In the current economic climate, employers are addressing business downturns by restructuring their business affairs, often resulting in role redundancies. While redundancies can be necessary for a business longevity, mismanaging the process can lead to further complications and significant unwanted cost.
Redundancies are an unfortunate but necessary part of the business cycle for a variety of reasons. The redundancy process can be quite complex and the recent decision of Alesia Khliustova v Isoton Pty Ltd [2023] FWC 658 is a particularly precautionary tale for employers looking to make roles redundant. The Isoton Decision which was recently handed down is significant, and is a useful illustration of when dismissal, because of redundancy, will be considered genuine.