How to Support Employees Through Redundancy – A Guide for HR Managers and Business Owners

Redundancy is one of the most difficult conversations a business will ever have with its people. Whether it affects one person or one hundred, the decision to let someone go – not because of anything they have done wrong, but because of circumstances beyond their control – carries a weight that no amount of HR process can fully soften.

And yet, how an organisation handles redundancy says more about its culture, its values, and its leadership than almost any other people management moment. Done well, it can preserve dignity, protect relationships, and position your organisation as one that genuinely cares for its people. Done poorly, it can damage trust, harm your employer brand, and have lasting consequences for both the individuals affected and the team that remains.

This guide is for HR managers and business owners who want to do it well.

Understanding What Redundancy Really Means for the Individual

Before we get into process and practicalities, it is worth pausing to acknowledge what redundancy actually feels like from the other side of the table.

For the individual, redundancy is rarely just a job loss. It can feel like a loss of identity, purpose, routine, and community. For many people, their work is deeply intertwined with their sense of self-worth and their place in the world. Suddenly having that taken away – through no fault of their own – can trigger grief, anxiety, anger, shame, and a profound sense of uncertainty about what comes next.

Even when the individual understands the business reasons, the emotional impact is real and significant. Acknowledging this – genuinely, not just performatively – is the foundation of a compassionate redundancy process.

The Legal Framework: Getting the Basics Right

Before anything else, you must ensure your process is legally compliant. In Australia, redundancy obligations are governed by the Fair Work Act 2009 and vary depending on factors including the size of your organisation, the length of the employee’s service, and the nature of the role.

Key legal obligations typically include:

Genuine redundancy. A redundancy must be genuine – meaning the role is no longer required due to operational changes, and it would not be reasonable to redeploy the employee into another suitable role within the business. Redundancy that is used as a disguised form of performance management or dismissal is unlawful.

Consultation requirements. Most modern awards and enterprise agreements require employers to consult with affected employees before a final decision is made. This means providing written notice of the proposed changes, explaining the reasons, and genuinely considering the employee’s input – not simply informing them of a decision already made.

Notice periods. Employees are entitled to notice of termination, the length of which depends on their years of service and the terms of their employment contract or applicable award.

Redundancy pay. Employees with at least one year of continuous service are generally entitled to redundancy pay calculated according to their years of service, in addition to any accrued leave entitlements.

Note: Employment law is complex and changes regularly. Always seek advice from a qualified employment lawyer or HR specialist to ensure your specific process is compliant before proceeding.

Planning the Process: What to Do Before the Conversation

A well-handled redundancy begins long before the affected employee walks into the room. The preparation you do – and the decisions you make – in the lead-up to the notification conversation will significantly shape how the process unfolds.

Confirm the decision is final and documented. Before notifying the employee, ensure the business case for the redundancy is clear, documented, and defensible. Who decided, why, and when? Is there any possibility of redeployment? These questions need answers before you have the conversation.

Consider the timing carefully. Where possible, avoid notifying someone of a redundancy on a Friday afternoon, before a public holiday, or immediately before a significant personal event you may know about. The person needs support systems available to them – giving someone a redundancy notice at a time when they cannot reach their support network, their GP, or their financial adviser is unnecessarily cruel.

Prepare the notification conversation. Know what you are going to say, who will be in the room, and what documentation you will provide. The employee should receive written confirmation of the redundancy, their entitlements, and any next steps at the time of or immediately following the notification conversation.

Have support ready. Know what support you are offering before you walk into the room. This includes Employee Assistance Program (EAP) details and, ideally, an outplacement support package. Being able to tell someone “we have arranged professional career support for you” in the same conversation as the redundancy news is a meaningful act of care.

Brief only those who need to know. Redundancy information is deeply sensitive and private. Ensure only the people who absolutely need to know are informed before the notification – and that confidentiality is maintained until the appropriate time.

The Notification Conversation: How to Have It With Care

The notification conversation is the moment that will be most vividly remembered by the employee – and by the colleagues who witness how it is handled. Here is how to approach it with the care and dignity it deserves.

Choose the right people. The conversation should involve the employee’s direct manager and, where appropriate, an HR representative. Avoid having too many people in the room – it can feel confrontational and overwhelming.

Choose the right setting. A private, comfortable room where the conversation cannot be overheard. Never deliver a redundancy notice in a shared space, via email, or over a group video call.

Be direct and clear. Be honest about what is happening and why. Avoid corporate language and euphemisms that obscure the reality of the situation. The employee deserves to understand clearly what is happening, what their entitlements are, and what happens next.

Allow time and space for a reaction. People respond to redundancy news in different ways – some are quiet and composed, others become emotional, some become angry. All of these responses are valid. Allow the person time to process, respond, and ask questions. Do not rush to fill every silence or move too quickly through the agenda.

Do not over-explain or over-justify. Provide a clear, honest reason for the redundancy and then stop. Delivering an extended business case while someone is in shock and distress is rarely helpful and can come across as defensive.

