What are redundancy pay entitlements under the NES?

The National Employment Standards (NES) establish key statutory redundancy pay entitlements that apply to most national system employees under the Fair Work Act 2009 (Cth). This guidance note provides authoritative insight into the complex interplay between NES provisions, employment contracts, awards, and state legislation. It outlines critical aspects employers and practitioners must consider to navigate redundancy obligations effectively while highlighting exceptions and recent case law developments.

Topics Covered

• How do the NES interact with other sources of redundancy entitlements?
• When is an employee entitled to redundancy pay under the NES?
• Which employees are excluded from the entitlement to redundancy pay under the NES?
• How much redundancy pay is an employee entitled to?
• Can the amount of redundancy pay be reduced?
• How is redundancy pay dealt with in transfer of business situations?

Essential Insights

• Assess the nuanced interaction between NES entitlements and contractual or award-based redundancy provisions.
• Understand the statutory criteria that trigger redundancy pay obligations and key exceptions including “genuine redundancy”.
• Identify employee categories excluded from NES redundancy pay and the implications for small business employers.
• Explore the method for calculating redundancy pay linked to continuous service and critical legislative thresholds.
• Examine conditions under which redundancy pay may be lawfully reduced, including “other acceptable employment” and financial incapacity.
• Consider complexities in transfer of business scenarios affecting redundancy pay liabilities and continuity of service.