Redundancy

From 1 January 2010, the National Employment Standards (NES) replace the non pay rate provisions of the Australian Fair Pay and Conditions Standard (the Standard). Under the NES, the rules relating to redundancy and redundancy pay are modified.

What's redundancy?

Redundancy under the NES happens when an employer either:

  • decides they no longer want an employee’s job to be done by anyone and terminates their employment (except in cases of ordinary and customary turnover of labour), or
  • becomes insolvent or bankrupt.

Note: What constitutes ordinary and customary turnover of labour will depend on the relevant circumstances.

Redundancy may happen when:

  • the job someone has been doing is replaced due to the employer introducing new technology (i.e. it can be done by a machine)
  • business slows down due to lower sales or production
  • the business relocates
  • a merger or takeover happens
  • the business restructures or reorganises.

Government support

The Department of Human Services website External link icon has information on the government support available for individuals that have been made redundant. This includes information on eligibility and waiting periods.

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Page last updated: 18 Feb 2013