What is a genuine redundancy in Australia?

What is a Genuine Redundancy in Australia?

A genuine redundancy occurs when an employer no longer needs a job position to be performed by anyone. This is a valid reason for dismissal under Australian employment law.

Key Requirements for Genuine Redundancy

• The position must be eliminated – not just the person. The employer must genuinely no longer require the work to be done.
• It must not be a disguised dismissal – the employer cannot claim redundancy to avoid performance management or disciplinary action.
• Consultation is required – the employer must consult with affected employees about the redundancy and explore alternatives like retraining or redeployment.
• Genuine reasons – common causes include business closure, restructuring, technological change, or reduced demand for services.

Your Entitlements in Redundancy

If you are made genuinely redundant, you are entitled to:

• Notice period (or payment in lieu)
• Redundancy pay based on length of service
• Payment of all accrued leave (annual and long service leave)
• A written statement explaining the redundancy

What is NOT Genuine Redundancy

• Dismissing you because of poor performance
• Replacing you with someone else doing the same job
• Reducing your hours without eliminating the position
• Dismissal for misconduct or breach of contract

If You Disagree

If you believe your redundancy is not genuine, you can lodge an unfair dismissal claim with the Fair Work Commission within 21 days of dismissal (if you have been employed for at least 6 months, or 12 months for small businesses with fewer than 15 employees).

Get advice: Contact the Fair Work Ombudsman or seek legal advice if you have concerns about your redundancy.

Fair Work – Redundancy Information

Fair Work Ombudsman

This is general information only. Check official sources before acting.