Redundancy Processing Checklist for Trades & Construction
A detailed checklist for managing a genuine redundancy process in compliance with Australian employment law, ensuring fair treatment and proper entitlements.
Compliant with Safe Work Australia requirements, state WHS legislation, and Building Code of Australia (NCC) documentation standards.
Complete Checklist
- 1Confirm the redundancy is genuine under the Fair Work Act criteriaCritical
- 2Check the relevant Award or agreement for specific redundancy consultation requirementsCritical
- 3Consult with affected team members about the proposed changes and consider alternativesCritical
- 4Explore redeployment opportunities within the business
- 5Provide written notice of the redundancy with the correct notice periodCritical
- 6Calculate redundancy pay entitlements based on the team member's length of service
- 7Calculate all final pay components including leave, notice, and redundancy payCritical
- 8Apply the correct tax treatment to each component of the payout
- 9Provide information about accessing employment support services
- 10Allow reasonable time off during the notice period for job seeking
- 11Arrange for knowledge transfer and handover of responsibilities
- 12Collect all company property and revoke system access
- 13Process the final payment within the required timeframeCritical
- 14Issue a separation certificate and provide information about Centrelink if applicable
- 15File all redundancy documentation securely and retain for seven years
Frequently Asked Questions
How is redundancy pay calculated in Australia?
Under the National Employment Standards, redundancy pay ranges from four weeks pay for one to two years of service up to sixteen weeks pay for nine to ten or more years of service. Small businesses with fewer than fifteen team members are exempt from paying redundancy under the NES. Check the relevant Award or agreement as it may provide more generous entitlements.
What consultation obligations must be followed during redundancy?
Most Awards and agreements require the employer to notify affected team members and their representatives about the proposed changes, discuss the changes including reasons, potential impacts, and measures to mitigate negative effects, and genuinely consider any alternatives or feedback raised. Consultation must occur before a final decision is made, and records of the consultation process should be maintained.
What makes a redundancy genuine under Australian law?
A redundancy is genuine if the employer no longer requires the job to be done by anyone due to changes in operational requirements, the employer has complied with consultation obligations in the applicable Award or agreement, and it would not have been reasonable to redeploy the team member within the business. All three criteria must be met.
Need help implementing these checks into your daily operations?
Our team can build custom checklists integrated into your daily operations workflow.