Losing your job due to redundancy can be stressful, but knowing your rights can make a big difference. In Australia, redundancy payments are a legal entitlement for many workers, designed to provide financial support during the transition to new employment. Here’s what you need to know.
What Is Redundancy Payment?
Redundancy payment is financial compensation paid to an employee whose job is no longer required by the employer. Redundancy usually happens when:
- The business restructures or downsizes
- Technology changes reduce the need for certain roles
- The company closes or relocates
Redundancy is not the same as dismissal for performance or misconduct. It is about the role being eliminated, not the person.
How Much Are You Entitled To?
Under the Fair Work Act, redundancy pay depends on your length of continuous service with the employer.
- Less than 1 year of service: No redundancy pay is required.
- 1-2 years: 4 weeks’ pay.
- 2-3 years: 6 weeks’ pay.
- 3-4 years: 7 weeks’ pay.
- 4-5 years: 8 weeks’ pay.
- 5-6 years: 10 weeks’ pay.
- 6-7 years: 11 weeks’ pay.
- 7-8 years: 13 weeks’ pay
- 8-9 years: 14 weeks’ pay.
- 9-10 years: 16 weeks’ pay.
Your redundancy pay is calculated based on your base rate of pay for ordinary hours of work. Some awards or enterprise agreements may provide even better entitlements.
What If an Employer Does Not Provide Redundancy Payment?
If your employer refuses to pay redundancy when you are entitled to it, they are breaching workplace laws. You can:
- Request written reasons for the decision
- Check your award or agreement for additional entitlements
- Contact the Fair Work Ombudsman for assistance
- Seek union support for representation and advice
Employers who fail to comply can face penalties, so it’s important to act quickly to ensure your rights are protected.
What to Do If Your Job Is Redundant?
Redundancy can be a stressful moment, but it can be addressed professionally and in a way that still protects your rights. Consider these action steps:
- Confirm your entitlements under the Fair Work Act and your workplace agreement.
- Ask about notice periods and unused leave payouts (annual leave and long service leave).
- Update your resume and start job searching early.
- Seek financial advice to manage the transition.
Seeking Support in Times of Redundancy
Unions all over Australia are continuously pushing for fairer conditions for all employees. If you or someone you know has lost their job due to redundancy, your local union can provide support and guidance on what to do next. This includes ensuring you receive your proper redundancy payments and transitioning to another career.
