Australian Manufacturing Workers' Union

 

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Redundancy

When companies shut their doors or positions are made redundant, we believe that you should be paid fair entitlements to help you and your family get back on your feet.

What is redundancy?

Redundancy occurs when an employer no longer requires the job that you do to be done by anyone, or when the company that you work for becomes insolvent or bankrupt.

Redundancies must be genuine. The job that you were doing must genuinely no longer be required to be done by anyone else. If you believe that your redundancy is not genuine, contact the AMWU immediately as you might have an alternative claim.

What are my entitlements if I am made redundant?

If you are made redundant you may be entitled to payment for notice, severance pay and any accrued leave you may have.

Your agreement or award may outline your entitlements to leave and severance pay so make sure to check the redundancy clauses in your agreement or award first.

The minimum amount you are entitled to for severance pay under law is:

Period of Continuous Service

Entitlement

At least 1 year but less than 2 years

4 weeks

At least 2 years but less than 3 years

6 weeks

At least 3 years but less than 4 years

7 weeks

At least 4 years but less than 5 years

8 weeks

At least 5 years but less than 6 years   

10 weeks

At least 6 years but less than 7 years    

11 weeks

At least 7 years but less than 8 years    

13 weeks

At least 8 years but less than 9 years    

14 weeks

At least 9 years but less than 10 years    

16 weeks

At least 10 years    

12 weeks

If you are a permanent worker you must also be given notice of termination or paid out your notice at your ordinary rate of pay. The minimum required notice periods are:

Period of Continuous Service

Entitlement

Not more than 1 year 

1 weeks

More than 1 year but not more than 3 years

2 weeks

More than 3 years but not more than 5 years 

3 weeks

More than 5 years 

4 weeks

If you are over 45 years old and have completed at least 2 years of continuous service, then you are entitled to an additional week of notice.

What if my company says they don’t have the money to pay me?

Don’t worry, the federal government provides assistance to people who are owed outstanding employee entitlements if your employer is insolvent or bankrupt.

The Fair Entitlements Guarantee acts as a safety net for wages and some entitlements if your employer cannot pay. Time limits apply so make sure you contact the AMWU immediately if you think you are eligible.

What support can the union provide me?

The AMWU has legal experts that can provide you with advice and support if you are made redundant. On top of this the AMWU provides a counselling service for members and their families, AMWU Care.

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