Redundancy is when employment is terminated due to the job no longer being needed or because the employer becomes insolvent/bankrupt. It can also happen when the business:
For genuine redundancy to be considered, the termination of employment must meet the above criteria, if your employment is terminated for any of the reasons listed under reasons for unfair dismissal, it may be unfair dismissal.
If you have been made redundant, but believe it is unfair dismissal, you should speak to Kingsford Lawyers as soon as possible to help determine the nature of the end of your employment.
Redundancy pay is a payment made to an employee that has been made redundant. According to Section 119 of the Fair Work Act 2009 (the Act), an employee is entitled to receive redundancy pay if the employer terminates the employee’s employment due to redundancy.
As per the National Employment Standards (NES), an employer must provide an employee with a minimum period of notice or payment in lieu of notice before terminating their employment. All employees working under Commonwealth workplace laws are entitled to redundancy payments or severance payments up to a maximum of 16 weeks’ pay under the NES if:
Employees may not be entitled to redundancy pay under the NES which includes:
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
| At least 6 years but less than 7 years | 11 weeks |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks* |
* There is a reduction in redundancy pay from 16 weeks to 12 weeks for employees with at least 10 years of continuous service. This is consistent with the 2004 Redundancy Case decision made by the Australian Industrial Relations Commission.
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