Requirement to consult about potential redundancies

The requirement to consult about potential redundancies is a critical legal obligation that employers must navigate carefully to mitigate risks of unfair dismissal claims and regulatory penalties. This guidance note outlines the consultation obligations under industrial instruments and the Fair Work Act 2009 (Cth), highlighting when and how employers should engage with employees and unions during redundancy processes. Explore essential topics including:

Topics Covered

• Selection pools and assessment of criteria for redundancy
• How to effectively manage the redundancy process
• Implementing dismissals because of job redundancies
• What happens in the case of a genuine redundancy?

Essential Insights

• Understand employers’ legal obligations to notify and consult under industrial instruments before finalising redundancies.
• Assess critical thresholds, such as dismissal of 15+ employees, triggering mandatory union consultation and notification to Services Australia.
• Recognise how genuine consultation affects eligibility for the genuine redundancy exception to unfair dismissal claims.
• Appreciate the nuanced risks of failing to consult, including significant penalties up to 600 penalty units and potential reinstatement orders.
• Consider best practice consultation strategies to engage employees, including those on leave, to mitigate legal and reputational risks.
• Explore complex issues like redeployment obligations and the legal impact of consultation quality on dismissal fairness.