Genuine redundancy occurs when a job is no longer required due to operational changes and consultation requirements have been met.
Legislation: Fair Work Act 2009 s389 | Category: Termination
What is Genuine Redundancy?
Genuine redundancy occurs when an employer no longer requires the employee’s job to be performed by anyone because of changes in operational requirements, and the employer has complied with consultation requirements in any applicable award or agreement. A genuine redundancy is not an unfair dismissal.
For a redundancy to be genuine, three elements must be satisfied: the job is no longer required, consultation obligations have been met, and it would not have been reasonable to redeploy the employee to another position within the employer’s enterprise or an associated entity.
Key Compliance Points for Employers
- Redundancy pay is payable to employees with at least 12 months’ service (small businesses exempt)
- Consultation must occur before final decisions are made and comply with award/agreement requirements
- Redeployment options must be genuinely considered across the enterprise and related entities
- Selection criteria for redundancy must be fair and non-discriminatory
- Failure to follow process can convert what should be a genuine redundancy into an unfair dismissal
Frequently Asked Questions
What is Genuine Redundancy?
Genuine redundancy occurs when a job is no longer required due to operational changes and consultation requirements have been met.
Why is Genuine Redundancy important for employers?
Understanding genuine redundancy helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
