Redundancy pay & entitlements

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

Use our Notice and Redundancy Calculator to calculate redundancy pay.

Redundancy pay doesn't need to be paid in some circumstances eg. by some small businesses and to casual employees. To find out when redundancy doesn't need 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.

Another Award

Employers have to give at least the minimum notice and redundancy entitlements set out below.

An award can say that employees get more notice and redundancy than these minimums. Use our Notice and Redundancy Calculator to work out if your award has more generous entitlements.

Period of continuous service Redundancy pay
At least 1 year but less than 2 years 4 weeks
At least 2 years but less than 3 years 6 weeks
At least 3 years but less than 4 years 7 weeks
At least 4 years but less than 5 years 8 weeks
At least 5 years but less than 6 years 10 weeks
At least 6 years but less than 7 years 11 weeks
At least 7 years but less than 8 years 13 weeks
At least 8 years but less than 9 years 14 weeks
At least 9 years but less than 10 years 16 weeks
At least 10 years 12 weeks

Redundancy pay is paid at the employee's base pay rate for their ordinary hours of work, but doesn't include:

  • incentive-based payments and bonuses
  • loadings
  • monetary allowances
  • overtime or penalty rates
  • any other separately identifiable amounts.

Any outstanding entitlements also need to be paid out – including annual leave and long service leave that the employee hasn't taken.

Notice periods

An employer has to give the following minimum notice periods when making an employee's job redundant. If the notice period isn't worked, this is paid out as well as the redundancy pay.

Period of continuous service Notice
Less than 1 year 1 week
1 - 3 years 2 weeks
3 -5 years 3 weeks
Over 5 years 4 weeks

Employees over 45 years old who have worked for the employer for at least 2 years get an extra 1 week notice.

If you're covered by a registered agreement, check the terms of your agreement for information. To find a registered agreement, go to the Fair Work Commission website external-icon.png.

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Employees who were made redundant before 31 December 2014 may have been entitled to more generous redundancy pay under an old award. If you think this may apply to you or for more information, Contact us.

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.

For more information, check the 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 starting from the day after you were dismissed 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:

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