Genuine Redundancy: Consultation, Notice and Redeployment

Last reviewed: October 2026.

What is a genuine redundancy?

A genuine redundancy happens when your business no longer needs a particular job to be done by anyone because of changes in how the business operates. Under the Fair Work Act 2009, a dismissal is a case of genuine redundancy only if all three of these tests are met (s 389):

1. The job is no longer required. You no longer require the person's job to be performed by anyone because of changes in the operational requirements of your business, such as a restructure, new technology, a downturn or a relocation.
2. You consulted as required. You complied with any obligation in an applicable modern award or enterprise agreement to consult about the redundancy.
3. Redeployment wasn't reasonable. It would not have been reasonable in all the circumstances to redeploy the employee within your business or an associated entity.

Getting this right matters. A dismissal that is a genuine redundancy can't be an unfair dismissal (s 385). If any of the three tests fails, an eligible employee can bring an unfair dismissal claim, and the Fair Work Commission will look at whether the dismissal was harsh, unjust or unreasonable.

The test is about the job, not the person. A job can still be redundant if some of its tasks remain and are shared among other employees. It is not a genuine redundancy if you rename the role and hire someone else to do substantially the same work, or if the real reason is the employee's performance or conduct. Those issues need a fair performance or disciplinary process instead (see our guide to termination of employment).

Step 1: Confirm and document the business reason

Before you speak to anyone, write down why the change is needed and how it affects each role. A short business case should cover the problem (for example, falling revenue or a process now automated), the options you considered, the proposed new structure and which positions are affected. This record helps if a decision is challenged later.

Check whether voluntary redundancy is an option, and whether there are alternatives such as reduced hours by agreement, leave, or not filling vacancies.

Step 2: Consult with affected employees

Most modern awards and enterprise agreements contain a consultation clause about major workplace change. The General Retail Industry Award 2020 (clause 34) is typical. Once you have made a definite decision to make major changes likely to have significant effects on employees, including terminations, you must:

• give notice of the changes to the affected employees and their representatives (if any)
• discuss the changes, their likely effect on employees and measures to avoid or reduce the adverse effects
• provide in writing all relevant information about the changes, including their nature and expected effects (you don't have to disclose confidential information that would harm your interests)
• start discussions as soon as practicable and promptly consider any matters the employees raise

Consultation must be genuine. Hold the discussions while the outcome for each employee can still be influenced, listen to ideas for avoiding job losses, and keep notes of each meeting. Even for award-free employees, a consultation process is good practice and helps show the dismissal was fair.

Remember employees who are away. If an employee is on unpaid parental leave, you must take reasonable steps to give them information about, and an opportunity to discuss, a decision that will significantly affect their role (s 83).

Larger redundancies. If you decide to dismiss 15 or more employees for economic, technological, structural or similar reasons, you must notify Services Australia (Centrelink) in writing before any dismissal (s 530), and notify and consult any union representing affected employees (s 531).

Step 3: Use fair and objective selection criteria

If you are reducing the number of people in a role rather than removing the role entirely, choose who is affected using objective, job-related criteria such as skills, qualifications and documented performance. Apply them consistently and record the scores.

Never select an employee because they are pregnant, on parental or personal leave, have made a complaint or workers compensation claim, or because of their age, disability or family or carer's responsibilities. That can be adverse action under the general protections (ss 340 and 351) and unlawful discrimination.

Step 4: Consider redeployment

Redeployment is often where redundancies fall down. Before confirming a redundancy, look for any suitable vacancy, in your business or an associated entity, that the employee could do now or with reasonable training (s 389(2)). Think about:

• current and upcoming vacancies, including roles you are recruiting for
• the employee's skills, qualifications and experience
• the location, hours and pay of the alternative role
• whether a lower-paid role should be offered rather than assumed to be unacceptable

Offer suitable roles in writing and give the employee time to consider them. Many awards set rules for transfers to lower-paid duties because of redundancy, such as notice or make-up pay. If you find the employee other acceptable employment, you can also ask the Fair Work Commission to reduce the redundancy pay owed (s 120). Our guide to alternative employment has more on this.

