The Checklist Every Small Business Owner Needs Before Making a Role Redundant

Making a role redundant is one of the toughest decisions you’ll face as a small business owner. It’s not just about ticking the legal boxes — it’s about treating people with fairness, dignity, and respect.

If you’re preparing for a redundancy, this checklist will help you manage the process step by step, ensuring you support both your departing staff and those who remain.

1. Confirm It’s a Genuine Redundancy

Before you move forward, make sure the role meets the criteria for a genuine redundancy:

• The position is no longer required for operational reasons.

• You’ve explored alternatives such as redeployment, reduced hours, or retraining.

• You can clearly explain the business rationale.

This protects you from unfair dismissal claims and reassures staff that the decision wasn’t personal.

2. Review Legal Obligations and Entitlements

Check your requirements under the Fair Work Act and any applicable awards. Depending on the size of your business and length of service, this may include:

• Redundancy pay (note: some small businesses under 15 employees may be exempt)

• Notice periods

• Accrued annual leave, long service leave, and other entitlements

• Providing a statement of service if requested

Getting this right is critical for both compliance and fairness.

3. Plan the Communication Carefully

How you deliver the news matters just as much as the decision itself.

• Hold the meeting face-to-face if possible.

• Be clear, respectful, and compassionate.

• Avoid jargon or overly formal scripts — speak as a person, not just an employer.

• Allow time for questions and provide written confirmation.

Remember: staff may not hear much beyond “your role is redundant,” so keeping communication simple and empathetic is key.

4. Offer Outplacement Support

Redundancy can leave staff feeling lost and uncertain about the future. This is where outplacement makes a huge difference.

By offering outplacement services, you help staff:

• Build a strong, professional resume

• Address selection criteria for government and corporate roles

• Practice for interviews and boost confidence

• Explore career pathways and find new opportunities quickly

For you as the business owner, it eases the guilt of letting someone go and shows the rest of your team that you value your people even in tough times. Packages from $359. Learn more here.

5. Support the Team Who Remain

Survivor syndrome is real. Remaining employees may feel anxious, guilty, or disengaged. To rebuild morale:

• Be transparent about the future of the business

• Recognise and thank staff for their continued efforts

• Watch for signs of burnout as workloads shift

• Keep communication open and check in regularly

A supported team is a resilient team.

6. Document the Process

Keep records of:

• The business rationale for redundancy

• Consultation notes and communications

• Payments and entitlements provided

• Any outplacement or support offered

Good documentation protects you legally and helps you manage future changes with confidence.

Final Thought

Redundancy is never easy, but handling it with fairness and compassion helps both your staff and your business. This checklist can guide you through the process step by step — and by offering outplacement support, you show your people that even if their role ends, their future still matters.

If your business is preparing for redundancies, let’s talk. I’ll help you support your staff with professional resumes, interview coaching, and career guidance — so you can move forward knowing you’ve done right by your team.

☎️ 0439 160 982