You web browser may not be properly supported. To use this site and all its features we recommend using the latest versions of Chrome, Safari or Firefox

Istock 489843286 Blog

Rumour has it that you might already believe these common redundancy myths to be true. We’re addressing the five common myths so you know how to distinguish fact from fiction.

Myth #1: “I can be made redundant if my employer is not satisfied with my performance.”

Fact: You cannot be made redundant if your performance is unsatisfactory. A redundancy can only occur in circumstances where your role is no longer required to be performed by anyone.

If your employer is unsatisfied with your performance they should engage in a performance management procedure under the relevant contract, policy or agreement or at least act in a fashion that affords you procedural fairness.

Myth #2: “My employer can decide to pay me what they like if I am made redundant.”

Fact: The National Employment Standards contained within the Fair Work Act stipulate minimum amounts that are payable to an employee when they are made redundant.

These amounts are as follows:

Redundancy Pay Period

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

Redundancy pay period


At least 1 year but less than 2 years

4 weeks


At least 2 years but less than 3 years

6 weeks


At least 3 years but less than 4 years

7 weeks


At least 4 years but less than 5 years

8 weeks


At least 5 years but less than 6 years

10 weeks


At least 6 years but less than 7 years

11 weeks


At least 7 years but less than 8 years

13 weeks


At least 8 years but less than 9 years

14 weeks


At least 9 years but less than 10 years

16 weeks


At least 10 years

12 weeks

An employer cannot contract out of the provisions of the National Employment Standards. Keep in mind that the NES are minimum terms and conditions and you might actually be entitled to more.

Myth #3: “My employer does not have to pay me a redundancy payment if I find another job.”

Fact: An employer has an obligation to pay the minimum redundancy payments outlined above irrespective of whether you find an alternative role shortly after being made redundant.

The only exception to this is if the employer secures suitable alternative employment for you and then they may apply to the Fair Work Commission to be relieved of the obligation to pay you redundancy pay.

Myth #4: “If I am the most recently employed person in my workplace, where a restructure occurs I will be the first person who is made redundant.”

Fact: Redundancy processes vary greatly amongst employers and there is no “one-size-fits-all” approach. Accordingly, there is no blanket rule that the last employee who was employed, will be the first employee to be made redundant during a restructure.

Myth #5: “Voluntary redundancies must be offered before forced redundancies are imposed.”

Fact: A company does not have an obligation to offer voluntary redundancies during restructure. Whilst this is often considered a wise first step in the process because it gives employees a sense of control in the restructure process, it is not a mandatory step. An employer may decide that proceeding with forced redundancies is preferable.

We’ve highlighted the most common myths in this post, but, when it comes to employment law we understand that not all circumstances are the same. To discuss your employment law case with our team, Start a free enquiry now.

Thank you for your feedback.

Related blog posts

Employment Law
National industrial manslaughter legislation would save lives
Outdoor construction worksafe
Employment Law
Accepting jobs through apps puts workers’ rights at risk
Shutterstock 1388236754 Resized
Superannuation and Insurance
Injured at work? Remember your Super fund
Man Crutches

We're here to help. Make an enquiry now.

If you have a question, want some more information or would just like to speak to someone, make an enquiry now and we’ll be in touch with you as soon as possible.

Call us on 1800 444 141