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How to effectively manage the redundancy process

This expert guidance note delivers critical insights into managing the redundancy process, a key area for employers facing workforce restructuring under Australian employment law. It outlines the legal framework and practical considerations that companies must address to navigate redundancies compliantly and strategically.

Topics Covered

  • Selection pools and assessment of criteria for redundancy
  • Requirement to consult about potential redundancies
  • Implementing dismissals because of job redundancies

Essential Insights

  • Assess the genuine nature of redundancies to avoid costly unfair dismissal claims under the Fair Work Act.
  • Calculate consultation timelines and statutory redundancy payments without revealing full compliance steps.
  • Prepare evidence supporting objective business reasons, including financial and operational factors behind redundancies.
  • Identify unlawful reasons for redundancy, such as discrimination or protected absences, that expose employers to legal risk.
  • Strategically plan consultation meetings with empowered representatives to withstand potential legal challenges.
  • Consider complex nuances like enhanced redundancy offers, settlement agreements, and protections for employees on parental leave.

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