How HR Turned a Straightforward Redundancy into an Unfair Dismissal

Most business owners think redundancy is simple.

Role no longer needed.
Business changes.
Pay it out.
Move on.

That’s exactly what this employer thought too. And they still lost at Fair Work.

Not because the restructure was dodgy.
Not because the business did anything crazy.

They lost because HR handled the consultation badly.

And that mistake turned a genuine redundancy into an unfair dismissal.

The short version of what happened

A logistics business decided its warehouse management structure was too heavy and hurting profits. Four roles were cut, including an operations supervisor.

So far, so normal.

HR met with the employee twice. Both meetings were quick. She was told:

• Her role might be redundant
• No alternative roles had been found
• She could suggest roles HR “might not have seen”

Five days later, the employee asked a fair question:
“Have you actually looked for another job for me in the business?”

HR said:
“There are no current vacancies.”

That was wrong.

At the time:

• There were 18 open roles across the business
• Three were in NSW
• The employee was never told about them

She was dismissed anyway.

Why Fair Work said the redundancy wasn’t genuine

Fair Work accepted the business had real operational reasons to restructure.

The problem wasn’t the decision.
It was the process.

When you make someone redundant, you’re required to properly consult. That includes talking about ways to avoid or reduce the impact on them.

Redeployment is the obvious one.

Here’s where HR fell over:

• They didn’t tell the employee about the vacant roles
• They didn’t explain what steps had been taken to find alternatives
• They didn’t properly discuss redeployment, even as a possibility

Fair Work said that information should have been shared. It would have helped the consultation.

Because it wasn’t, the redundancy wasn’t considered genuine.

“But she wasn’t suitable anyway” didn’t matter

HR argued:

• She wouldn’t take a pay cut
• She probably wouldn’t relocate
• She didn’t have the right skills for other roles

Fair Work didn’t say HR was wrong.

They said it didn’t matter.

Those things should have been discussed with the employee. Not decided internally and quietly ignored.

Even if redeployment is unlikely, you still have to talk it through.

Skipping the conversation is what gets you in trouble.

The real issue here

This wasn’t a business owner making a bad call.

This was HR failing to do their job properly.

The Commissioner actually said the HR team should have been capable of handling the consultation correctly.

Instead, they:

• Treated consultation like a formality
• Withheld key information
• Made assumptions instead of having proper conversations

That’s how you end up paying compensation for a redundancy that never needed to be a problem.

What consultation actually looks like (in reality)

Consultation is not:

• “Your role might be redundant”
• “There are no other roles”
• “Let us know if you think of something”

Consultation is:

• Telling the employee what roles exist
• Talking through whether any could work
• Explaining why some options aren’t suitable
• Letting the employee respond
• Documenting all of it

Yes, it takes time.
Yes, it’s uncomfortable.
Yes, Fair Work expects it.

Why business owners should care

If your HR person:

• Filters information “to protect you”
• Decides outcomes without discussion
• Treats Fair Work obligations as admin

You’re the one carrying the legal risk.

This case is exactly what happens when HR thinks they’re helping but actually make things worse.

How HR Gurus handle this properly

We don’t promise zero risk. That’s rubbish.

What we do is:

• Map redeployment options early
• Have the hard conversations properly
• Document everything
• Make sure your process holds up if Fair Work ever looks at it

Sometimes redundancy is still the outcome. That’s fine.

The difference is you don’t get stung later because someone rushed the HR side.

Thinking about a redundancy or restructure?

Get advice before you speak to the employee.

One poorly handled consultation can undo an otherwise sensible business decision.

👉 Talk to HR Gurus first.
We’ll help you do it properly, without fluff, without drama, and without turning Fair Work into an unexpected business partner.