Is this a genuine redundancy, and what am I owed?
28 quoted answers, each with its source
The short answer
Redundancy occurs when a business no longer needs an employee’s job to be done by anyone, and a dismissal is a genuine redundancy only if the employer no longer required the job because of changes in operational requirements and complied with any applicable award or enterprise agreement consultation obligation; it is not genuine if redeployment within the employer’s enterprise or an associated entity’s enterprise would have been reasonable. An employee may be entitled to redundancy pay under the National Employment Standards if they have at least one year of continuous service and their employer employs at least 15 people, but most small business employers do not have to pay it; redundancy pay is calculated at the employee’s base rate of pay for ordinary hours, excluding loadings, overtime and penalty rates, and unpaid leave does not count towards continuous service. The Fair Work Ombudsman states an employer considering making 15 or more employees redundant must give Services Australia written notification as soon as possible, while Employsure states the Fair Work Act requires notification when the number is over 15, so the threshold is not settled between them; if a redundancy is genuine, the employee cannot get an unfair dismissal remedy.
Every part of this comes from the quotes below. How we write these.
What the rules actually say20
Quoted straight from the Fair Work Ombudsman, the Fair Work Act 2009 or the applicable modern award.
The Fair Work Ombudsman defines redundancy as when a business no longer needs an employee's job to be done by anyone.
1 quote from 1 source
Redundancy is when a business no longer needs an employee’s job to be done by anyone.
- Redundancy - Fair Work Ombudsman fairwork.gov.au
The Fair Work Ombudsman states that a genuine redundancy requires the employee's job to no longer need to be done by anyone because of changes in the employer's business.
2 quotes from 1 source
A genuine redundancy is when:
the employee’s job no longer needs to be done by anyone because of changes in the employer’s business, and
- Redundancy - Fair Work Ombudsman fairwork.gov.au
The Fair Work Ombudsman states that where a redundancy is genuine the employee cannot get an unfair dismissal remedy.
1 quote from 1 source
If the redundancy is genuine, the employee can't get an unfair dismissal remedy.
- Redundancy - Fair Work Ombudsman fairwork.gov.au
The Fair Work Ombudsman states that a dismissal is not a genuine redundancy if the employer could have reasonably given the employee another job within the employer's business or an associated entity.
2 quotes from 1 source
A dismissal is not a genuine redundancy if the employer:
could have reasonably given the employee another job within the employer’s business or an associated entity.
- Redundancy - Fair Work Ombudsman fairwork.gov.au
The Fair Work Ombudsman states that an employer considering making 15 or more employees redundant must give Services Australia written notification of the proposed dismissals as soon as possible.
1 quote from 1 source
If a business is considering making 15 or more employees redundant, the employer must give Services Australia written notification of the proposed dismissals as soon as possible.
- Redundancy - Fair Work Ombudsman fairwork.gov.au
The Fair Work Ombudsman cites Fair Work Act 2009 sections 119, 385, 389, 530 and 534 as the source reference for its redundancy page.
1 quote from 1 source
Source reference for page: Fair Work Act 2009 sections 119, 385, 389, 530, 534
- Redundancy - Fair Work Ombudsman fairwork.gov.au
The Fair Work Ombudsman states an employee may be entitled to redundancy pay if they have at least one year of continuous service with their employer.
2 quotes from 1 source
If an employee’s job has been made redundant, they may be entitled to redundancy pay if:
they’ve at least one year of continuous service with their employer
The Fair Work Ombudsman states an employee may be entitled to redundancy pay if their employer employs at least 15 people.
2 quotes from 1 source
If an employee’s job has been made redundant, they may be entitled to redundancy pay if:
their employer employs at least 15 people.
The Fair Work Ombudsman states that most small business employers do not have to pay redundancy pay under the National Employment Standards.
1 quote from 1 source
Most small business employers don’t have to pay redundancy pay under the NES.
The Fair Work Ombudsman states that unpaid leave does not count towards continuous service when calculating redundancy pay.
1 quote from 1 source
When calculating redundancy pay, unpaid leave doesn’t count towards continuous service.
- Redundancy pay is paid at the employee's base pay rate for their ordinary hours of work.
- Redundancy pay does not include loadings, overtime or penalty rates.
1 quote from 1 source
Redundancy pay is paid at the employee's base pay rate for their ordinary hours of work, and doesn't include: incentive-based payments and bonuses loadings monetary allowances overtime or penalty rates any other separately identifiable amounts.
The Fair Work Ombudsman names the Black Coal Award, Building and Construction Award, Joinery Award, Manufacturing Award, Plumbing Award and Timber Award as awards with industry specific redundancy entitlements that apply instead of the National Employment Standards.
2 quotes from 1 source
Some awards have industry specific redundancy entitlements which apply instead of the NES.
Awards with industry specific redundancy entitlements include: Black Coal Award Building and Construction Award Joinery Award Manufacturing Award Plumbing Award Timber Award .
The Fair Work Ombudsman states an employer can apply to the Fair Work Commission to have redundancy pay reduced only where the redundancy entitlement comes from the National Employment Standards.
1 quote from 1 source
Employers can only apply to the Commission if the redundancy entitlement comes from the NES.
Fair Work Act 2009 section 119(1) entitles an employee to redundancy pay where the employment is terminated at the employer's initiative because the employer no longer requires the job to be done by anyone, except through ordinary and customary turnover of labour.
