Last Updated on 19/09/2025 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) is a seasoned commercial lawyer with over 17 years of experience, recognised as a trusted legal advisor and courtroom advocate who has built a formidable reputation for delivering strategic legal solutions across corporate, commercial, construction, and technology law. He has held senior leadership positions, including director of a national Australian law firm, principal lawyer of MurdockCheng Legal Practice, and Chief Legal Officer of Lawpath, Australia's largest legal technology platform. Throughout his career, Damin has personally advised more than 2,000 startups and SMEs, earning over 300 five-star reviews from satisfied clients who value his clear communication, commercial pragmatism, and in-depth legal knowledge. As an established legal thought leader, he has hosted over 100 webinars and legal videos that have attracted tens of thousands of views, reinforcing his trusted authority in both legal and business communities."
