When your job is made redundant, your employer must give you written notice of your last day: at least 1 week if you have up to 1 year of service, 2 weeks up to 3 years, 3 weeks up to 5 years and 4 weeks after that, plus 1 more week if you are over 45 and have at least 2 years' service. The weeks come from section 117 of the Fair Work Act 2009, the same table used for any dismissal.
What a redundancy changes is everything around them. Your notice is owed on top of redundancy pay, on a different scale and at a different rate. A notice payout attracts super and can count towards the tax-free part of a genuine redundancy payment. And some awards add paid days to look for work and let you leave early without giving up your redundancy pay. This guide works through each of those, then applies them in four dated examples using 2026-27 figures.
Key takeaways
- The minimum is 1 to 4 weeks by length of service, plus 1 week if you are over 45 with at least 2 years' service. That makes 5 weeks the most the National Employment Standards (NES) give.
- Your service is measured at the end of the day you receive the written notice, not on your last day.
- If notice is paid out instead of worked, it is paid at your full rate of pay, on or before your termination day, and 12% super is payable on it.
- Notice and redundancy pay are two separate amounts on two separate scales. You get both, and redundancy pay uses your lower base rate.
- Awards can add rules for the notice period. The Clerks award gives up to 1 paid day per week of notice for job hunting, and lets you leave early while keeping your redundancy pay.
How much notice you get when made redundant
There is no separate notice scale for redundancy. Your employer applies the section 117 table, and the only inputs are your continuous service with that employer and, for one extra week, your age. Service is counted at the end of the day the written notice is given. Time you go on to work during the notice period does not lift you into a longer band.
| Continuous service at the end of the day notice is given | Minimum notice | If you are also over 45 |
|---|---|---|
| Not more than 1 year | 1 week | 1 week (the extra week needs 2 years' service) |
| More than 1 year, less than 2 years | 2 weeks | 2 weeks (the extra week needs 2 years' service) |
| 2 years to not more than 3 years | 2 weeks | 3 weeks |
| More than 3 years, not more than 5 years | 3 weeks | 4 weeks |
| More than 5 years | 4 weeks | 5 weeks |
The extra week has two conditions and you need both: you must be over 45 years old, and you must have completed at least 2 years of continuous service. Age alone does not do it. The worked examples below include two 47-year-olds given notice on the same day who end up a week apart, because only one of them has reached 2 years.
The Act describes these weeks as the "minimum period of notice". Your award or enterprise agreement can add redundancy rules on top of them, such as the job search days covered further down.
The notice period calculator turns your service and age into weeks of notice and shows what they are worth if paid out.
Fair Work Act 2009 s 117(3) (AustLII consolidated Act, retrieved 7 October 2026): "Not more than 1 year: 1 week; More than 1 year but not more than 3 years: 2 weeks; More than 3 years but not more than 5 years: 3 weeks; More than 5 years: 4 weeks", with service taken "at the end of the day the notice is given", then "increase the period by 1 week if the employee is over 45 years old and has completed at least 2 years of continuous service with the employer at the end of the day the notice is given."
Fair Work Ombudsman, Notice of termination and redundancy pay fact sheet (content last updated 16 January 2026, retrieved 7 October 2026): "Employees over 45 years old who have completed at least 2 years of service when they receive notice are given an additional week of notice."
Notice is in writing, and starts after consultation
Section 117 requires written notice that states the day your employment will end. That day can be the day you receive the notice, but never earlier. A meeting where you are told your role is going, or an email announcing a restructure, is not the notice. The period runs from the written notice of your termination day.
Consultation is a different duty that comes first, where your award or enterprise agreement requires it. The Fair Work Commission says consultation should take place before an irreversible decision to terminate is made, and that without an award or agreement term there is no legislative requirement to consult before the decision. In order, then: consultation happens while your job could still be saved, and notice follows once the decision about your job is final. Weeks of consultation do not shorten the notice that follows. What your employer has to do during that earlier stage is set out in redundancy consultation.
Fair Work Act 2009 s 117(1) (AustLII, retrieved 7 October 2026): "An employer must not terminate an employee's employment unless the employer has given the employee written notice of the day of the termination (which cannot be before the day the notice is given)."
