Based on what you've told us, it looks like you're covered by the Building and Construction General On-site Award 2010 [MA000020].
A person under the Building and Construction Award is redundant if:
This means an employer has to pay redundancy when an employee is dismissed or they resign. This includes small business employers.
An employer has to pay out the following minimum redundancy pay:
|Period of continuous service
|Less than a year
||1.75 hours for each completed week of service (doesn't apply if the employee resigns)
|1 year but less than 2 years
||2.4 weeks pay plus 1.75 hours for each completed week of service in the second year (capped at 4.8 weeks)
|2 years but less than 3 years
||4.8 weeks pay plus 1.6 hours for each completed week of service in the third year (capped at 7 weeks)
|3 years but less than 4 years
||7 weeks pay plus 0.73 hours for each completed week of service in the fourth year (capped at 8 weeks)
|4 years or more
||8 weeks pay
A weeks pay is the ordinary time pay rate an employee was being paid when their employment ended.
Any outstanding entitlements also need to be paid out – including annual leave and long service leave that the employee hasn't taken.
Any period of casual service with the employer will not count towards years of service for calculating redundancy entitlements.
An employer can make contributions to a redundancy pay scheme to offset an employee’s redundancy pay entitlement. Check the Building and Construction Award for information on redundancy pay schemes.
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
|Less than 1 year
|1 - 3 years
|3 -5 years
|Over 5 years
Employees over 45 years old who have worked for the employer for at least 2 years get an extra 1 week notice.
Apprentices and redundancy pay
Apprentices aren't entitled to redundancy while they’re under a training contract.
An employee who has finished their apprenticeship is entitled to redundancy. Their years as an apprentice will be counted when calculating redundancy pay and notice amounts if:
- their employer kept them on for a further 12 months after the apprenticeship was completed or
- they were terminated at the end of their apprenticeship but rehired with the same employer within 6 months.
Other redundancy entitlements
The redundancy entitlements below apply to all employees covered by the Building and Construction Award.
Looking for a new job during the notice period
An employee who has received notice of redundancy is allowed at least 1 paid day off, to look for another job.
The time off is to be taken at times that are convenient to the employee after consultation with their employer.
Employee leaving during the notice period
An employee who has received notice of redundancy can leave their job during their notice period.
The employee still has to get the redundancy pay and other entitlements they would have received if they had remained in their job until the end of the notice period.
They aren't entitled to payment for the remaining notice period they didn't work.
To find out more about training contracts, go to Apprentice and trainee pay rates.
To find out more about who this award applies to, go to the Building and Construction Award summary.
Source reference: Building and Construction General On-site Award 2010 [MA000020] clause 15.2(e) and 17