Employment can end for many different reasons. An employee may resign or can be dismissed (fired). However it ends, it’s important to follow the rules about dismissal, notice and final pay.
There are also different rights and obligations when a job is made redundant or when a business is bankrupt.
Know what you're entitled to
When you lose your job, you may be entitled to final payments. Check your contract or ask your employer if you're entitled to redundancy or retrenchment payments, or annual leave and long service payouts.
Check your insurance and super
If you have life insurance, check your policy for redundancy insurance. Some policies have an option for income protection. This can provide short-term financial assistance if you lose your job.
Also check if you have income protection with your super fund.
Early access to super
While you generally can’t access your super until retirement, there are some specific circumstances where the law allows you to draw on your super early. These are:
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Compassionate grounds
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Terminal medical condition
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Permanent incapacity
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Severe financial hardship
Before applying to access your super under early release provisions, you should:
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Ask Centrelink about whether accessing super could affect your benefits
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Checking the balance of your super before applying for early access (a reduced balance might not recover enough to meet your retirement income needs)
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Check how this impacts any insurance you've got in super (a low balance might not be enough to cover the insurance premiums for example).
Get financial help if you need it
It can be a tough time when you lose your job, but there are ways to get help:
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Help from the Government: Check if you can get any payments or benefits from Centrelink while you're looking for a new job. You may be able to get the JobSeeker Payment.
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The Services Australia has information on what you can do if you’ve lost your job.
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Urgent help: If you're in crisis or struggling to make ends meet, see urgent help with money for a list of services to help you with food, housing and bills, as well as emotional support.
Help with bills or mortgage
If you're finding it hard to pay your utility bills or mortgage, contact your service provider or bank. They might extend the due date, let you make smaller repayments over a longer period or postpone your repayments for an agreed period.
For credit cards and loans, let your credit or service provider know you're experiencing financial difficulty and ask for a hardship variation.
For step-by-step help, see:
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Struggling to pay your rent (National Debt Helpline website)
Plan your money for the next few months
To help you manage while you’re out of work, get a clear picture of how much money you have. Also work out how much you'll need over the next few months.
Step 1: Need a budget planner? Use ASIC MoneySmart or user our Expense Tracker.
Step 2: Record your savings, income and expenses to see how much you need.
Step 3: Make a list of what money you have now and coming soon:
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Your savings
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Other income, for example, government benefits or payments, or income from investments
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Lump sum payments, for example, long service leave or redundancy payouts
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Your expenses, including rent or mortgage payments, bills, loan repayments, health care, car and grocery costs, and insurance premiums
Step 4: Use the list from Step 3 to see if there are any expenses you could cut back on or live without. Managing on a low income has helpful tips for coping with less money.
See a financial counsellor
If you need a hand to manage your money, see a free financial counsellor. They can help you review your budget and debts, and find ways to improve your situation.
Take care of yourself
It's okay to ask for help during this time. Talk, email, sms friends and family about how you're feeling.
Exercise, like walking, yoga or meditation can help your mental health. If you need more, Beyond Blue has useful information about how to cope. See their eight tips for looking after yourself through unemployment.
You can call Beyond Blue on 1300 224 636 to talk to someone (24 hours a day, 7 days a week).
Look for a new job or career
When you're ready to start thinking about and looking for a new job, visit the Australian Government's What's Next website. It has helpful information on where to get support, where to look for a new job, and training opportunities.