What's the NES redundancy scale?

Fair Work Act s 119 redundancy scale: 1-2 years service = 4 weeks; 2-3 = 6; 3-4 = 7; 4-5 = 8; 5-6 = 10; 6-7 = 11; 7-8 = 13; 8-9 = 14; 9-10 = 16; 10+ years = 12 weeks (note: the scale tops out at 9-10 with 16 weeks, then DROPS to 12 weeks for 10+). Small businesses (under 15 employees) are exempt from NES redundancy pay under s 121(1)(b) — but notice and leave payout still apply.

Do I have to notify Centrelink before making people redundant?

Yes if making 15+ employees redundant within a similar timeframe. Fair Work Act s 530 requires you to give Centrelink at least 14 days written notice before the terminations take effect. Failure to notify can attract civil penalties up to A$49,500 (individual) / A$247,500 (body corporate).

What makes a redundancy 'non-genuine' (and therefore unfair dismissal)?

Under Fair Work Act s 389, a redundancy is genuine only if: (1) the position is no longer required to be performed by anyone because of changes in operational requirements; (2) the employer has complied with consultation obligations in the relevant modern award or enterprise agreement; and (3) it would have been unreasonable to redeploy the employee within the employer or an associated entity. Failure on any limb makes the dismissal potentially unfair, with damages up to 26 weeks pay or A$95,050 capped per employee.

Can I avoid redundancy pay by hiring contractors?

No. Fair Work Act s 119 doesn't depend on whether you immediately replace the role — only whether the position is no longer required AS PERFORMED BY THE DISMISSED EMPLOYEE. Hiring a contractor to do substantially the same work shortly after typically defeats the 'genuine redundancy' defence and exposes you to unfair dismissal. Wait at least 3-6 months before backfilling a 'redundant' position, and ideally restructure the role meaningfully.

Restructure / Redundancy Cost Calculator

Model the total cost of a multi-employee restructure: NES s 119 redundancy + notice + leave payouts. Per-employee + grand total. Risk flags for protected-attribute, tenure and age exposure.

Last verified: 16 May 2026Jump to calculator ↓

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).

Small business (under 15 employees total) — no NES redundancy pay obligation per s 121(1)(b). Notice + leave payout still apply.

Affected employees

Years service

Weekly wage

Age

Protected attribute (pregnant, carer, etc.) Currently performance-managed

Years service

Weekly wage

Age

Protected attribute (pregnant, carer, etc.) Currently performance-managed

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

Name	Redundancy	Notice	Leave	Total	Risk
Employee 1	$25,200 (14w)	$9,000 (5w)	$20,940	$55,140	6/10
Employee 2	$9,100 (7w)	$3,900 (3w)	$6,110	$19,110	2/10

Pre-redundancy compliance checklist

Genuine redundancy test (s 389): position is no longer required + you cannot reasonably redeploy + compliance with consultation obligations under modern award/EA.
15+ employee notification (s 530): if making 15+ redundant within a similar period, notify Centrelink at least 14 days before terminations take effect.
Consultation under modern award/EA: most awards require employee consultation BEFORE the decision is made, not after.
Selection criteria documentation: objective, defensible selection criteria. Length of service is acceptable but NOT age, pregnancy, carer status, or other protected attributes.
Voluntary redundancy option: typically offered first. Reduces unfair-dismissal risk.
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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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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