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Restructure Cost Calculator

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RESTRUCTURE / REDUNDANCY COST MODELLER

Calculate the total cost of restructuring or making multiple employees redundant. NES s 119 scale + state notice periods + leave payouts. Also surfaces non-genuine-redundancy risk flags. Get legal advice before acting on layoffs of 15+ staff (Fair Work Act s 530 notification requirements apply).

Affected employees

Cost summary

Total redundancy pay (NES s 119)$34,300
Notice / payment in lieu$12,900
Leave payouts (4 wks AL + LSL pro-rata)$27,050
Total restructure cost$74,250

Average legal-risk score: 4.0 / 10 — Moderate. Document genuine-redundancy basis carefully.

Per-employee breakdown

NameRedundancyNoticeLeaveTotalRisk
Employee 1$25,200 (14w)$9,000 (5w)$20,940$55,1406/10
Employee 2$9,100 (7w)$3,900 (3w)$6,110$19,1102/10

Pre-redundancy compliance checklist

  1. Genuine redundancy test (s 389): position is no longer required + you cannot reasonably redeploy + compliance with consultation obligations under modern award/EA.
  2. 15+ employee notification (s 530): if making 15+ redundant within a similar period, notify Centrelink at least 14 days before terminations take effect.
  3. Consultation under modern award/EA: most awards require employee consultation BEFORE the decision is made, not after.
  4. Selection criteria documentation: objective, defensible selection criteria. Length of service is acceptable but NOT age, pregnancy, carer status, or other protected attributes.
  5. Voluntary redundancy option: typically offered first. Reduces unfair-dismissal risk.
  6. Get legal review for 5+ redundancies — the cost is trivial vs the exposure (FWC unfair dismissal cap 26 wks/$87.5k per employee, general protections uncapped).
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