Your employment details
About your job
Leave entitlements
Total payout
—
estimated entitlement
Redundancy pay
—
Fair Work Act
Notice period
—
weeks required
Leave payout
—
annual + long service
Your full redundancy entitlement breakdown
Redundancy pay—
Notice period pay—
Annual leave payout—
Long service leave payout—
Total estimated payout—
📋 Fair Work Act redundancy scale used for your calculation
💡 Tax on redundancy payments
Know your redundancy rights
Genuine redundancy rules
For a redundancy to be genuine under the Fair Work Act, your employer must no longer require the job to be performed, must consult with you (if required by your award), and must not have reasonable redeployment options available.
Small business exemption
Employers with fewer than 15 employees are exempt from the redundancy pay provisions of the Fair Work Act. However, you are still entitled to notice pay and accrued leave payouts regardless of employer size.
Notice period entitlements
Notice periods are based on your length of service: 1 week (under 1 year), 2 weeks (1-3 years), 3 weeks (3-5 years), 4 weeks (over 5 years). Add 1 week if you are over 45 with at least 2 years of service.
Tax-free component
Genuine redundancy payments receive favourable tax treatment. A tax-free amount applies based on your years of service. For 2024-25: $11,985 base amount plus $5,994 for each completed year of service.
Check your award or agreement
Your enterprise agreement or modern award may provide greater redundancy entitlements than the Fair Work Act minimum. Always check your specific award — some industries have significantly better redundancy provisions.
Unfair dismissal vs redundancy
If your role was made redundant but someone else was hired to do the same work, this may not be a genuine redundancy. You may have grounds for an unfair dismissal claim at the Fair Work Commission — seek legal advice promptly.
Frequently asked questions
How is redundancy pay calculated in Australia?
Under the Fair Work Act, redundancy pay is calculated based on your completed years of service. The scale ranges from 4 weeks pay for 1-2 years of service up to 16 weeks pay for 9 or more years. This is in addition to your notice period, accrued annual leave and any long service leave entitlements.
Is redundancy pay taxable in Australia?
Genuine redundancy payments receive favourable tax treatment. A tax-free base amount ($11,985 for 2024-25) plus an amount for each completed year of service ($5,994 per year) is exempt from tax. Amounts above this threshold are taxed as an employment termination payment (ETP) at concessional rates. Notice pay and leave payouts are taxed as ordinary income.
Am I entitled to redundancy pay if the company is small?
Small businesses with fewer than 15 employees are exempt from paying redundancy under the Fair Work Act minimum entitlements. However, your enterprise agreement or modern award may still provide redundancy. You are always entitled to your notice period pay and accrued leave payouts regardless of company size.
What is the difference between redundancy and retrenchment?
Redundancy and retrenchment mean essentially the same thing in Australia — your job is no longer required by the employer. Both entitle you to the same redundancy pay provisions under the Fair Work Act.
Can I negotiate my redundancy package?
Yes — the Fair Work Act minimums are a floor, not a ceiling. You can negotiate a higher payout, extended notice period, career outplacement support or other benefits. If you are in a senior role or have specialist knowledge, you often have more negotiating power than you think. Consulting an employment lawyer before signing anything is strongly recommended.
How long do I have to make a claim if I think my redundancy was unfair?
You have 21 days from the date your employment ended to file an unfair dismissal application with the Fair Work Commission. This deadline is strict — seek legal advice immediately if you believe your redundancy was not genuine.