Redundancy in Australia:
A Balancing Act of Compliance and Compassion

Let’s be honest—talking about redundancy isn’t anyone’s idea of a good time. Whether you're the person receiving the message or the one delivering it, it's tough.

Regrettably, it’s also one of those unavoidable parts of doing business, especially in times of change, economic pressure, or restructure. Ultimately, we are talking about peoples’ livelihoods and the process needs to be both compliant and compassionate.

It’s not just a bad experience — it can also seriously damage trust in the business, not just from those affected but from the wider team watching how things are handled as well as wider reputational damage.

The challenge? It’s not just about getting the legal steps right—it’s about handling the human side with care, respect, and transparency.

So, where do things go a bit sideways?

"Your Role Is at Risk"... And That’s All We’re Saying?

It’s unfortunately common to hear stories of employees being told that their role is “at risk” of redundancy, whilst receiving no actual information to help them understand what that means for them.

Where’s the redundancy estimate? Where’s the detail around next steps, timelines, or support? For employees—many of whom have spent years, if not decades, with a business—this kind of vagueness isn’t just frustrating, it is deeply unsettling. When livelihoods are at stake, clarity matters.

What About Redeployment?

One big (and legally required) consideration in Australia that often seems to get lost is redeployment.

Organisations have an obligation to explore whether there are other suitable roles available before moving to redundancy and for larger businesses, this includes opportunities in associated entities.

Far too often, this conversation never happens. Is it a lack of awareness? A rushed process? Or just poor communication? Whether or not a redundancy is considered genuine can be legally tested if not reasonably considered by the business.

Whatever the reason, skipping this step not only risks breaching obligations and exposing the organisation to further risk —it’s also a missed opportunity to retain experience and talent within the business.

Employees Deserve a Thoughtful Conversation

There’s a huge difference between ticking a box and having a genuine, consultative conversation.

Especially when it comes to long-serving employees, the process should include:

• an open discussion about what’s happening and why;
• a chance for employees to provide input or ask questions; and
• a real exploration of redeployment options.

Instead, restructure can often feel overwhelming and rushed, leading to impersonal meetings that leave people confused and disheartened, with multiple risks to the business.

The Legal Side: Awards, Contracts & EBAs Can Change Everything

Yet another overlooked aspect of the redundancy process is assuming that it's a one-size-fits-all situation.

In reality, redundancy in Australia is often shaped by specific legal instruments like:

• Modern Awards: These can include particular consultation or notice requirements. Miss those, and you’re in breach—even if the Fair Work Act basics are covered.
• Enterprise Agreements (EBAs): These often contain their own detailed processes for redundancy, sometimes including extended notice periods, additional payments, or unique redeployment obligations.
• Individual Contracts: A contract might specify a longer notice period, enhanced redundancy payout, or a set process to follow—especially for senior or long-term employees.

Failing to properly review these before kicking off a redundancy process can lead to costly mistakes, including underpayments, unfair dismissal claims, or even breaches of contract.

This is another reason why it pays to slow down, get the right advice, and tailor the process for each situation — especially in industries where EBAs or Awards are common (think education, health, transport, and manufacturing).

External HR Support: A Lifeline for Getting It Right

Here’s where external HR specialists can make a world of difference. Bringing in experienced, neutral professionals can help businesses:

• develop a clear communication plan and timeline;
• plan and deliver difficult messages with empathy;
• ensure all legal obligations (like redundancy consultation and redeployment) are fully considered;
• reduce future risk—from internal morale issues to potential legal issues.

It’s not about outsourcing tough conversations — it’s about doing them better.

The Bottom Line: Redundancy Is a Process, Not Just a Decision

When done right, redundancy doesn’t have to be a cold, confusing experience. With the right planning, information, and support, it can be handled in a way that respects both the business’s needs and the human beings at the heart of it all.

Let’s aim for processes that are not only compliant—but compassionate, transparent, and thoughtful. Because behind every restructure is a person who deserves to be treated with dignity and respect.