FWC ruling spotlights risks of hiring during redundancy – and why procedural fairness must go beyond checklist, says lawyer
Following a ruling by the Fair Work Commission (FWC) over a claim of fake redundancy, the case raised a critical question: What makes a redundancy genuine?
HRD spoke with Antonia Tahhan, Senior Associate at Chamberlains Law Firm, to explore the legal and procedural essentials.
“Dismissals are genuine when the business no longer requires an employee’s job to be performed by anyone because of operational requirements or change and the employer has to have compiled, with any obligations imposed by an award or enterprise agreement, to consult about the redundancy,” Tahhan said.
“It’s a two-pronged definition – the use of the word ‘and’ means both requirements must be met.”
It’s after the FWC ruled that hiring during the notice period of the previous employee undermines the employer’s claim they were facing financial difficulty.
“Financial difficulty is a reason for making someone redundant – operational changes can result in a restructure and the decision that some roles may not be needed or can be amalgamated,” Tahhan told HRD, “but determining it’s not needed isn’t where employer obligations end.”
Tahhan added that other avenues should be explored, such as redeployment, before a redundancy decision is made – but simply offering financial constraints as a reason for this isn’t enough.
By Matthew Knott and Nick Bonyhady April 19, 2025 — 5.54pm , register or subscribe to save articles for later. Save articles for later Add articles to your saved list and come back to them any tim...