How do I make redundancies?

You should first be absolutely sure the redundancy is necessary for the business to continue. Fair Work will only accept that a redundancy is genuine if you are unable to move the employee to another role or area within the business.


For example, you may need to cosider if he employee work on a part-time or casual basis, and then resume their full workload when business picks up again.


However, if you are forced to make a redundancy, the best approach is to be direct. Explain the situation, why the redundancy must occur and then organise an end date. Prepare for the meeting, know what you are going to say, and don’t bring up past performance as an issue.


Be aware of your financial obligations, as redundancies are now payable on a sliding scale. Also be aware the employee can challenge the redundancy if you have not consulted them, or an appropriate union, beforehand.


You also need to make sure the employee’s workload is then evenly spread across remaining employees. Don’t dump all tasks on just one remaining staff member. Spread the workload around so your employees don’t become overworked and overwhelmed.


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