Restructure and redundancy consultation preparation checklist
Redundancies require genuine consultation under modern awards and enterprise agreements, and the failure to consult is a common unfair dismissal ground. This checklist walks through the preparation.
This is a 12-step checklist for preparing a redundancy consultation under a modern award or enterprise agreement. It covers the business case, consultation obligations, redeployment, and final payments.
The checklist
Document the business case
Document the commercial reasons for the restructure — financial, operational, or strategic.
Identify award/EA consultation obligation
Identify the consultation clause in the applicable modern award or enterprise agreement.
Identify affected roles
Identify the specific roles affected, not individuals — focus on position changes.
Prepare consultation documents
Prepare a written announcement, FAQ, and individual meeting packs.
Notify affected employees
Notify affected employees in writing of the proposed changes and invite feedback.
Hold consultation meetings
Hold individual and group meetings to discuss the proposal and consider alternatives.
Genuinely consider alternatives
Consider employee feedback — alternative roles, reduced hours, or voluntary redundancy.
Check redeployment obligations
Consider redeployment to any suitable alternative position in the business or associated entity.
Check small business exemption
For employers with fewer than 15 employees, check redundancy pay exemption.
Calculate redundancy entitlements
Calculate notice, redundancy pay by length of service, accrued leave, and LSL.
Draft redundancy letters
Draft the individual redundancy letter setting out the final decision, reason, and entitlements.
Consider NES and Centrelink impact
Brief employees on NES entitlements, separation certificate, and Centrelink waiting period.
When this checklist applies
Use this checklist before any redundancy program, whether individual or collective, to establish the redundancy is genuine under section 389.
Common pitfalls
- Making the decision before genuine consultation occurs
- Failing to consider redeployment to associated entities
- Treating redundancy as a cover for performance issues
- Skipping consultation with the right union or delegate
- Calculating redundancy pay incorrectly for continuous service
Run this checklist on a real matter
Quillio drafts consultation plans, redundancy letters, and calculates entitlements. See /practice-areas/commercial-lawyers or start a free trial.
This checklist is a general guide. Always confirm the award consultation obligation and redeployment scope before proceeding.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
Start your free trial