What your employer must do when your role is made redundant

Your manager has dropped a hint. There's a restructure coming. Or maybe you've already been called into a meeting and the word "redundancy" was used.

Before you panic, read this. There is a legal process your employer must follow. If they skip steps, you have rights. This page explains what the Fair Work Act requires, what you are owed in pay, and what to do next.

Not sure where to start? Take the free three-minute Career Change Check at changingcareers.com.au/assessment before you read on.

What counts as a genuine redundancy

Under the Fair Work Act, a redundancy is only legally "genuine" if three conditions are met.

Your employer no longer needs your job to be done by anyone.
Your employer followed any consultation requirements in your award or enterprise agreement.
It was not reasonable to redeploy you to another role in the business or a related entity.

If any of those three conditions is not met, the dismissal may not be a genuine redundancy. That matters because a non-genuine redundancy can be challenged as an unfair dismissal at the Fair Work Commission.

The Fair Work Ombudsman sets out these requirements at fairwork.gov.au.

The consultation requirement

Most modern awards and enterprise agreements include a consultation clause. If yours does, your employer must:

Tell you in writing that they are considering making your role redundant.
Give you information about the proposed change, including how many roles are affected.
Give you a genuine opportunity to respond before the decision is finalised.
Consider your response.

"Consulting" does not mean they have to agree with you. It means they have to genuinely discuss it before the decision is locked in, not after.

If your employer skips consultation entirely, that is a problem for them legally. Keep any written communication you receive. Note the dates of any verbal conversations.

Redeployment: what your employer must consider

Before confirming your redundancy, your employer must consider whether there is another suitable role available, either in the business or in a related company.

They do not have to create a new role. But if a vacancy exists that you could reasonably do, they are expected to offer it to you. If they do not, the redundancy may not qualify as genuine.

"Suitable" means a role that is a reasonable match for your skills and experience. It does not have to be identical to your current role.

If you are offered a redeployment role and you refuse it without a good reason, you may lose some or all of your redundancy pay entitlement.

Notice periods: what you must be given

Your employer must give you a minimum notice period before your last day. The minimum depends on how long you have worked there.

Under the National Employment Standards (NES), the minimums are:

Less than 1 year of service: 1 week
1 year to less than 3 years: 2 weeks
3 years to less than 5 years: 3 weeks
5 years or more: 4 weeks

If you are over 45 and have completed at least 2 years of continuous service, add 1 week to the above.

Your employer can pay you in lieu of notice instead of having you work out the period. Either way, you must receive the equivalent pay.

Check your contract and your award. They may specify longer notice periods than the NES minimums. You are entitled to whichever is greater.

Redundancy pay: the amounts

If you have been with your employer for at least 1 year, you are entitled to redundancy pay on top of your notice. The NES sets the minimum amounts.

1 year to less than 2 years: 4 weeks pay
2 years to less than 3 years: 6 weeks pay
3 years to less than 4 years: 7 weeks pay
4 years to less than 5 years: 8 weeks pay
5 years to less than 6 years: 10 weeks pay
6 years to less than 7 years: 11 weeks pay
7 years to less than 8 years: 13 weeks pay
8 years to less than 9 years: 14 weeks pay
9 years to less than 10 years: 16 weeks pay
10 years or more: 12 weeks pay (the scale steps down at 10 years under the NES)

"A week's pay" is calculated on your ordinary time earnings, not overtime.

Small business employers (fewer than 15 employees) are exempt from the redundancy pay requirements under the NES, though they must still give notice.

Some awards and enterprise agreements provide higher redundancy pay than the NES. Check yours. The Fair Work Ombudsman's pay calculator at fairwork.gov.au can help you work out the figure.

What else must be paid out

On top of redundancy pay and notice, your employer must also pay out:

Any accrued annual leave, at your full ordinary rate of pay.
Any accrued long service leave (rules vary by state and territory).
Any accrued rostered days off that have not been taken.

They do not have to pay out accrued sick leave in most circumstances.

The process in order: a plain summary

Here is the sequence a compliant employer should follow.

