Redundancy - Your rights and entitlements

Redundancy occurs when a business has to reduce the size of its workforce during economic hardship, or a business no longer needs certain skills.

As a staff member, you can either take voluntary redundancy or you will simply be retrenched, (compulsory redundancy), even if you choose not to go voluntary.

During the process, there are a range of employer’s obligations in relation to redundancy.  These will vary from case to case, depending on the award, agreement, employment contracts and unfair dismissal legislation at the Federal, or State Level.

In brief however, your rights and entitlements in redundancy are as follows:

1. If it is compulsory redundancy and you believe that fair criteria for selection people for compulsory redundancy were not used, then depending on the State and your situation, you might be able to show that you were discriminated against and could take action for unfair dismissal.  For example if you think you were selected for redundancy because of your race, sex, disability, age and whether you are a member of a union or not, then you should seek further help.  A good starting point is to visit your States Industrial Relations Commission.
2. If you are a casual worker, contract worker, an apprentice, or trainee, then you are usually not entitled to severance payment.
3. In most states, if you have worked for less than a year, then you are usually not entitled to a severance payment.
4. If you have worked for over a year, then in most states and at federal level, you are entitled to 4 weeks severance pay.  Depending on the number of years and whether you are employed by a small business, or a large business, this severance pay increases to 12 weeks severance pay for 10 years of service or more.
5. The employer must pay all relevant entitlements owing to you up to the time of retrenchment.  These include superannuation, any overtime, award entitlements and holiday pay.
6. If the business has gone broke and is not in the position to pay any of the entitlements, you might be eligible to receive money from the government.  Visit GEERS, (General Employment Entitlements and Redundancy Scheme). 
7. You should visit Centrelink and ascertain any benefits, while looking for a new job. 

Relevant Articles and Resources

• Sexual harassment within the workplace - your rights at work
• Occupational health & safety - your rights at work
• Redundancy - coping with job loss
• Rights of working parents