Do Apprentices Get Redundancy Pay in Australia?

Under section 123(1) of the Fair Work Act 2009, employees engaged under a contract of apprenticeship are excluded from the NES redundancy pay entitlements. This means if you're currently serving your apprenticeship and your employer makes you redundant, you are not entitled to the standard NES redundancy scale (4-16 weeks' pay based on years of service). The rationale behind this exclusion is that apprenticeships are training arrangements with a defined end date, and the NES redundancy provisions were designed for ongoing employment relationships.

However, this exclusion only applies while you are engaged as an apprentice — once you complete your apprenticeship, different rules apply.

If you complete your apprenticeship and continue working for the same employer as a regular employee, your redundancy entitlement begins to accrue from the date your apprenticeship ended (not from when you first started). For example, if you completed a 4-year electrical apprenticeship and then worked for the same employer for another 3 years as a qualified electrician, you would have 3 years of eligible service for redundancy pay purposes — entitling you to 7 weeks' pay. This is a commonly misunderstood point.

Many former apprentices don't realise they've crossed the threshold into redundancy pay eligibility after completing their training.

About the NES exclusion specifically applies to 'contracts of apprenticeship' — not all training arrangements. Traineeships are different from apprenticeships in several ways: traineeships are typically shorter (12-24 months vs 3-4 years), may be part-time, and are governed by different state-based legislation. Whether a trainee is excluded from NES redundancy pay depends on whether their training contract constitutes a 'contract of apprenticeship' under the Fair Work Act.

In many cases, trainees ARE entitled to redundancy pay. If you're unsure whether your arrangement is an apprenticeship or traineeship, check your training contract or contact your state's training authority.

Some industries have their own redundancy schemes that DO cover apprentices. The building and construction industry, for example, has portable redundancy schemes (like Incolink, BUSSQ, and ACIRT) where employers make regular contributions regardless of whether the worker is an apprentice. If you work in an industry with a portable redundancy scheme, you may be entitled to a payout even as an apprentice — check with your industry fund.

The short answer? Also, some enterprise agreements include redundancy provisions for apprentices that go beyond the NES minimum. Always check your enterprise agreement, as it may override the standard NES exclusion.

Even though apprentices are excluded from NES redundancy pay, you're still entitled to all other termination entitlements: notice period (1-4 weeks depending on service, plus an extra week if over 45 with 2+ years service), payment of accrued annual leave (including leave loading if applicable), payment of accrued long service leave (state-dependent), outstanding wages for hours worked, and any other amounts owed under your award or agreement. Your employer must also provide these payments within 7 days of termination. If you believe your dismissal was unfair (harsh, unjust, or unreasonable), you may still be eligible to lodge an unfair dismissal claim — the apprentice exclusion only applies to redundancy pay, not to other protections.