Navigating Redundancy: A Practical Guide to Your Rights and Next Steps

What Does 'Being Made Redundant' Actually Mean?

It’s easy to confuse redundancy with being fired, but they are fundamentally different. You are fired for reasons related to your performance or conduct. Redundancy, on the other hand, occurs when your job itself is no longer necessary.

This can happen for several reasons, including:

• A company restructuring or downsizing.
• New technology automating the tasks you performed.
• A business slowdown or change in direction.
• A merger or acquisition.

The key takeaway is that a genuine redundancy is about the operational needs of the business, not about you as an employee.

Your Redundancy Rights: The Non-Negotiables

When you're made redundant, you are protected by a set of legal standards that ensure you're compensated fairly. While specifics can vary based on your contract or industry award, here are the core entitlements you should expect.

1. The Official Notice Period

Your employer must give you a minimum period of notice before your employment ends. The length of this notice is usually determined by how long you’ve worked for the company. You might be asked to work through this period, or your employer may choose to pay you in lieu of notice, meaning your employment ends immediately but you are paid for the notice period.

2. Redundancy Pay (Severance)

This is a lump-sum payment designed to compensate you for the loss of your job. The amount is typically calculated based on your years of service with the company. National Employment Standards (NES) often set the minimum baseline for this, but your own employment contract or company policy might offer more generous terms.

Note: In some cases, small business employers or employees on fixed-term contracts may not be entitled to redundancy pay. Always check the regulations that apply to your specific situation.

3. Final Payouts for Accrued Leave

Don't forget about your unused leave! Your final pay should include a full payout for any outstanding entitlements, such as:

• Accrued annual leave
• Long service leave (if applicable)

What to Do During the Redundancy Process

Being proactive during this period can make a huge difference.

• Stay Calm and Ask Questions: When you have the conversation with your manager or HR, try to stay calm. Ask for everything in writing. Don't be afraid to ask clarifying questions about the timeline, your final day, and the calculation of your entitlements.
• Review Your Paperwork: Dig out your employment contract and any applicable industry awards. Compare what you've been offered against what's written in these documents. If you spot a discrepancy, raise it professionally with HR.
• Understand 'Genuine Redundancy': For a redundancy to be "genuine," the company must demonstrate that the role is truly no longer needed and that they have followed a fair consultation process. If you feel you've been targeted unfairly and the role is being re-advertised with a new title, it may be worth seeking advice on unfair dismissal.

You've Been Made Redundant. Now What?

Once the dust settles, it’s time to focus on your next steps. This isn't just an ending; it's a new beginning.

Step 1: Sort Out Your Finances

Your redundancy payment can provide a crucial financial cushion.

• Create a Budget: Review your expenses and create a realistic budget to make your payout last while you search for a new role.
• Understand Your Final Pay Slip: Make sure all your entitlements have been paid correctly.
• Seek Financial Advice: A financial advisor can help you manage your lump-sum payment wisely, offering advice on taxes, investments, and superannuation.

Step 2: Take a Moment to Breathe

Losing your job, even through no fault of your own, can take an emotional toll. It’s okay to feel angry, sad, or confused.

• Acknowledge Your Feelings: Give yourself permission to process the change. Talk to friends, family, or a professional.
• Focus on Your Well-being: Get back into a routine. Exercise, eat well, and invest time in hobbies you enjoy. Don't let your job search consume you 24/7.

Step 3: Prepare for Your Next Amazing Chapter

When you feel ready, you can start looking forward. This is your chance to reassess what you want from your career. Do you want a similar role, or is it time to pivot?

A critical first step is getting your application materials in order. This is the perfect time to refresh your professional brand, starting with your resume. Crafting a standout resume that showcases your achievements and skills is essential for catching a recruiter's eye. Tailoring it for each application will signal that you are the perfect candidate for the job.

From there, you can:

1. Update Your LinkedIn Profile: Ensure it reflects your experience and career goals. Start engaging with your network.
2. Network Proactively: Let former colleagues and industry contacts know you are looking for new opportunities. You never know where your next lead will come from.
3. Identify Skill Gaps: Is there a course you could take or a certification you could earn to make yourself even more marketable?

Being made redundant is a difficult experience, but it doesn’t define you or your career. By understanding your rights and taking thoughtful, strategic steps, you can navigate this transition with confidence and land a role that truly excites you.