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Severance

Expert legal advice on severance packages, redundancy pay, and termination entitlements. National coverage across Australia.

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Severance in Australia
An employee with eight years of service is made redundant and presented with a severance agreement that undervalues their accrued long service leave and redundancy entitlements. Understanding your legal rights in such situations is critical. Severance involves the financial and non-financial compensation provided upon the termination of employment, governed by a complex interplay of awards, contracts, and legislation. Each listed firm provides clear, strategic guidance on severance matters across Australia, ensuring employees receive what they are legally owed. For comprehensive support on workplace legal matters, explore our national hub for employment law advice in Australia.

Our services

Process

Employment law in Australia

Our approach to severance cases is methodical and evidence-based. We begin with a detailed review of your employment contract, applicable modern award or enterprise agreement, and your final payslip. We assess entitlements against the National Employment Standards (NES), which mandate minimum redundancy pay scales based on years of service. For instance, an employee with over nine years of service is typically entitled to sixteen weeks of severance pay under the NES baseline. Our team then analyzes any company policy and calculates all outstanding entitlements, including accrued annual leave and long service leave. We provide a clear assessment and, if the initial offer is deficient, guide you through strategic Severance Negotiation to secure a fair outcome.

Local Considerations — Australia

Severance entitlements and dispute landscapes can vary across Australia's diverse economic regions. In major corporate hubs like Sydney and Melbourne, redundancies often involve complex enterprise agreements and executive contracts, requiring nuanced interpretation. In sectors like mining in Western Australia or manufacturing in South Australia, modern awards and industry-specific agreements are paramount. Our national practice is structured to navigate these regional legal and industrial nuances. We provide tailored advice whether you are in Brisbane, Perth, or Adelaide, ensuring your severance outcome reflects both national standards and local employment contexts. For specific insights relevant to your location, learn about severance considerations in your city.

At a Glance

ParameterReference Value
Common Review ScopeContract, Award, Redundancy Pay, Accrued Leave
Key Legislative FrameworkFair Work Act 2009 (NES)
Typical Redundancy Pay Scale (NES)4 to 16 weeks' pay
Common Dispute Resolution PathNegotiation, Fair Work Commission

Standards & Compliance

  • Fair Work Act 2009 (National Employment Standards)
  • Relevant Modern Award or Enterprise Agreement
  • Long Service Leave Act (State-based)
  • Contract Law Principles

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Our team reviews your project and issues an initial report at no cost.

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Our national team is equipped to provide decisive guidance on your severance rights, ensuring you navigate this challenging process with clarity and confidence. We offer support across Australia's major cities and regions.

Frequently Asked Questions

What is typically included in a severance package review?

Our review comprehensively assesses your redundancy pay calculation against the Fair Work Act, verifies payment for all accrued annual and long service leave, examines any contractual bonuses or incentives, and evaluates the terms of any deed of release you are asked to sign.

How long does it take to resolve a severance dispute?

Timelines vary significantly. A straightforward negotiation may conclude within 2-4 weeks. If a claim proceeds to the Fair Work Commission for mediation or a hearing, the process can extend to several months, depending on case complexity and tribunal schedules.

Are there time limits for making a severance claim?

Yes, strict time limits apply. For an unfair dismissal claim, you generally have 21 days from the date your dismissal took effect. For underpayment of entitlements like redundancy pay, different limitation periods may apply under the Fair Work Act, making prompt legal advice essential.

How much does severance legal advice cost in Australia?

Costs depend on case complexity, such as the number of entitlements in dispute, whether litigation is required, and the need for expert financial analysis. Many initial assessments are offered on a fixed-fee basis. For a specific matter, we provide transparent cost agreements upfront. It is always best to obtain a tailored quote for your situation.