Case

Updated time

Last updated

08 July 2016

2004 Redundancy Case

National Union of Workers & Others

  • Giudice J President, Ross VP, Smith C and Deegan C, Decision issued 26 March 2004, PR032004
  • Giudice J President, Ross VP, Smith C and Deegan C, Supplementary Decision issued 8 June 2004, PR062004

Case summary

The standard severance pay scale is extended to a maximum of 16 weeks' pay after 9 years of service. After 10 years or more, however, the severance pay is reduced to 12 weeks pay, offsetting long service leave entitlements payable after 10 years of service. In this decision the Australian Industrial Relations Commission also extends the severance pay scale to small business (less than 15 employees) but restricts such payments to a maximum of eight weeks' pay after four years of service. Provision is made for an employer or group of employers to seek to have the general severance prescription varied on the basis of an ‘incapacity to pay’.

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