Redundancy Pay for Casual Employees in Queensland: Essential Insights

Redundancy can be challenging to navigate - especially if you’re trying to work out who is entitled to what and when. If you employ casuals in Queensland, it’s natural to ask whether redundancy pay applies in the same way as it does for permanent staff.

Here’s the key point up front: redundancy pay entitlements are set under federal law (the Fair Work Act 2009), and the rules apply consistently across Australia. State location (including Queensland) doesn’t change who gets redundancy pay and who doesn’t.

In this guide, we’ll walk through what counts as a genuine redundancy, how redundancy pay is calculated for permanent employees (so you can benchmark), why casual employees are excluded, and what other payments may still be due on termination. We’ll also share practical steps to manage redundancies fairly and lawfully.

What Counts As Redundancy Under Australian Law?

Redundancy pay is an entitlement for eligible employees when their job is no longer required by the employer. This often happens because of changes to your business - for example, a restructure, new technology, closing a site, or falling demand.

To be considered a genuine redundancy under the Fair Work Act:

• The role is no longer needed to be performed by anyone due to operational changes.
• You comply with any consultation obligations in an applicable modern award or enterprise agreement.
• It would not have been reasonable to redeploy the employee within your business or an associated entity.

Genuine redundancy is about the role disappearing - not performance or conduct. If the position still exists, or if consultation and redeployment are overlooked, the dismissal may not be a genuine redundancy and could expose you to other risks.

Are Casual Employees Entitled To Redundancy Pay In Queensland?

Under the Fair Work Act, casual employees are excluded from redundancy pay. This applies nationally - including in Queensland - regardless of how long a casual has worked or how regular their hours have been.

How Casual Status Works

At law, casual employment exists where there is no firm advance commitment to ongoing, indefinite work according to an agreed pattern. Casuals are paid a loading (usually 25%) to compensate for the lack of paid leave, notice, and redundancy entitlements that permanent employees receive.

Even if a casual has been with you for a long time, their casual status means redundancy pay does not apply. However, it’s sensible to review how your casuals are engaged in practice - if there’s been a conversion to permanent employment (for example, via a modern award or written agreement), that employee may have different entitlements from that point on. Clear and up-to-date Employment Contracts help avoid confusion around status and entitlements.

Redundancy Pay Entitlements For Permanent Employees (For Comparison)

While casuals are excluded, permanent employees (full-time and part-time) generally receive redundancy pay if their role is genuinely made redundant and they’ve reached 12 months of continuous service.

Redundancy pay under the National Employment Standards (NES) is based on continuous service with the employer:

• 1–2 years: 4 weeks’ pay
• 2–3 years: 6 weeks’ pay
• 3–4 years: 7 weeks’ pay
• 4–5 years: 8 weeks’ pay
• 5–6 years: 10 weeks’ pay
• 6–7 years: 11 weeks’ pay
• 7–8 years: 13 weeks’ pay
• 8–9 years: 14 weeks’ pay
• 9–10 years: 16 weeks’ pay
• 10+ years: 12 weeks’ pay

Notably, the entitlement reduces after 10 years to 12 weeks under the NES. If you want a deeper dive on calculations, you can compare the NES scale and common scenarios in how to calculate your redundancy payment and also try a quick estimate using the redundancy calculator.

Who Is Excluded From Redundancy Pay?

Exclusions in the Fair Work Act include:

• Casual employees (nationwide, including Queensland)
• Small business employees: a blanket exemption where the employer has fewer than 15 employees at the time of dismissal (headcount includes the employee being dismissed and can include associated entities)
• Employees with less than 12 months’ continuous service
• Fixed-term contracts that end at their nominated expiry date

If in doubt, double-check headcount and service dates before confirming entitlements, and keep clear records of your consultation and redeployment steps.

Other Payments On Termination: Notice, Accrued Leave And More

Even where redundancy pay doesn’t apply (for example, for casuals), other termination entitlements may still be relevant.

