Severance pay in Australia: what is it?

What is severance pay in Australia? Losing your job can be a stressful and uncertain time. As a result it can add financial stress and put itself at the top of the list of worries. Bills still need to be paid and the future is unclear. But depending on the circumstances of your exit you may be entitled to severance pay from your employer.

This payment from your employer can be a financial lifeline as you look for your next opportunity. We'll look at the scenarios that might trigger severance pay, what determines the amount you'll get and some tips before you receive severance pay in Australia.

Redundancy Pay vs Severance Pay in Australia

Think of severance pay as a broader umbrella and redundancy pay as a specific type of severance pay.