Are you entitled to Redundancy Pay?
An employee is entitled to be paid redundancy pay by an employer if the employer no longer requires the job done by the employee to be done by anyone or because of the insolvency or bankruptcy of the employer.
However, not all workers are entitled to redundancy pay. Workers that have no right to redundancy pay include those employees who:
- Have been employed for a continuous period of less than 12 months;
- Work in a small business;
- Fall under an industry-specific modern award that specifies situations where redundancy pay does not apply to termination of an employee’s employment;
- Are part of an enterprise agreement containing redundancy arrangements;
- Have been hired for a specific task, a particular period or for a specific season;
- Have been terminated due to serious misconduct;
- Are casual workers; and
- Are apprentices.
Redundancy Pay Rates
The amount of redundancy pay depends on your length of employment. The table below set outs your entitlement to your gross ordinary earnings for the same period.
|Length of Employment||At least||Less than|
|1 year||2 years||4 weeks|
|2 years||3 years||6 weeks|
|3 years||4 years||7 weeks|
|4 years||5 years||8 weeks|
|5 years||6 years||10 weeks|
|6 years||7 years||11 weeks|
|7 years||8 years||13 weeks|
|8 years||9 years||14 weeks|
|9 years||10 years||16 weeks|
|At least 10 years||12 weeks|
The Fair Work Commission also has powers to reduce the amount of redundancy pay payable by an employer, upon application by the employer to the Commission. This may be due to the employer’s inability to pay the redundancy amount to the employee or if the employer obtains other acceptable employment for the employee. The Commission may in fact reduce the amount to nil.
You’ll find that the team at Conditsis Lawyers is here to demystify your employment issues.