If your job could be cut, here’s what employers must legally give you in 2026 — notice, redundancy pay and final entitlements, plus the next steps you should take. I’ve kept this simple and focused on the minimums and deadlines you need to check.

Quick-reference summary — the top facts

  • Minimum notice: 1–4 weeks depending on length of service (see table below).
  • Statutory redundancy pay: up to 16 weeks’ pay depending on your years of continuous service; paid only if you have at least 1 year’s service and your employer isn’t a small business (fewer than 15 employees).
  • Unfair dismissal claim window: generally 21 days to lodge with the Fair Work Commission after your dismissal.
  • Minimum employment period before unfair dismissal claim: 6 months (12 months if employer is a small business).
  • Other final pay: accrued annual leave always paid out; long service leave paid as per state rules; super contributions still apply.

What redundancy actually means

Redundancy happens when an employer no longer needs a job to be done. It’s not the same as being fired for poor performance or serious misconduct. A genuine redundancy happens when the employer no longer needs the role — for example after a restructure, a site closure or a lost contract.

Still, a boss can’t just say the job’s gone and ignore legal rules. The Fair Work Act sets national minimums for notice and redundancy pay, and modern awards or enterprise agreements can give you more.

How redundancy works — the detailed breakdown

1. Notice periods

The National Employment Standards (NES) set minimum notice you must receive when your employer ends your job (unless they pay you instead of making you work it). The scale is:

  • Less than 1 year of service — 1 week
  • At least 1 year but less than 3 years — 2 weeks
  • At least 3 years but less than 5 years — 3 weeks
  • At least 5 years — 4 weeks

If you’re 45 or older and have at least two years’ service, you get an extra week’s notice. Employers can choose to give pay in lieu of notice (a lump sum instead of you working the notice period).

2. Statutory redundancy pay (severance)

If your employer is required to pay redundancy (see small business exemption below) and you’ve worked for at least one year, the redundancy pay depends on continuous service. The statutory table (weeks’ pay) is:

  • 1 year — 4 weeks
  • 2 years — 6 weeks
  • 3 years — 7 weeks
  • 4 years — 8 weeks
  • 5 years — 10 weeks
  • 6 years — 11 weeks
  • 7 years — 13 weeks
  • 8 years — 14 weeks
  • 9 years or more — 16 weeks

That’s the national minimum. An award, enterprise agreement or employment contract may give you more. Redundancy pay is worked out on your base rate for ordinary hours — not casual loadings or overtime unless they’re part of your base rate.

3. Small business exemption

Employers with fewer than 15 employees usually don’t have to pay redundancy. But small businesses still must provide the correct notice and pay out accrued entitlements, and they must act in good faith when no longer needing a role.

Mastheads

4. Payable entitlements on termination

Here's the thing — along with notice and redundancy pay (where applicable), an employee should get:

  • Payment for unused annual leave at the ordinary rate;
  • Payment for any accrued long service leave as required by the relevant state or territory law;
  • Any outstanding wages, penalty rates or other pay owing.

Superannuation contributions on pay during the notice period and on certain termination payments will generally still apply — check ATO guidance for tax treatment of redundancy payments.

5. Consultation and redeployment

Many awards and agreements require employers to consult about redundancies — to notify affected staff, discuss alternatives and consider redeployment within the business or group. If a suitable alternative job is available, the employer should offer it. If someone unreasonably rejects a suitable redeployment offer, they can lose some or all of their redundancy pay.

Why this matters — the practical impact

Losing a job hits your finances and your wellbeing. The rules protect your income while you look for new work and make sure accrued benefits aren’t lost. They also set the clock for any legal challenge — if procedures aren’t followed, an employee may have grounds for unfair dismissal or breach of contract claims.

How to get started — steps to take if your job is at risk or has been cut

  1. Ask for the reason in writing. You’re entitled to a clear statement that the role is redundant.
  2. Check your contract, any award or enterprise agreement for extra entitlements. These can increase notice and redundancy pay.
  3. Work out your cash entitlements: notice (or pay in lieu), redundancy pay (if eligible), unused annual leave, and any other owed pay. Try the Fair Work Ombudsman pay calculators to estimate what you should be owed.
  4. Keep records — pay slips, emails about consultations, letters — they matter if things go wrong.
  5. If you suspect the redundancy isn’t genuine or you weren’t properly consulted, contact the Fair Work Ombudsman, your union or a lawyer. If you were dismissed, unfair dismissal applications to the Fair Work Commission must usually be lodged within 21 days.
  6. If you’re owed money, raise it formally in writing and allow a short period for the employer to respond. If they don’t pay, the Fair Work Ombudsman can assist and enforcement action can follow.

Tips for negotiating a better outcome

  • Ask for pay in lieu of notice if you’d prefer to leave immediately.
  • Negotiate an outplacement package or extra pay — employers often accept a small additional payout to avoid disputes.
  • Request a positive reference and a clear statement that your job loss was a genuine redundancy — that helps with future applications and Centrelink claims.
  • Use any leftover leave or request time off for job interviews — some employers will agree to garden leave or paid time for job hunting.

Regional differences and where rules vary

The NES is federal, so notice periods and the statutory redundancy table apply across Australia. But long service leave rules differ by state and territory — including qualifying periods and pay calculations — and those entitlements are paid out on redundancy depending on the state law that applies to your employment.

Small business definitions for redundancy exemptions are federal (fewer than 15 employees). Some state public-sector or local agreements may have their own redundancy schemes — check the relevant enterprise agreement or your HR team.

Common questions

Can an employer make my job redundant to avoid paying me?

No — an employer can’t fake a redundancy. If the role still exists or the employer hires someone to do the same job, you may have a claim. Keep records and get advice.

Am I entitled to redundancy if I’m on probation?

Yes, if you’ve been employed for at least one year you may be entitled to redundancy pay; probation doesn’t automatically remove statutory entitlements. If you’ve worked less than one year, you’ll still get notice and any accrued leave.

What if I’m offered a lower-paid redeployment?

An employer should consider reasonable redeployment. If it’s substantially less suitable, you can refuse, but that may affect redundancy pay — get advice before rejecting offers.

Where can I get help?

Start with the Fair Work Ombudsman for calculations and guidance. But if you’re unionised, talk to your union. For legal disputes, a workplace law solicitor or the Fair Work Commission can help with unfair dismissal or breach claims.

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If redundancy happens, check the NES, your award or agreement, get a written reason, calculate notice and redundancy entitlements, and act quickly — unfair dismissal claims usually need to be lodged within 21 days with the Fair Work Commission.

This article was created with AI assistance.