Redundancy & Restructure Dispute Mediation

What makes a redundancy challengeable?

The most common grounds for challenging a redundancy are:

• Failure to consult. Many modern awards and enterprise agreements require employers to consult meaningfully with affected employees before a final decision is made. A tick-the-box process, or no process at all, is a frequent basis for challenge.
• The role was not genuinely eliminated. If the same or substantially similar duties continue to be performed — by the same person, a contractor, or a new hire — the redundancy may not be genuine.
• Redeployment was not properly considered. Employers must consider whether redeployment within the business or an associated entity was reasonable. Overlooking a suitable vacancy is a common error.
• Targeting. A redundancy that coincides with a complaint, a general protections matter or a period of absence can attract scrutiny beyond the unfair dismissal framework.

How mediation resolves redundancy disputes

When an unfair dismissal application is lodged over a purported redundancy, the Fair Work Commission will typically offer a conciliation before any hearing. Around three in four unfair dismissal matters — including redundancy challenges — settle at this stage. Private mediation with Mediations Australia can run earlier and on your own timetable, giving you more control over the process and the outcome.

A mediated settlement in a redundancy dispute can include:

• an agreed compensation payment
• an agreed statement of service or reference
• a non-disparagement agreement on both sides
• confidentiality over the terms
• a mutual release, drawing a line under the matter

Mediation vs a contested Fair Work hearing on redundancy

	Mediation	Formal FWC hearing
Timeframe	Weeks	Months to over a year
Cost	Fixed, shared	Legal fees + preparation
Outcome control	Parties decide	Commissioner decides
Confidential	Yes	No — decisions are published
Remedies available	Flexible agreed terms	Capped compensation or reinstatement

For employers: getting restructures right

Mediation is not only for after a claim is lodged. Employers facing a significant restructure can use facilitated conversation to manage the process more constructively — giving affected employees a genuine voice, reducing the risk of challenge, and preserving goodwill where ongoing relationships matter. A mediator experienced in employment law can help structure the consultation process itself, not just resolve disputes that arise from it.

This page is for general information only and does not constitute legal advice. For personalised guidance, please consult a qualified legal professional or accredited mediator.