What is redundancy?
Redundancy is when an employer no longer needs a job to be done by anyone, usually due to restructure or business changes.
Redundancy happens when your employer no longer needs your job to be done by anyone. It's about the role, not you personally. Common causes include business restructures, new technology, or a slowdown in business.
If you're made redundant and you've been employed for at least 12 months, you're usually entitled to redundancy pay (also called severance pay) based on your years of service.
Key facts
- •Must be a genuine redundancy — the job itself must no longer be needed
- •Redundancy pay ranges from 4 weeks (1-2 years) to 16 weeks (9-10 years) under the NES
- •Small businesses (under 15 employees) don't have to pay redundancy under the NES
- •You're also entitled to your notice period on top of redundancy pay
- •Employer must consult about the redundancy and consider redeployment
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Redundancy Pay CalculatorFrequently asked questions
How much redundancy pay will I get?
Under the NES, it ranges from 4 weeks' pay (1-2 years of service) up to 16 weeks' pay (9-10 years). Your award or enterprise agreement may provide more. Use our calculator for an exact figure.
Is it still redundancy if they hire someone else for my role?
Not if the new role is substantially the same. A genuine redundancy means the job no longer exists. If your employer replaces you, it may be an unfair dismissal.
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.