REDUNDANCY

If your employer has terminated your employment because they don’t need anyone to perform your role or are closing their business, you’re entitled to a redundancy payment.

Our employment law team can assess the circumstances of your dismissal, enforce your entitlement to a redundancy payment and get you the outcome you deserve.

How can we help?

We appreciate that being made redundant can be stressful as it impacts on your ability to meet expenses and maintain your regular lifestyle.

While we can’t alleviate your stress, we determine whether your employer has unfairly dismissed you or made you redundant and help you receive your entitlement to redundancy payment.

01

Get in touch.

Call us on (02) 8287 3118 or email us at [email protected]. We’re here to help and our first consultation is free of charge.

02

Tell us your side of the story. 

We provide advice on your situation in simple terms and work with you to determine the best course of action and next steps.

03

Let us resolve your matter.

We’ll help you receive your redundancy payment and get you the outcome you want to achieve quickly and cost effectively.

Client Testimonials

When I engaged Axe Legal, I was under a lot of stress after having been dismissed without a valid reason. Boris explained the unfair dismissal process in simple terms, assured me every step of the way and helped me negotiate 12 weeks compensation, a statement of service and to have my dismissal recorded as a resignation during the conciliation conference. I cannot thank him enough for his support throughout this stressful period and for getting me the best possible outcome so I can put this chapter of my life behind me.
Amanda
Boris and Stefan helped me get an amazing outcome in unfair dismissal. They were patient and caring during the initial consultation (which they did not charge me for) and quick to respond to all my questions. From the moment I engaged them I sat back and watched them manage my unfair dismissal matter from beginning to end. They helped me get the compensation I deserve and followed through on all of their promises. I highly recommend Axe Legal to anyone that has been unfairly dismissed.
Elizabeth

Common Questions

Redundancy happens when an employer doesn’t need an employee’s job to be done by anyone or becomes insolvent/bankrupt.


There are a number of reasons why employees may be made redundant. For instance, a business may:

  • introduce new technology (e.g. an employees job could be performed by a machine);
  • slow down due to lower sales or production;
  • close down;
  • relocate interstate or overseas; or
  • restructure or reorganise due to a merger or takeover.
In order for an employee to be entitled to redundancy pay, the redundancy must be a “genuine redundancy”. A “genuine redundancy” occurs when:

  • the employer no longer needs the employees job to be done by anyone;
  • the employer has followed consultation requirements set out in an award, enterprise agreement or other registered agreement; and
  • it is not suitable for the employee to be redeployed within the employer’s business or an associated business of the employer.

A dismissal will NOT be a genuine redundancy if the employer:

  • still needs the employee’s job to be done by someone (e.g. hires someone else to do the job);
  • has not followed relevant requirements to consult with the employees about the redundancy under an award or registered agreement; or
  • could have reasonably, in the circumstances, given the employee another job within the employer’s business or an associated entity.

The amount of redundancy pay the employee gets is based on their continuous service with their employer.

Section 119 of the Fair Work Act 2009 (Cth) provides the ordinary amount of redundancy pay which is payable to employees.

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 or a particular season;
  • employees terminated because of serious misconduct;
  • casual employees;
  • trainees engaged only for the length of the training agreement;
  • apprentices;
  • employees terminated because of ordinary and customary turnover of labour.

Similarly, employers who employee fewer than 15 employees (small business employers) don’t have to pay redundancy pay when making an employee redundant.


In order to determine whether a business is a small business employer, count all employees employed at the time of the dismissal, including:

  • 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, including those based overseas.
An employer can apply to the Fair Work Commission to have the amount of redundancy they have to pay reduced if:

  • the employer finds other acceptable employment for the employee; or
  • the employer can’t afford the full redundancy amount.

If the employer applies to the redundancy pay reduced, the Fair Work Commission may determine to reduce the amount of redundancy pay to a specified amount (which may be nil) if the Fair Work Commission considers it appropriate to do so.

Where the Fair Work Commission makes a determination, the amount of redundancy pay to which the employee is entitled will be reduced to the amount specified in the determination.

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