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You may need to dismiss an employee if their role becomes redundant. The redundancy may be necessary because you no longer need the job done, or your business has become bankrupt or insolvent. It may also be new technology that eliminates the need for someone to do the job, or a business downturn, relocation, merger, takeover or restructure.
If you do need to dismiss an employee because of a redundancy, it needs to be genuine. A redundancy is not genuine if your operational needs have not changed or you have not consulted with the employee. It may also not be genuine if you could reasonably employ the employee somewhere else in your business or an associated business. If the redundancy is not genuine, the employee may claim it as an unfair dismissal.
Learn more about redundancy.
- Find out if the Small Business Fair Dismissal Code applies to your business.
- Last reviewed: 17 Jul 2017
- Last updated: 24 Jun 2016