Who Doesn't Get Redundancy Pay in Australia?

Redundancy can be a difficult experience, but not everyone is entitled to a payout when their job is made redundant. Under the Fair Work Act, certain categories of employees don’t qualify for redundancy pay – even if the role genuinely no longer exists.

If your continuous service with the employer is less than 12 months, you may not be eligible for redundancy pay. The same applies if you're employed for a fixed term, seasonal work, or specific project – these arrangements end by design, so redundancy provisions don't apply.

Casual employees are generally aren't entitled to redundancy pay either. Similarly, apprentices and trainees engaged only for the duration of their training agreement may also be excluded.

If you’re dismissed due to serious misconduct, such as theft or assault, your employer may not have obligation to pay redundancy – even if your position is later removed.

Importantly, small businesses are also usually exempt from redundancy pay obligations. If your employer has fewer than 15 employees, they’re generally not required to pay redundancy. However, how employees are counted and how the business is structured can affect this, so advice should be sought in borderline cases.

Finally, modern awards or enterprise agreements may outline other exceptions or rules. If you're facing redundancy and unsure about your rights, don’t assume you're ineligible. Sometimes employers misclassify roles or overlook obligations. It's worth getting clear advice before walking away empty-handed.