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. Read about whether casual service counts for redundancy pay in our Library.

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.

Cleaning Award

Based on what you've told us, it looks like you're covered by the Cleaning Services Award 2010 [MA000022].

An employer (other than a small business employer) has to pay out the following minimum redundancy pay:

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

Employees with less than 12 months service don’t get redundancy pay (but they do get notice).

Small business employers don’t have to pay redundancy pay under the Cleaning Award. Find out what a small business is on Who doesn’t get redundancy pay?

Redundancy pay is also paid when a cleaning contract changes from one cleaning contractor (outgoing contractor) to another (incoming contractor), when an employee is:

  • employed by an outgoing contractor
  • not offered acceptable employment with the outgoing contractor or the incoming contractor.

Redundancy pay isn't paid on the change of a cleaning contract when an employee of the outgoing contractor:

  • agrees to other acceptable employment with the incoming contractor
  • is paid their minimum notice period and their accrued entitlements, such as wages and annual leave by the outgoing contractor.

Check the Cleaning Award for information on what an employer has to do when they decide to change or give up a cleaning contract.

Rate of pay for redundancy pay

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
1 year or less 1 week
More than 1 year - 3 years 2 weeks
More than 3 years - 5 years 3 weeks
More than 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.

Other redundancy entitlements

The redundancy entitlements below apply to all employees covered by the Cleaning Award.

Transfer to lower paid duties

If an employee is transferred to a lower paid job because of redundancy, they're entitled to either:

  • receive notice for the transfer or
  • be paid out their notice period, if the employer chooses to (the payment should be based on the difference in pay between the employee's redundant job and their new job).

If an employee accepts a transfer to a lower paid job, they're not entitled to redundancy pay. If an employee refuses a transfer to a lower paid job and their employment ends, they're entitled to redundancy pay.

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.

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 per week of notice, to look for another job.

If the employee has been allowed paid leave for more than 1 day they must provide proof of attendance at an interview (eg. a statutory declaration), if the employer requests it.

To find out more about who this award applies to, go to the Cleaning Award summary.

Source reference: Cleaning Services Award 2010 [MA000022] clause 14 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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