A member asked about 8 years ago

Do I still get my redundancy payment if I quit my contract role?

I would like to ask in regards to the policy on redundancy payment. I got redundant last year and I work for the company for almost four years. After my redundancy letter, the same company got me to sign a contract role for 8 months and extended me for another 8 months. On the side, knowing that my role is contract, if I found another permanent job from another company and decided not to finish my contract, will I still be entitled  to get a pay out? 

Law Advisor Research Team
Researchers at LawAdvisor

Hi there. Whether you are entitled to a redundancy payment will depend on several things. It is not clear whether your redundancy letter stated that you were entitled to receive a redundancy payment. Whether you are entitled to a payment upon being made redundant will depend on how long you worked for the employer, how much notice they gave you before your redundancy took effect, and whether you were employed on an award or enterprise agreement that allowed for additional redundancy entitlements.


Generally, a person who is made redundant will be entitled to receive their final pay on the last day of employment in that position or on the next scheduled pay cycle. If you were promised a redundancy payment at the time of your redundancy and your employer has not yet paid it (even though you are still working for the same employer), you may be able to claim that redundancy payment from them now, rather than waiting until you stop working for your current employer.


If, however, you were not offered a redundancy payment and you were simply moved to a contract position with the company, you may be entitled to make a claim against the employer for certain redundancy entitlements depending on the length of your employment and the terms of any awards or enterprise agreements that may apply.


If you decide to end your current employment, you would need to give sufficient notice to your employer, as required by the terms of your employment contract. Ending your current employment contract would generally not affect your entitlement to the redundancy payment, unless you owed your employer money for some reason, in which case your employer may deduct this debt from your redundancy payment.


More information about redundancy can be found on the FairWork Ombudsman website at www.fairwork.gov.au.


Suggested way forward

The information you provided suggests you may have the option of claiming a redundancy payment, if any, from your employer. You should speak to an employment lawyer who can advise you of your legal rights and how best to enforce them. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

Answered almost 8 years ago   Legal disclaimer

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