Fair Work Ombudsman, Redundancy (content last updated 28 August 2026, retrieved 7 October 2026): "After a decision to make major changes has been made, the employer must as soon as possible: notify affected employees and any representatives about the proposed changes; provide all relevant information in writing ...; discuss ...; consider any ideas or suggestions raised". Fair Work Commission, Unfair Dismissals Benchbook, Consultation obligations (last updated 9 December 2024, retrieved 7 October 2026): "There is no legislative requirement to consult about the redundancy before a decision is made to make an employee redundant." "Consultations should be meaningful and should be engaged in before an irreversible decision to terminate has been made."
Working your notice or being paid out
You can work the notice period, or your employer can pay it out instead. If you work it, you stay employed on your usual pay until the termination day in your letter.
If it is paid out, the Act sets the amount: what you would have earned for the hours you would have worked through the minimum notice period, at your full rate of pay. The Fair Work Ombudsman lists what goes into that full rate: incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates, and any other separately identifiable amounts. The full rate applies to the notice money only. Redundancy pay is worked out on your base rate, which leaves those items out, so the two lines on your final payslip should be calculated on two different weekly figures.
Three more rules attach to a payout:
- It is due on or before your termination day. The Fair Work Ombudsman says this is an NES requirement. The rest of your final pay can come later: most awards allow up to 7 days after your last day.
- Your employment can end the day you are told. The termination day cannot be before the notice day, so it can be the notice day itself, with the notice weeks paid out.
- Super is payable on it. The ATO treats pay in lieu of notice as qualifying earnings "for all termination reasons", so 12% super guarantee applies. Under Payday Super the contribution is on time if your fund receives it within 7 business days after you are paid. Redundancy pay does not attract super guarantee, as set out in is super payable on redundancy?
How the full rate is built up, with a step-by-step example, is in payment in lieu of notice.
Fair Work Act 2009 s 117(2)(b) (AustLII, retrieved 7 October 2026): payment in lieu "at the full rate of pay for the hours the employee would have worked had the employment continued until the end of the minimum period of notice." Fair Work Ombudsman, Notice of termination and redundancy pay (16 January 2026): payment in lieu "is paid at the employee's full pay rate as if they had worked the minimum notice period. An employee's full pay rate includes the following: incentive-based payments and bonuses; loadings; monetary allowances; overtime or penalty rates; any other separately identifiable amounts." Redundancy pay is "paid at the employee's base pay rate for ordinary hours worked".
Fair Work Ombudsman, Final pay (content last updated 28 September 2026, retrieved 7 October 2026): "the employer must make the payment before or on the day of termination. This is a requirement under the NES." "Most awards require employers to pay employees their final pay within 7 days after their last day of employment."
ATO, What payments are qualifying earnings (QC105843, last updated 2 September 2026, retrieved 7 October 2026): "The minimum super guarantee for your employees ... is 12% of their qualifying earnings for the pay period." Table 13: "Payment in lieu of notice, for all termination reasons. This applies regardless of the reason for termination or treatment for tax purposes." ATO, Payment deadlines for Payday Super (QC105846, last updated 29 September 2026): "Your super guarantee contribution is on time if it is received by your employee's super fund ... within 7 business days after paying your employee."
Notice and redundancy pay side by side
Redundancy pay does not include your notice. The two come from different sections of the Act, use different scales and rates, and appear as separate items in your final pay.
| Notice (s 117) | Redundancy pay (s 119) | |
|---|---|---|
| When it is owed | Your employer ends your employment. Some groups get no notice: see notice of termination | Your employer no longer needs your job done by anyone, or is insolvent or bankrupt |
| Other conditions | None beyond the table | At least 1 year of continuous service, the national workplace relations system, and an employer of at least 15 people |
| Scale | 1 to 4 weeks by service, plus 1 week if over 45 with 2 years' service | 4 weeks at 1 to under 2 years, 11 weeks at 6 to under 7 years, 16 weeks at 9 to under 10 years, 12 weeks from 10 years |
| Rate | Full rate of pay, if paid out | Base rate for ordinary hours |
| Super guarantee | Yes, 12% on a payout | No |
| When paid | On or before the termination day, if paid out | With final pay (most awards: within 7 days of the last day) |
| Employer with fewer than 15 employees | Still owed | Not owed under the NES |
The scales do not move together. Notice stops growing once you pass 5 years of service, while redundancy pay is 16 weeks at 9 to under 10 years and then drops to 12 weeks from 10 years. Here is how they combine at a few lengths of service:
| Continuous service | Minimum notice | Notice if over 45 | NES redundancy pay |
|---|---|---|---|
| 6 months | 1 week | 1 week | None (under 1 year) |
| 1 year 6 months | 2 weeks | 2 weeks | 4 weeks |
| 6 years 6 months | 4 weeks | 5 weeks | 11 weeks |
| 9 years 6 months | 4 weeks | 5 weeks | 16 weeks |
| 12 years | 4 weeks | 5 weeks | 12 weeks |
The redundancy pay column assumes an employer of 15 or more and service in the national system. Time worked as a casual does not count towards NES redundancy pay.
