Redundancy and Consultation Requirements
When an employer makes a role redundant, the Fair Work Act requires them to follow certain steps. One of the most important is consultation. But this obligation does not automatically apply in every case. It only applies if you are covered by a modern Award or an Enterprise Agreement.
Most Awards and Agreements contain a consultation clause. These clauses require the employer to notify you about the proposed changes, discuss the reasons, and genuinely consider any alternatives before the final decision is made. For example, they must talk to you about redeployment options or whether changes to hours could avoid the redundancy.
If you are covered by an Award or Agreement and your employer fails to consult, the redundancy may not be considered genuine under the Fair Work Act. This can open the door to an unfair dismissal claim.
On the other hand, if you are not covered by an Award or Enterprise Agreement, there is no legal requirement for your employer to consult. In those cases, a lack of consultation alone will not make the dismissal unfair, though other issues (such as redeployment opportunities or the real reasons for the redundancy) may still be challenged.
The key point for employees is to check whether you are covered by an Award or Agreement. If you are, consultation is not optional; it is a legal requirement.
