Redundancy Payment: Understanding Your Entitlements & Calculating What You're Owed

Being made redundant can be a stressful experience, and navigating the complexities of redundancy pay can add to the burden. This article aims to provide clarity on your entitlements and help you calculate what you're owed.

What is Redundancy?

Firstly, let's define what is redundancy and redundancy meaning. A genuine redundancy occurs when your employer no longer requires your job to be done by anyone, or when your employer becomes insolvent or bankrupt. This means your position is eliminated, not simply that you are being replaced.

Am I Entitled to Redundancy Payment?

In Australia, your entitlement to redundancy pay depends on several factors, including:

• Your employment status: Full-time and part-time employees are generally entitled to redundancy pay, while casual employees are usually not (unless they have been employed on a regular and systematic basis for a significant period).

• Length of service: You must have worked for your employer for at least 12 months continuously to be eligible for redundancy pay under the National Employment Standards (NES).

• The reason for your redundancy: Your redundancy must be genuine, meaning your job no longer exists.

  
  

How is my Redundancy Payment Calculated?

The redundancy payment calculator uses a formula based on your continuous service with your employer and your base rate of pay. The NES provides a minimum entitlement, but you may be entitled to more under your award, enterprise agreement, or employment contract.

To get a quick estimate, you can use an online redundancy calculator. However, it's crucial to confirm your exact entitlements with your employer or seek professional advice.

Outplacement Services: A Helping Hand from Your Employer

In addition to redundancy pay, some employers offer outplacement services as an extra support measure to help you transition to your next opportunity. These services can include resume writing, career counselling, job search assistance, and even guidance for starting your own business. Be sure to inquire with your employer about the availability of outplacement services.   They may have an existing provider for these services.  They may also be willing to allow you to select your own provider for these services.

Where Can I Find More Information?

The Fair Work Ombudsman website is an excellent resource for understanding your rights and entitlements. Here are some relevant links:

• Redundancy Pay and Entitlements: https://www.fairwork.gov.au/ending-employment/redundancy/redundancy-pay-and-entitlements

• Notice and Redundancy Calculator: https://www.fairwork.gov.au/ending-employment/notice-redundancy-calculator

State-Specific Information

Redundancy pay entitlements can vary slightly between states. Some reasons include:

• Awards and enterprise agreements: While the Fair Work Act 2009 provides a national framework for redundancy pay, specific entitlements can be influenced by industrial awards and enterprise agreements that operate at the state or industry level. These agreements may offer more generous redundancy packages than the national minimum standards.   

• State legislation: Some states and territories have their own legislation that may provide additional redundancy entitlements or protections for workers in specific industries or circumstances.   

• Length of service: The amount of redundancy pay an employee receives is typically calculated based on their length of continuous service with the employer.

• This calculation can differ slightly between states and be influenced by relevant awards or agreements.   

Fairwork.gov.au has links to explain the detail.

What if I Disagree with My Redundancy Pay?

If you believe you have not been paid the correct amount of redundancy pay, you should first try to resolve the issue with your employer. If this is unsuccessful, you can contact the Fair Work Ombudsman for assistance or seek legal advice.

Remember: Understanding your entitlements is crucial during a redundancy. Don't hesitate to seek help and ensure you receive what you are owed.