The closure announcement needs the applicable employee consultation process

The announcement is drafted before the process is checked

A hypothetical company prepares a short announcement telling employees that closure makes their roles redundant. Management has checked the approximate payroll balance but has not reviewed consultation requirements. Obtain employment advice before implementing the plan. A clear financial reason for closing does not, by itself, explain what the applicable award or enterprise agreement requires the employer to discuss and consider.

Find the relevant employment instruments

Identify the award or agreement applying to each affected group and give the documents to the employment adviser. Explain what has already been decided, announced or discussed. Do not assume one process covers every worker because they share a premises. Keep the actual sequence visible so advice addresses the current position rather than a tidier version of events.

Understand the purpose of consultation

Fair Work Ombudsman's redundancy guidance describes consultation requirements in awards and agreements, including information, discussion of effects and consideration of employee suggestions. Ask the adviser to identify the applicable steps and timing. This article does not decide whether a redundancy is genuine or prescribe a universal consultation script. The relevant obligations need assessment before the business treats an announcement as a completed process.

Source: Fair Work Ombudsman: Redundancy

Prepare information people can respond to

In the hypothetical example, identify the proposed changes, affected work and practical consequences accurately. Arrange the appropriate opportunity for employees and any representatives to raise questions or alternatives under the advised process. Avoid presenting an unverified payment estimate as settled fact. If information is not yet available, state that clearly and assign responsibility for obtaining it.

Consider and record the response

Keep a factual record of suggestions, questions and how management addresses them. Do not label a discussion consultation if nobody will consider what is raised. Equally, do not promise that every suggestion will be adopted. Ask the adviser how to document the process and communicate the outcome appropriately, particularly where the closure timetable or proposed arrangements change.

Coordinate employment and insolvency advice

Where the business cannot meet its obligations or a practitioner is involved, align the employee process with the proper authority and advice. CRP can help organise the commercial background. The useful decision is how the company carries out the consultation that applies to its employees, rather than assuming that a final announcement and an entitlement spreadsheet complete every closure responsibility.