Knowing your rights about Redundancy: Case study of Classic Sports
The recent Fair Work Commission (FWC) decision in Jacqueline Taylor v Classic Sports Industries Pty Ltd highlights how employers can mishandle redundancies. Redundancy should never be used as a fabricated reason for dismissal. A redundancy is only genuine if the employer no longer requires the role to be performed due to changes in operational requirements, complies with consultation obligations under the relevant Award or Enterprise Agreement, and has considered whether redeployment within the business or an associated entity was reasonable. Before making a role redundant, employers must consult with affected employees. Consultation allows employees to understand the proposed changes, provide input, discuss alternatives, and explore redeployment options. It also ensures decisions are not made without proper consideration.
Case Study: Jacqueline Taylor’s Unfair Dismissal Claim
Jacqueline Taylor worked as a full-time Coordinator at Classic Sports Industries Pty Ltd from December 2023. On 25 November 2024, she was called into a meeting and told her role was being made redundant due to organisational changes. The next day, her employment ended, and she was paid one week in lieu of notice plus her accrued annual leave.
Ms. Taylor challenged her dismissal, arguing that:
She was not consulted about the redundancy.
She was not informed about or considered for two new roles created during the restructure. She would have applied for one of them had she known about the changes.
The FWC ruled in her favor, finding that her dismissal was not a genuine redundancy and was harsh, unjust, and unreasonable. Classic Sports was ordered to pay her $23,586.58 in compensation (11 weeks’ pay).
What This Means for Employees
This case highlights critical areas where employers must follow the law—and where employees can take action if they don’t.
1. Consultation is Key
Under the Fair Work Act 2009, if your role is covered by a modern award or enterprise agreement, your employer must consult you before making your position redundant. This means:
Timely Notification – You must be informed of changes as soon as possible.
Opportunity for Input – You must be given the chance to discuss the changes and suggest ways to avoid or reduce their impact.
In Ms. Taylor’s case, the Clerks – Private Sector Award 2020 applied to her role. Classic Sports failed to consult her as required. The Award mandated that she be given written notice of the changes, be informed of their impact, and be allowed to raise concerns. The FWC found that these obligations were not met.
What You Can Do:
If your employer announces a restructure or redundancy, ask:
What are the reasons for the changes?
Have you considered alternatives to redundancy?
Can I provide input or suggest ways to save my role?
2. Redeployment Must Be Considered
Employers must explore whether redundant employees can be redeployed into suitable alternative roles within the business or associated entities if it is reasonable to do so. This includes:
Identifying available roles.
Informing employees about these roles.
Giving employees a fair opportunity to apply.
During the restructure at Classic Sports, two new roles were created: National Teamwear Manager and Regional Account Manager. The FWC found it would have been reasonable to redeploy Ms. Taylor into the latter role.
What You Can Do:
If you’re told your role is redundant, ask:
Are there other roles available within the company?
Can I be considered for any new positions?
What qualifications are required, and how do my skills match?
3. Know Your Rights and Take Action
The Jacqueline Taylor case is a clear reminder that employers must follow proper redundancy procedures. Employees should:
Know their rights under their award or agreement.
Ask questions and seek clarity during restructures.
Take action if they believe their dismissal was unfair.
Redundancy doesn’t have to be the end of the road. If your employer fails to consult you, consider redeployment, or follow fair processes, you have options.
