From www.claytonutz.com: The Federal Court of Australia ruled in Baya Casal v Deputy Commissioner of Taxation that an employee’s termination due to a significant reduction in working hours and remuneration, despite similar duties, constitutes a genuine redundancy under the Income Tax Assessment Act 1997 (ITAA 1997).

This decision reinforces that a job is considered redundant if the employer no longer requires it to be performed in its previous capacity, highlighting that both working hours and pay are critical components in assessing redundancy.

Employers must therefore evaluate any material changes in an employee’s role carefully to determine redundancy obligations under the National Employment Standards and relevant agreements.