🇦🇺 Asia-Pacific ·OECD member

Australia

Employment-protection data from 2 official sources — composite scores, notice periods, severance, and dismissal rules.

ILO EPLex OECD EPL
0.404 ILO EPLex composite (0–1)
OECD EPL →

Australia — the verdict

Australia's statutory protection against unfair dismissal is moderate — an ILO EPLex composite of 0.404 on the 0–1 scale, more flexible than 61% of the 95 rated countries.

0.404
ILO EPLex composite (0–1)
61th
percentile — flexibility
1.70/6
OECD EPL strictness

Sources: ILO EPLex · OECD EPL. Higher = stronger statutory protection.

Australia carries moderate employment protection scores across the 2 international datasets we track (Asia-Pacific). The ILO EPLex composite (2019) stands at 0.404/1.0. The OECD EPL overall index is 1.70/6.0, ranking #59 of OECD-covered countries. Statutory notice rules apply across 7 tenure tiers.

What the Data Shows for Australia

Australia, located in Asia-Pacific, appears in 2 of the three employment-protection datasets tracked on PlainEmploy (ILO EPLex, World Bank B-READY 2025, and OECD EPL). As an OECD member, it is included in the OECD's long-running historical EPL series. The most recent ILO EPLex composite score is 0.404 out of 1.0 (2019), summarizing statutory termination rules into a single index. The OECD EPL overall strictness index is 1.70/6.0, where higher values indicate stricter rules on individual and collective dismissal.

Statutory notice periods in Australia scale with tenure across 7 tiers, reaching 1 month at 20 years of service. Severance pay can reach 0 months of salary at 20 years, while redundancy-specific pay is 3 months. The maximum probation period allowed by law is 9 months, defining how long employers can assess workers under reduced protection.

The EPLex redress/reinstatement sub-indicator is 0.500/1.0, reflecting how strong remedies are when a dismissal is ruled unlawful. Historically, Australia's OECD EPL score moved from 1.17 in 1990 to 1.70 in 2019, showing the direction of reform over time. 6 direct country-vs-country comparisons are available below, letting you see how Australia stacks up against peers on the same metrics.

These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.

Data Sources

2

ILO / WB / OECD coverage

Region

Asia-Pacific

Geographic grouping

Latest Year

2019

Most recent indicator update

Australia vs. every rated country

Where Australia's ILO EPLex composite sits among all 95 countries with a composite score.

Australia — ILO EPLex composite

Worker-protection strength against unfair dismissal (0–1 scale)

0.40 Top 61% higher than 39% of 95 rated countries

0.00–0.10: 0 rated countries (0%). Below this entry. 0.10–0.20: 1 rated countries (1%). Below this entry. 0.20–0.30: 8 rated countries (8%). Below this entry. 0.30–0.40: 26 rated countries (27%). Below this entry. 0.40–0.50: 39 rated countries (41%). This entry sits in this band. 0.50–0.60: 15 rated countries (16%). Above this entry. 0.60–0.70: 6 rated countries (6%). Above this entry. 0.70–0.80: 0 rated countries (0%). Above this entry. 0.80–0.90: 0 rated countries (0%). Above this entry. 0.90–1.00: 0 rated countries (0%). Above this entry. Australia 0.00 1.00 EPLex composite score, bucketed by value

Each bar is a band; taller bars hold more rated countries. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.

Source ILO EPLex composite (0–1 scale) · 2019

Australia EPLex composite 40.4%

Out of a 1.0 maximum. Higher = stronger statutory protection against dismissal.

ILO EPLex (2019)
0.404
out of 1.0 · Rank #59
B-READY 2025
No data available
OECD EPL
1.70
out of 6.0 · Rank #59

ILO EPLex

Termination Protection Breakdown (2019)

Prohibited Grounds for Dismissal
1.000
Probation Period
0.640
Procedural Requirements
0.250
Notice Periods
0.111
Severance Pay
0.000
Redundancy Pay
0.139
Redress / Reinstatement
0.500

Scale: 0 = no protection · 1 = maximum protection. Source: ILO EPLex 2019.

Max probation period: 9 months

Notice Periods by Tenure

Tenure Notice Period
6 months 0.25 months
9 months 0.25 months
2 years 0.5 months
4 years 0.75 months
5 years 1 month
10 years 1 month
20 years 1 month

Source: ILO EPLex ILO EPLex Notice period is the legally mandated advance notice before termination

Severance and Redundancy Pay by Tenure

Tenure Severance Redundancy
6 months 0 mo 0 mo
9 months 0 mo 0 mo
2 years 0 mo 1.5 mo
4 years 0 mo 2 mo
5 years 0 mo 2.5 mo
10 years 0 mo 3 mo
20 years 0 mo 3 mo

Values in salary-months. Source: ILO EPLex. Severance = individual dismissal. Redundancy = collective/economic dismissal.



OECD EPL

Historical Protection Score

Year Overall Score Visual
1990 1.17
1991 1.17
1992 1.17
1993 1.17
1994 1.17
1995 1.17
1996 1.17
1997 1.42
1998 1.42
1999 1.42
2000 1.42
2001 1.42
2002 1.42
2003 1.42
2004 1.42
2005 1.42
2006 1.42
2007 1.17
2008 1.17
2009 1.17
2010 1.67
2011 1.67
2012 1.67
2013 1.70
2014 1.70
2015 1.70
2016 1.70
2017 1.70
2018 1.70
2019 1.70

Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.

Frequently Asked Questions

What are the employment protections in Australia?

Australia has employment protection data from 2 sources. ILO EPLex termination protection composite score: 0.404/1.0 (2019). OECD EPL overall: 1.70/6.0. 7 notice period tiers defined by law. 7 severance/redundancy pay tiers.

How does Australia compare to the OECD average?

Australia's OECD EPL score is 1.70/6.0 (OECD average is approximately 2.3). This indicates more flexible employment regulation than average.

What notice period and severance pay does Australia require?

In Australia, at 20 years of tenure, employers must give 1 month notice. severance pay reaches 0 months of salary at 20 years.

What data sources cover Australia's employment laws?

Australia is covered by 2 sources: the International Labour Organization EPLex database (termination protection indicators and sub-scores); the OECD Employment Protection Legislation index (aggregate strictness scores from 1990 onward). Each source measures different aspects of employment protection, providing a multi-dimensional view of labor regulation.

How strict are dismissal protections in Australia?

According to ILO EPLex (2019), Australia's termination protections are moderately strict with a composite score of 0.404/1.0. The maximum probation period is 9 months.

How does Australia handle labor disputes?

The ILO EPLex redress/reinstatement indicator is 0.500/1.0, reflecting the strength of worker remedies after unfair dismissal.

Related

Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.