Retrenchment advice

Retrenchment can be difficult. Understanding the process and knowing that you have options for your future can help.

Understanding the process

Understand your entitlements

Check with the Fair Work Ombudsman what you are entitled to. They also have a Notice and Redundancy Calculator to help you understand your minimum entitlement.

Notice of termination

Your employer must give you a written notice of termination. This will tell you the day you will finish work. Your notice period, or how long until you finish, will depend on how long you have been with the employer.

Finishing work before the end of the notice period

If your employer wants you to finish before the end of the notice period, they must pay you a ‘payment in lieu of notice’. This means they pay you to finish early.

Your pay must be at least as much as you would have received if you had worked until the end of the notice period. This must include any common extras in your pay. For example, these extras might be:

• bonuses and other incentive-based payments
• loadings
• allowances
• overtime
• penalty rates
• any other extras.

Notice of termination or payment in lieu does not apply if you are:

• casual
• employed for a specified period of time, task or season (e.g. a fixed term contractor or a seasonal fruit picker)
• fired because of serious misconduct (theft, fraud, etc.), or
• a trainee employed for a set period of time or for the length of the training arrangement

An apprentice gets notice of termination, unless you are:

• employed for a set period of time, or
• fired for serious misconduct.

Daily hire employees might have different notice requirements instead of those listed above.

Check your employment contract to see what might apply to you.

If you are unsure about your entitlements, contact the Fair Work Ombudsman.

Payments

The amount you will receive depends on many factors, such as:

• how long you have worked for the employer
• your contract
• if you have any unpaid leave
• the type of industry you work in.

Employment Separation Certificate

Depending on your circumstances, Centrelink may provide financial support after you finish.

You should request an Employment Separation Certificate from your employer. You will need to present this document to claim support payments.

Working out your options

Here are some options you can consider when facing retrenchment:

• Retraining in a new field or gaining more skills can improve your chances of finding a new job. Victorian Skills Gateway can help you search for in-demand jobs. They can also give you advice on changing careers.
• When you’re looking for a new job it’s important to think about what skills you have. It also helps to understand the local job market. A personalised employment service can help you get job-ready and find new work. Skills and Jobs Centres can help with advice, referrals and workshops.
• Jobs Victoria Mentors can help you get work-ready. Find out more about where to access support from Jobs Victoria Mentors.
• If you are considering starting your own business, it is a good idea to get professional advice and support. Business Victoria has guides, tools and templates to understand what you might need.
• The Local Employment Transition Service (LETS) can help during a retrenchment process. There’s also a range of Jobs Victoria services that can provide support if you’re finding it hard to get a new job.
• You may consider retirement. Retirement planning is important. Take some time to think about your financial future.
• Find out if Jobs Victoria can help you or what other tools and advice might help.