Peninsula HR

Employee Dismissal and Redundancy Support for Businesses

Get expert advice to support your compliance obligations

Call now 1300 761 935

Talk to a specialist Peninsula consultant today or enquire online. We can provide helpful resources, informative articles, valuable personalised advice, and insights for your business. Our experienced team is available 24/7 to answer your challenging dismissal and redundancy questions.

Call now 1300761935

Before dismissing an employee

  • Guidance on dismissal of full-time, part-time, and casual employees
  • Expert advice on all aspects of dismissal and redundancy
  • Expert advice on entitlement calculations and procedures
  • Drafting and reviewing dismissal or redundancy documentation
  • Guidance on managing dismissal when an employee is on a probationary period

The Peninsula advice team can help you with

How Peninsula can help you

Our range of Fixed Fee HR services have been developed to help you create a safe and fair working environment for all your employees and accelerate your business success.

icon

We never sleep. Unlimited 24/7 HR advice

Our HR specialists are available around the clock to guide you through dismissals, redundancies, and any employee termination concerns.

icon

Claims support. We're on your side

Our experienced claims team can offer support relating to your unfair dismissal claim.

icon

Drafted documents and dismissal letters

Access a library of HR templates, including dismissal letters, redundancy notices, and termination procedures—all customised to meet employment laws and best practices in your industry.

icon

HR software, saving you more than time

Manage your business more efficiently with our cloud-based HR tools, helping you track documentation, maintain compliance, and store employee records securely.

Peninsula Group. Helping employers like you for over 40 years

Thousands of small and medium sized business owners have chosen Peninsula for HR and Health & Safety support. Discover what they have to say.

What Should A Redundancy Letter Contain?

The information contained in a letter of notification of redundancy should:

  • Provide an overview of the situation generally (eg. the reason why the redundancy is being considered)
  • Provide an outline of the process that has been followed (steps of consultation)
  • Confirm the employer has reviewed other areas in the business and that there are no suitable vacancies or opportunities for redeployment
  • Confirm there is no suitable alternative to avoid the redundancy
  • Clearly state the position is being made redundant and explain the reasoning behind the decision.
  • Specify the last date of the employee’s employment with the company
  • Break down the monetary entitlements the employee will receive and specify when they can expect to receive them (i.e. annual leave, overtime, long service leave)
What Are The Stages Of Redundancy?

A Redundancy process will usually consist of three stages:

  • Notification or warning that the employee’s job is at risk of being made redundant;
  • Consultation with the employee including discussion regarding the selection process and any alternative employment options;
  • Confirmation of Outcome (and follow-up redundancy letter including written notification of the employment end date and entitlements owed)
What is the difference between retrenchment and redundancy?

Essentially, redundancy is the elimination of a job role because it is no longer required, while retrenchment is the termination of the employee filling that redundant role.

What Is The Formal Redundancy Process?

These are the steps that need to be taken to ensure the redundancy is genuine. The employer should not require anyone to do the job anymore for operational reasons and must follow any consultation requirements in the applicable industrial instrument, as well as exploring redeployment options, before dismissing the employee.

What Is A Letter Of Redundancy?

This usually refers to the process outcome letter confirming the employee is being made redundant. It should outline the process in coming to that decision, and the reasoning behind it, and any further considerations such as redeployment options. It should also include notice of the last day of employment and details as to final pay and any entitlements owing.

How Long Does Redundancy Process Take?

It depends on the circumstances. The employer must move through each of the three stages, usually involving multiple meetings with corresponding invitations and follow-up documentation. Timing will depend upon the consultation requirements and the size of a business.

What’s the difference between firing someone and redundancy?

Firing occurs when an employee's poor performance or conduct justifies ending their employment. This could be due to poor performance, misconduct, or disciplinary issues.  

Redundancy occurs when the employee's role is no longer needed due to operational changes, not their individual performance. Examples include restructuring, outsourcing or technology advancements. 

What Is The Difference Between Redeployment And Redundancy?

Both occur if due to operational requirements the business does not need anyone to perform the employee’s role anymore. Redeployment is where the employee is offered an alternative position within the business, or an associated business. Redundancy is when an employee is dismissed after consultation because there are no other roles within the business or an associated business that the employee could reasonably do.

What Are Employees Entitled To When They Are Made Redundant?

Generally, depending on the employee’s employment type, their length of service, the size of the business, and the applicable award, an employee may be entitled to notice, redundancy pay, any untaken annual leave and possibly long service leave, depending on the circumstances.

Can I Reduce The Redundancy Pay?

No, only the Fair Work Commission can decide to reduce the amount of redundancy pay based on the circumstances, but an employer can apply to the Fair Work Commission to have the amount of redundancy they have to pay reduced if:

  • the employer finds other acceptable employment for the employee, or
  • the employer can’t afford the full redundancy amount.
Unlimited 24/7 HR advice

We will be there every step of the way to guide you through the Employee Dismissal process