How is severance pay handled in Australia?

In Australia, severance is required only in cases of redundancy and is due to employees according to the following schedule:  

  • 1-2 years of service: 4 weeks' pay 
  • 2-3 years of service: 6 weeks' pay 
  • 3-4 years of service: 7 weeks' pay 
  • 4-5 years of service: 8 weeks' pay 
  • 5-6 years of service: 10 weeks' pay 
  • 6-7 years of service: 11 weeks' pay 
  • 7-8 years of service: 13 weeks' pay 
  • 8-9 years of service: 14 weeks' pay 
  • 9-10 years of service: 16 weeks' pay  


If you have questions about terminating employment contracts in Australia, please get in touch with our team today! 

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