Identify that a role is no longer needed.
Check the consultation clause in the relevant award or agreement.
Notify affected employees in writing and consult genuinely.
Consider redeployment options across the business.
If redeployment is not viable, confirm the redundancy in writing.
Calculate and pay: redundancy pay, notice (or payment in lieu), accrued leave.
Issue a separation certificate and a record of employment.

If your employer is skipping steps or rushing the process, that is worth noting.

If you think the redundancy is not genuine

You have 21 days from the date of dismissal to lodge an unfair dismissal application with the Fair Work Commission. That deadline is strict.

Before you do anything, get advice. The Fair Work Commission has a free information service. Community legal centres across Australia also provide free employment law advice.

Do not sign any deed of release or separation agreement without reading it carefully. Once signed, you generally give up the right to make a claim.

What to do while you still have a job

If you are reading this because a restructure is rumoured but nothing is confirmed, you are in the best possible position. You have time.

Four plain questions are a useful starting point here.

Skills you've already got. Call centre, customer service, claims, and admin roles carry transferable skills: complaint handling, systems navigation, data entry, written communication. These translate directly into roles like customer success, claims coordination, and health administration.

What the demand data says. Use Your Career to see which occupations have strong projected employment, and Jobs and Skills Australia's 2025 Occupation Shortage List to see which are in shortage nationally and in your state. Disability support worker, for example, was rated in shortage nationally and in every state. We hold no data on individual employers or vacancies, so read current job ads to see what is asked for.

Roles within reach. You do not need to start from scratch. Many roles one step up from a call centre seat require only a short qualification or a Certificate III or IV. Check MySkills for accredited options, and check whether your state offers fee-free TAFE places for those courses.

Your safety net. Know your entitlements before you need them. This page is a start. Also check your superannuation balance, your leave accruals, and whether you have income protection insurance.

A note on AI and restructures

A lot of the restructures happening in call centres, claims processing, and back-office admin right now are being driven partly by automation. Employers are reducing headcount in roles that handle repetitive, rules-based tasks.

That does not mean your role disappears overnight. But it does mean the risk is real and worth taking seriously. The Career Change Check at changingcareers.com.au/assessment takes three minutes and shows roles people from your kind of work moved into.

Quick reference: your minimum entitlements

Situation	Entitlement
Under 1 year of service	Notice only, no redundancy pay
1-2 years	4 weeks redundancy pay + notice
2-3 years	6 weeks redundancy pay + notice
5+ years	10-16 weeks redundancy pay + notice
Over 45, 2+ years service	Add 1 week to notice period
All employees	Accrued annual leave paid out
Small business (under 15 staff)	Notice only, redundancy pay exempt

All figures are NES minimums. Your award or contract may give you more.

Frequently asked questions

What must an Australian employer do before making a role redundant?

Under the Fair Work Act, an employer must consult with affected employees if their award or enterprise agreement requires it, consider whether redeployment to another role is reasonable, and confirm the redundancy in writing. If they skip consultation or fail to consider redeployment, the redundancy may not be legally genuine.

How much redundancy pay am I entitled to in Australia?

Under the National Employment Standards, redundancy pay starts at 4 weeks for 1 to 2 years of service and rises to a maximum of 16 weeks for 9 to 10 years of service. Small businesses with fewer than 15 employees are exempt from redundancy pay requirements. Your award or enterprise agreement may provide higher amounts.

Can I challenge a redundancy if I think it is not genuine?

Yes. If you believe the redundancy does not meet the three conditions for a genuine redundancy under the Fair Work Act, you can lodge an unfair dismissal application with the Fair Work Commission. You must do this within 21 days of the date of dismissal. Get legal advice before signing any separation agreement.

Does my employer have to offer me another job instead of making me redundant?

Your employer must consider whether a suitable role exists within the business or a related entity before confirming a redundancy. They do not have to create a new role, but if a reasonable vacancy exists, they are expected to offer it. If they do not, the redundancy may not qualify as genuine.

What happens to my annual leave when I am made redundant?

Your employer must pay out all accrued annual leave at your ordinary rate of pay when your employment ends through redundancy. Accrued long service leave must also be paid out, though the rules vary by state and territory. Accrued sick leave is generally not paid out.