5 quotes from 1 source
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.
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
undancy 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.
- Fair Work Act 2009 legislation.gov.au
Fair Work Act 2009 section 119(2) provides that redundancy pay is paid at the employee's base rate of pay for ordinary hours.
6 quotes from 1 source
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:
At least 1 year but less than 2 years 4 weeks
At least 9 years but less than 10 years 16 weeks
At least 10 years 12 weeks
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
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
- Fair Work Act 2009 legislation.gov.au
Fair Work Act 2009 section 121(1) disapplies the redundancy pay entitlement in section 119 where the employer is a small business employer
3 quotes from 1 source
Section 119 does not apply to the termination of an employee’s employment if, immediately before the time of the termination, or at the time when the person was given notice of the termination as described in subsection 117(1) (whichever happened first):
(a) the employee’s period of continuous service with the employer (other than periods of employment as a casual employee of the employer) is less than 12 months; or
(b) the employer is a small business employer.
- Fair Work Act 2009 legislation.gov.au
Fair Work Act 2009 section 389(1) makes a dismissal a case of genuine redundancy only where the employer no longer required the job to be performed by anyone because of changes in the operational requirements of the enterprise.
4 quotes from 1 source
A person’s dismissal was a case of genuine redundancy if:
(a) the person’s employer no longer required the person’s job to be performed by anyone because of changes in the operational requirements of the employer’s enterprise; and
(b) the employer has complied with any obligation in a modern award or enterprise agreement that applied to the employment to consult about the redundancy.
389 Meaning of genuine redundancy (1) A person’s dismissal was a case of genuine redundancy if: (a) the person’s employer no longer required the person’s job to be performed by anyone because of changes in the operational requirements of the employer’s enterprise; and (b) the employer has complied with any obligation in a modern award or enterprise agreement that applied to the employment to consult about the redundancy.
- Fair Work Act 2009 legislation.gov.au
Fair Work Act 2009 section 389(2) provides that a dismissal was not a case of genuine redundancy if it would have been reasonable in all the circumstances for the person to be redeployed within the employer's enterprise or that of an associated entity.
5 quotes from 1 source
A person’s dismissal was not a case of genuine redundancy if it would have been reasonable in all the circumstances for the person to be redeployed within:
(a) the employer’s enterprise; or
(b) the enterprise of an associated entity of the employer.
389 Meaning of genuine redundancy (1) A person’s dismissal was a case of genuine redundancy if: (a) the person’s employer no longer required the person’s job to be performed by anyone because of changes in the operational requirements of the employer’s enterprise; and (b) the employer has complied
(2) A person’s dismissal was not a case of genuine redundancy if it would have been reasonable in all the circumstances for the person to be redeployed within: (a) the employer’s enterprise; or (b) the enterprise of an associated entity of the employer.
- Fair Work Act 2009 legislation.gov.au
The Fair Work Ombudsman states that employees do not get redundancy pay if they have less than 12 months of continuous service with their employer.
2 quotes from 1 source
Employees don’t get redundancy pay if they:
have less than 12 months of continuous service
Measured finding2
Something someone actually measured, with the method attached.
The Fair Work Ombudsman stated that in 2024-25 the Fair Work Ombudsman recovered…
- more than $358 million in unpaid wages.
- unpaid wages for more than 249,000 workers.
1 quote from 1 source
In 2024–25, we recovered more than $358 million in unpaid wages for more than 249,000 workers,
Disputed between sources2
Sources that do not agree, presented without picking a winner.
- The Fair Work Ombudsman sets the redundancy notification threshold to Services Australia at 15 or more employees.
- Employsure states that the redundancy notification obligation to Services Australia arises where the number of retrenched workers is over 15.
2 quotes from 2 sources
If a business is considering making 15 or more employees redundant, the employer must give Services Australia written notification of the proposed dismissals as soon as possible.
If the number of retrenched workers is over 15, the Fair Work Act 2009 demands that you give formal notification to Services Australia.
- Redundancy - Fair Work Ombudsman fairwork.gov.au
- Retrenchment employsure.com.au
Often said, but we could not find it in the rules4
Lots of people say this. We went looking for an official source that backs it up and could not find one, so treat it as something people repeat rather than something settled.
Employsure asserts that a business offering voluntary redundancy may be able to forego the protracted consultation processes that are required to effect a genuine redundancy.
1 quote from 1 source
The business may be able to forego the protracted consultation processes that are required to effect a genuine redundancy.
- Voluntary Redundancy | Reasons, Payment & Risks | Employsure employsure.com.au
- Employsure asserts that voluntary redundancy is ideally subject to a formal Deed of Release.
- Employsure asserts that a formal Deed of Release for voluntary redundancy generally prevents the employee from bringing a successful claim against the employer.
1 quote from 1 source
ideally subject to a formal Deed of Release which ends the employment relationship and generally prevents the employee from bringing a successful claim against the employer
- Voluntary Redundancy | Reasons, Payment & Risks | Employsure employsure.com.au
Redundancy is claimed by Employsure to require formal notification to Services Australia under the Fair Work Act 2009 when the number of retrenched workers is over 15.
1 quote from 1 source
If the number of retrenched workers is over 15, the Fair Work Act 2009 demands that you give formal notification to Services Australia.
- Retrenchment employsure.com.au