Provide written confirmation. Ensure the employee leaves with written documentation of the redundancy, their entitlements, and any next steps. They will not remember everything that was said in the conversation – having it in writing is both respectful and practically necessary.

Offer immediate support. Share EAP contact details and let them know what outplacement support is available. If they would like to take the rest of the day – or the day – that is understandable and should be offered where possible.

The Critical First 24 to 48 Hours

The period immediately following a redundancy notification is often the most emotionally intense for the individual. They are processing shock, uncertainty, and a range of difficult emotions – often alone, once they have left the building.

This is why the first 24 to 48 hours matter so much in terms of the support you provide:

• Ensure EAP details have been communicated and that the employee knows they can access support immediately
• If outplacement support has been arranged, ensure the outplacement provider is briefed and ready to make contact promptly – ideally within the first day
• Have a plan for how the individual will communicate their departure to their team – do not leave this undefined, as uncertainty and rumour are damaging for everyone
• Check in personally where appropriate – a brief, genuine message from their manager acknowledging the difficulty of the situation can be meaningful and should not be underestimated

Supporting the Team That Remains

One of the most overlooked aspects of redundancy management is the impact on the employees who stay. Witnessing a colleague’s redundancy – especially if it is not handled sensitively – can trigger significant anxiety, disengagement, and a loss of trust in leadership.

Surviving employees often ask themselves: could this happen to me? They may feel guilt about still having a job when a colleague does not. They may be managing increased workloads as a result of the restructure. And they are watching closely to see how leadership handles the situation.

To support your remaining team:

Communicate openly and honestly. Where possible, share the reasons for the restructure and what it means for the future of the business. People can generally handle difficult truths – what erodes trust is silence, evasiveness, or information that trickles out informally through rumour.

Acknowledge the impact. Give the team space to process the change. A brief team conversation that acknowledges the difficulty of the situation – without breaching the departing employee’s privacy – goes a long way.

Address workload concerns promptly. If the redundancy means increased pressure on remaining team members, have a plan to address this. Unacknowledged additional workload is one of the fastest routes to disengagement and further attrition.

Demonstrate genuine care. The way you treated the departing employee is now part of your team’s lived experience of what it is like to work for you. Make sure the story they are telling themselves – and each other – is one they can feel proud of.

The Role of Outplacement Support

Outplacement support is professional career assistance provided by the employer to help a departing employee transition successfully into new employment. It is one of the most meaningful and practical things you can offer as part of a redundancy package – and one of the most underutilised.

A quality outplacement program gives the individual:

• Professional career coaching to help them process the transition and develop a clear strategy
• A professionally written resume, cover letter, and LinkedIn profile
• Job search strategy and coaching – including access to the hidden job market
• Interview preparation and practice
• Support through every stage of their transition until they secure a new role

For the employer, outplacement support demonstrates genuine care for the departing employee, protects your employer brand, reduces the likelihood of a redundancy becoming adversarial, and gives you confidence that the person you have had to let go is being properly supported.

At Transform Career Services, we offer two tailored outplacement packages – Silver ($850 per employee) and Gold ($1,150 per employee) – both delivered one-on-one by Melissa Dixon and available in person in Canberra or via video conference for employees located anywhere in Australia.

A Redundancy Checklist for HR Managers and Business Owners

Before, during, and after a redundancy process, use this checklist to ensure nothing important is missed:

Before notification:

•  Business case documented and legally reviewed
•  Redeployment options genuinely considered
•  Consultation obligations identified and planned for
•  Notification conversation planned – who, where, when
•  Written documentation prepared – notice, entitlements, next steps
•  EAP details ready to provide
•  Outplacement support arranged
•  Confidentiality maintained

During notification:

•  Private setting confirmed
•  Clear, direct, and compassionate delivery
•  Time allowed for the employee to respond
•  Written documentation provided
•  EAP and outplacement support communicated
•  Plan for immediate next steps discussed

After notification:

•  Follow-up check-in planned
•  Outplacement provider briefed and contact initiated
•  Team communication plan in place
•  Remaining team supported and informed appropriately
•  Workload and operational impacts addressed

Final Thoughts

Redundancy will never be easy. But it can be handled with honesty, dignity, and genuine care – and when it is, the impact on the individual, the remaining team, and the organisation is fundamentally different.

The organisations that get this right are not the ones with the most sophisticated HR processes. They are the ones whose leaders genuinely believe that how you treat people – especially at their most vulnerable – is a reflection of who you are.

If your organisation is navigating a redundancy process and you would like support with outplacement services, or if you simply want to talk through your approach, Transform Career Services is here to help.

Get in touch today to discuss how we can support your organisation and your people through this process.

transformcareerservices.com.au/contact-us

Melissa is the founder of Transform Career Services, a Canberra-based career consulting practice specialising in outplacement support, career coaching, talent assessments, and professional development. With over 13 years of experience in recruitment management and HR, Melissa partners with organisations across Australia to support their people through career transitions with care and expertise.