Fired for Redundancy? — Your Rights
Genuine redundancy is a valid reason for termination and is not unfair dismissal. However, if the redundancy is not genuine — for example, if your role still exists or the employer failed to consult — you may have an unfair dismissal claim.
Last verified: 1 July 2025Redundancy Can Be a Valid Reason for Dismissal
Genuine redundancy is a valid reason for termination and is not unfair dismissal. However, if the redundancy is not genuine — for example, if your role still exists or the employer failed to consult — you may have an unfair dismissal claim.
When Is Dismissal for Redundancy Unfair?
A redundancy is not genuine if: (1) the employer still needs someone to do the job, (2) the employer has not complied with consultation obligations in the relevant award or enterprise agreement, or (3) it was reasonable to redeploy the employee within the business or an associated entity. A sham redundancy — where the role is filled by someone else shortly after — is a common basis for unfair dismissal claims.
General Protections
If the real reason for selecting you for redundancy was discriminatory (e.g., because of your age, disability, pregnancy, or union membership), general protections under the Fair Work Act apply. The burden of proof shifts to the employer to prove the redundancy was genuine.
Process Your Employer Must Follow
The employer must: (1) have a genuine operational reason for the role no longer being needed, (2) consult with the employee (and any union) about the redundancy before making a final decision, (3) consider redeployment opportunities within the business, (4) pay the correct redundancy pay under the NES, and (5) provide the correct notice period.
FWC Case Examples
In Ulan Coal Mines v Honeysett (2010), the Full Bench confirmed that consultation must be genuine and meaningful — not merely informing the employee of a decision already made. Failure to consult as required by an award renders the redundancy not genuine.
Steps to Take If Dismissed for Redundancy
- Ask for written confirmation that your specific role has been made redundant and why
- Check whether you were consulted before the decision was finalised
- Verify whether your role has been advertised or filled by someone else
- Calculate your correct redundancy pay and notice period entitlements
- Lodge with the FWC within 21 days if you believe the redundancy was not genuine
Time Limit to Lodge
21 days
From the date your dismissal takes effect. Strictly enforced.
Maximum Compensation
26 weeks’ pay
For unfair dismissal claims. General protections claims have no cap.
Calculate Your Entitlements
Frequently Asked Questions
Is redundancy a valid reason for dismissal in Australia?
Redundancy can be a valid reason for dismissal under the Fair Work Act, but the employer must follow a proper process including investigation, warnings (where appropriate), and giving the employee a chance to respond. Failure to follow a fair process can make the dismissal unfair even if the reason is valid.
Can I claim unfair dismissal if fired for redundancy?
Yes, provided you meet the eligibility requirements: you must have completed the minimum employment period (6 months for large employers, 12 months for small business) and earn below the high-income threshold ($175,000) unless covered by an award or enterprise agreement. You must lodge within 21 days.
What is the difference between unfair dismissal and general protections?
Unfair dismissal focuses on whether the dismissal was harsh, unjust, or unreasonable (capped compensation at 26 weeks' pay). General protections claims apply when dismissal is for a prohibited reason such as discrimination, exercising a workplace right, or union activity. General protections have no compensation cap and the employer bears the reverse onus of proof.
How long do I have to make an unfair dismissal claim?
You have 21 calendar days from the date your dismissal takes effect to lodge an application with the Fair Work Commission. This deadline is strictly enforced and extensions are only granted in exceptional circumstances.
What compensation can I get for unfair dismissal?
The FWC can order reinstatement (getting your job back) or compensation of up to 26 weeks' pay. The amount depends on factors including how long you worked there, your remuneration, efforts to find new employment, and any misconduct that contributed to the dismissal.
Other Dismissal Reasons
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.