Restructure and redundancy cost calculator

Under the National Employment Standards, redundancy pay depends on continuous service: 4 weeks for at least 1 year, rising to 16 weeks for 9 to 10 years, then 12 weeks from 10 years (long service leave takes over). It is paid at the base rate of pay for ordinary hours, without loadings, allowances, penalties or overtime.

Not under the National Employment Standards, if the employer has fewer than 15 employees at the time. The count includes the people being made redundant, casuals engaged on a regular and systematic basis, and employees of associated entities, including overseas. An award, agreement or contract can still require redundancy pay, and an employer that became a small business by downsizing may still owe it if it is bankrupt or in liquidation.

One week for service of 1 year or less, 2 weeks for more than 1 year up to 3 years, 3 weeks for more than 3 years up to 5 years, and 4 weeks for more than 5 years. Employees over 45 with at least 2 years’ service get an extra week. An award, agreement or contract can require longer.

The full rate of pay the employee would have earned had they worked the notice period, including loadings, allowances, penalty rates and other separately identifiable amounts. Super guarantee applies to payment in lieu of notice.

No. Genuine redundancy pay and unused annual leave and long service leave paid on termination are not qualifying earnings, so no super guarantee is due on them. Notice pay, worked or paid in lieu, is.

If you are proposing to make 15 or more employees redundant for economic, technological, structural or similar reasons, you must notify Services Australia in writing before the dismissals happen, and notify or consult the union if any affected employee is a member.