Redundancy Policy
This Redundancy Policy is used to clarify the circumstances in which an employee may be made redundant. This Policy also outlines the possible next steps following a redundancy, including redeployment and retrenchment.
Last updated October 23, 2025
Suitable for Australia
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Frequently asked questions
Use this Policy if:
- You want to provide clarity around the circumstances in which the company may make an employee redundant;
- You want to give your employees certainty about their options in case of a redundancy; and
- You want to ensure that your company complies with the national employment standards in regards to notice periods and retrenchment payments.
What does this Policy cover?
- How a redundancy decision will be made;
- The minimum payments and notice periods that employees are entitled to under the national employment standards;
- The processes for carrying out redeployment and retrenchment; and
- The support that the company will provide the employee following a redundancy.
Further information
View Sample Redundancy Policy
The Legal Risk Score of a Redundancy Policy Template is Low
Our legal team have marked this document as low risk considering:
- The policy’s reliance on internal redeployment options and trial periods could lead to uncertainty and instability for employees facing redundancy, as their future employment status may hinge on the availability and suitability of alternative positions within the company.
- The document does not provide specifics on how the company will handle situations where employees decline redeployment, which might leave employees without a clear understanding of their rights or options in such scenarios.
- The policy limits the issuance of written references for departing employees, potentially impacting their future job prospects and professional validation.
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