Step 5: Give written notice of termination

Once you confirm the redundancy, give the employee written notice of their last day (s 117). Under the National Employment Standards, the minimum notice depends on continuous service:

• up to 1 year: 1 week
• more than 1 year and up to 3 years: 2 weeks
• more than 3 years and up to 5 years: 3 weeks
• more than 5 years: 4 weeks

Add 1 week if the employee is over 45 and has at least 2 years' continuous service. You can pay in lieu of notice at the employee's full rate of pay for the hours they would have worked. An award, agreement or contract may require longer notice. See our guide to notice periods.

Many awards also allow an employee who has been given redundancy notice up to one day off without loss of pay each week of the notice period to look for work, and let them leave early without losing their redundancy pay.

Step 6: Calculate final pay and redundancy pay

The final pay usually includes outstanding wages, notice or payment in lieu, untaken annual leave (with leave loading if the award or contract requires it), any long service leave owed under state or territory law, and redundancy pay. Eligible employees receive between 4 and 16 weeks' pay at their base rate under the NES. Our guide to redundancy pay explains the scale, how to calculate it and the small business exemption.

What happens if a redundancy isn't genuine?

Rates current from 1 July 2026.

An employee can make an unfair dismissal claim within 21 days of the dismissal taking effect if they have completed the minimum employment period (6 months, or 12 months with a small business employer) and are covered by an award or enterprise agreement or earn less than the high income threshold of $190,100. If the Fair Work Commission finds the redundancy wasn't genuine and the dismissal was unfair, it can order reinstatement or compensation of up to $95,050 or 26 weeks' pay, whichever is less.

Employees may also bring a general protections claim if they believe they were selected for a prohibited reason. For small businesses, genuine redundancy is assessed separately from the Small Business Fair Dismissal Code, so following the Code alone doesn't make a redundancy fair. If you receive a claim, our Fair Work representation for employers can help you respond.

Example: a genuine redundancy done well

A printing business with 30 employees buys a digital press that replaces two of its three offset press operator roles. The owner documents the business case, then meets the three operators and the union delegate, explains the change in writing and invites suggestions. One operator asks for voluntary redundancy. A vacancy in the dispatch team is offered to the second operator with on-the-job training, and she accepts. The third operator's role continues. Because one employee leaves by voluntary redundancy and another is redeployed, the business avoids any forced dismissals.

Genuine redundancy checklist

1. Document the operational reason and the roles affected.
2. Check the award, agreement and contracts for consultation, notice and redundancy terms.
3. Consult affected employees (including those on leave) and their representatives, and record the discussions.
4. Apply fair, objective selection criteria where roles are being reduced.
5. Look for redeployment in your business and any associated entities, and offer suitable roles in writing.
6. Notify Services Australia and unions if 15 or more dismissals are proposed.
7. Give written notice, then calculate and pay the final pay and redundancy pay on time.
8. Treat departing employees with respect: offer references, job-search time and support.

Planning a restructure? Our HR consulting services and HR advice line can help you map out consultation, selection and redeployment before you announce anything.

Need help with your situation? Call our 24/7 HR advice line on 1300 144 002 for free initial advice.

Genuine redundancy: frequently asked questions

What makes a redundancy genuine?

The job is no longer required to be done by anyone because of operational changes, you followed any award or agreement consultation obligations, and it wasn't reasonable to redeploy the employee in your business or an associated entity.

Do I have to consult before making an employee redundant?

If an award or enterprise agreement applies, yes: failing to consult as it requires means the redundancy is not genuine. For award-free employees, consultation isn't required by the Act, but it is strongly recommended.

Can I make someone redundant and then hire someone else?

Not for substantially the same job. If you still need the role done, it isn't a genuine redundancy. Sharing some remaining tasks among existing staff can be acceptable.

Can an employee on parental leave be made redundant?

Only if the redundancy is genuine and unrelated to the leave. You must consult them about the change and consider redeployment, and they keep their return to work guarantee to an available role nearest in status and pay.

How much notice do I give for a redundancy?

Between 1 and 4 weeks under the NES depending on service, plus 1 week for employees over 45 with at least 2 years' service, unless the award, agreement or contract requires more.