Voluntary redundancy

In voluntary redundancy, employers propose a redundancy package to their employees who can then choose to accept it and leave the job. This package often includes financial benefits and is offered in situations like business restructuring or downsizing. The employee's acceptance is voluntary, meaning they have the choice to stay or leave under the proposed terms.

Voluntary redundancy and entitlements

A voluntary redundancy is still a redundancy if the employer no longer needs the job done by anyone, so employees with at least 12 months' service are entitled to redundancy pay under the National Employment Standards, unless the employer is a small business employer. Many employers offer an enhanced package to encourage volunteers. Calling for volunteers does not replace the duty to consult under the award or agreement. For example, if you need to reduce a team of 10 to 8, you could invite expressions of interest before selecting anyone.

Read our guides to genuine redundancy and redundancy pay.