Can Redundant Employees Claim Unfair Dismissal?

Redundancy can be a challenging experience for both employees and employers. It occurs when an employer no longer requires an employee’s role to be performed due to changes in the business. Common reasons for redundancy include technological advancements, a downturn in business, relocation, or restructuring. In some cases, redundancy arises due to insolvency or bankruptcy.

A key issue is whether the redundancy is genuine. Under the Fair Work Act 2009 (Cth), a genuine redundancy occurs when the employee’s role is no longer required, and the employer has complied with the consultation obligations in any relevant award or enterprise agreement. If the dismissal is a genuine redundancy, the employee cannot make an unfair dismissal claim.

However, if the employer still needs the role to be performed by someone else or fails to consult with affected employees, the redundancy may not be considered genuine. In such cases, an employee may have grounds to claim unfair dismissal. Employers must also explore whether they can offer the employee another role within the business or an associated entity before proceeding with the redundancy.

Consultation is a critical part of the redundancy process. Employers are required to notify employees about the proposed changes and discuss the potential impact. This includes providing information about the redundancies, discussing ways to minimise the impact, and considering suggestions from employees. Failing to meet these consultation requirements can expose employers to unfair dismissal claims.

If you are an employer considering redundancies, especially where 15 or more employees may be affected, it’s crucial to follow the correct procedures, including notifying Centrelink in advance. Failure to comply with these legal obligations can result in penalties. Our team at Bentham Sydney Employment Lawyers is experienced in helping businesses manage redundancies while minimising risks.

For employees, redundancy can be overwhelming, but it’s important to understand that a redundancy must be genuine to prevent you from making an unfair dismissal claim. If you believe your redundancy wasn’t genuine or feel that proper procedures weren’t followed, we can assess your case and advise you on the next steps.

At Bentham Sydney Employment Lawyers, we specialise in employment law and can help you navigate the complexities of redundancy, unfair dismissal, and related claims. Our experienced team can provide the advice and representation you need to protect your rights, whether you’re an employee facing redundancy or an employer needing guidance on legal obligations.

For assistance with redundancy or unfair dismissal matters, contact Bentham Sydney Employment Lawyers today.

Disclaimer

This article is for general information purposes only and does not constitute legal advice. We recommend seeking professional legal advice to your specific circumstances before taking any action.

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Got Questions?

Unfair dismissal occurs when an employee is terminated from their job in a manner that is harsh, unjust, or unreasonable. This may involve a lack of a valid reason for dismissal, failure to follow proper procedural requirements, or dismissal in retaliation for exercising workplace rights. To determine if a dismissal is unfair, various factors are considered, including the reason for the dismissal and whether proper processes were followed. For personalised advice on whether a dismissal may be considered unfair, contact Bentham Sydney Employment Lawyers for expert assistance.

If an employer receives an unfair dismissal claim, they should promptly review the details of the claim and gather all relevant documentation related to the termination. It is essential to assess whether proper procedures were followed and if the dismissal was for a valid reason. Employers should also prepare to engage in conciliation or hearings with the Fair Work Commission if required. For guidance on how to handle an unfair dismissal claim and to ensure compliance with the Fair Work Act, contact Bentham Sydney Employment Lawyers for expert advice.

Yes, employees on probationary periods can still claim unfair dismissal. However, there are specific considerations for probationary employees, such as whether the dismissal was based on a valid reason and if proper procedural fairness was observed. Probationary employees must demonstrate that their dismissal was not justified or that it breached the terms of their employment. For advice on unfair dismissal claims during probationary periods, contact Bentham Sydney Employment Lawyers to explore your options.

To support an unfair dismissal claim, an employee typically needs to provide evidence such as their employment contract, records of performance reviews, communications related to the dismissal, and any evidence of procedural breaches. Additionally, demonstrating that the dismissal was not for a valid reason or that proper processes were not followed is crucial. For assistance in gathering and presenting the necessary evidence for your claim, contact Bentham Sydney Employment Lawyers for expert support.

Employers can minimise the risk of unfair dismissal claims by ensuring they follow proper procedures, including providing clear reasons for termination, adhering to company policies and employment contracts, and offering opportunities for the employee to respond to concerns. Conducting thorough performance reviews and ensuring compliance with relevant laws and regulations are also key. For tailored advice on preventing unfair dismissal claims and implementing best practices, contact Bentham Sydney Employment Lawyers for expert guidance.

If an unfair dismissal claim is successful, remedies may include reinstatement to the former position or compensation for lost wages and other entitlements. The Fair Work Commission will consider factors such as the impact of reinstatement on workplace dynamics and the financial losses suffered by the employee. Compensation calculations involve assessing lost remuneration, deducting any earnings since termination, and applying statutory caps. For detailed advice on the remedies available and how to pursue them, contact Bentham Sydney Employment Lawyers for expert legal assistance.