What is genuine redundancy?
Genuine redundancy is when an employee's position is no longer needed due to operational changes, and the employer has followed consultation and redeployment obligations.
A redundancy is genuine when the employer no longer requires the employee's job to be done by anyone because of changes in operational requirements. The employer must also comply with any consultation obligations in the relevant award or agreement, and must consider whether the employee could be redeployed to another role within the business or an associated entity.
If a redundancy is not genuine — for example, the employer rehires someone else into the same role, or fails to consult or consider redeployment — the employee may have an unfair dismissal claim. Redundancy pay is required under the NES based on years of service, starting at 4 weeks for 1–2 years and up to 16 weeks for 9–10 years.
Key facts
- •The job itself must no longer be required — not just the specific employee
- •Employer must comply with consultation obligations in the award or EA
- •Employer must consider redeployment within the business or associated entities
- •Redundancy pay: 4 weeks for 1–2 years, scaling to 16 weeks for 9–10 years of service
- •Small businesses (fewer than 15 employees) are exempt from paying redundancy pay under the NES
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Redundancy Pay CalculatorFrequently asked questions
What is a sham redundancy?
A sham redundancy is when an employer claims redundancy but the role still exists — for example, hiring someone else into the same position shortly after, or using redundancy as a pretext to remove an employee they want to dismiss. This can lead to an unfair dismissal claim.
Can I claim unfair dismissal if I was made redundant?
Yes, if the redundancy was not genuine. This could be because the role still exists, the employer did not consult properly, or did not consider redeployment options.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.