Notice Or Payment In Lieu

Permanent employees are generally entitled to notice of termination or pay instead of notice. The required notice period depends on continuous service and age. You can review typical entitlements and common pitfalls in payment in lieu of notice.

Casuals don’t receive notice under the NES, but you should still check any applicable award, enterprise agreement or contract provisions.

Accrued Leave

• Permanent employees should be paid out accrued and untaken annual leave on termination. Depending on your circumstances, long service leave may also be payable.
• Casual employees do not accrue paid annual leave under the NES, so there is no annual leave payout. However, check any applicable industrial instrument for additional entitlements.

Long Service Leave (QLD)

Long service leave is governed by state law and may apply to casuals in some circumstances. In Queensland, eligibility depends on continuous service and other factors under state legislation. If you’re unsure how to handle this, our guide on calculating pro rata long service leave in Queensland is a helpful place to start.

Final Pay

Make sure final pay is processed promptly and includes all relevant components (e.g. wages to the last day worked, any payable leave, and notice if applicable). For a full checklist, see calculating final pay for employees.

Practical Steps For Employers Managing Redundancy

If you’re planning changes to your workforce, a clear process will reduce risk and help your team feel supported. Here’s a practical framework.

1) Confirm Employment Status And Headcount

• Identify whether each affected worker is casual or permanent.
• Check headcount at the time of dismissal. If you have fewer than 15 employees, the small business exemption to redundancy pay applies to permanent staff.
• Review contracts and patterns of work. If a casual has converted to permanent (formally or by agreement), different entitlements may apply. If documents need an update, our overview of changing employment contracts is useful.

2) Plan Consultation And Consider Redeployment

• Check any award or enterprise agreement for consultation obligations. Make sure you meet content and timing requirements.
• Explore reasonable redeployment opportunities across your business or associated entities. Document the options you considered, responses, and outcomes.

3) Keep Clear Records

• Record the business reasons for the restructure (e.g. financials, organisational charts, technology changes).
• Keep notes of meetings, emails and redeployment assessments. Good records are essential if the decision is later challenged.

4) Calculate Entitlements Correctly

• For eligible permanent staff, calculate redundancy pay based on continuous service under the NES - you can cross-check with how to calculate your redundancy payment and run an estimate with the redundancy calculator.
• Work out notice or payment in lieu for permanent staff, and include any accrued leave entitlements in final pay.
• For casuals, confirm final wages and any applicable allowances, and consider long service leave if eligible under Queensland law.

5) Communicate With Care

• Share the business rationale in clear, respectful language.
• Provide support where possible - for example, references, time off to attend interviews, or outplacement assistance. While not legally required, it can help morale and brand reputation.

6) Get Your Documents In Order

• Ensure your Employment Contracts reflect the correct status, notice and termination provisions. If you’re hiring or re-engaging staff in new roles, start with a tailored Employment Contract that suits your business and relevant awards.
• When a restructure is on the table, a consistent process - letters, meeting scripts, timelines - reduces risk and supports compliance.

7) Consider Alternatives (If Redundancy Isn’t The Only Option)

• Sometimes, alternatives like reduced hours, changed duties or redeployment can achieve the same operational goals with less impact. If you’re heading down that path, understand the legal guardrails around changing employment contracts and consult with staff before making changes.

Key Takeaways

• Redundancy pay rules are set by federal law. Being in Queensland doesn’t change who is entitled to redundancy pay.
• Casual employees are excluded from redundancy pay under the Fair Work Act, even if they’ve worked regularly for a long period.
• Permanent employees with at least 12 months of service may be entitled to redundancy pay based on the NES scale (noting it reduces to 12 weeks at 10+ years).
• Small businesses with fewer than 15 employees are fully exempt from redundancy pay for permanent staff at the time of dismissal.
• Other termination entitlements still matter: notice or payment in lieu, final pay, and possible long service leave in Queensland depending on eligibility.
• A structured process - confirm status, consult, consider redeployment, calculate correctly, and document decisions - helps you meet legal obligations and support your team.

If you would like a consultation on redundancy pay for casual employees (and managing restructures in Queensland), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.