Been offered a redundancy package? Make sure it's correct before you accept.

Redundancy pay is calculated using a formula based on your length of continuous service, and it's paid on top of your notice period (or payment instead of notice) and any unpaid wages or leave, not instead of them.

As a general guide under the National Employment Standards, redundancy pay starts after one year of service and increases with tenure, up to a cap at ten or more years. Some awards, enterprise agreements or employment contracts provide for more than this statutory minimum, and some very small businesses are exempt from statutory redundancy pay altogether.

If you've been offered a package, whether it's called a "redundancy payout," a settlement, or an exit package, and aren't sure whether it matches what your award or contract actually promises, or whether it's negotiable at all, it's worth having it reviewed before you accept it or sign anything.