This can include:
- wages – up to 13 weeks unpaid wages (capped at the FEG maximum weekly wage)
- annual leave.
- long service leave.
- payment in lieu of notice of termination – maximum of 5 weeks.
- redundancy pay – up to 4 weeks per full year of service.
Is voluntary redundancy pay different to redundancy pay?
Voluntary redundancy pay You’re entitled to statutory redundancy pay if you have been with your employer for two years or more. The fee for voluntary redundancy is often more than the amount offered for statutory redundancy pay, and will take into account factors such as your age, salary and length of service.
What are the different types of redundancy payments?
Depending on your employment conditions, for example, amounts your employer is required to pay under the industrial agreement or employment contract, a genuine redundancy payment may include: payment in lieu of notice. severance payment of a number of weeks’ pay for each year of service.
Do you have to pay tax on redundancy payments?
Certain redundancy payments are tax-free up to a limit based on the number of years you worked for that employer. Redundancy payments are a type of employment termination payment (ETP). If as a result of COVID-19 you are taking leave, have been stood-down or have lost your job, see Tax on employment payments .
What’s the difference between redundancy and severance pay?
Severance pay can also include additional entitlements such as health insurance coverage for a specific amount of time until the employee finds new employment. In Australia, it is the same as redundancy pay as outlined on the Fair Work Ombudsman. Redundancy Pay. Redundancy occurs when the role or job is no longer required by the employer.
When does an employee lose their statutory redundancy payment?
The law removes entitlement to a statutory redundancy payment if an employee unreasonably refuses suitable alternative work. An employee is entitled to a four week trial period in a new role. If the employer and employee then agree that the role is not a suitable alternative, the employee reverts to being redundant.
