Commonwealth Consolidated Acts

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FAIR WORK ACT 2009 - SECT 119

Redundancy pay

Entitlement to redundancy pay

             (1)  An employee is entitled to be paid redundancy pay by the employer if the employee's employment is terminated:

                     (a)  at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or

                     (b)  because of the insolvency or bankruptcy of the employer.

Note:          Sections 121, 122 and 123 describe situations in which the employee does not have this entitlement.

Amount of redundancy pay

             (2)  The amount of the redundancy pay equals the total amount payable to the employee for the redundancy pay period worked out using the following table at the employee's base rate of pay for his or her ordinary hours of work:

 

Redundancy pay period

 

Employee's period of continuous service with the employer on termination

Redundancy pay period

1

At least 1 year but less than 2 years

4 weeks

2

At least 2 years but less than 3 years

6 weeks

3

At least 3 years but less than 4 years

7 weeks

4

At least 4 years but less than 5 years

8 weeks

5

At least 5 years but less than 6 years

10 weeks

6

At least 6 years but less than 7 years

11 weeks

7

At least 7 years but less than 8 years

13 weeks

8

At least 8 years but less than 9 years

14 weeks

9

At least 9 years but less than 10 years

16 weeks

10

At least 10 years

12 weeks



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