Jump to Content

Retrenching staff

You may need to retrench staff, or they may become redundant if their jobs are no longer needed. This might happen because:

  • technology changes
  • you restructure your business
  • you can no longer afford to pay staff
  • you sell your business and the staff are not kept on by the new owners.

Consult for a reasonable period before making jobs redundant and give staff a chance to look for other jobs.

Many workers are legally entitled to a notice period and severance pay if they are retrenched. Most awards and workplace agreements specify the requirements. If your businesses has fewer than 15 staff you may not need to provide severance pay. For more information contact the Fair Work Ombudsman on 131394, or visit www.fairwork.gov.au.

The Fair Work Act 1994 (SA) provides a minimum standard for severance pay that applies to most workers in the state industrial relations system. For more information, contact SafeWork SA on 1300 365 255 or visit www.safework.sa.gov.au.

If you genuinely make a job redundant, pay all entitlements, and go about the process fairly, your staff can't claim unfair dismissal.

Related information