
3. Template redundancy selection assessment form
4. Template redundancy selection matrix summary form

Step 2 - Consultation Process

Legally required before announcing redundancy. Six easy to use templates included to guide you through the consultation process.

1. Letter inviting union officials to a consultation meeting
2. Template redundancy consultation letter for employees
3. Example template presentation to staff consulting on proposed major workplace change
4. Example template presentation to senior management advising of a proposed major workplace change
5. Template script for a redundancy consultation meeting
6. Example template all company memo advising of proposed major workplace change

Step 3 - Final Decision to Make Redundancies

Once a final decision to proceed with redundancies is confirmed, use these nine essential templates detailing step by step process once redundancies are confirmed.

1. Letter inviting union officials to final outcome meeting
2. Example template presentation to staff confirming final decision announcing redundancies
3. Example template presentation to senior management confirming major workplace change resulting in redundancies
4. Example template all company memo advising of the decision to make a major workplace change
5. Template termination of employment due to redundancy letter – No Deed of Release
6. Template termination of employment due to redundancy letter – Yes to Deed of Release
7. Good Practice Guide Supporting redundancy survivors
8. Good Practice Guide: Supporting redundant employees - interview preparation tips
9. Good Practice Guide: Supporting redundant employees - CV preparation tips

HR Expert Australia recommends:

This is a complex process which involves complex legal rights and obligations and may give rise to various employment and legislative consequences. The best way to use this redundancy toolkit and these documents are to complete them, print it out, and read them carefully. HR Expert Australia recommends if you are unsure about the redundancy consultation and execution process that you instruct lawyers to assist you in the finalisation of the documents and that you take advice as to any employment law consequences.

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Our redundancy toolkit and information provided on this page is not legal advice and should not be relied upon as such. HR Expert Australia does not accept liability for any loss or damage arising from reliance on the content of this toolkit or webpage, or links on this website to any external website. Where applicable, liability is limited by a scheme approved under Professional Standards Legislation.