Have I been made redundant?

What is redundancy?

Redundancy is when your employer no longer needs your job to be done by anyone. This might be because the work has stopped, there is a downturn, the business is closing, new technology or processes are being introduced or roles are being restructured. It is also known as being retrenched.

Redundancy is a form of dismissal, but it must be about the job and not about you or your performance.

Is it a genuine redundancy?

Not every redundancy is a genuine one.

A genuine redundancy is defined under the Fair Work Act 2009 (the Act), which is the main employment law that covers most employees in Australia. It is more likely to be a genuine redundancy if:

• your job is no longer needed to be done by anyone (for example, because of changes in the operational needs of your employer’s business)
• your employer followed rules about consulting with you first (in line with a modern Award or enterprise agreement, if you are covered by one)
• your employer looked at whether you could be moved to another job (called redeployment).

If your employer did not do these things, the redundancy may not be genuine and you may be able to challenge it.

If your redundancy is not genuine and want to challenge your dismissal, the deadline is usually short.

You generally only have 21 days from the date your dismissal starts to make a claim. This depends on your individual situation, so get legal advice if this has happened to you.

You can’t make a claim if you lost your job because it was a genuine redundancy.

Does my employer have to redeploy me?

Your employer does not have to find you another role in the business.

Under the law, your employer’s only duty is to make reasonable attempts to find you another role in the business.

If it was reasonable for you to be placed in another job but you were dismissed instead, this may mean it was not a genuine redundancy.

Can I get redundancy pay?

If you are made redundant, you may be entitled to:

• Redundancy pay on top of your usual final pay entitlements if you have worked at least one year of continuous service (which does not include unpaid leave) with your employer and your employer has 15 or more employees
• Notice, or pay instead of notice
• pay for annual leave you have not used, and if you have for at least 7 years, possibly unused long service leave

Your employer may be able to pay you reduced or no redundancy pay in certain situations, including if they find other acceptable employment for you or you turn down a reasonable redeployment offer.

You can read more information about redundancy, including the minimum redundancy pay entitlement, in this information written by the Fair Work Ombudsman.

What can I do if my employer says my role may be redundant?

If your employer lets you know that your job may be redundant, these steps will help:

• Get things in writing from your employer, including:
  • reasons for why your specific role is at risk,
  • any redeployment offers, and
  • what your final pay might be if you do lose your job by way of redundancy.
• Ask for extra time to reflect or respond.
  • If you need more time than the employer has given, you can also request more time.
• Make written notes for your records.
  • For example, you can make notes about consultation meetings including who is there, what is discussed, next steps and important dates.
• Ask questions if anything is confusing or unclear, so that you understand the reason for the redundancy and the process.
• Be cautious if you were told you were redundant soon after you:
  • told your employer you were pregnant or took parental leave
  • made a complaint about your job, your pay, or how you were treated
  • took family and domestic violence leave
  • raised a safety issue or a workplace right. If this happened, it may not be a genuine redundancy. See Was I punished for speaking up at work? or What to do if you have been sexually harassed at work.
• Get legal advice as soon as possible when you can, so you know your rights at each stage of the process.