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ARTICLE · 28 FEBRUARY 2023

Genuine redundancy

What is genuine redundancy? What does the FWA say? When is it lawfully acceptable? Notice periods & redeployment.

AustraliaEmployment and HR

Genuine redundancy occurs when an employer lawfully terminates a person's job since that role is no longer relevant. Employers may also conduct this if they want to restructure their company's operations. The reason for the redundancy is considered "genuine" if it is not related to the individual performance of the employee. A redundancy is not genuine if the employer:

  • Still needs the employee's job to be done by someone else
  • Could have given the employee another job within the employer's business
  • Has not complied with the consultation requirements outlined in the relevant Modern Award, enterprise, or other registered agreement.

In such cases, the employer may be required to provide the particular employee with severance pay or other benefits. Employees may feel like they have been dismissed unfairly from their work even if the redundancy was genuine. So, it's important for people to seek legal advice if necessary to avoid legal matters from arising.

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