Severance Pay
Your minimum entitlements for severance pay in NSW (see Employment Protection Act 1982 and Employment Protection regulation 1995).
| You're right, the minimum standard for NSW for those under 45 years of age is: |
| less than one year of service: |
nil |
| one year but less than 2: |
4 weeks |
| 2 years but less than 3: |
7 weeks |
| 3 years but less than 4: |
10 weeks |
| 4 years but less than 5: |
12 weeks |
| 5 years but less than 6: |
14 weeks |
| 6 years and more: |
16 weeks |
| If you're over 45 years of age the rates are a bit more generous: |
| less than one year of service: |
nil |
| one year but less than 2: |
5 weeks |
| 2 years but less than 3: |
8.75 weeks |
| 3 years but less than 4: |
12.5 weeks |
| 4 years but less than 5: |
15 weeks |
| 5 years but less than 6: |
17.5 weeks |
| 6 years and more: |
20 weeks |
Note these are minimums and various awards and enterprise agreements could have variations. If you
are covered by one of these agreements then you should have access to a copy of that agreement.
The Act has no application to an employee covered by an award or industrial agreement which contains a
clause dealing with employment protection. Such clauses are now common in State awards.
The definition of "employee" excludes "an employee of the Crown within the meaning of the Principal
Act" that is, the Industrial Relations Act 1996. Moreover, the definition of "employer" excludes the
Crown or a public authority within the meaning of the Industrial Relations Act 1996. Thus, immediately
excluded from the operation of the Employment Protection Act are quite a significant number of
employees in New South Wales. Also excluded are employees not covered by any award or agreement. They may have some rights under unfair contracts laws in NSW
Workers under Federal awards or agreements are excluded from the Act also.
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