In an era of lower job security, genuine redundancy for you, and the receipt of lump payment is an increasingly topical subject.
What is genuine redundancy?
A genuine redundancy payment is one ‘received by an employee who is dismissed from employment because the employee’s position is genuinely redundant’ (s83-175 of the Income Tax Assessment Act 1997)
A dismissal is a case of genuine redundancy when:
- The employer no longer requires the person’s job to be performed by anyone because of changes in the operational requirements of the employer’s enterprise, AND
- The employer has complied with any obligation imposed by an applicable modern award or enterprise agreement to consult about the redundancy.