Posted on November 17, 2016
We have received a number of inquiries from our clients recently in relation to the proper process for making an employee’s role redundant.
Small businesses have no obligation to make redundancy payments, however face the risk of an unfair dismissal claim if the termination of employment does not meet the criteria set out in the Fair Work Act for genuine redundancy, namely that:
- the job is no longer required to be performed by anyone;
- the employer has complied with any obligation to consult about the redundancy; and
- it is not reasonable in all the circumstances for the person to be redeployed.
Where an unfair dismissal claim is made the Fair Work Commission examines the facts of each matter on a case by case basis which can result in a lengthy and expensive hearing so it is important to ensure that the process is carried out correctly.
Please contact one of the employment lawyers at Scanlan Carroll if you require advice regarding redundancy or any other aspect of employment law.
This bulletin is provided for general information purposes only, and should not be relied upon as a substitute for legal advice.
The information in this bulletin is current as at the date of publication
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