Last Updated on 30/03/2026 by Damin Murdock
Redundancies are common in hospitality due to business restructures, seasonal closures, or downturns in trade. However, a redundancy will only be genuine if the employer has complied with consultation requirements under the Hospitality Industry (General) Award 2020 (the Award) and the Fair Work Act 2009 (Cth). Failure to consult can render a redundancy unfair and expose the employer to legal claims.
The Requirements of Consultation
Consultation must begin as soon as a definite decision has been made to introduce major workplace changes. Employers are required to notify affected employees and their representatives in writing, providing details of the proposed changes, the likely impact on employees, and measures being considered to reduce adverse effects.
Employers must then give employees an opportunity to express their views and genuinely consider those views before finalising decisions. In hospitality, examples of major changes requiring consultation include closing a restaurant section, reducing opening hours, or outsourcing cleaning services.
Consultation must be more than a formality. The Fair Work Commission has criticised employers who merely informed staff after decisions had already been made. Employers should hold meetings, allow feedback, and keep written records of discussions. They must also explore redeployment opportunities within the business or associated entities.
Practical Steps
- drafting a written consultation notice,
- scheduling meetings with employees, recording minutes, and
- providing genuine consideration of employee input.
Employers should document any redeployment opportunities considered, even if none are available. Risks of non-compliance include redundancies being declared not genuine, unfair dismissal claims, and penalties under the Award.
Bottom Line
Consultation is a critical step in redundancy processes. Hospitality employers must engage openly and early with staff to comply with legal obligations and reduce the risk of disputes.
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DISCLAIMER: This is not legal advice and is general information only. You should not rely upon the information contained in this article and if you require specific legal advice, please contact us.
Damin Murdock (J.D | LL.M | BACS - Finance) has over 17 years of experience as a commercial lawyer. He helps businesses navigate construction and technology law. Damin has held several big leadership roles, including serving as a director of a national law firm and the Chief Legal Officer for Lawpath.
He has personally helped more than 2,000 startups and small businesses. With over 300 five-star reviews, his clients clearly value his practical advice and simple way of explaining things. Damin has also hosted over 100 webinars that thousands of people have watched to get reliable legal help.
