Can You Refuse Redeployment and Still Get Redundancy Pay?
If your job is made redundant, your employer may offer you another position within the business or an associated entity. This is redeployment. A common question is: what happens if I say no?
Under the Fair Work Act 2009, a dismissal is only a genuine redundancy if:
your employer no longer requires your job to be done,
your employer has followed any consultation obligations in your award or enterprise agreement, and
it was not reasonable to redeploy you within the business or an associated entity.
This means if your employer had a reasonable redeployment option available, and you refused it, the dismissal may not be classified as a genuine redundancy. If that’s the case, the employer could argue that you are not entitled to redundancy pay under the National Employment Standards.
However, not every redeployment offer is “reasonable.” A role is unlikely to be reasonable if it involves:
a significant drop in pay,
a demotion in seniority,
hours or shifts that you cannot reasonably work,
relocation to an unsuitable or distant location, or
duties outside your skills and training.
In those circumstances, refusing redeployment may not affect your redundancy pay but you should seek independent advice before making any final decisions pertaining to redeployment options presented to you. This is because if the offer is essentially comparable; similar pay, conditions, responsibilities and location; refusing it could mean losing redundancy pay. It can also weaken any unfair dismissal claim, since the Fair Work Commission may see the refusal as unreasonable. The safest approach is to carefully assess any redeployment offer. Compare the terms to your current role, ask questions in writing, and keep records of your decision-making.
