Redundancy pay, continuous service & notice periods

If an employee is made redundant, the amount of redundancy pay they get depends on their period of continuous service.

Does service before 1 January 2010 count towards continuous service?

Yes, if an employee had an existing entitlement to redundancy pay under a:

  • contract of employment
  • pre-modern award, or
  • registered agreement.

If an employee had no entitlement to redundancy pay before 1 January 2010, their service before this date won't count.

Does a notice period count towards an employee's continuous service?

Yes, if the employee works during their notice period.

What if the employee gets payment in lieu of notice?

If an employee gets a payment in lieu of notice, the notice period doesn't count towards their continuous service. The employee's service ends on the day the employee is given notice.

Are there any other exceptions?

Yes. An employee with less than 12 months continuous service has no entitlement to redundancy. The notice period will not count toward service for redundancy.

 

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