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Redundancy occurs when the work performed by an employee is no longer required to be done by anyone.

This can happen because:

  • the job is replaced by technology
  • the business is restructured and the job no longer exists
  • the business can no longer afford to retain the employee due to economic circumstances.

Most awards require employers to consult with their employees or their representatives if the redundancies are going to occur as a result of the workplace being restructured.

Suggestions put forward by employees to discuss the changes and ways to avoid redundancy, such as re-training (for a different job within the organisation) or re-deployment (changing job roles) should be considered by the employer.

Termination or severance pay

Severance pay can apply if you are a full-time or part-time worker who has been with the employer for over one year and your employer has 15 or more workers.

The amount of severance pay is based on how long you have worked for that employer.

At the time of termination, the employer should pay you any wages owed, any annual leave and/or long service leave entitlements you have not taken and any severance pay that might apply.

To check out your entitlements on termination, contact the Fair Work Infoline on 13 13 94.