Redundancy is a legitimate reason for terminating employment.
However, managers need to ensure proper process is followed to
avoid unfair dismissal and adverse action claims under the Fair
Work Act 2009 (FW Act).
What is a redundancy?
Positions are made redundant, not people. Redundancy occurs when
an employer no longer requires the job to be
performed by anyone. This may arise because of:
- A restructure (a redistribution of duties amongst other
existing roles, or the creation of a new, different role);
- Technological change ("tech sourcing" or
automation);
- A downturn in work (reduction in "headcount");
- A business relocates or shuts down.
A position can still be made redundant if the work continues to
be performed, but the employer is now distributing the work
differently. For example, this may arise when an employer has five
admin staff, but re-distributes the work to four (and makes one
position redundant); or an employer decides to contract out
