Last Updated on 31/07/2026 by Damin Murdock
In the hospitality industry, redundancies are an unfortunate reality. However, for a redundancy to be considered a genuine redundancy, employers must adhere to the consultation requirements of the Hospitality Industry General Award and the Fair Work Act 2009.
When employers skip or rush the consultation process, that can make the redundancy unfair and expose businesses to legal risk.
What are the requirements for redundancy consultation?
Consultation is a strict legal obligation, not a polite courtesy. Employers must start the consultation process as soon as they decide to implement major changes to the workplace.
But what are “major workplace changes” that require consultation? These include closing a section of a restaurant or venue, reducing operational or opening hours, and outsourcing services, for example, transitioning from in-house cleaning to a cleaning company.
What are the employer’s legal obligations in case of redundancy?
- Employers have to notify in writing affected employees and their union or chosen representatives. This notice has to include the details of the proposed changes, the expected impact on staff, and any measures taken to mitigate negative effects on employees.
- Employees must be given a meaningful opportunity to express their views and the consultation should not be a mere formality s after the final decision has already been made.
- Employers are legally obliged to look for alternative suitable roles for their employees within the business or its affiliates before making the redundancy final.
How can employers protect their businesses from unfair dismissal claims?
We prepared a practical checklist that employers can follow during a restructure to make sure they comply with their legal obligations.
- Issue a written consultation notice of the proposed changes and their potential impact on all affected staff.
- Schedule structured meetings with staff to discuss the notice. Always keep detailed minutes and written records of these meetings.
- Give genuine consideration to employee input and alternative suggestions.
- Keep a written record of any alternative employment arrangements considered, even if there weren’t any suitable roles.
Failing to properly consult your staff could lead to the Fair Work Commission ruling that the redundancy isn’t genuine, and that could lead to unfair dismissal claims and heavy financial penalties.
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.
Feel free to contact Damin Murdock at Leo Lawyers via our website, on (02) 8201 0051 or at office@leolawyers.com.au. Further, if you liked this article, please subscribe to our newsletter via our Website, and subscribe to our YouTube , LinkedIn, Facebook and Instagram. If you liked this article or video, please also give us a favourable Google Review.
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.
