Employment Law

Redundancy

Dismissal refers to when an employee’s position with a business or company has been terminated by the initiative of the employer.

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Redundancy Lawyers Essendon and Melbourne CBD

If an employee has been made redundant by an employer, that means they no longer require the role in the business or company as a result of organisational restructure or changes, introduction of new technology, or as a result of bankruptcy or insolvency. All employees must be notified by their employer of a redundancy as soon as practicable.

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Am I entitled to redundancy pay?

If you have been made redundant by your employer, you may also be entitled to a redundancy payment corresponding to the length of time you were employed with the employer. This information is provided in the table below:
Employee’s period of continuous service with the employer on terminationRedundancy pay period
At least 1 year but less than 2 years4 weeks
At least 2 years but less than 3 years6 weeks
At least 3 years but less than 4 years7 weeks
At least 4 years but less than 5 years8 weeks
At least 5 years but less than 6 years 10 weeks
At least 6 years but less than 7 years11 weeks
At least 7 years but less than 8 years13 weeks
At least 8 years but less than 9 years14 weeks
At least 9 years but less than 10 years 16 weeks
At least 10 years 12 weeks
Some employees, however, are not entitled to redundancy pay. Employees in the following situations are not entitled to redundancy pay:

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If I have been made redundant, can I make an unfair dismissal application?

If you have been dismissed from your employment as a genuine redundancy, you are not able make an application to the Fair Work Commission for unfair dismissal.

A case of genuine redundancy exists if the employee’s role is no longer required to be performed by anyone in the business or company, the employer has followed the requirements under any enterprise agreement or award or other registered agreement, and redeployment is not possible or reasonable.

However, if an employer has filled your role with another or new employee, then it is not a case of genuine redundancy and thus you may then be able to make an application for unfair dismissal.

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Do I have to take up redeployment opportunities offered to me?

When employers offer redeployment positions for redundant employees, they should only propose positions that are the same as the position the employee previously held.

If a suitable and reasonable redeployment opportunity has been offered to you, then you should not decline that position without reasonable excuse. An employer may be relieved of its obligations to pay a redundancy benefit if it genuinely offered the employee a reasonable redeployment position or positions.

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What should I do if I have been made redundant, but my employer will not pay me my redundancy pay?

If you have been dismissed because of genuine redundancy, then you are legally entitled to redundancy pay, unless you are one of the excluded class of employees.

If you are entitled and your employer has not paid or will not pay your redundancy benefit, then you should seek legal advice as soon as practicable.