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Executive Redundancy Pay - Australia Employment Solicitors



Executive redundancy is specifically defined under the Fair Work Act 2009 and occurs when the position is no longer available due to economic, market, structural or technological changes. In certain circumstances compensation is payable by the employer or the Government of Australia if the employer cannot afford to pay.

Wrongful Dismissal

The alleged executive redundancy must be a genuine redundancy and if not the executive can claim compensation or reinstatement for unfair dismissal. A sham redundancy occurs when an employer realises that it is cheaper to dismiss by way of redundancy rather than pay damages for unfair or unlawful dismissal. Application in these circumstances is made to Fair Work Australia.

Genuine Redundancy

A genuine executive redundancy occurs when the employer no longer needs the job to be carried by anyone due to economic, market, structural or technological changes and in appropriate cases the employer has fully complied with a Modern Award or Enterprise Agreement which requires consultation. In all cases, if it was possible to redeploy the executive to work elsewhere within the company or an associated business, then termination of an executives employment will not be a genuine redundancy. Fair Work Australia gives examples of what may be considered as a genuine executive redundancy situation as follows :-

  • the work becomes mechanized
  • business recession
  • mergers & takeovers
  • reorganisation or restructuring

Amount of Awards

Under the Fair Work Act 2009 executive redundancy pay can amount to the equivalent of twelve weeks pay however payment is not due if the executive has worked for less than 12 months or there are less than 15 employees within the business which does not include casual workers. If the employer cannot afford to pay, they may make application to Fair Work Australia to vary the statutory amount payable. Failure by an employer to pay may entitle an executive to make application for payment from the government.

Employment Lawyers

Our specialist employment solicitors deal with executive redundancy rights under the Fair Work Act 2009 and give advice on common law rights, contractual terms and wrongful dismissal. If you would like advice just complete the contact form, or email our offices or use the helpline.