Redundancy pay calculator
Redundancy pay and notice under the National Employment Standards.
Estimate only, based on the minimum rules in the Fair Work Act 2009 (Cth). Your award, enterprise agreement or contract may give you more. Not legal, tax or financial advice. About these estimates
Worked example
Melissa, 3 years full-time
From Fair Work Ombudsman, Redundancy pay
- Employment
- Full-time, 3 years
- Employer
- 15 or more employees
- 3 years falls in the “at least 3, less than 4 years” band.
- That band is 7 weeks’ pay at her base rate.
Result 7 weeks
Questions
Who doesn’t get redundancy pay?
Employees of a small business (fewer than 15 employees), casuals, fixed-term, task or season employees, people dismissed for serious misconduct, trainees employed only for the training arrangement, and apprentices. Apprentices still get notice.
How is notice worked out?
By continuous service at the end of the day notice is given: 1 week up to 1 year, 2 weeks up to 3 years, 3 weeks up to 5 years, then 4 weeks. Add 1 week if you are over 45 and have completed at least 2 years’ service. Unpaid leave counts towards service for notice, but not for redundancy pay.
Who counts towards the 15 employees?
The employees being made redundant, other full-time and part-time staff, regular and systematic casuals, and employees of associated entities. Exceptions apply if the business became small by downsizing in bankruptcy or liquidation on or after 15 December 2023, or an industry-specific redundancy scheme applies.
Why does pay drop at 10 years?
The NES table drops to 12 weeks at 10 years. Fair Work has a Library article on this.
How is notice in lieu paid?
At your full rate of pay, including incentive payments, bonuses, loadings, allowances, overtime and penalty rates. Redundancy pay uses your base rate only.
Can my award or agreement change this?
Yes, some awards have industry-specific redundancy schemes that apply instead. Separately, your employer can ask the Fair Work Commission to reduce NES redundancy pay if it finds you other acceptable employment or can’t pay. Check the Fair Work Ombudsman’s Notice and Redundancy Calculator for award rules.
Does unpaid leave count as service?
No. Unpaid leave doesn’t count towards service for redundancy pay, but it doesn’t break continuous service either.