Over the past few months, our team at Focus HR has seen a noticeable increase in enquiries relating to redundancies. Rising operating costs, changing market conditions, reduced workloads and business restructures are leading many employers to consider whether their current workforce still meets the needs of the business.
While redundancies are sometimes unavoidable, they should never be viewed as a quick solution or an alternative to managing performance concerns. A poorly managed redundancy can expose a business to significant legal risk, damage workplace culture and impact the trust and confidence of the employees who remain.
The good news is that with the right planning and advice, redundancies can be managed lawfully, respectfully and with compassion for everyone involved.
Start by asking: Is redundancy the right solution?
A genuine redundancy occurs when a role is no longer required because of changes to the operational requirements of the business. It is about the position no longer being required, not the individual performing it.
Before deciding that redundancy is the best option, take the time to consider whether there are other ways to achieve the required business outcome. Depending on your circumstances, this may include restructuring duties, reducing hours, natural attrition, voluntary redundancies or redeployment into another suitable position.
Exploring these alternatives demonstrates good faith and can sometimes avoid the need for a redundancy altogether.
Consultation isn’t optional
Many employers are surprised to learn that consultation is more than simply informing an employee that their role is ending. In many workplaces, consultation is a legal requirement under a modern award or enterprise agreement.
Employees should be advised of the proposed changes, provided with sufficient information to understand why the changes are being considered and given a genuine opportunity to provide feedback or suggest alternatives before a final decision is made.
Consultation is designed to ensure the process is fair, transparent and compliant. It should be meaningful, not simply a step to tick off before proceeding.
Redundancy Health Check
Before proceeding with a redundancy, ask yourself:
☐ Is the role genuinely no longer required due to changes in the operational needs of the business?
☐ Have we considered alternatives such as restructuring duties, reducing hours, natural attrition, voluntary redundancies or redeployment?
☐ Have we identified and met any consultation obligations under the relevant modern award, enterprise agreement or employment contract?
☐ Have we explored suitable redeployment opportunities within the business or any associated entities?
☐ Have we confirmed the employee’s entitlements, including notice, accrued leave, redundancy pay and any award or contractual obligations?
☐ Have we planned how we’ll communicate with both the affected employee and the remaining team to support wellbeing, maintain trust and minimise uncertainty?
If you answered “No” to any of these questions, it’s worth seeking advice before moving forward. Taking the time to get the process right can reduce legal risk, protect workplace culture and ensure employees are treated fairly throughout the process.
Compassion is just as important as compliance
Even when a redundancy is necessary, the way it is communicated matters.
For the employee, redundancy can be unexpected, emotional and financially challenging. Delivering the news respectfully and with empathy can make a significant difference to how the process is experienced.
Where possible, these discussions should take place face to face in a private setting, allowing employees the opportunity to ask questions, have a support person present where appropriate and understand what happens next.
Providing clear information about notice, final pay, leave entitlements and any redundancy payments helps reduce confusion during an already stressful time.
Don’t forget the employees who stay
Redundancies don’t only affect those who leave.
The remaining team may experience uncertainty about their own job security, increased workloads or concern about the future of the business.
Communicating openly about the reasons for organisational change, providing reassurance where possible and supporting leaders to navigate conversations with their teams can help rebuild confidence and maintain workplace morale.
Every redundancy is different
No two redundancy situations are exactly the same.
Your obligations may vary depending on the size of your business, the applicable modern award or enterprise agreement, employment contracts, consultation requirements, redeployment opportunities and whether redundancy pay applies.
Seeking advice early can help ensure your process is compliant from the outset and significantly reduce the risk of disputes, unfair dismissal claims or unnecessary costs.
How Focus HR can help
Making the decision to restructure your workforce is never easy, and managing the process correctly is just as important as making the decision itself.
At Focus HR, we partner with employers to plan and manage redundancy processes that are legally compliant, commercially practical and handled with professionalism and care. From assessing whether a redundancy is genuine through to consultation, documentation, meetings and calculating final entitlements, we’re here to support you every step of the way.
If your business is considering a restructure or redundancy, we’d encourage you to seek advice before taking the first step. Early guidance can help you explore all available options, minimise risk and ensure your people are treated fairly throughout the process.