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A small business employer, for the purpose of determining redundancy pay, is an employer who employs fewer than 15 employees at the time when notice is given. To determine whether the employer has fewer than 15 employees, the following factors need to be considered:

•  all employees employed by the employer at that time are to be counted
•  a casual employee is not to be counted unless, at that time, they have been employed on a regular and systematic basis
•  associated entities are taken to be one entity
•  the employee being dismissed and any other employees being dismissed at that time are counted. A non-small business can become a small business as part of the process of downsizing its workforce. This can be due to insolvency in the period leading up to (or after) becoming bankrupt, or going into liquidation. Non-small business employers that become a small business employer in these circumstances may still be required to pay their employees redundancy pay. An award or enterprise agreement may have different redundancy provisions which could apply instead of those listed above. These provisions, such as industry-specific redundancy schemes, can override the listed exceptions.