Employment Law
Redundancy Pay in Australia: What You Are Entitled To
Last updated: June 2026
What Is a Genuine Redundancy?
Redundancy occurs when your employer no longer requires your role to be performed by anyone. Under the Fair Work Act 2009, a genuine redundancy means:
- Your job is no longer required to be done by anyone in the business or an associated entity
- Your employer consulted with you as required under any applicable modern award or enterprise agreement
- It was not reasonable to redeploy you to another position in the business
If any condition is not met, the dismissal may be an unfair dismissal — you have 21 days to make a claim to the Fair Work Commission.
Redundancy Pay Entitlements
| Years of continuous service | Redundancy pay |
|---|---|
| At least 1 but less than 2 years | 4 weeks |
| At least 2 but less than 3 years | 6 weeks |
| At least 3 but less than 4 years | 7 weeks |
| At least 4 but less than 5 years | 8 weeks |
| At least 5 but less than 6 years | 10 weeks |
| At least 6 but less than 7 years | 11 weeks |
| At least 7 but less than 8 years | 13 weeks |
| At least 8 but less than 9 years | 14 weeks |
| At least 9 but less than 10 years | 16 weeks |
| 10 years or more | 12 weeks |
Small Business Exemption
Employers with fewer than 15 employees are generally exempt from redundancy pay under the Fair Work Act. Your contract or enterprise agreement may still entitle you to it.
What Redundancy Pay Does Not Replace
Redundancy pay is in addition to your other entitlements: notice (or payment in lieu), unpaid wages, and accrued annual leave.
Tax Treatment
Genuine redundancy payments receive concessional tax treatment with a tax-free component based on years of service.
Key Points
- Redundancy pay scales from 4 weeks (1 year) to 16 weeks (9–10 years)
- Small businesses (under 15 employees) are generally exempt
- The redundancy must be genuine — if not, consider an unfair dismissal claim
- You are also entitled to notice, unpaid wages, and accrued leave on top