Can You Refuse Redeployment in Australia?

Restructures happen. Whether you’re consolidating teams, adopting new technology or navigating a downturn, you might find that some roles are no longer needed.

At that point, you’ll ask a key question: can I refuse redeployment and move to redundancy, or do I need to offer an alternative role?

In Australia, the answer turns on what’s “reasonable” in the circumstances. The Fair Work framework expects employers to consider redeployment options before finalising a redundancy. That said, you don’t have to redeploy if there is no suitable role, if the role would be unreasonable for the employee, or if it would undermine your legitimate business restructure.

Below, we break down when redeployment is required, when you can refuse redeployment, how to run a fair process, and what to do if an employee refuses your redeployment offer.

What Is Redeployment And Why Does It Matter?

Redeployment is offering an employee a different role (within your business or an associated entity) instead of terminating their employment due to redundancy.

Under the Fair Work Act, a dismissal is a “genuine redundancy” only if:

• you no longer require the job to be done by anyone due to changes in operational requirements
• you’ve complied with any consultation obligations in a modern award or enterprise agreement
• it’s not reasonable to redeploy the employee within your enterprise (or an associated entity)

Reasonable redeployment is assessed case-by-case. You should look at the nature of available roles, location, seniority, pay, hours, skills and the training required. You’re not required to create a new role or displace someone else, but you should make genuine inquiries about actual vacancies across your group.

If a suitable role exists and you don’t consider it, a redundancy may not be “genuine”, exposing you to an unfair dismissal claim. If no reasonable role exists, you can move forward with redundancy (subject to consultation and notice/pay obligations).

When Can An Employer Refuse Redeployment?

You can refuse to redeploy an employee if redeployment would not be reasonable in the circumstances. Typical scenarios include:

• No available roles: There are genuinely no vacancies in your business or associated entities.
• Role is clearly unsuitable: The available role is substantially lower in status, pay, hours or skill level, or is outside the employee’s skill set even with reasonable training.
• Excessive retraining: Redeployment would require extensive retraining or qualifications not reasonably achievable in a short timeframe.
• Geographic impracticality: The role is at a location that would impose unreasonable travel or relocation (especially without relocation support).
• Safety or capacity concerns: The employee cannot safely perform the inherent requirements of the new role (even with reasonable adjustments).
• Genuine restructure risk: Redeploying would undermine the legitimate business case for your restructure (e.g. would duplicate roles you’re removing).

Importantly, “reasonable” doesn’t mean “identical”. A role may still be reasonable if there are some differences, provided the overall fit is sensible and you’re open to reasonable training.

If you’re contemplating changes to duties, hours or pay to make a role workable, consider whether this amounts to a contract variation. In many cases, you’ll need to consult and get agreement before changing employment contracts or rostering patterns.

When Should You Offer Redeployment Instead Of Redundancy?

Offer redeployment when there’s a genuinely suitable role available now (or will be imminently), and the employee can perform it with reasonable training.

Situations that point toward redeployment include:

• Vacancies at a similar level in another team or location.
• Roles with comparable pay and status but different duties.
• Temporary roles that bridge the gap to a permanent opening (if practical).
• Openings within associated entities where transfer is contractually and practically possible.

If the alternative role involves fewer hours or different conditions, you’ll need to consult about impacts and, in some cases, obtain written agreement. For example, if you’re trying to avoid redundancy by reducing hours, review your obligations before reducing employee hours or restructuring rosters.

Where your business is part of a group, it’s good practice to document enquiries made about roles within associated entities. If a transfer is suitable and agreed, follow a clear process for transferring employees within group companies (including who bears accrued entitlements, start dates and new reporting lines).

How To Run A Fair Redeployment Process (Step-By-Step)

1) Map Your Genuine Restructure

Define the operational change: why the role is no longer required, what functions are being removed or merged, and the business outcomes you’re targeting. Keep contemporaneous notes and board or management approvals.

2) Identify Potential Vacancies

Search your enterprise and any associated entities for current and upcoming vacancies. Consider fixed-term, part-time and casual roles if they’re genuinely available and suitable.

3) Assess Reasonableness

For each role, assess skill match, training needs, pay, seniority, location and hours. A short, structured matrix can help you compare options and record why roles are, or aren’t, reasonable.

4) Consult Properly

If a modern award or enterprise agreement applies, follow its consultation clause. Generally, this means notifying affected employees early, sharing relevant information, and genuinely considering their feedback and counter-proposals.

5) Make Clear Offers In Writing

If you decide to offer redeployment, set out the title, duties, pay, hours, location, start date, reporting line and any training plan. Give a reasonable timeframe to consider the offer and ask questions.

6) Issue the Right Documents

When an employee accepts redeployment, ensure the terms are captured in a tailored Employment Contract aligned to the new role. If the move involves a change to location, hours or responsibilities, update any related workplace policies they must follow in the new team.

