Redundancy

Redundancy occurs where the employer no longer requires that a worker’s job be done by anyone, or the employer becomes bankrupt or insolvent.

If you are made redundant you should receive severance pay in addition to notice, as well as any accrued leave you have.

However if at the time of being made redundant your employer employed fewer than 15 workers in permanent or ongoing regular work, then you are not entitled to severance pay.

While awards and agreements may allow for higher rates of severance pay, the following are the minimum rates of severance required under the new laws.

Employee's period of contiNuous service

Entitlement

At least 1 year but less than 2 years

4 weeks

At least 2 years but less than 3 years

6 weeks

At least 3 years but less than 4 years

7 weeks

At least 4 years but less than 5 years

8 weeks

At least 5 years but less than 6 years   

10 weeks

At least 6 years but less than 7 years    

11 weeks

At least 7 years but less than 8 years    

13 weeks

At least 8 years but less than 9 years    

14 weeks

At least 9 years but less than 10 years    

16 weeks

At least 10 years    

12 weeks

Redundancies must be genuine. The job that you were doing must genuinely no longer be required to be done by anyone. Where a redundancy is genuine you can’t claim for unfair dismissal or unlawful termination.