Redundancy pay & entitlements

When an employee's job is made redundant their employer has to give them redundancy pay, also known as severance pay.

Redundancy pay doesn't need to be paid in some circumstances, for example by some small businesses and to casual employees.

To check if redundancy pay needs to be paid, go to Who doesn't get redundancy pay.

Redundancy pay

The amount of redundancy pay the employee gets is based on their continuous service with their employer. Continuous service is the length of time they are employed by the business and doesn't include unpaid leave.

If you're covered by a registered agreement, check the terms of your agreement for information about how much redundancy needs to be paid out and other entitlements. To find a registered agreement, go to the Fair Work Commission website external-icon.png.

Find information about specific redundancy entitlements in your award by selecting from the list below.

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For preserved redundancy pay entitlements under a NAPSA or Division 2B State award, go to Additional redundancy pay.

Reducing redundancy pay

An employer can apply to the Fair Work Commission to have the amount of redundancy they have to pay reduced if:

  • the employer finds other acceptable employment for the employee, or
  • the employer can't afford the full redundancy amount.

The application has to be made before the employee is made redundant. For more information check application to vary redundancy pay form on the Fair Work Commission website external-icon.png.

Think a mistake might have been made?

For employees:

If you’ve lost your job, contact the Fair Work Commission (the Commission) first if you think you were sacked because of:

  • discrimination
  • a reason that is harsh, unjust or unreasonable
  • another protected right.

You have 21 days from the day you were sacked to lodge an application with the Fair Work Commission. Check the information at the Commission website to find out if you can apply for:

If you think you haven’t been paid everything you’re owed:

  • read about Notice and final pay to find out what you should get
  • see our Help resolving workplace issues section for practical advice on:
    • talking to your employer about fixing your notice and final pay if it’s wrong
    • getting help from us if you can’t resolve it.

​For employers:

What to do next

  • Check Dismissal - how much notice? for any longer minimum notice periods that apply
  • Visit the ATO external-icon.png to learn about redundancy tax obligations
  • Learn more about what is included in Final pay when employment ends

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