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.

The contents of this blog post are considered accurate as at the date of publication. However the applicable laws may be subject to change, thereby affecting the accuracy of the article. The information contained in this blog post is of a general nature only and is not specific to anyone’s personal circumstances. Please seek legal advice before acting on any of the information contained in this post.

Thank you for your feedback.

Related blog posts

Employment Law
Can my employer force me to get the COVID-19 vaccine?

Australia’s rollout of the COVID-19 vaccine has largely been welcomed with relief. According to the Department of Health, widespread vaccination against COVID-19 is expected to significantly slow community transmission of the virus, therefore reducing the need for preventative measures like border closures and travel restrictions[1]. However, a question that’s been asked a lot recently is: can your employer make you get vaccinated? There are no laws or public health orders requiring people to get vaccinated against COVID-19. Getting vaccinated is voluntary. The Fair Work Ombudsman has recently advised that most employers should assume they won’t be able to force employees to be...

Woman getting vaccinated
Employment Law
Life after lockdown: what are your rights with returning to work?

COVID-19 has changed many things in our lives. It has made us adapt to new social norms of staying 1.5 meters apart, it has introduced face masks to our daily lives, and it has caused a mass disruption to the way we work. But now that many lockdown restrictions are easing and we start to return to more “normal” ways of working, what are your rights to continue to work flexibly? If your employer wants you to return to the office, then in most cases you’ll have to go back unless their request is unreasonable or it’s unsafe. Whether it’s safe for you to return will depend on factors such as the nature of your employer’s business and how it’s carried out, whether your employer is...

Flexible working arrangements in COVID
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

We're here to help

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