Just been made redundant in Australia? What to do first

The news you did not want

You have just been told your role is being made redundant. Maybe you had a feeling it was coming. Maybe it came out of nowhere. Either way, the next few hours and days are important, and most people do not know what they are actually entitled to ask for, what they should not sign yet, and what happens next.

This post covers the immediate steps. It is not the full plan for what to do over the next few weeks (that is in our four-week redundancy guide). This is specifically for the first 24 to 48 hours.

First: check it is actually a genuine redundancy

"Redundancy" has a specific legal meaning in Australia under the Fair Work Act. A genuine redundancy is one where:

Your job is no longer required to be done by anyone at the business, and
Your employer has met any consultation obligations set out in your award, enterprise agreement, or contract

If your employer is replacing you with someone else doing the same work, or if they skipped the consultation process they were required to follow, it may not qualify as a genuine redundancy. That matters because an unfair dismissal claim has a 21-day time limit from the date of dismissal. If you think something is wrong, do not delay.

The Fair Work Commission and Fair Work Ombudsman are the two bodies to contact. Both have free information and advisory services at fairwork.gov.au.

If you are a union member, call your union now. They have seen this before and they can read your situation fast.

Second: do not sign anything today

You will likely be handed paperwork. A separation agreement, a deed of release, a final payment summary. Your employer may ask you to sign on the spot or within a short window.

Do not sign anything you have not read carefully. You have time. A reasonable employer will give you a few days to review documents. If they are pressuring you to sign immediately, that is a reason to slow down, not speed up.

In particular, look for:

A deed of release or settlement agreement. These often include clauses that stop you from making future claims against the employer. Once signed, those rights are typically gone. Have a lawyer or union representative read it before you sign.
A confidentiality clause. Some deeds include restrictions on discussing the terms of your departure. Know what you are agreeing to.
The calculation of your redundancy pay. Check it matches the National Employment Standards (NES) schedule and your award or agreement. The NES minimums are set by law. Your employer cannot pay less than these.

Third: get the numbers in writing

Ask for a written breakdown of everything you are being paid. This should include:

Redundancy pay (the number of weeks owed based on your years of service)
Notice period or payment in lieu of notice
Accrued annual leave (must be paid out)
Long service leave if you have reached the threshold in your state
Any above-NES or ex gratia amounts your employer is offering
The tax treatment of each component

The NES redundancy pay schedule (Fair Work Ombudsman, current):

Years of service	Weeks of redundancy pay
1 to under 2 years	4 weeks
2 to under 3 years	6 weeks
3 to under 4 years	7 weeks
4 to under 5 years	8 weeks
5 to under 6 years	10 weeks
6 to under 7 years	11 weeks
7 to under 8 years	13 weeks
8 to under 9 years	14 weeks
9 to under 10 years	16 weeks
10 years or more	12 weeks

Note: businesses with fewer than 15 employees are exempt from the NES redundancy pay obligation, though your award or contract may still require it.

You can check your estimated payout using the redundancy payout calculator.

Fourth: understand the tax before the money lands

Redundancy payments are not all taxed the same way. Getting this wrong can mean a surprise tax bill.

For the 2026-27 income year (payments from 1 July 2026), the ATO's tax-free threshold for a genuine redundancy payment is:

A$13,598 base amount, plus
A$6,801 for each completed year of service

Everything above that threshold is treated as an employment termination payment (ETP) and taxed at a concessional rate, up to the 2026-27 ETP cap of A$270,000.

Your unused annual leave and long service leave are paid out separately and taxed differently again, under Schedule 7 withholding rates.

Ask your employer's payroll team for the withholding breakdown before the payment is processed, not after. If the numbers look wrong, raise it then. It is much harder to correct after the money has been paid and the tax withheld.

More detail on the ATO rules is on our redundancy tax guide.

Fifth: start the Centrelink clock early

If you think you will need to access JobSeeker, start your claim now, even if you are not eligible to receive it yet.

Two waiting periods apply:

Liquid Assets Waiting Period (LAWP). If you have A$5,500 or more in liquid assets (single, no dependants) or A$11,000 or more (partnered, or single with dependants), a waiting period applies before payments start. The clock only starts running once your claim is lodged. Lodging early means the wait begins sooner.

Income Maintenance Period (IMP). Your redundancy pay, annual leave payout, and any payment in lieu of notice are treated as income spread over the period they represent. A 10-week redundancy payout creates roughly a 10-week IMP.

You will need an Employment Separation Certificate (form SU001) from your employer. They are required to provide it on request. Services Australia's information is at servicesaustralia.gov.au.

Sixth: do not post about it yet

The instinct to post on LinkedIn or tell your network straight away is understandable. Hold off for a day or two.

First, because you may not know the full picture yet. What you post now will be read in light of whatever happens next.

Second, because some separation agreements include restrictions on public statements. Know what you have signed before you say anything publicly.

Third, because a considered message about your departure will land better than one written in the first hour of shock.

What happens after the first 48 hours

The immediate steps above are about protecting your position and understanding what you are owed. Once you have done those, the longer work begins: working out what comes next, rebuilding your confidence, and starting a targeted job search.

The four-week plan for being made redundant covers that in detail: resume, target list, applications, interview prep, and offer handling. The redundancy hub has the full set of resources including the payout calculator, Centrelink timing guide, and Fair Work entitlements checker.

If you are worried about whether your role or sector is likely to face further redundancies, the Career Change Check is a free three-minute check that shows roles people from your kind of work moved into.

The median Australian job search was 14 weeks in December 2025 (ABS via CEIC). Most people in this situation find something. The first 48 hours are about protecting yourself so you have room to do that calmly.

Frequently asked questions

What am I entitled to when made redundant in Australia?

Under the National Employment Standards, you are entitled to redundancy pay based on your years of continuous service (from 4 weeks for 1 to 2 years of service, up to 16 weeks for 9 to 10 years), notice or payment in lieu of notice, and payout of accrued annual leave. Long service leave entitlements depend on your state and years of service. Businesses with fewer than 15 employees are exempt from the NES redundancy pay requirement, though your award or contract may still require it.

Do I have to sign a deed of release when made redundant?

No. A deed of release is a negotiated document that typically exchanges additional payment for you giving up certain rights, such as the right to make future claims. You are not legally required to sign one. If you are asked to sign, have a lawyer or union representative read it first. Do not sign under time pressure without understanding what you are agreeing to.

How long do I have to make an unfair dismissal claim in Australia?

You have 21 days from the date of dismissal to lodge an unfair dismissal application with the Fair Work Commission. If you think your redundancy may not be genuine (for example, if your employer is hiring someone else into the same role, or if they did not follow required consultation steps), do not wait. Contact the Fair Work Commission or a union immediately.

Will my redundancy payout affect my Centrelink payments?

Yes, potentially. Two waiting periods may apply: the Liquid Assets Waiting Period (if you have more than A$5,500 in liquid assets as a single person) and the Income Maintenance Period (where redundancy pay and leave payouts are treated as income over the equivalent period). Lodge your JobSeeker claim early so the clock starts running. You will need an Employment Separation Certificate from your employer.

Is redundancy pay taxed in Australia?

Part of it is tax-free. For 2026-27, the tax-free threshold is A$13,598 plus A$6,801 for each completed year of service. Amounts above the threshold are taxed as an employment termination payment at a concessional rate. Annual leave and long service leave payouts are taxed separately. Ask your employer's payroll team for the withholding breakdown before payment is processed.

Just been made redundant in Australia? Here is what to do first