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Redeployment

Redundancy

17 Sept 2025 (Last updated 3 Dec 2025)

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With the current state of the economy, employers are considering making key changes in the business and their current staffing levels through a restructure or redundancy process. As a part of a restructure or redundancy, an employer may consider redeployment for employees whose roles are at risk of being disestablished. This involves filling any vacant roles in the business.

This guide will define redeployment, situations where an employer would need to consider redeployment and common pitfalls.

When should an employer consider redeployment?

Redeployment is most common in a redundancy or restructure process. If an employee’s position is at risk of being disestablished, an employer should first look to see if there are any vacant roles within their business. Employers do not have to promise redeployment opportunities if they do not genuinely have roles to fill.

The employees who are involved in the redundancy process will be their first choice to fill these vacancies if they are interested and have the appropriate qualifications to be successful in the role.

Employers do not have to promise redeployment opportunities if they do not genuinely have roles to fill. Any vacant positions that have the potential for redeployment must be communicated at the early stages of the redundancy or restructure process to gage interest.

An employee does not have to accept the redeployment opportunity.

Benefits of Redeployment

There are several benefits of redeployment for the business. Employees do not have to experience the stress of losing their jobs if they are happy to take this alternative opportunity.

Redeployment is also an effective way of injecting new blood into other parts of your business. Employers may also be able to utilise the employee’s skill set in a different area of the business. Having an employee with experience in one part of the business move to a different department will give them unique insight and they may be able to bring new ideas.

Consulting about redeployment opportunities

An employer should not decide whether an employee will be suitable for any redeployment opportunities without first consulting with all employees who are at risk of their roles being disestablished. Employees must be consulted about the role even if it is apparent that they do not have the desired skillset for the new position. Employers should be clear about what the new position entails such as its job title, job description, expectation of hours and pay etc.

If there are more employees who are interested in the opportunity of redeployment compared to the number of positions available, the employer must implement a fair and objective method such as a selection criteria, to select who will be the most suitable for the new position.

The selection criteria should be fair and about selecting the ideal objective qualities for the new role. For example, employers may want someone specifically who has experience in the field or someone who has a certain desirable qualification. Employees must also be consulted on the selection criteria and be provided the opportunity to provide feedback on their own scores and ranking.

Once a decision has been made, the employer should conclude the consultation process by confirming outcomes and issuing formal communications in writing. Employers should also provide any corresponding variation letters or employment agreements to formalise the change.

Create fair workplaces with Peninsula

Being a small business owner means you are often dealing with lengthy consultation processes like redundancies by yourself. Employers need to be aware of their obligations when starting these processes to ensure they are acting fairly and reasonably. Our tailored advice and support services are custom made for your business and answer your questions effectively. Peninsula offers special insights on employment relations and workplace health and safety for business owners and employers.

Our 24/7 free advice line is available to answer all your questions- big or small. Peninsula can advise you on finding alternative employment in different circumstances. For peace of mind, please call our 24-hour Advice Line now on 0800 675 700.

This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

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Redundancy

Employee Redundancy Complaints

A redundancy occurs when an employee’s job is no longer required for the business. In some circumstances, this is because new technology fulfils the job obligation, the business is relocating or closing down, or the employee’s job may be divided up and then transferred to various other employees. A genuine redundancy should not occur because of an employee’s performance or conduct. Employers need to follow a fair procedure that includes plenty of consultation and communication. Not surprisingly, some employees may feel their redundancy is unfair and make a complaint. We have compiled some tips on dealing with employee redundancy complaints.  Regular communication with all employees is important during periods when business is undergoing major workplace change. Most Modern Awards and registered agreements require employers to consult with their employees regarding changes, including adjustments to production, organisation, structure or technology. Redundancy process There is a process that employers can follow to ensure they are being fair. Initially, you can consult employees who need to be made redundant about: Reasons for redundancy and the jobs affected The alternatives to redundancy, such as voluntary redundancies, or reduced working hours The selection criteria for those employees at risk of redundancy How the redundancy selection assessment was carried out Any suitable alternative work After consultation, you should decide which employees are doing sufficiently similar work and put them in a pool to be considered for redundancy.  The selection criteria to decide who is to be made redundant should be non-discriminatory, objective and measurable. Typical criteria could include: Individual skills and qualifications Performance or aptitude for work Attendance and absence record Disciplinary record Customer feedback Information employers need to have To avoid complaints from employees, employers are advised to be prepared for common employee questions and be prepared to show that redundancies are genuine. Ensure you are prepared with information such as what is listed below: Why is there a redundancy situation? Which employees are at risk? Why the employee(s) have been selected and what consideration was given to putting other employees at risk of redundancy? Who was in the selection pool? What were the selection criteria and how were they measured? Whether any employees (at risk of redundancy) have been offered alternative jobs, with details of the jobs It is crucial to determine the minimum notice of termination and redundancy pay entitlements for each affected employee. Notice of termination and redundancy entitlements are contained in the National Employment Standards, however, Modern Awards and Enterprise Agreements often include additional redundancy entitlements for employees. If there is an applicable contract of employment or workplace policy that provides different redundancy amounts than what is outlined in the National Employment Standards, you need to provide the employee with whichever is more generous. An employee may choose to submit a complaint or claim against you (e.g. unfair dismissal, discrimination) even if you follow correct redundancy procedures. Build better businesses with Peninsula Peninsula can help minimise the risks of employee redundancy complaints by providing expert redundancy advice in accordance with Australian Fair Work legislation. Contact Peninsula to learn more. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

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