Dealing with Job Redundancy

Being made redundant can be an emotional and financial shock—but it’s also a moment to reset, re-strategise and possibly even reshape your career path.

With industries evolving rapidly, restructures and layoffs are more common than ever. Whether you’ve received a redundancy notice, accepted a voluntary package, or suspect one may be on the horizon, understanding your rights and next steps is key to making a smooth transition.

What Is Redundancy?

Redundancy happens when your employer no longer requires your role due to business changes, such as company restructure, downsizing, automation, or financial strain. It is not a reflection on your performance—and that distinction matters when applying for your next role.

Your Legal Entitlements

Your redundancy entitlements are protected under the Fair Work Act 2009 and your specific award, enterprise agreement, or employment contract. They usually include:

• Minimum notice period (1–5 weeks, depending on service)
• Redundancy pay (4–16 weeks based on your years of service)
• Payout of accrued annual and long service leave (if applicable)
• Time off during the notice period to attend job interviews

Who Is Eligible?

To be entitled to redundancy pay, you must be a permanent employee (full-time or part-time) with at least 12 months of continuous service. You generally won’t be eligible if you are:

• Employed casually
• A contractor or apprentice
• Leaving due to serious misconduct
• Working for a small business with fewer than 15 employees

What to Do With Your Payout

Receiving a lump sum redundancy payment may feel like a windfall—but it comes with important tax, superannuation and budgeting considerations. It’s worth speaking with a licensed financial adviser to help you:

• Understand how your payout is taxed
• Decide how much to contribute to super
• Budget for time off or retraining

Depending on your payout and assets, you may also qualify for JobSeeker Payment or other income support from Services Australia. Your eligibility will depend on your household income, assets and how long your redundancy payment covers your living expenses.

What If You Suspect Unfair Redundancy?

If you believe your redundancy was not genuine or followed unfair procedures, you may be able to lodge a claim with the Fair Work Commission. Claims must be made within 21 days of your termination.

If your employer becomes insolvent and can’t pay your entitlements, you may be eligible for support through the Fair Entitlements Guarantee (FEG).

Voluntary Redundancy: Should You Take It?

Sometimes employers offer voluntary redundancy packages to reduce staff numbers. If you’ve already been considering retirement, a career break or a career change, this could be an opportunity to leave on your own terms with a financial cushion.

Voluntary redundancy packages often include additional incentives, so weigh your options carefully. Consider getting legal or financial advice before signing any agreement.

Dealing With the Emotional Impact

Redundancy can take a toll on your confidence and sense of identity. It’s important to remember:

• It’s the job that’s been made redundant—not you
• This is increasingly common and not a personal failure
• Many people use redundancy as a launchpad into something better

Reach out to friends, family, and support networks. Many employers also offer outplacement services or access to counselling—take advantage of them. If you’re struggling, talk to your GP or a counsellor, or contact Beyond Blue or Lifeline for mental health support.

How to Bounce Back Professionally

1. Rebuild Your Network

Let former colleagues, mentors and friends know you’re exploring new opportunities. Attend industry events, join online professional groups (like LinkedIn), and reconnect with past contacts.

2. Refresh Your Resume

Update your resume and cover letter for each job application. Be upfront about your redundancy—it’s far more common (and accepted) than job-hopping or vague career gaps.

3. Upskill and Retrain

Redundancy can be a perfect opportunity to pivot into a new career. Explore short courses, certifications and TAFE options in growth industries such as:

• Aged care and disability
• Cyber security and IT
• Project management
• Mental health support

4. Start Something New

Have a business idea? Your redundancy payout could provide seed funding. If you’ve always dreamed of launching your own venture, now might be your moment—just make sure you plan and research thoroughly.

5. Take Time to Reflect

If financially feasible, consider taking a short break. Travel, volunteer, or simply regroup. Use the time to figure out what kind of work you really want—and what lifestyle you want with it.

Redundancy Doesn’t Define You—Your Response Does

Redundancy can feel like a setback, but many people look back on it as a turning point for the better. With planning, support, and the right mindset, it can be your springboard to a more fulfilling and future-proof career.

Ready to explore a new path? Start by browsing our most in-demand courses and training programs to upskill for your next chapter.