FWC review of industry-specific small business redundancy provisions

The Fair Work Commission (FWC) has begun a review of award-specific redundancy provisions for small businesses.

The review aims to clarify grey areas and correct ambiguities under section 160 of the Fair Work Act 2009.

The following modern awards are included:

• Joinery and Building Trades Award 2020
• Mannequins and Models Award 2020
• Manufacturing and Associated Industries and Occupations Award 2020
• Sugar Industry Award 2020
• Textile, Clothing, Footwear and Associated Industries Award 2020
• Timber Industry Award 2020

As part of the review process, the FWC has released draft determinations, submissions, and official statements for consultation.

For example, a recent determination for the Joinery and Building Trades Award 2020 updated Clause 37.4(a). It now specifies that the clause applies to employees of small businesses except:

1. Employees who are not entitled to redundancy pay under certain sections of the Fair Work Act.
2. Employees who are already entitled to redundancy pay under another section of the Act.

In short, the changes aim to make the rules around redundancy clearer and easier to understand.

For further information, visit the FWC’s page: Review of industry-specific small business redundancy provisions in certain modern awards (AM2025/20) | Fair Work Commission.

For advice or questions, contact the Master Builders ACT Advisory team us on (02) 6175 5900 or email workplace@mba.org.au.