ILO is a specialized agency of the United Nations
ILO-en-strap
Go to the home page
Site map | Contact us français | español
> GOVERNANCE - home > Employment protection legislation database - EPLex > Australia

Australia - Severance pay and redundancy payment


+ show references

Redundancy payment:
Remarks:
  • s119 (1) FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone with between 9 and 10 years' service with one employer.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(1)(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (3)(a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 (1) FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone with between 9 and 10 years' service with one employer.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(1)(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (3)(a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment

+ show references

Redundancy payment:
Remarks:
  • s119 FWA provides that "an employee is to be paid redundancy pay by the employer if the employee's employment is terminated:
    (a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
    (b) because of the insolvency or bankruptcy of the employer."

    The amount of the redundancy pay varies according to the employee's period of continuous service as follows:

    - if the employee has at least 1 year but less than 2 years of continuous service: redundancy pay is 4 weeks;
    - if the employee has at least 2 years but less than 3 years of continuous service: redundancy pay is 6 weeks;
    - if the employee has at least 3 years but less than 4 years of continuous service: redundancy pay is 7 weeks;
    - if the employee has at least 4 years but less than 5 years of continuous service: redundancy pay is 8 weeks;
    - if the employee has at least 5 years but less than 6 years of continuous service: redundancy pay is 10 weeks;
    - if the employee has at least 6 years but less than 7 years of continuous service: redundancy pay is 11 weeks;
    -if the employee has at least 7 years but less than 8 years of continuous service: redundancy pay is 13 weeks;
    - if the employee has at least 8 years but less than 9 years of continuous service: redundancy pay is 14 weeks;
    - if the employee has at least 9 years but less than 10 years of continuous service: redundancy pay is 16 weeks;
    - if the employee has at least 10 years of continuous service: redundancy pay is 12 weeks.

    Therefore, the maximum statutory redundancy pay is 16 weeks' pay for someone between 9 and 10 years' service.

    Employees with less than 12 months of continuous service are not entitled to redundancy pay (s121(1)a) FWA).

    The obligation to pay redundancy does not apply to small business employers (employers with less than 15 employees).
    In addition, s123 FWA excludes from redundancy pay the following employees:
    - Exclusion from the division 11 FWA (both notice of termination and redundancy pay):
    "(a) an employee employed for a specified period of time, for a specified task, or for the duration of a specified season;
    (b) an employee whose employment is terminated because of serious misconduct;
    (c) a casual employee;
    (d) an employee (other than an apprentice) to whom a training arrangement applies and whose employment is for a specified period of time or is, for any reason, limited to the duration of the training arrangement;
    (e) an employee prescribed by the regulations as an employee to whom this Division does not apply.
    (2) Paragraph (1)(a) does not prevent this Division from applying to an employee if a substantial reason for employing the employee as described in that paragraph was to avoid the application of this Division"

    -"Other employees not covered by redundancy pay provisions
    (a) an employee who is an apprentice; or
    (b) an employee to whom an industry-specific redundancy scheme in a modern award applies; or
    (c) an employee to whom a redundancy scheme in an enterprise agreement applies if:
    (i) the scheme is an industry-specific redundancy scheme that is incorporated by reference (and as in force from time to time) into the enterprise agreement from a modern award that is in operation; and
    (ii) the employee is covered by the industry-specific redundancy scheme in the modern award; or
    (d) an employee prescribed by the regulations as an employee to whom that Subdivision does not apply"
  • tenure ≥ 6 months: 0 week(s)
  • tenure ≥ 9 months: 0 week(s)
  • tenure ≥ 1 year: 4 week(s)
  • tenure ≥ 2 years: 6 week(s)
  • tenure ≥ 4 years: 8 week(s)
  • tenure ≥ 5 years: 10 week(s)
  • tenure ≥ 10 years: 12 week(s)
  • tenure ≥ 20 years: 12 week(s)

Notes / Remarks
1) Individual dismissal (non-economic): no statutory severance pay.
2) Economic dismissal (individual and collective): statutory redundancy payment