Can I Make My Employee Redundant? Understanding Genuine Redundancy Obligations

| April 16, 2026

This is a question employment lawyers often hear. However, the question itself can already pose a problem. This is because a genuine redundancy centres on an employee’s position no longer being required, rather than the individual.

To pursue a genuine redundancy under the Fair Work Act 2009 (Cth), employers must satisfy a three-limb test and avoid common procedural and substantive pitfalls, such as the one posed in the opening question.

Firstly, the employer must establish that the role is no longer required due to operational changes. The focus is on the position, not the individual.

Apart from personalising the redundancy of a position, other common pitfalls include:

• failing to substantiate the business rationale with clear evidence; or

• not actually removing the position from the business (e.g. merely changing the job title), which may undermine the genuineness of the redundancy.

Secondly, employers must comply with consultation obligations in any applicable modern award or enterprise agreement. Consultation must begin once the employer has made a definite decision to initiate a major workplace change and should occur as soon as practicable. This includes formally notifying employees of the proposed change, its impact, and inviting feedback.

A frequent error is treating consultation as a formality—issuing a decision before genuinely engaging with employees or failing to provide sufficient information.

Finally, employers must demonstrate that redeployment would not have been reasonable in all the circumstances. This requires actively identifying and offering suitable roles within the business or any associated entity.

Common pitfalls in respect of redeployment include:

• adopting a passive approach (e.g. asking employees to apply for roles);

• overlooking alternative positions; or

• assuming a role would be unsuitable for the affected employee without proper consultation.

Failure in any of these areas may result in a finding that the redundancy is not genuine, exposing the employer to unfair dismissal claims.

Practical Support for Employers

Redundancy processes require careful planning and a clear understanding of your legal obligations. Taking a structured and compliant approach can significantly reduce the risk of disputes.

If you are considering organisational changes or managing a redundancy process, IRiQ Law can provide practical guidance tailored to your business, including assistance with drafting notification letters and consultation scripts.

As a starting point, we suggest you review our checklist and feel free to contact us if you have any questions.