As a business owner, you may face situations where an employee can no longer fulfil their current role due to personal circumstances or changes within the business, considering alternative employment options becomes essential. This might arise in scenarios like changes in an employee's personal situation that prevent them from meeting their contractual obligations, or during business restructuring that could lead to potential redundancies.
Offering an employee a suitable alternative position within the company can sometimes be a viable solution to avoid redundancy. The suitability of a new role should be assessed based on various factors such as the nature of the job, salary and benefits, location, work environment, and hours. In a redundancy, if it would have been reasonable to redeploy the employee within your business (or an associated entity), the dismissal is not a genuine redundancy and the employee may be able to make an unfair dismissal claim. If you find the employee other acceptable employment, you can also ask the Fair Work Commission to reduce the redundancy pay owed.
In cases where an employee's personal circumstances change, impacting their ability to continue in their current role – for example, losing a driver licence required for their job – it doesn't necessarily mean immediate dismissal. Instead, exploring reasonable alternative duties within the company is advisable. Reflecting on how similar situations were handled in the past can provide valuable insights for current decisions.
Employment Compass offers guidance on navigating the complexities of finding alternative employment for employees under various circumstances. Business owners seeking support in these situations can call our 24/7 HR advice line on 1300 144 002 for expert advice and assistance.
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General information only
This content is general information about Australian employment law, current at the date it was last reviewed. It does not take your circumstances into account and is not legal advice. For advice about your situation, call Employment Compass on 1300 144 002.
Last reviewed: October 2026
