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Severance Pay

Expert legal guidance on severance pay, redundancy entitlements, and termination law across Australia. Protect your rights with our national employment law team.

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Severance Pay in Australia
In Australia, the Fair Work Commission receives thousands of unfair dismissal and general protections claims annually, with many disputes stemming from inadequate severance packages. Severance pay, or redundancy pay, is a critical legal entitlement for employees whose positions are made redundant. It is calculated based on length of continuous service and is governed by the National Employment Standards, awards, and employment contracts. Our national team provides precise advice and representation to ensure your severance entitlements are correctly calculated and enforced, protecting your financial and legal interests during termination. For comprehensive employment law support, explore our national services at Employment Lawyers Australia.

Our services

Process

Employment law in Australia

Our legal process begins with a detailed review of your employment contract, applicable modern award, and the National Employment Standards. We analyze your length of service, age, and any enterprise agreement terms to calculate your precise entitlement, which can range from 4 to 16 weeks' pay based on service. We then assess the validity of the redundancy and any potential for an unfair dismissal or adverse action claim. Our approach involves direct negotiation with your employer or their representatives, leveraging the Fair Work Act 2009 and relevant case law. If a settlement is not reached, we provide robust representation in conciliation before the Fair Work Commission or in court proceedings. A key step in this process is our detailed Severance Package Review service to identify any shortcomings in an offered package.

Local Considerations — Australia

Severance entitlements and dispute trends can vary across Australia's diverse economic regions. In major financial hubs like Sydney and Melbourne, redundancies often occur in corporate, finance, and tech sectors, involving complex contracts and bonuses. In resource-driven regions like Western Australia or Queensland, redundancies may be tied to mining project cycles and involve fly-in-fly-out arrangements. The industrial landscape in South Australia and Tasmania can see disputes in manufacturing and healthcare. Our national practice adapts by understanding the specific industry awards, state-based long service leave laws, and the local practices of the Fair Work Commission's state registries. We provide tailored advice whether you are in a metropolitan center or a regional area, ensuring your claim considers all local jurisdictional factors.

At a Glance

ParameterReference Value
Governing LegislationFair Work Act 2009
Standard Entitlement BasisLength of Continuous Service
Common Redundancy Pay Scale4 to 16 weeks' pay
Primary Dispute Resolution BodyFair Work Commission
Typical Project Timeline4-8 weeks

Standards & Compliance

  • Fair Work Act 2009 (Cth)
  • National Employment Standards (NES)
  • Relevant Modern Award
  • State-based Long Service Leave Legislation

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Our national team is equipped to provide clear, strategic advice on severance pay and termination law across all Australian states and territories. We encourage you to contact us for a confidential assessment of your legal position and entitlements.

Frequently Asked Questions

What is included in a standard severance pay calculation?

A standard calculation under the National Employment Standards includes redundancy pay based on years of service, payment for accrued but untaken annual leave, and payment for accrued long service leave if applicable. It does not include a payment in lieu of notice unless specifically agreed.

What is the time limit to challenge a severance package or dismissal?

For an unfair dismissal claim, you generally have 21 days from the date the dismissal took effect to lodge an application with the Fair Work Commission. For a general protections (adverse action) claim involving dismissal, the timeframe is also 21 days.

Can my employer reduce my severance pay if I find another job quickly?

Generally, no. Under the Fair Work Act, redundancy pay is an entitlement for length of service, not compensation for unemployment. An employer cannot unilaterally reduce the statutory entitlement because you secure new employment, unless a specific offset clause exists in an enterprise agreement or contract.

How much does it cost to get legal advice on severance pay in Australia?

Legal costs depend on the complexity of your case, the need for negotiation or formal proceedings, and the specific services required, such as contract review or representation in commission hearings. We provide clear cost agreements upfront. For an accurate estimate tailored to your situation, we recommend requesting a specific consultation and quote.