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Section : Employees of small businesses
Domain : Human Resource Management
Classification : Not Identified
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A small business is one that employs fewer than 15 employees. Some small businesses don't have to pay redundancy pay when making an employee redundant. To work out if the business is a small business, count:
- all permanent employees employed at the time of the redundancy
- the employee and any other employees being terminated at that time
- only regular and systematic casual employees employed by the business at the time of the redundancy
- employees of associated entities. The size of the business is counted at the earliest of:
- when the employee is told their employment will be terminated, or
- when the employee is given their notice of termination. 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 Fair Work Infoline: 13 13 94 (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. For more information on redundancy pay, please see our Notice of termination and redundancy pay fact sheet at fairwork.gov.au/factsheets