A small business still owes notice. The 15-employee test switches off NES redundancy pay, not notice, so a redundancy at a 9-person business still comes with the weeks in the notice table. The headcount rules are in small business redundancy. For the dollar figure and tax on your redundancy pay, use the redundancy calculator.
Fair Work Act 2009 s 119(1) to (3) (AustLII, retrieved 7 October 2026): redundancy pay is owed where employment ends "(a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or (b) because of the insolvency or bankruptcy of the employer." Table: "At least 1 year but less than 2 years: 4 weeks ... At least 6 years but less than 7 years: 11 weeks ... At least 9 years but less than 10 years: 16 weeks; At least 10 years: 12 weeks". s 119(3): "continuous service with the employer does not include periods of employment as a casual employee".
Fair Work Ombudsman, Redundancy pay (content last updated 28 September 2026, retrieved 7 October 2026): an employee may be entitled to redundancy pay if "they've at least one year of continuous service with their employer; they're covered under the national workplace relations system, and their employer employs at least 15 people." Fair Work Ombudsman, Final pay (28 September 2026): "If it applies, final pay can also include: payment in lieu of notice; redundancy pay; accrued or pro rata long service leave."
How redundancy notice pay is taxed
A notice payout on a redundancy is taxed in one of two ways.
As part of the genuine redundancy payment. The ATO's ruling says a payment in lieu of notice "can be a genuine redundancy payment provided that such a payment would not be expected on voluntary termination". An employee who resigns is not paid out notice by the employer, so on a genuine redundancy the payout can be added to your redundancy pay and tested against one tax-free limit. For 2026-27 that limit is $13,598 plus $6,801 for each completed year of service. Anything above the limit is an employment termination payment (ETP).
As an ETP on its own. Where it is not part of a genuine redundancy payment, pay in lieu of notice is an ETP and one of the ATO's "non-excluded" payments. Those are taxed concessionally only up to the smaller of the ETP cap ($270,000 for 2026-27) and the whole-of-income cap ($180,000, not indexed).
Unused annual leave and long service leave sit outside both routes and are taxed under their own rules. The tax route also leaves super untouched: the ATO's qualifying earnings rule for pay in lieu of notice applies whatever the tax treatment, so a payout inside your tax-free limit still attracts 12% super. Whether your redundancy passes the tax test is covered in genuine redundancy, and the full tax-free limit calculation is in redundancy tax.
ATO, TR 2009/2 (consolidated version published 29 January 2020, retrieved 7 October 2026), paragraph 64: "A payment in lieu of notice can be a genuine redundancy payment provided that such a payment would not be expected on voluntary termination." ATO, Genuine redundancy payments (QC27128, last updated 5 June 2026, retrieved 5 October 2026): a genuine redundancy payment may include "payment in lieu of notice"; it excludes "lump sum payments of unused annual leave or leave loading" and "unused long service leave".
ATO, Key superannuation rates and thresholds: Employment termination payments (last updated 17 April 2026, retrieved 5 October 2026): tax-free part of genuine redundancy payments "2026-27 | $13,598 | $6,801"; ETP cap "2026-27 | $270,000". ATO, Employment termination payments for employees (QC27127, last updated 5 June 2026, retrieved 7 October 2026): an ETP may include "payments in lieu of notice" and "genuine redundancy payments or early retirement scheme payments that exceed the tax-free limit"; "ETPs don't include: lump sum payments for unused annual or long service leave".
ATO, Schedule 11: Tax table for employment termination payments (QC107129, last updated 17 June 2026, retrieved 9 September 2026): non-excluded payments include "a payment in lieu of notice". "The whole-of-income cap amount for the 2026-27 income year is $180,000. This amount is not indexed."
Job search time and leaving early
The NES sets how many weeks you get. Your award can set what you are allowed to do with them. The clauses below are from the Clerks: Private Sector Award 2020. Other awards number and word their redundancy clauses differently, so read the one that covers you.
