Redundancy - minimum payment entitlements

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Redundancy - minimum payment entitlements

A question to our Ask an Expert service prompted the neat summary of minimum redundancy payment entitlements set-out below.

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A question to our Ask an Expert service prompted the neat summary of minimum redundancy payment entitlements set-out below.

There is no statutory minimum entitlement for redundancy pay in Australia, however, there are 'standard' entitlements for award-covered employees (which includes employees covered by registered agreements), normally as a result of test cases determined by the relevant industrial relations commission. The standard for each state/territory and the federal jurisdiction is as follows:

New South Wales

Relevant NSW state award or the Employment Protection Act 1982 (NSW) applies. The EPA is restricted to those NSW state awards that do not prescribe redundancy pay. The minimum scale of payments under both is as follows:

Less than 1 year's continuous service Nil
Between 1 & 2 years continuous service 4 weeks' pay
Between 2 & 3 years continuous service  7 weeks' pay
Between 3 & 4 years continuous service 10 weeks' pay
Between 4 & 5 years continuous service 12 weeks' pay
Between 5 & 6 years continuous service 14 weeks' pay
6 years or more continuous service 16 weeks' pay
An employee 45 years of age or more who has completed 2 years continuous service is entitled to an additional 25%.  

Federal and other states & territories

Subject to award entitlement, but generally all these jurisdictions adopt the federal standard, which is:

Less than 1 year's continuous service Nil
Between 1 & 2 years continuous service 4 weeks' pay
Between 2 & 3 years continuous service 6 weeks' pay
Between 3 & 4 years continuous service 7 weeks' pay
More than 4 years continuous service - 8 weeks' pay.  

Note: minimum standards

The scales of payments set-out above are the minimum standards. Unions and employees often seek to negotiate more than is provided as minima.

 

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