What is redundancy? When employee’s job is made redundant, they may get extra pay when their
employment ends based on how long they have worked with the employer. This is known as severance or
redundancy pay. Redundancy can happen when the role an employee has been
doing, is no longer required; like in a business restructure or when
the business closes and stops operating. To be eligible for redundancy pay; an
employee needs to be: full time or part time, employed by a business that has at
least 15 employees at the time of the redundancy and employed for at least one
year with that employer. Employees are not entitled to redundancy pay if they: are a casual employee, are employed by business with less than 15 employees or
have less than one year of service with that employer. Employees are not entitled to
redundancy pay if: they are employed for a specific period of time, task or season, are dismissed because of serious misconduct, are a trainee, employed only for length of your training contract, or are an
apprentice. Under the National Employment Standards; redundancy pay starts at four weeks’
pay for employees with a least one year’s service. An award or
agreement might provide more redundancy pay. For more information on redundancy
visit www.fairwork.gov.au/redundancy. or to work out how much redundancy pay
you’re entitled to Visit www.fairwork.gov.au/PACT