Based on what you've told us, it looks like you're covered by the Security Services Industry Award 2010 [MA000016].
An employer (other than a small business employer) has to pay out the following minimum redundancy pay:
|Period of continuous service
|At least 1 year but less than 2 years
|At least 2 years but less than 3 years
|At least 3 years but less than 4 years
|At least 4 years but less than 5 years
|At least 5 years but less than 6 years
|At least 6 years but less than 7 years
|At least 7 years but less than 8 years
|At least 8 years but less than 9 years
|At least 9 years but less than 10 years
|At least 10 years
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 Security Award. Find out what a small business is on Who doesn’t get redundancy pay?
Redundancy pay is also paid on the change of a security services contract from 1 security 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 security services contract when an employee of the outgoing contractor:
- agrees to other acceptable employment with the incoming contractor
- is paid their accrued entitlements on termination, such as wages and annual leave by the outgoing contractor.
Check the Security Award for information on what an employer has to do when they decide to change or give up a security services 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
- 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.
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
|1 year or less
|More than 1 year - 3 years
|More than 3 years - 5 years
|More than 5 years
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 Security 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 up to 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 Security Award summary.
Source reference: Security Services Industry Award 2010 [MA000016] clauses 11 and 12