What is an At Risk of Redundancy Notification?
Those at risk of redundancy must be informed in writing and consulted by the employer as soon as possible. Crucial to the consultation process is discussing with the employee why the redundancy is necessary and exploring ways to avoid it. This template will help facilitate those conversations.
First Steps in the Redundancy Process
The first step in the redundancy consultation process is to announce any operational changes. These can be made verbally, or in writing – like with an ‘At Risk of Redundancy’ Notification. You should inform your staff that you will be meeting with them individually to discuss the situation. This announcement should address:
Avoiding Unfair Dismissal Claims
In addition to having a real reason for the redundancy, employers must ensure the redundancy is “genuine“. This is relevant to employees who may be able to bring an unfair dismissal claim under the FW Act. A redundancy will be genuine if:
- The employer has complied with consultation obligations; and
- The employer has explored reasonable redeployment opportunities for the employee.
Where you are considering making a role redundant and the employee that performs the role is covered by a modern award or enterprise agreement, you must comply with any obligations under those instruments to consult about the risk of redundancy. If the employee is not covered by a modern award or enterprise agreement, you are not required to consult with the employee in relation to the redundancy.
Consulting with employees about major workplace changes
All awards and registered agreements have a consultation process for when there are major changes to the workplace, such as redundancies.
The consultation process sets out the things the employer needs to do when they decide to make changes to the business that are likely to result in redundancies. This has to be done as soon as possible after the decision has been made to make these changes.
Consultation requirements include:
- notifying the employees who may be affected by the proposed changes and at risk of redundancy
- providing the employees with information about these changes and their expected effects
- discussing steps taken to avoid and minimise negative effects on the employees
- considering employees ideas or suggestions about the changes
- if you proceed, notify the employee/s that the employment will be terminated. We have a Redundancy Notice Template for that too if you need.
How do I determine how much redundancy pay to give?
The amount of redundancy pay is determined on the length of time employed by the company (not including paid leave).
How do I organise a redundancy consultation?
Follow our FREE announcement to staff template above that is a GUIDE to writing a redundancy letter and consultation.
Where can I access more support and help about redundancy?
If you are after more information, check out our redundancy toolkit. However, if you are needing further advice- let the professionals help.