This is quite a common question, and the answer is: it depends.  

Resigning or ending your employment through a negotiated exit in exchange for a payout does happen occasionally, but is not generally available to everyone.  

Resigning your employment is legally significant in that it generally means that you no longer have the option to initiate a dismissal dispute, such as an unfair dismissal or a general protections dismissal claim. It may also mean that you can no longer participate in an enterprise agreement dispute or bullying complaint at the FWC. If you are in an entrenched or difficult situation with your employer, your resignation may be valuable to them, and they may be willing to pay an incentive to bring it about.  

Similarly, if the end of the employment is brought about through a deed of release or separation agreement, you would ordinarily be required to sign some sort of release agreement, which usually means that you cannot initiate any further claims against your employer. If you have a sustainable or reasonable basis for a cause of action against your employer, a release such as this may be valuable to them, and they may be willing to pay for it.  

In other words, an employer is only likely to offer a payout where you have some sort of leverage, and where your resignation has value to the business. Negotiating a payout is only going to work when your resignation presents a solution to a problem, and the employer actually wants you to go.  

Many clients seek a redundancy payout at the end of their employment. However, redundancy is an entitlement triggered by a decision of your employer that your position no longer exists. The prerogative to make a position redundant rests with the employer; it is not possible for an employee to declare themselves redundant.  

Before going into your manager’s office and asking for a payout, it is worth considering the following:   

• Does the employer want you out of the workplace? Does your resignation represent a solution to a business problem? Asking for a payout only really works when the employer wants you out.  

• Do you have a credible cause of action that the employer needs to neutralise?  This is where legal expertise is required. If you have a good unfair dismissal claim, or a sustainable general protections or other legal claim, the employer may have an interest in making that problem go away, and they may be willing to pay for it.   

• Does the employer have sufficient funds to offer a payout? Even if your employer wants you out, even if you have an incredible legal claim, if your employer cannot afford to make an ex-gratia payment, they are not going to.  

Broaching this topic is very sensitive. Starting this conversation will likely alter the relationship with your employer permanently.  

If you are in an intractable situation at work and you would like a payout, you should seek legal advice, particularly in relation to whether you have a sustainable legal claim, how much that might be worth, and in relation to signing away any legal rights. A representative can help you with formulating a strategy to achieve your desired outcome, and can also act as an agent on your behalf in any negotiations around the cessation of your employment.  

This article is information only and is not legal advice. It relates primarily to employees under the Fair Work Act 2009 (Cth). Please contact Henry Bournes for personalised advice. Henry Bournes 2026 © Liability limited by a scheme approved under Professional Standards Legislation.