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Are Casual Employees Entitled to Redundancy Pay?

Are Casual Employees Entitled to Redundancy Pay?

Are you a casual or long term casual employee curious about whether you are entitled to redundancy pay? Read on to find out.

8th April 2019

What is redundancy pay?

The Fair Work Act 2009 (Cth) identifies that employees must receive redundancy pay if their job becomes redundant. Redundancy pay is calculated by an employees’ length of continuous service to their employer. Continuous service is the duration of time an employee was employed. However, there are exceptions to this regulation especially if the employment is casual.

Casual employees

The Fair Work Ombudsman defines casual employees as those who do not have a “firm commitment in advance” to their work. Therefore, casual employees may have inconsistent working days, hours and duration. They also do not need to commit to all the work an employer may offer them. Furthermore, they usually work irregular hours, do not get sick pay or annual leave. Casual employees can quit without giving notice, unless specified prior. Similarly, employers can terminate casual employees without giving them notice. In accordance with s 123 of The Fair Work Act 2009 casual employees are not entitled to redundancy pay.

However they are privy to benefits such as higher pay rates, 2 days unpaid carer’s leave and unpaid community service leave.

Long term casual employee

Casual employees may become long term casual employees when they work for an employer for an extended period of time. Long term casual employees stay as such until their employment terms change. This change can be if they have a mutual commitment to providing ongoing work on agreed hours, days and duration. After a minimum of 12 months of working regularly as a casual, long term casual employees gain extra rights. These include unpaid parental leave for 12 months and the ability to request flexible working arrangements. Although long term casual employees do not get paid leave or notice of termination. This is despite the fact they work regularly for an extended period of time. Furthermore, employees who have worked a period of continuous service for less than 12 months also do not receive redundancy pay.

Unfair dismissal

If you believe you lost your job unfairly or should have still been payed redundancy contact the Fair Work Ombudsman. Unfair dismissal can be in regards to discrimination, a “harsh, unjust or unreasonable” or other protected right. If you are unsure or need further legal advice, contact a redundancy lawyer who will be able to assist you with legal advice.

Don’t know where to start? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.

Chloe Kim

Chloe is an intern at Lawpath in the Content team. She currently is in her last year of studying a Bachelor of Laws with a Bachelor of International Studies at Macquarie University.