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What payments are employees entitled to if their position is made redundant?

  • A genuine redundancy will occur when the employer no longer needs work that was performed by an employee to be performed by anyone.
  • The answer here will depend on:
    • the type of employment the employee held;
    • the terms of employee’s contract;
    • the modern award or enterprise agreement;
    • the size of the employer; and
    • how long the employee was employed with the employer.
  • A full time employee within a business of more than 15 full-time staff members will be entitled to:
    • annual leave;
    • any accrued long service leave;
    • a notice of termination; and
    • severance payment if employed for more than one year.
  • An employee of a business of less than 15 full time staff members is generally not entitled to severance pay on redundancy.
  • If you have any concerns you can use our free and anonymous Ask a Lawyer service to get information specific to your situation.

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