Navigating redundancies is never easy, especially for small businesses in close-knit regional communities. We’re here to help you approach this sensitive process with clarity, compassion, and compliance.
Recently, we supported a client through a complex workplace change that required the redundancy of ten full-time equivalent positions. The change was necessary to adapt to a new organisational structure that would better support the business’s future.
This case highlighted the importance of a well-documented and transparent approach—one that met industrial obligations under the Fair Work Act, National Employment Standards, and relevant awards, ensuring all employees were respected and informed throughout the process.
Here’s an outline of the steps we took to guide our client and how we can support you through each phase of the redundancy process:
Preparing for a Redundancy: Explore Options First
Before making any decisions, understand your legal obligations, and explore alternative solutions, like reducing hours or reassigning roles. If redundancies are unavoidable, ensure you have a clear, well-documented process. Begin by consulting with employees; this step is often required under workplace agreements, awards, or employment contracts. process.
For our client, we began with a structured process flowchart and guidelines, which included timelines for the board to clearly outline the process required to meet legal obligations/ Early consultations with employees and clear correspondence was developed in response to the change —a key component of a fair and transparent process.
Communicating the Decision: Clarity and Compassion
Once a redundancy decision is made, communicate it directly, ideally in person, to maintain trust and openness. Be clear about why the redundancy is necessary and outline next steps. Provide details on final pay entitlements, including notice, outstanding wages, and leave balances to avoid confusion.
In our client’s case, we worked closely with management to prepare a relevant and thoughtful communications strategy, ensuring messages were clear and consistent for both internal and external stakeholders. Details on final pay entitlements—like notice, outstanding wages, and leave balances—were also provided to ensure everyone understood their rights and next steps.
If possible, offer access to employee assistance resources to support those affected. This can help reduce stress and allow for a smoother transition.
Supporting Remaining Staff
Redundancies can also impact those who stay, so make sure to address any concerns within the team. Reassure employees by explaining the reasons behind the decision and the business’s plans moving forward. Show that you’re committed to their well-being with access to support and resources.
Following the redundancy process, we advised on support strategies for the remaining team. We held meetings to review team feedback and reassure employees about the business’s future direction, emphasising support and well-being resources.
If your organisation is facing a similar transition, we’re here to guide you. We’ll help you navigate each step with the care and compliance required to maintain trust and resilience in your team.
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