“The role isn’t ‘redundant’ – we still need the employee, just for fewer hours.”
When business demand falls, employers often assume that reducing a part-time employee’s hours is straightforward and low risk. Indeed, compared with full-time roles, part-time work does offer more flexibility, but that flexibility is not unlimited.
In some circumstances, reducing a part-time employee’s hours is lawful and uncontroversial. In others, it can amount to a contractual breach, dismissal, or redundancy, with the same legal consequences that arise for full-time employees. The difference between those two outcomes often comes down to one thing: whether you’re touching guaranteed minimum hours.
Part-time work is still contractual
Unlike casual employees who have no guaranteed hours and are engaged on an as-needed basis, a part-time employee has a fixed, predictable arrangement. A part-time employee has guaranteed minimum hours and a regular pattern of work, set out in their contract and often reinforced by a modern award or enterprise agreement. Those minimum hours are a fundamental term of employment. Reducing them isn’t just an operational decision, it’s a change to the contract itself.
The critical distinction: minimum hours vs additional hours
Reducing hours above the guaranteed minimum is usually low risk, provided minimum hours are preserved and award obligations are met. Reducing guaranteed minimum hours is much riskier and generally requires the employee’s agreement.
Think of it this way: if an employee is contracted for 20 hours per week but regularly works 25, you may have flexibility around those extra five hours. The 20 are a different matter entirely.
Can a part-time role be redundant?
Yes, and this surprises many employers. Redundancy depends on whether the job is no longer required in its existing form. If a part-time role is no longer required at its current minimum hours and agreement cannot be reached, redundancy obligations may arise. That means notice periods, redundancy pay, and consultation obligations, even if the employee continues working in a reduced capacity.
Awards matter
Modern awards often impose strict rules around part-time hours, written agreements, consultation and notice. Many employers aren’t aware of how prescriptive these obligations can be. Failing to comply can lead to underpayment and penalty exposure. This is an area where getting the process right upfront is significantly cheaper than defending a claim later.
Reasonable directions
Directions about changing when work is performed may sometimes be reasonable. For example, adjusting a start time or shifting a work day. Reducing guaranteed hours almost never is.
How we can help
We assist employers to manage reduced demand lawfully and pragmatically. We review contracts and awards, advise on lawful reductions, structure compliant arrangements, manage redundancy risk, and assist if disputes arise. If you’re facing a drop in demand and aren’t sure where you stand, a short conversation now can prevent a much more costly one later. Get in touch with us to know more about your options. Call us on 1300 882 386 or email us.
The information contained in this post is current at the date of editing – 8 April 2026.