Redundancy in Australia: Your Rights and What to Do Next

Redundancy is a legal and common part of Australian working life. In 2025–2026, corporate restructuring — particularly in technology, media, and financial services — resulted in thousands of Australians navigating redundancy for the first time. Understanding your rights and moving quickly and strategically minimises the impact.

Your legal entitlements

Under the National Employment Standards (NES) in the Fair Work Act 2009, redundant employees are entitled to:

• Redundancy pay: Based on continuous service — 4 weeks' pay (1–2 years) to 16 weeks' pay (9+ years) under the NES minimum scale.
• Notice or payment in lieu: 1 week (less than 1 year) to 4 weeks (5+ years). Employees over 45 with 2+ years' service get an additional week.
• Payment for accrued but unused annual leave: Must be paid out at your ordinary rate of pay.
• Long service leave: State-specific — typically payable if you have reached the threshold (usually 7–10 years in most states).

Centrelink and JobSeeker

• Apply as soon as possible — Centrelink does not backdate most payments
• If you receive a redundancy payout, Centrelink calculates an Income Maintenance Period before payments commence
• Register via myGov and link your Centrelink account online

Updating your resume after redundancy

• List your role dates accurately — do not extend employment dates to cover the gap
• Use "Redundancy" or "Position Eliminated" as the reason for leaving — this carries no stigma
• Update your resume immediately while achievements are fresh
• Request a LinkedIn recommendation from your manager before they move on

Explaining redundancy in AU interviews

"The company went through a significant restructure in March 2026, which resulted in the elimination of my division. It was a business decision affecting multiple roles — I was well supported through the process. In the meantime, I've been [describe consulting, freelance, volunteer work, or professional development] and I'm now focused on finding a role where I can [connect to the target role's value]."

Sources: Fair Work Ombudsman — Redundancy (fairwork.gov.au, 2026); Services Australia JobSeeker Payment (servicesaustralia.gov.au, 2026); ATO — Redundancy payments tax treatment (ato.gov.au, 2026)