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

1

At least 1 year but less than 2 years

4 weeks

2

At least 2 years but less than 3 years

6 weeks

3

At least 3 years but less than 4 years

7 weeks

4

At least 4 years but less than 5 years

8 weeks

5

At least 5 years but less than 6 years

10 weeks

6

At least 6 years but less than 7 years

11 weeks

7

At least 7 years but less than 8 years

13 weeks

8

At least 8 years but less than 9 years

14 weeks

9

At least 9 years but less than 10 years

16 weeks

10

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

Strong national industrial manslaughter legislation is what Australian workers need, but a national law is not supported by the Federal Government. As a Workers’ Compensation lawyer in national law firm, I see the lack of consistency across the states and believe there should be national standards to protect all workers. Workers should feel safe no matter what state they live in. The recent death of a worker in Sydney’s Port Botany who was crushed between two shipping containers, and delays in commitment from the NSW Government to investigate industrial manslaughter laws, highlight the need for national reform. In the meantime, the NSW State Government needs to take fast action on...

Outdoor construction worksafe
Employment Law
Accepting jobs through apps puts workers’ rights at risk

Workers getting jobs through apps like Airtasker and Uber Eats are not receiving the benefits they are entitled to, are often unaware of their current hourly rate and most are not covered by work-related insurance. Research from Queensland University of Technology, the University of Adelaide and University of Technology Sydney, commissioned by the Victorian Government, showed about seven per cent of 14,000 respondents had found work on a digital platform (the gig economy) in the past year and 40 per cent of those did not know how much they were earning per hour. It showed younger people (aged 18-34) and males were accepting work through digital platforms in higher proportions than other...

Shutterstock 1388236754 Resized
Superannuation and Insurance
Injured at work? Remember your Super fund

If you’re one of the 15 million Australians with a superannuation account, you’ll probably know which fund(s) you’re with, as well as having an approximate idea of your balance. You may even know how your money is being invested by the superfund. However, what many people don’t realise is that it’s also likely you will have some sort of disability insurance cover through your superfund. This is especially important if an illness or injury affects your ability to work. In this article, we want to give you a better idea of what superannuation insurance is, including when you may be able to use it and how the claims process works. As well as helping members save for their retirement,...

Man Crutches

We're here to help

Start your online claim check now. Or, if you have a question, get in touch with our team.