7) Finalise Outcome And Communicate

If there’s no reasonable redeployment, or if the employee declines a reasonable offer (see below), proceed with redundancy. You’ll need to calculate notice, redundancy pay (if applicable), and manage handover.

Many employers find it helpful to model numbers using a redundancy calculator before confirming figures in writing.

What If The Employee Refuses A Redeployment Offer?

Employees can refuse redeployment. The key question is whether the role you offered was “acceptable” and whether their refusal was reasonable.

If you’ve offered an acceptable alternative role and it’s declined, you can usually proceed to redundancy. In some cases, you can apply to the Fair Work Commission to reduce redundancy pay if you have obtained “other acceptable employment” for the employee and they’ve unreasonably refused it. Whether a role is “acceptable” depends on similar factors: pay, status, duties, skills, location and the practicalities of the move.

Best practice is to:

• document the offer and why you considered it acceptable
• allow the employee a fair opportunity to ask questions and seek advice
• record their reasons for declining

If the redeployment was clearly unsuitable (for example, a large pay cut or a role outside their skill set with excessive retraining), a refusal will likely be reasonable and redundancy pay would ordinarily apply (subject to small business exceptions and any award/agreement provisions).

If the process results in termination, check whether you’ll provide working notice or payment in lieu of notice, along with accrued entitlements and any redundancy pay owed.

How Redeployment Interacts With Awards, Small Business And Other Obligations

Modern awards and enterprise agreements commonly require consultation before major workplace changes. If an award applies, follow the consultation steps thoroughly-failure to do so can mean the redundancy isn’t genuine.

Small business employers (fewer than 15 employees) are exempt from redundancy pay under the National Employment Standards, but you still need to consider redeployment and consultation to ensure the dismissal is fair.

If the reason you’re exploring redeployment is capability (for example, an injury or medical capacity), ensure you’ve met your obligations to support a safe return to work. If capacity remains an issue after reasonable adjustments, you may need specialist advice about termination on medical grounds vs. redeployment to a safe suitable role.

Common Pitfalls To Avoid

• Only looking within one team: The redeployment test includes associated entities. Make reasonable inquiries across your group.
• Offering a role verbally without detail: Put the offer in writing with clear terms so the employee can make an informed decision.
• Forgetting contract variations: If duties, pay or hours change, confirm agreement to any contract changes in writing.
• Using redeployment to “manage out” performance: If performance is the issue, follow a fair performance process rather than dressing it up as redundancy.
• Not checking numbers: Confirm notice, redundancy pay and accruals early, using tools like a redundancy calculator to avoid underpayments.

What Legal Documents And Policies Support Good Redeployment Decisions?

A few well-drafted documents go a long way to making your process fair, consistent and defensible:

• Employment Contract: Sets the terms for any redeployed role (position, duties, pay, location, hours, probation if relevant).
• Workplace Policy suite: A clear change management or restructuring policy helps guide consultation, selection criteria and communications.
• Consultation letters and meeting notes: Document your proposal, invite feedback and record genuine consideration of employee input.
• Role assessment matrix: A simple internal tool to compare suitability and record why redeployment was (or wasn’t) reasonable.
• Variation letter: Where the employee agrees to changed duties or hours, confirm agreed changes in writing to avoid disputes later.
• Termination pack: If redundancy applies, include notice/payment details, redundancy pay (if applicable), and a clean handover timeline. If you opt for payment in lieu of notice, reflect that clearly.

FAQ: Quick Answers For Busy Employers

Do I have to create a role to avoid redundancy?

No. You’re expected to explore genuine vacancies within your business and associated entities, not manufacture new positions.

Can I redeploy on reduced hours or pay?

Possibly, if the role is still reasonable overall and the employee agrees. Avoid unilaterally cutting conditions-work through consultation and confirm any contract changes in writing.

What if redeployment would be at another site or state?

Location matters to reasonableness. Relocation can be acceptable if practical and supported, but imposing significant relocation without support often won’t be reasonable.

What if the employee refuses redeployment?

You can usually proceed to redundancy. In limited circumstances, you may ask the Fair Work Commission to reduce redundancy pay if the refusal was unreasonable and the role was acceptable.

Can I redeploy temporarily until another role opens?

Yes, if it’s clear, agreed and practical. Confirm the temporary nature in writing and revisit when the permanent opening arises.

Key Takeaways

• Before finalising redundancy, consider whether redeployment is reasonable within your business and any associated entities.
• You can refuse redeployment where roles are unsuitable, unavailable, geographically impractical, or require excessive retraining.
• Run a fair process: document your restructure, search for roles, consult properly, and make clear written offers.
• If an employee unreasonably refuses an acceptable role, you can usually proceed to redundancy and, in some cases, seek to vary redundancy pay.
• Lock in the right paperwork-updated Employment Contracts, policies, consultation letters and accurate final payments (including payment in lieu of notice where relevant).
• If you’re unsure whether a role is “reasonable” or how to structure a compliant process, get tailored advice early to lower risk.

If you’d like a consultation on redeployment and redundancy for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.