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.
Articles about Redundancy Policy
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Redundancy: Lessons for Employers (2025 Update)
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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?
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?
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
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?
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?
Has your business recently made someone redundant? Or have you been made redundant? Find out the implications here.
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