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.

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Last updated October 23, 2025

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Suitable for Australia

Redundancy Policy

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What is a redundancy policy?

A redundancy policy is a document that outlines how a company manages redundancies, including the circumstances under which employees may be made redundant and the processes that follow.
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When should you use a redundancy policy?

You should use a redundancy policy when your business is considering restructuring, downsizing, or may need to make positions redundant to ensure clarity and fairness for all employees.
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What should be in a redundancy policy?

A redundancy policy should include criteria for redundancy decisions, notice periods, entitlements, redeployment options, retrenchment processes, and support measures for affected employees.
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Frequently asked questions

How does this policy protect employees during redundancy?

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Does the policy comply with Australian employment laws?

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What are the main steps outlined after a redundancy decision?

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Are there any limitations to this policy?

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Who should approve and implement this policy?

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How often should the policy be reviewed?

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Will employees be supported if their role is made redundant?

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View Sample Redundancy Policy

Redundancy Policy
risk level indicator at Low level

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.

Meet Our Users

Articles about Redundancy Policy

Do Small Businesses Have to Pay Redundancy Pay?
By Jenelle Miranda|May 20, 2025

Do Small Businesses Have to Pay Redundancy Pay?

Redundancy occurs when an employee's job is no longer required, however there are different legal requirements for small businesses. Find out more here.

Redundancy: Lessons for Employers (2025 Update)
By Dominic Woolrych|Dec 5, 2025

Redundancy: Lessons for Employers (2025 Update)

Manage redundancies legally and fairly to avoid costly mistakes. Includes a free calculator for redundancy payments, consultation checklists, and compliant templates.

What is Genuine Redundancy? (2025 Update)
By Richard Yuen|Jan 7, 2025

What is Genuine Redundancy? (2025 Update)

No longer require an employee to do their job? Learn about genuine redundancy, your employees’ rights, and your business's obligations in this situation.

5 Questions to Ask a Redundancy Lawyer
By Jessica Maher|Feb 7, 2018

5 Questions to Ask a Redundancy Lawyer

According to the Australian Bureau of Statistics, over 4% of employees are made redundant each year. Let us guide you through this difficult process with our easy guide.

How Does Voluntary Redundancy Work?
By Shantelle Dang|Jul 27, 2020

How Does Voluntary Redundancy Work?

Voluntary redundancy occurs where an employer compensates an employee if they voluntarily terminate their own employment. Find out more here.

When Is an Employer Exempt From Redundancy payments?
By Jenelle Miranda|Mar 5, 2019

When Is an Employer Exempt From Redundancy payments?

Are you required to pay redundancy to an employee being terminated? Or are you entitled to a redundancy payment? Make sure you know your redundancy rights.

A Comprehensive Guide to Employee Redundancy in Australia
By Ilyas Omari|Sep 30, 2024

A Comprehensive Guide to Employee Redundancy in Australia

Discover everything you need to know about employee redundancy in Australia with valuable insights for both employers and employees.

Are Casual Employees Entitled to Redundancy Pay?
By Ilyas Omari|May 24, 2024

Are Casual Employees Entitled to Redundancy Pay?

Have you ever wondered if casual employees are entitled to redundancy pay? Find out when they are in this article.

How Do Redundancy Payments Work?
By Jaclyn Ling|Dec 20, 2018

How Do Redundancy Payments Work?

Has your business recently made someone redundant? Or have you been made redundant? Find out the implications here.

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