Fair Work Centre — For Employers
A genuine redundancy is a legal test, not a label. Get expert advice on selection criteria, consultation and payouts so your redundancy holds up if it’s ever challenged.
The Problem
Redundancy must meet the “genuine redundancy” test under the Fair Work Act 2009 — the role must no longer be required, consultation obligations must be met, and redeployment must be considered. Missing any of these elements exposes even a well-intentioned redundancy to an unfair dismissal or general protections claim.
If the role isn’t genuinely no longer required, or you don’t follow consultation obligations under the applicable award or agreement, the Fair Work Commission can find it wasn’t a genuine redundancy at all.
Choosing who to make redundant based on unclear or inconsistent criteria opens the door to unfair dismissal and general protections claims — especially if performance, age or leave history factor in.
Employers must genuinely consider redeployment within the business (or associated entities) before finalising a redundancy — skipping this step is a common and costly failure point.
Redundancy pay under the NES scales up to 16 weeks based on continuous service. Miscalculating it — or missing notice period obligations — creates immediate underpayment exposure.
How We Help
Fair Work Centre helps Australian employers plan and execute redundancies that meet the genuine redundancy test — protecting the business from unfair dismissal and general protections risk while treating departing staff fairly.
Our advice reflects current Fair Work Commission guidance on genuine redundancy and consultation obligations.
How It Works
Call 1300 161 828 or book a free initial advice call before you announce anything.
We review your structure, award coverage and proposed selection criteria.
Get correct calculations, compliant documentation and a defensible process.
A short advice call now can prevent a costly unfair dismissal claim later.
Membership
Common Questions
A redundancy is genuine when the employer no longer requires the role to be performed by anyone due to operational changes, the employer has complied with consultation obligations in the applicable award or agreement, and it would not have been reasonable to redeploy the employee elsewhere in the business or an associated entity.
Under the National Employment Standards, redundancy pay scales from 4 weeks (1 year of service) up to 16 weeks (12+ years of service). Businesses with fewer than 15 employees are generally exempt from NES redundancy pay, though awards or contracts may still apply their own entitlements.
Yes. The Fair Work Commission will look at whether it would have been reasonable to redeploy the employee into another role within your business or an associated entity before finalising the redundancy. Failing to genuinely consider this is one of the most common reasons redundancies are found not to be genuine.
Yes — an employee can lodge an unfair dismissal claim if they believe the redundancy wasn’t genuine, or a general protections claim if they believe they were selected for a prohibited reason. Both have strict time limits, so a clear, documented process is your best protection.
Most modern awards and enterprise agreements require employers to notify affected employees as soon as a definite decision is made, discuss the changes, their impact, and ways to minimise negative effects, and consider any matters the employee raises. Skipping consultation can undo an otherwise genuine redundancy.
Casual employees generally aren’t entitled to NES redundancy pay, but if a casual has been employed regularly and systematically, they may still bring an unfair dismissal claim if the role ends unfairly. Getting advice before ending a long-term casual engagement is strongly recommended.
No. Fair Work Centre is an independent private advisory service for employers. We are not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.
Fair Work Centre is an independent private organisation providing advisory services to employers only. It is not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority.
Speak to an Employment Lawyer at Fair Work Centre
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