October 2026 – Redundancy Consultation: More Than Explaining a Decision

When a business decides a position is no longer required, it can be tempting to view the remaining process as paperwork.

A recent Fair Work Commission decision involving Hornibrook Bus Lines shows why meaningful consultation deserves more attention.

The Hornibrook decision

An accounts employee with approximately 33 years’ service was awarded $24,050.20 in compensation following an earlier finding that her redundancy dismissal was unfair.

The compensation decision, [2026] FWC 3943, was issued on 16 October 2026.

The employer argued that the position was no longer needed and that proper consultation would, at most, have extended employment by one week.

However, the Commission found there was some possibility that consultation could have produced a different outcome. The employee performed accounts, insurance claims and payroll functions that the business continued to need.

Continued employment was not considered likely. Nevertheless, the lost chance of a different outcome was relevant to compensation.

What meaningful consultation involves

For employers, consultation should give an affected employee a genuine opportunity to contribute while their input can still influence the outcome.

Depending on the applicable obligations, that can involve explaining proposed changes, discussing their effects and considering ways to avoid or reduce the impact.

An employee may identify an alternative arrangement that management has not considered. Their suggestions may also prove impractical. What matters is that they receive genuine consideration.

A process worth documenting

Before implementing a redundancy, employers should check the requirements of the relevant award or enterprise agreement and keep a clear record of the process.

That record should explain the business reasons, the discussions held, the employee’s suggestions and how available alternatives were considered.

Paying redundancy entitlements does not replace any obligation to consult.

For employees, consultation provides an opportunity to ask questions and put forward realistic options, including suitable alternative work.

The Hornibrook decision illustrates why the process matters even where a business believes the position must go. Consultation does not guarantee continued employment, but it needs to offer a real opportunity to explore a different result.

This article provides general information and is not legal advice.

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