Who doesn't get redundancy pay?

Some employees don’t get redundancy payments when their job is made redundant.

The following employees don’t get redundancy pay:

  • employees whose period of continuous service with the employer is less than 12 months
  • employees employed for:
    • a stated period of time
    • an identified task or project
    • a particular season
  • employees terminated because of serious misconduct
  • casual employees
  • trainees engaged only for the length of the training agreement
  • apprentices.

There are special arrangements for employees whose employment transfers when the business they work for is sold. Find out more on our When businesses change owners page.

Employees of small businesses

A small business is one that employs fewer than 15 employees. Some small businesses don’t have to pay redundancy pay when making an employee redundant.

To see if small businesses need to pay redundancy pay, select your industry in Redundancy pay and entitlements.

To figure out whether the business is a small business, count:

  • all permanent employees employed at the time of the redundancy
  • the employee and any other employees being terminated at that time
  • regular and systematic casual employees employed by the business at the time of the redundancy (not all casual employees)
  • employees of associated entities.

The size of the business is counted the earliest of:

  • when the employee is told their employment will be terminated, or
  • when the employee is given their notice of termination.

Source reference: Fair Work Act 2009 (Cth) sections 121 and 123 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 from the day you were sacked 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:

What to do next

  • Visit Notice and final pay for information on final payments to employees
  • Visit the ATO external-icon.png to learn about redundancy tax payments

Want to save this information for later?

If you might need to read this information again, save it for later so you can access it quickly and easily.

You might also be interested in

Page reference No: 2069