Redeployment and redundancy are important concepts for Queensland employers to understand and differentiate between. Redundancy occurs when a position in a business is no longer needed, whereas redeployment involves moving an employee into another role within the same business or an associated entity.
Under the Fair Work Act, a dismissal is not considered a genuine redundancy if redeployment to a suitable role within the employer’s business or an associated entity would have been reasonable. Employers must therefore consider redeployment options before deciding to proceed with redundancy. This approach will help employers minimise the risk of unfair dismissal claims.
What does genuine redundancy mean?
For a redundancy to be genuine under the Fair Work Act, two conditions must be met:
- The employer no longer requires the employee’s role due to operational changes.
- The employer has met all consultation obligations outlined in applicable modern awards or enterprise agreements.
In addition to this, if it would have been reasonable to redeploy the employee within the employer’s business or an associated entity, the dismissal will not be considered a genuine redundancy. This highlights the importance of exploring all redeployment options before finalising a redundancy decision.
Consider redeployment before redundancy
As an employer, rather than approaching consultations with redundancy as the first option, it is crucial to explore redeployment possibilities first. This approach fosters a more constructive dialogue and allows you to focus on viable alternatives within your business. This involves considering factors like the availability of suitable roles, the employee’s skills and experience, and whether redeployment fits with the business’s operational needs.
For example, if an employee’s role is made redundant due to restructuring, but a suitable role is available within the business or an associated entity that matches their skills, it would be unreasonable to proceed with redundancy without offering a redeployment option. Employers should also evaluate the location, duration, and nature of the new role to ensure redeployment is practical and feasible for the employee. Considering these factors will ensure employers meet the legal requirements of a redeployment.
The importance of ‘reasonableness’ in redeployment was highlighted in the case of Helensburgh Coal Pty Ltd v Bartley & Ors (2024), where the company failed to assess whether 22 workers could be redeployed into similar roles that were then being filled by external contractors. It was considered that the employer should have reviewed those roles to see whether they could have been filled by employees rather than contractors to mitigate the impact on their direct hire workforce. The Federal Court ruled that redundancy was not genuine in this case as redeployment opportunities within the employer’s enterprise were not adequately explored.
Key factors to explore when assessing redeployment feasibility
- Availability of suitable roles
- Employee skills, qualifications, and experience
- Business operational needs
- Location, duration, and nature of the new role
By keeping these factors in mind and ensuring a thorough evaluation of redeployment options, employers can avoid the complexities and legal challenges that may arise, as illustrated by the Helensburgh Coal case.
What happens if your employee doesn’t want to take the redeployment option?
If your employee refuses or is unable to take the redeployment option, it’s important to approach the situation thoughtfully. Whilst you can’t force redeployment, you must still explore all alternatives before moving forward with a redundancy.
Here are a few steps to follow:
Clear communication: Make sure the employee fully understands the redeployment offer, including the role, responsibilities and any changes they may need to adjust to. Sometimes reluctance comes from misunderstanding, which can be resolved through open discussion.
Document the process: Keep a record of all communications about redeployment, including the reasons the employee gives for refusing the offer. This documentation can help with any dispute later on.
Review the reasonableness of the offer: Assess whether the redeployment offer is reasonable, especially if the role is different from the employee’s original position. Consider their skills, experience, and career goals.
Offer alternatives: If the employee refuses the first redeployment role, see if there are other roles available within the business or an associated entity that may be a better fit.
Consultation: Continue the consultation process to meet obligations under your modern award or enterprise agreement. If the employee still refuses the redeployment, you can proceed with redundancy, as long as you can show you’ve explored all reasonable options.
Key takeaways for employers
Navigating redundancy and redeployment requires careful consideration to ensure alignment with workplace laws and best practices. Employers must assess whether redeployment options within the business or associated entities are reasonable before proceeding with redundancy. Open communication and thorough documentation are key when dealing with redeployment offers and employee refusals. By evaluating the feasibility of redeployment, considering the employee’s skills, and exploring alternative roles, employers can mitigate the risk of unfair dismissal claims and make informed, fair decisions for both their business and employees.
If you need support navigating a redundancy process or assessing redeployment options, Business Chamber Queensland’s Workplace Advisory team can help. Business Chamber Queensland members with HR services as part of their membership can reach out at any time on 1300 731 988. For all other Queensland businesses, the team also offer cost-effective consulting services to help you navigate HR or workplace challenges, and to help you put the policies in place your workforce needs to thrive.