- Paid time to look for work. During notice given because of redundancy, you must be allowed time off without loss of pay of up to 1 day for each week of the section 117 minimum notice (cl 42.3(a)). With 4 weeks' notice that is up to 4 paid days; with 5 weeks, up to 5. If you take more than 1 day, your employer can ask for proof that you attended an interview, and a statutory declaration is enough (cl 42.3(b), (c)).
- Leaving before the notice runs out. You can end your employment during the minimum notice period (cl 42.2(a)) and still receive the redundancy pay you would have got by staying to the end (cl 42.2(b)). You are not paid for the part of the notice period after you leave (cl 42.2(c)).
- Moving to lower-paid work instead. If your employer moves you to lower-paid duties rather than ending your job, the award requires notice at least as long as section 117 would give (cl 42.1(b)(i)).
Some awards give job search time for any notice of termination, not only a redundancy. The General Retail Industry Award 2020 allows up to 1 day off without loss of pay to look for work once the employer has given notice (cl 37.2(a)).
Leaving early does not change the tax position. The ATO treats the end of your job as a dismissal even if, after being given notice, you negotiate or choose an earlier finish, so the tax-free limit still applies to your redundancy pay. Resigning before you have been given notice is different: the ATO says a payment is not a genuine redundancy payment if you are leaving voluntarily. If your employer is asking for volunteers, see voluntary redundancy.
Clerks: Private Sector Award 2020 (MA000002), cl 42.1 to 42.3, consolidated to 1 July 2026, retrieved 7 October 2026. cl 42.3(a): "Where an employer has given notice of termination to an employee in circumstances of redundancy, the employee must be allowed time off without loss of pay of up to one day each week of the minimum period of notice prescribed by section 117(3) of the Act for the purpose of seeking other employment." cl 42.3(c): "A statutory declaration is sufficient". cl 42.2(a): "An employee given notice of termination in circumstances of redundancy may terminate their employment during the minimum period of notice prescribed by section 117(3) of the Act." cl 42.2(c): "the employee is not entitled to be paid for any part of the period of notice remaining after the employee ceased to be employed."
General Retail Industry Award 2020 (MA000004), cl 37.2(a), consolidated to 1 July 2026, retrieved 5 October 2026: "Where an employer has given notice of termination to an employee, the employee must be allowed time off without loss of pay of up to one day for the purpose of seeking other employment."
ATO, TR 2009/2, paragraph 21: "This will be the case even where an employee, following notification, negotiates with the employer or nominates to end their employment at an earlier time." ATO, Genuine redundancy payments (5 June 2026): not a genuine redundancy payment if "you're leaving voluntarily".
After your last day
Your final pay should show each part on its own line: wages owing, unused annual leave (with loading if it would have been paid during employment) and, where they apply, pay in lieu of notice, redundancy pay and long service leave. The notice payout is due on or before your termination day. Most awards give your employer up to 7 days after your last day for the rest. You can total the parts with the final pay calculator.
If you believe the redundancy was not genuine, an unfair dismissal application must be made within 21 days after the dismissal took effect. The Fair Work Commission can allow a later application only in exceptional circumstances. Because a paid-out notice can make your termination day the day you were told, the 21 days can start running from the notice itself. The tests the Commission applies are in genuine redundancy.
When 15 or more employees are being dismissed for economic, technological, structural or similar reasons, the employer must also give Services Australia (Centrelink) written notice before anyone is dismissed. See making 15 or more employees redundant. If your letter uses the word retrenchment rather than redundancy, retrenchment vs redundancy explains how the two terms differ.
Fair Work Ombudsman, Final pay (content last updated 28 September 2026, retrieved 7 October 2026): "Final pay is made up of: wages owing for hours the employee has worked, including penalty rates and allowances; any annual leave owing, including annual leave loading if it would've been paid during employment."
Fair Work Act 2009 s 394(2), (3) (AustLII, retrieved 7 October 2026): an application must be made "(a) within 21 days after the dismissal took effect; or (b) within such further period as the FWC allows", and a further period only if "there are exceptional circumstances". s 530(1), (3): "If an employer decides to dismiss 15 or more employees for reasons of an economic, technological, structural or similar nature ... the employer must give a written notice about the proposed dismissals to the Chief Executive Officer of the Commonwealth Services Delivery Agency (Centrelink)", given "(a) as soon as practicable after making the decision; and (b) before dismissing an employee in accordance with the decision."
