What payments are available to help me if I lose my job?

In Plain English

If you lose your job, several payments might be available to help you. Here's a breakdown:

  • Redundancy Pay: If you're let go because your employer doesn't need anyone to do your job anymore (and it's not just normal staff turnover) or because the company is going bankrupt, you may be entitled to redundancy pay under the Fair Work Act 2009. The amount depends on how long you've worked there.
  • Notice of Termination or Payment in Lieu: Your employer usually needs to give you written notice before ending your employment, or pay you instead of giving notice, as per the Fair Work Act 2009. The amount of notice depends on how long you've been employed.
  • JobSeeker Payment: If you're unemployed and looking for work, you might be eligible for a jobseeker payment under the Social Security Act 1991. Keep in mind that lump sum payments you receive from your former employer (like termination payments) can affect when and how much you receive.
  • Relocation Assistance: If you find a job in a regional area or more than 90 minutes away from where you currently live, the "Relocation Assistance to Take Up a Job" program can provide up to $6,000 to help with relocation costs. This payment is considered an exempt lump sum and won't affect your social security income test, according to the Social Security (Exempt Lump Sum – Relocation Assistance to Take Up a Job) Determination 2021.
  • Acute Support Package: If you're a current or former employee (or a family member of one) impacted by Defence-related issues and experiencing a crisis, the MRCC may grant an acute support package of assistance or benefits to help you adjust to new and challenging life circumstances under the Safety, Rehabilitation and Compensation (Defence-related Claims) (Defence, Veterans’ and Families’ Acute Support Package) Instrument 2022.

Detailed Explanation

Several pieces of legislation and related instruments outline potential payments available to individuals who lose their job. These payments can be broadly categorized as those related to the termination of employment itself, and those available through social security programs.

Payments Related to Termination of Employment:

  • Redundancy Pay: The Fair Work Act 2009 (specifically section 119) mandates redundancy pay if an employee's employment is terminated at the employer's initiative because the job is no longer required or due to the employer's insolvency or bankruptcy. Section 121 outlines exclusions, such as for employees with less than 12 months of continuous service or those employed by small businesses (though section 121(4) provides an exception for small businesses that are bankrupt or in liquidation due to employee terminations). The amount of redundancy pay is determined according to a table in section 119(2), based on the employee's period of continuous service.
  • Notice of Termination: Section 117 of the Fair Work Act 2009 requires employers to provide written notice of termination, with the length of notice depending on the employee's length of service. Instead of providing notice, the employer can make a payment in lieu of notice, as detailed in section 117(2)(b).

Social Security Payments:

  • JobSeeker Payment: The Social Security Act 1991 provides for jobseeker payments to eligible unemployed individuals. However, lump sum payments received upon termination of employment can affect the timing and amount of these payments. Points 1068-G7 to 1068-G7AR of the Social Security Act 1991 address the treatment of lump sum payments arising from termination of employment, including leave payments and redundancy payments. These payments are generally considered ordinary income and are taken into account when determining eligibility for jobseeker payments. The "income maintenance period" is calculated based on the type and amount of the termination payment, potentially delaying or reducing jobseeker payments.
  • Relocation Assistance to Take Up a Job: The Social Security (Exempt Lump Sum – Relocation Assistance to Take Up a Job) Determination 2021 specifies that relocation assistance payments received under the "Relocation Assistance to Take Up a Job" program are exempt lump sums for social security purposes. This means these payments are not considered income when assessing eligibility for social security payments.
  • Acute Support Package: The Safety, Rehabilitation and Compensation (Defence-related Claims) (Defence, Veterans’ and Families’ Acute Support Package) Instrument 2022 allows the MRCC to grant an acute support package of assistance or benefits to a person if subsection 6(2), (3), (4), (5) or (6) applies to the person at the time the person’s eligibility for an acute support package is determined; and if the person has previously been granted an acute support package—either: the period during which assistance or benefits for that acute support package may be provided has ended by operation of subsection 9(2); or the support plan has been revoked; and the MRCC is satisfied that it is appropriate to grant an acute support package to the person to assist the person to adjust to new and challenging life circumstances.

Additional Considerations:

  • Employment Termination Payments (ETPs): While not a direct payment to assist with job loss, it's important to understand how termination payments are treated for income tax purposes. The Income Tax Assessment Act 1997 (specifically section 82-130) defines employment termination payments (ETPs) as payments received in consequence of the termination of employment. However, section 82-135 lists payments that are not ETPs, such as superannuation benefits, unused annual leave payments, and genuine redundancy payments (to the extent worked out under section 83-170). Genuine redundancy payments and early retirement scheme payments are defined in sections 83-175 and 83-180, respectively.
  • Mutual Obligation Failures: Individuals receiving certain social security payments are subject to mutual obligation requirements. The Social Services Legislation Amendment (Welfare Reform) Act 2018 outlines the consequences of failing to meet these obligations, including potential payment suspensions or cancellations.