Redundancy occurs when an employer decides that the job an employee has been doing is no longer needed.
Redundancy can be described as the situation where an employer no longer requires employees to carry out work of a particular kind or to carry out work of a particular kind at the same location.
Redundancy refers to a job becoming redundant and not an employee becoming redundant. Some common circumstances include:
- New technology or a new system has made your job unnecessary,
- The job you were hired for no longer exists,
- The need to cut costs means staff numbers must be reduced,
- The business is closing down or moving.
What are my entitlements?
When you are made redundant you may be entitled to a redundancy payment.
Redundancy payment amounts may be specified in your employment contract, award or EBA. The National Employment Standards provides usual redundancy payments as follows:
|Redundancy pay period|
|Employee’s period of continuous service with the employer on termination||Redundancy pay period|
|1||At least 1 year but less than 2 years||4 weeks|
|2||At least 2 years but less than 3 years||6 weeks|
|3||At least 3 years but less than 4 years||7 weeks|
|4||At least 4 years but less than 5 years||8 weeks|
|5||At least 5 years but less than 6 years||10 weeks|
|6||At least 6 years but less than 7 years||11 weeks|
|7||At least 7 years but less than 8 years||13 weeks|
|8||At least 8 years but less than 9 years||14 weeks|
|9||At least 9 years but less than 10 years||16 weeks|
|10||At least 10 years||12 weeks|
Small Business Employees are generally not entitled to redundancy payments. Redundancy payment is usually made over and above your usual notice period.
Calculating redundancy payments can be complex. Your redundancy entitlements be different to those outlined above. To check if your redundancy payment is right, contact the Fair Work Ombudsman on 13 13 94 or visit their website: http://www.fairwork.gov.au.
Am I able to seek compensation if I have been made redundant?
If your redundancy does not comply with the letter of the law, you may be able to seek compensation above and beyond your basic entitlements.
In some cases you may be eligible to file an Unfair Dismissal claim. If you believe that your position has been filled by somebody else and/or the redundancy process was not properly followed, you may have a non-genuine redundancy. To lodge an unfair dismissal claim in these circumstances, you still need to be covered by unfair dismissal legislation. For more information, see our page on unfair dismissal or give us a free phone call on our toll free number: 1800 333 666
In some circumstances your redundancy may form part of a General Protections claim or Unlawful Dismissal claim. This occurs when the reason that your employment has been terminated includes a prohibited reason such as age, sex, race, sexual preference, marital status, disability or illness or injury. A General Protections claim may arise if you have been made redundant because you exercised your workplace rights, such as lodging a WorkCover claim, taking sick leave, reporting underpayment of wages, or reporting an Occupational Health and Safety Hazard. Call today for a free no obligation discussion.
If you do not believe your redundancy is genuine or it was contrived to get rid of you or you see your job in the paper or the internet call us today.
We can challenge your so-called redundancy.
Redundancies can be a complicated area of industrial relations, and many employees find it difficult to put forward their argument on a topic they likely have no prior experience dealing with. We have the energy to fight for your rights, and the expertise to make sure we get the best possible outcome for you. Most importantly, we work towards quick settlements to give you closure and a sense of justice.
You sometimes need someone to fight for you…
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