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Redundancy means that an organisation no longer requires a specific role to be performed. This may be due to reasons such as downsizing, an organisational restructure, productivity/process improvements or technological change.
Termination due to redundancy is exempt from unfair dismissal if the dismissal is a case of ‘genuine redundancy’. This means the organisation can demonstrate a sound business case for the redundancy of a role, it has complied with consultation obligations as set out in an agreement or an award, and that there was no other suitable alternative employment within the business or related businesses (as defined by the Corporations Act 2001).
The Redundancy Process and Business Case Checklist is designed to assist organisations in cases of redundancy and, specifically, to help ensure they have a sustainable business case. Employers can use the ‘Notes’ column to record their responses to the questions. On completion, the analysis will either create a sound business case for proceeding with a redundancy (or redundancies) or will indicate that, in some or all cases, redundancy may be avoided due to actions such as redeployment, re-training for new roles, or via flexible working arrangements.
Members of Ai Group may contact the Workplace Advice Line on 1300 55 66 77 for advice and assistance in working though this checklist or reviewing options upon its completion.
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