Redundancy case law; fewer numbers required

A decision by an employer to reduce the number of employees required for its operations is perhaos the most classic case of genuine redundancies.

“Where an employer realises that it has too many workers doing a particular function, and that it can and should operate with fewer, this realisation is itself a change in the operational requirements (see Shachar v Electrical Home Aids Pty Ltd t/a Godfreys [2018] FWC 4892 at [27] – [30]). It is not necessary that there be some external factor. In the present case however there clearly was one, which in broad terms was the precarious financial position of the group. “

Dlima v Receivables People Solutions Pty Ltd, t/a ARL Collect  [2024] FWC 1520 delivered 12 June 2024 per Colman DP