Can redundancy pay be denied? FWC explains acceptable alternative employment

A recent Fair Work Commission decision highlights a concept that often surprises employees: you may not be entitled to redundancy pay if you are offered acceptable alternative employment.

Under section 120 of the Fair Work Act, the Fair Work Commission (FWC) may reduce or eliminate redundancy pay if an employer obtains other acceptable employment for the affected employee. This is assessed objectively, meaning the role does not need to be identical or preferred by the employee.

Civmec Construction and Engineering Pty Ltd [2026] FWC 599, saw the FWC rule that an electrical engineer who rejected an alternative role has no entitlement to a redundancy payment, finding Civmec adequately explained its offer despite its "clumsy and at times misguided approach.