Made redundant. What you are owed.

The redundancy pay table

Yes, it drops at 10 years. That is how the Act is written. Check your award or agreement, which may say something different, and which can also add further exclusions.

The weeks are paid at your base rate of pay for ordinary hours. That leaves out overtime, penalty rates, loadings, allowances and bonuses. Time as a casual does not count toward service.

Who does not get it

• anyone with less than 12 months' continuous service (not counting casual time);
• employees of a small business, meaning fewer than 15 employees at the time, counting you, anyone else being let go and employees of related companies. There is an exception where a small business shrank below 15 through terminations in the 6 months before it went bankrupt or into liquidation;
• casuals, people on a fixed-term or fixed-task contract, and people dismissed for serious misconduct;
• apprentices, and employees covered by an industry-specific redundancy scheme in their award;
• people whose employment moves to a new employer that recognises their service, for example when the business is sold. You also lose it if you turn down an offer from the new employer on substantially similar, no less favourable terms that recognises your service, although the Fair Work Commission can order some payment if that would be unfair.

When it can be reduced

Your employer can ask the Fair Work Commission to reduce the amount, even to nil, if it finds you other acceptable employment or genuinely cannot pay. It is the Commission that decides, not your employer.

If your employer has gone into liquidation or bankruptcy and cannot pay, the government's Fair Entitlements Guarantee may cover unpaid redundancy pay and other entitlements, subject to its own rules and caps.

Is it a genuine redundancy?

This matters because a genuine redundancy cannot be an unfair dismissal. A redundancy is genuine only if:

• your employer no longer needs your job done by anyone, because of changes in how the business operates; and
• your employer followed any duty in your award or agreement to consult about the redundancy.

It is not genuine if it would have been reasonable to redeploy you somewhere else in the business, or in a related company. If someone else is now doing your old job under a new title, or you were never consulted when your award required it, the redundancy may not be genuine, and an unfair dismissal claim may be open if you are otherwise eligible. The 21-day deadline applies.

Before you sign anything

• Check the service dates the employer has used, including any time with a related company.
• Make sure notice (or pay in lieu) is paid as well as redundancy pay, along with unused annual leave. See final pay.
• Read any release or deed before you sign it. A release is written to end your claims against the employer, which can include unfair dismissal.

What the law says

• s 119 when redundancy pay is owed, and the table
• s 120 reductions for other acceptable employment or inability to pay
• ss 121, 23 the 12-month and small business exclusions, and the insolvency exception
• s 122 transfers to a new employer, and refused offers
• s 123 other employees not covered
• s 16 what "base rate of pay" leaves out
• s 389 when a redundancy is genuine

Sections are of the Fair Work Act 2009 (Cth).

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