Firstly, the position is no longer required to be performed by anybody. This can occur in a variety of ways. For example, the business might have 10 cooks and it only really needs 8 cooks so it simply does not need the position of the 2 cooks. Another way this can occur is if various roles are merged together. If a salesperson’s responsibilities are distributed between a manager and the administration officer, then the salesperson position would no longer be required.

The second test is that there are no other jobs for the employee to perform (eg no other suitable alternative redeployment opportunities). The business is obliged to check if there are other suitable positions within the employee’s skills, qualifications and experience. If there are no suitable alternative positions, then this requirement is satisfied.

The business normally is required to offer this position to the employee. If an employee rejects a suitable alternative role, there might also be grounds for the business to apply to the Fair Work Commission to have the redundancy pay reduced by an appropriate amount (this can be reduced to zero).

The third requirement for a general redundancy is that the business has complied with its consultation requirements under a modern award or an enterprise bargaining agreement. Businesses often get this part wrong. Modern awards and enterprise agreements usually set out very specific requirements in respect to consultation.

It normally requires the business to:

• Put forward all relevant facts to the employee

• Give an employee an opportunity to have their say regarding the redundancy

• Consider the employee’s input

• Put various matters in writing to the employee

All this has to occur before the final decision for redundancy is made. If a business does not properly comply with their consultation requirements, then they breach the Fair Work Act, the award or the enterprise agreement - this can result in civil penalties against the business and any individuals who were involved in the breach.