Redundancy Pay Entitlements: Who Qualifies and What You Get
Learn if you are eligible for a payout if your job is made redundant and understand the rules regarding small business exemptions.
Redundancy pay is a lump sum payment you may receive if your employer no longer needs your specific job to be performed by anyone else. This is often referred to as severance pay.
Who it's for
This scheme is specifically for employees who have completed at least one year of continuous service with their employer. If you have been with your employer for less than one year, you generally will not qualify for this specific statutory payout.
What you get
If you meet the service requirements, you are entitled to a statutory payout. The specific amount of this payout is not a fixed single number for everyone; instead, it is calculated based on your total length of service with the company. The longer you have been employed, the higher the payout amount should be.
What it costs you
There is no cost to you to claim these entitlements. You do not need to pay a fee to access this information or to request what you are owed by law.
The catch to know
The most important thing to understand is the exemption for small businesses. If your employer is considered a small business—meaning they employ fewer than 15 employees—they are often exempt from the requirement to provide this redundancy pay. Always check the size of the workforce at your workplace to see if this rule applies to your situation.
How to apply
- Review your employment records to confirm exactly how long you have been employed.
- Determine the total number of employees working for your employer to check for small business exemptions.
- Calculate your expected payout based on your years of service and the rules provided by the official government body.
- Discuss the redundancy with your employer to ensure your entitlements are being met.
- If there is a dispute, contact the Fair Work Ombudsman for guidance.