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EMPLOYMENT LAW - FOR EMPLOYERS
TERMINATION AND REDUNDANCY PAY
Employees must give their notice to employers in writing.
Under the National Employment Standards all employees are entitled to receive redundancy (“severance”) payments if their employment is terminated for reasons of redundancy. The scale of payments reflects the Award standard and ranges up to 16 weeks pay, based on the employee's length of service. An employee must have 12 months service to qualify. Those businesses that qualify as “small business” may avoid the obligation to pay redundancy pay.
Employers may apply to Fair Work Australia to have the amount reduced if they are unable to pay redundancy pay.