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AUSTRALIAN EMPLOYER GUIDE

Fair Work redundancy calculator: estimate the NES amount

Estimate NES redundancy weeks and pay, then check small-business, award, agreement and employee exclusions.

Reviewed 8 August 20263 official sourcesHow this is reviewed →
THE SHORT ANSWER

NES redundancy pay is based on continuous service and the employee's base rate for ordinary hours. The table ranges from 4 weeks for at least 1 but less than 2 years of service to a maximum of 16 weeks for 9 to less than 10 years, then 12 weeks from 10 years. Notice is calculated separately.

Before you act

Most employers with fewer than 15 employees do not pay NES redundancy, but some awards contain industry-specific schemes and other exceptions apply. A calculator result is therefore a starting point, not the final entitlement.

A PRACTICAL PROCESS

Work through it in this order.

1

Confirm it is a genuine redundancy

The role must no longer be required, and consultation and redeployment obligations may need to be considered.

2

Check employer and employee exclusions

Count employees correctly for the small-business test and check service, casual, fixed-term and serious-misconduct exclusions.

3

Compare every source

Check the NES table, applicable award redundancy provisions, enterprise agreement and contract.

4

Calculate the full exit cost

Add separate notice, unpaid wages, annual leave, long service leave where applicable and any other final entitlements.

COMMON TRAPS

What employers often miss.

  • Regular and systematic casuals may count when deciding whether the employer has fewer than 15 employees.
  • Some industry awards require redundancy pay from small business employers.
  • The Fair Work Commission can reduce NES redundancy pay only in specified circumstances.
OFFICIAL SOURCES

Check the primary guidance.

Open any source, or first have HR OK email you the practical employer checklist for this issue.

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Fair Work Ombudsman — Redundancy paywww.fairwork.gov.au
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Fair Work Ombudsman — Who doesn't get redundancy paywww.fairwork.gov.au
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Fair Work Ombudsman — Notice and redundancy fact sheetwww.fairwork.gov.au

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