A recent Fair Work Commission (FWC) ruling has underscored the importance of following proper consultation procedures—even for small businesses—when making roles redundant. The case involved a long-serving employee who was dismissed without warning after nearly 15 years with a tile import business. The FWC ultimately found the dismissal to be unfair, awarding more than $31,000 in compensation.
The worker, who had helped grow the company from its early days, was called into a meeting on 28 February 2025 and told his role was no longer required due to financial pressures. He was asked to hand over company property and clear out immediately. No written notice or prior consultation had occurred.
While the employer claimed the Small Business Fair Dismissal Code applied and cited financial hardship as justification, the Commission found that the correct redundancy process under the Storage Services and Wholesale Award 2020 had not been followed. Specifically, the Award requires employers to provide advance notice of major changes, discuss potential impacts, and consider options to minimise harm—steps the employer admitted not knowing were required.
Importantly, the FWC clarified that the Small Business Fair Dismissal Code does not apply to redundancies, undermining a central argument in the employer’s defence.
Although the Commission accepted that the business had genuine financial difficulties, it emphasised that the lack of consultation prevented the worker from offering input or proposing alternatives such as job sharing, voluntary redundancy, or cost-saving initiatives. This procedural failure ultimately made the dismissal unfair.
The Commission awarded compensation for both the consultation failure and the worker’s long-standing service—totalling $31,652.93. The ruling made clear that small businesses are not exempt from workplace consultation obligations, and that being unaware of legal requirements is not a valid excuse.
What does this mean for your business?
Small businesses often operate without dedicated HR support, but that doesn’t remove legal responsibilities under awards and workplace law. When making difficult decisions like redundancies, how you handle the process can determine whether you’re exposed to costly claims.
At Performance Advantage, we specialise in helping small businesses stay compliant while managing workforce changes fairly and effectively. Don’t wait until a claim is lodged—let us help you get the process right from the start.
📞 Contact Suzanne today on 0408 897 079
📧 Email: suzanne@performanceadvantage.com.au
Let’s work together to protect your people—and your business.
Source: Fired in minutes: Employer pays heavy price for consultation failure | HRD Australia
