If your Practice needs have changed and a role is no longer available, you’re likely going to need to make someone redundant. Understanding how to properly do this, the reasons you need to show, and the process you need to follow, are key in ensuring a positive outcome and limiting risk of a complaint. In this circular, we explain what is a genuine redundancy, and the correct process to follow.
What’s a Redundancy?
A redundancy is where the Practice no longer requires a role, or requires fewer employees in that role, due to operational changes or business decisions. This may be due to a reduction in turnover and less patients, automating tasks including with AI, clinicians leaving, or even a restructure with a view to expanding eventually. Each situation is assessed differently. Importantly, to meet the “genuine” element, the Practice must show assessment and if viable, an attempt to redeploy the person to another role, including for tasks that plan to be outsourced.
Selection Criteria
Where only some staff in the same role are to be made redundant, the decision must be based on fair and transparent criteria. Practices are entitled to choose the criteria, but they must be:
- relevant to the role
- clearly and consistently applied; and
- non-discriminatory
Examples of appropriate criteria often include:
- skills, qualifications, and experience;
- recent performance ability to meet workload demands;
- flexibility to take on different duties;
- reliability and ability to work well with the team.
Arbitrary or discriminatory factors, such as age or other personal characteristics, must not be used and could expose the Practice to other complaints like unlawful termination, adverse action or unfair dismissal.
Understanding the Process
To reduce risk of unfair dismissal claims, Practices should ensure that:
- staff are informed about the need to reduce staff capacity and the criteria being applied;
- staff are given an opportunity to provide feedback before a final decision is made;
- the decision-making process and outcome are documented.
Practical Example
Consider a Practice with three oral health therapists but only enough work for two. In this situation, the Practice may decide to reduce the number of OHTs from three to two. The decision should be made based on clear criteria, such as clinical skills, performance, teamwork, and flexibility. Fair Work does not impose prescriptive criteria on Practices and will not assess if your business decision was a good one, but need to see fairness, transparency and compliance.
In this example, all affected staff should be told about the criteria being applied, given a reasonable opportunity to respond, and the process should be documented. The Practice should also consider whether the affected OHT could be redeployed into another role, such as a dental assistant or receptionist position, if suitable.
In addition, the Award requirements need to be followed which stipulate extra time off with pay to look for another role, and all elements of the dismissal process need to be followed to reduce the risk of a successful unfair dismissal complaint.
Practical Tips
- document a short list of selection criteria tailored to the role and communicate these to their affected staff in advance.
- read the Award to understand and ensure compliance with redundancy AND termination steps.
- record evidence of genuine consultation and attempts to mitigate loss to the affected staff, including by redepolyment.
- make sure you comply with the laws surrounding unfair dismissal on reasoning and process.
- identify and pay out any entitlements at termination.
ClinLegal can guide you through the process, help draft communication to staff, advise on Award requirements and termination entitlements. Please see the Redundancy and Termination Letters with guidance on the ClinLegal Portal. Log in or JOIN NOW .
Hugh Oxbrough
Workplace Relations Advisor
Yasmine Healy
Head of Legal Services
This Circular is produced for guidance purposes only and is not a substitute for legal advice. Legal advice should be sought for individual circumstances. For tailored advice for your Practice, please contact us at [email protected]