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Redundancy pay exception – ordinary and customary turnover of labour

Redundancy pay obligations under the Fair Work Act 2009 (Cth) (FW Act) apply unless the employer can come within one of the exceptions, which includes the ordinary and customary turnover of labour exception.

Employers engaged in contracting sectors – such as providing outsourced services to third parties under contracts for specified periods (e.g. catering, cleaning or maintenance contracts) – cannot assume that they will not have to make redundancy payments if staff are let go when the customer contract ends. Find out more.

11 Feb 2019
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