Legal rights and obligations pertaining to redundancy are currently governed by the National Employment Standards (NES) set out in the Fair Work Act 2009 (Cth). An organisation wishing to make employees redundant must be familiarise with redundancy rights and obligations set out in the NES.
Extreme care should be taken to ensure that there is a genuine basis for a redundancy. For example, a dismissal is not a genuine redundancy if it would have been reasonable in the circumstances for the employee to be redeployed within the employer’s organisation.
It is also important to implement lawful and appropriate redundancy processes. For example, many industrial awards/agreements require employees to consult with employees and trade unions prior to making redundancy decisions.
When using this precedent
This document redundancy letter is a sample only. It is important that you customise the letter to ensure it outlines genuine and lawful reasons for redundancy. Any assertions made in the letter should be capable of objective verification and proof. For example, if economic or financial difficulties are cited, these should be capable of being verified by reference to objective financial and accounting information in the event of a dispute.
This document has been authored for Lexis Nexis and is authorised by Joe Catanzariti, Vice President of the Fair Work Commission, Sydney and Michael Byrnes, Special Counsel, Clayton Utz, Sydney.
This document is prepared with the assistance of Specialist Editor Justine Turnbull, Partner, Seyfarth Shaw Australia.