Redundancy
Redundancy is the termination of an employee's job due to the employer's decision that the job is no longer needed, excluding situations of regular staff turnover. This can also relate to terms like retrenchment and severance pay.
Redundancy occurs when a position is removed from a business because it's no longer required by the employer, not because of the employee's performance. This can happen due to various reasons like business downturn, technological changes or restructuring. The affected employee may receive severance pay or retrenchment benefits. Redundancy is different from dismissal due to performance or conduct.
Redundancy pay and genuine redundancy
Under the National Employment Standards, employees with at least 12 months' continuous service get redundancy pay of 4 to 16 weeks' pay, depending on their length of service, unless the employer is a small business employer with fewer than 15 employees. For unfair dismissal purposes, a redundancy is only genuine if the job is no longer required, you met any award or agreement obligation to consult, and redeployment was not reasonable. For example, an employee with 5 years' service is entitled to 10 weeks' redundancy pay at their base rate.
Read our guides to genuine redundancy and redundancy pay.
General information only
This content is general information about Australian employment law, current at the date it was last reviewed. It does not take your circumstances into account and is not legal advice. For advice about your situation, call Employment Compass on 1300 144 002.
Last reviewed: October 2026
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