Redundancy consultation: what the Fair Work Act requires

By Stefan Savva, Founder · Checked against the Fair Work Ombudsman and the Fair Work Commission on 28 October 2026 · 6 min read

You must consult about a redundancy whenever the award or enterprise agreement that covers the person has a consultation clause, and almost all of them do. Consultation starts once you have made a definite decision to make major changes, and before anyone is dismissed. It means telling the people affected, explaining what will happen and why, discussing ways to reduce the harm, and genuinely considering what they say. If you skip a consultation duty that applies, the redundancy is not genuine, even when the job really has gone.

This guide explains where the duty comes from, what a real consultation looks like, the extra steps when 15 or more people are affected, and how to keep a record that shows you did it. It is general information, not legal advice.

Where the duty comes from

The Fair Work Act does not set one consultation rule for every workplace. Instead, every modern award has a consultation clause, and the Act requires every enterprise agreement to have a consultation term (section 205 of the Fair Work Act 2009; the Fair Work Commission explains it).

Section 389 then ties it to redundancy. A dismissal is only a genuine redundancy if the employer has complied with any obligation in an award or agreement to consult about the redundancy. The Fair Work Commission treats this as one of the two core tests, beside the job no longer being needed.

So the first job is to find the award or agreement for each affected person and read its clause. People in one restructure can be covered by different instruments, with different clauses.

Award and agreement free staff

Some staff are covered by no award and no agreement, often managers and higher earners. For them there is usually no legal duty to consult under the Fair Work Act. Consulting anyway is still good practice: it surfaces redeployment options, reduces the shock, and shows the decision was considered rather than arbitrary.

What a real consultation includes

The Fair Work Ombudsman says that after deciding on major changes, an employer must:

notify the affected staff promptly
explain the changes and the effects they are likely to have
discuss ways to reduce or avoid those effects
genuinely consider what staff put forward

Most award clauses also ask you to give the relevant information in writing, such as the nature of the change, the expected effects and the measures you are taking to reduce them. You do not have to share confidential information that would harm the business.

What does not count

Consultation has to happen while there is still room to change something. These are common ways it falls short:

Announcing an outcome. A meeting that tells people their roles are gone, with letters already printed, is not consultation.
A single meeting. One conversation rarely gives people time to absorb the news and come back with ideas.
Not listening. If staff suggest alternatives, such as reduced hours, voluntary redundancies or a different role, you need to consider them seriously and explain your answer.
Leaving people out. Staff on parental leave or other leave are still affected and still need to be consulted.

What to say in the first meeting

Keep the first meeting short and plain. Say what the business has decided to change and why, which roles are affected, and that no final decision has been made about any person. Hand over the written information. Explain what happens next, when the next meeting is, and that they can bring a support person. Then stop and listen. People remember very little of a meeting like this, so the written summary afterwards matters as much as what you say.

How long it takes

Most clauses do not set a fixed number of days. The test is whether the process gave people a real chance to understand the change and respond. In practice that usually means at least two conversations: one to explain the proposal and hand over information, and a second, a few days later, to hear responses and discuss options. A larger restructure takes longer.

When 15 or more people are affected

Two more duties apply when you are thinking about dismissing 15 or more people for economic, technological, structural or similar reasons.

First, you must notify Services Australia in writing before the dismissals. The notice sets out the reasons, the number and categories of staff affected, and when the dismissals will happen. Services Australia publishes a template.

Second, under section 531 of the Fair Work Act, you must notify and consult any union that represents the affected staff, as soon as practicable after deciding and before dismissing anyone. The consultation covers ways to avoid the dismissals or reduce their effects. The Fair Work Commission can make orders if an employer does not do this.

How to record it

If the redundancy is ever challenged, your notes are how you show the consultation happened. Keep:

the date of the decision and who made it
the written information you gave staff, and when
the date, time and attendees of each meeting
what each person raised, in their words where you can
what you considered in response, and what you decided
any redeployment options you looked at, and why each did or did not suit

Send a short written summary after each meeting so the person has a copy too. The Fair Work Ombudsman's best practice guide to consultation has more on running the conversations well.

During consultation, think about support

Consultation is also the moment to tell people what help they will get. Knowing that notice, redundancy pay and support for finding a new role are already arranged makes the conversation easier for everyone. Changing Careers gives each person you nominate twelve weeks of help with their next role, from A$599 per person.

Common questions

When does redundancy consultation have to start?

Redundancy consultation starts once the employer has made a definite decision to make major changes likely to have significant effects on staff, and it must happen before anyone is dismissed.

Must award and agreement free staff be consulted?

Staff covered by no award and no agreement are usually owed no legal duty to consult under the Fair Work Act, but consulting them anyway is good practice and can surface redeployment options.

How long should redundancy consultation take?

Most consultation clauses set no fixed number of days. A fair process usually means at least two conversations: one to explain the proposal and hand over information, and a second, a few days later, to hear responses.

What extra duties apply when 15 or more people are affected?

An employer thinking about dismissing 15 or more people must notify Services Australia in writing before the dismissals, and under section 531 must notify and consult any union that represents the affected staff.