Redundancy entitlements

Are you facing redundancy?

Redundancy can come as a significant shock—one which leaves many people feeling uncertain and vulnerable. Redundancy is a complex area of law and it is important to obtain independent legal advice to ensure the legality of the redundancy itself and to safeguard your redundancy pay, rights and entitlements.

At Maurice Blackburn, we are ideally positioned to ensure you receive all your statutory and contractual entitlements to notice, leave and redundancy pay, as well as rights such as bonuses and share options.

If you have been made redundant or are facing redundancy, you should get prompt legal advice. Maurice Blackburn's employment lawyers are the nationally recognised experts in employment law and can achieve the best result for you.

We protect your rights

Our executive employment lawyers treat your case with discretion. We understand that confidentially is a priority for senior managers and executives.

Client Story

Tom worked at a large corporation for almost 40 years. He took extended leave and told his employer he was thinking about retiring at the conclusion of his leave.

Tom’s employer restructured its operations while he was on leave. They didn't consult him about the restructure but through documents they sent he realised that his position had been abolished.

Tom’s employer refused to pay him any redundancy entitlements, and insisted that Tom had resigned.

We commenced proceedings in the Fair Work Commission on behalf of Tom and asserted that his employer was treating him adversely because he had a right to redundancy pay. We successfully negotiated for Tom to receive a six figure settlement.

2.3%*

Of Australian workers lose their jobs as a result of corporate downsizing or closure

33%*

One in three laid off Australian workers will be paid less than they were in their old jobs

2%*

Of Australians are made redundant and receive an eligible termination payment annually

Statistics from etax.com.au and the Sydney Morning Herald

Frequently Asked Questions

What should I do if I am made redundant?

If you have been made redundant or are facing redundancy, you should get legal advice. Some employers may be unaware of their legal obligations to employees. You may have rights to challenge the employer's decision to declare your position redundant, or you may have a right to refuse a position that is offered to you. You should ensure that you receive all your statutory and contractual entitlements to notice, leave and redundancy pay.

The payments that the employer proposes to make to you should be checked to ensure that you are paid the correct amount and that any non-salary rights (such as bonuses or share options) are paid.

Who is entitled to redundancy pay?

With the introduction on 1 January 2010 of the National Employment Standards (NES) under the Fair Work Act 2009, most employees will have an entitlement to a redundancy payment.

Many employees may also have an entitlement to redundancy pay arising out of the terms of:

  • an award
  • an enterprise agreement
  • a contract of employment
  • a company policy.
  • If you are employed by a state government department, you may also have a right to redundancy pay under state legislation.

Who is not entitled to redundancy pay?

Under the National Employment Standards (NES), the following employees are not entitled to redundancy pay:

  • Employees of a business which has fewer than 15 employees.
  • People employed on a casual basis.
  • People employed on a fixed term contract.
  • People whose employment is terminated as a result of the 'ordinary and customary turnover of labour'.
  • Apprentices.

Am I entitled to any other payments?

An employee who is made redundant is also entitled to receive notice and a payment equivalent to any accrued but untaken annual leave. Some employees may also be entitled to long service leave and sick leave.

What happens to redundancy entitlements when a business is sold?

There are complex laws that govern the situation when a business is sold.

In most circumstances, if an employee accepts a job with the new employer, the employee is not entitled to redundancy payments from the old employer. Service with the old employer may be recognised for the purpose of long service and other entitlements.

However, each situation is different and employees should seek the advice of a lawyer if faced with a transfer of employment from one business to another.

Experts in Employment law

Our team has an outstanding record of achieving terrific outcomes for employees in both the private and public sector. We assist our clients with a combination of strategy, tenacity and compassion.

Step 1

Call us on 1800 810 812 to book an initial consultation.

Step 2

At your one hour consult our lawyers will provide advice on your situation, the best action to take, and next steps. This consult is charged at a fixed fee.

Step 3

Most of our cases are resolved out of court, and discretion is assured.

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