Worked examples
Wages are illustrative. Notice weeks, redundancy weeks, the super rate and the 2026-27 tax-free limit come from the sources cited above.
Tahlia is 34 and has worked full time for a 40-person employer since Monday 17 March 2025. On Monday 2 November 2026 she receives written notice that her role is redundant, and her employer pays the notice out.
- Service at the end of 2 November 2026: 1 year and 7 months. That is more than 1 year but not more than 3 years, so 2 weeks. She is not over 45, so no extra week.
- Her base rate is $1,300 a week. With her rostered penalties and an allowance, her full weekly rate is $1,500.
- Pay in lieu of notice: 2 x $1,500 = $3,000, due on or before her termination day, which can be 2 November itself.
- Super on the payout: 12% x $3,000 = $360.
- Redundancy pay for 1 to under 2 years: 4 weeks at base rate, 4 x $1,300 = $5,200. No super guarantee on this part.
- Tax: she would not have been paid out notice had she resigned, so the $3,000 can count as part of her genuine redundancy payment. $3,000 + $5,200 = $8,200. Her 2026-27 limit for 1 completed year is $13,598 + $6,801 = $20,399, so the $8,200 sits under it. Her unused annual leave is taxed separately.
Hamish is 52 and started on Monday 3 February 2014. He receives written notice of redundancy on Monday 2 November 2026, and his employer pays it out.
- Service at the end of 2 November 2026: 12 years and 9 months. More than 5 years gives 4 weeks.
- He is over 45 and has well over 2 years' service: 4 + 1 = 5 weeks.
- His base rate is $1,800 a week. With his regular overtime, his full weekly rate is $2,050.
- Pay in lieu of notice: 5 x $2,050 = $10,250. Super: 12% x $10,250 = $1,230.
- Redundancy pay for at least 10 years: 12 weeks at base rate, 12 x $1,800 = $21,600.
- Tax: his limit for 12 completed years is $13,598 + (12 x $6,801) = $13,598 + $81,612 = $95,210. If the notice payout counts as part of his genuine redundancy payment, $10,250 + $21,600 = $31,850, well under the limit.
Wei is 40, works under the Clerks award and started on Monday 24 August 2020. She receives written notice of redundancy on Monday 26 October 2026 and starts working it.
- Service at the end of 26 October 2026: 6 years and 2 months. More than 5 years gives 4 weeks. She is not over 45.
- Job search time: up to 1 paid day for each week of the 4-week minimum, so up to 4 days. She takes Wednesday 28 October and Tuesday 3 November for interviews. Because she has now taken more than 1 day, her employer can ask for proof she attended an interview, and a statutory declaration is enough.
- She accepts a new job and leaves on Friday 6 November 2026, inside her minimum notice period.
- She keeps the redundancy pay she would have received by staying to the end: 6 to under 7 years is 11 weeks, so 11 x $1,400 base = $15,400.
- She is not paid for the part of the notice period after 6 November.
- Tax: leaving early after notice is still a dismissal for the ATO. Her limit for 6 completed years is $13,598 + (6 x $6,801) = $13,598 + $40,806 = $54,404, so the $15,400 sits under it.
Bronwyn and Lisa are both 47 and both receive written notice of redundancy on Monday 2 November 2026.
- Bronwyn started on Monday 6 January 2025, so she has 1 year and 9 months' service at the end of 2 November. More than 1 year but not more than 3 years gives 2 weeks. She is over 45, but under 2 years' service, so there is no extra week: 2 weeks.
- Lisa started on Monday 7 October 2024, so she has just over 2 years' service at the end of 2 November. That is still the 2-week band, but now both conditions for the extra week are met: 2 + 1 = 3 weeks.
Lisa started 3 months earlier and gets a week more notice.
Common questions
What does redundancy notice mean?
It is the written notice your employer must give of the day your employment will end, when it is ending because your job is no longer needed by anyone. It sets the length of time you keep working, or the amount you are paid out, before your job ends. It is not the same as consultation, which happens earlier.
How much notice for redundancy in Australia?
At least 1 week with up to 1 year of service, 2 weeks with more than 1 and up to 3 years, 3 weeks with more than 3 and up to 5 years, and 4 weeks with more than 5 years. Add 1 week if you are over 45 and have at least 2 years' continuous service.
How much notice should I get for redundancy?
The section 117 table gives the minimum, based on your service at the end of the day you receive notice and, for the extra week, your age. Your award or enterprise agreement can add redundancy rules on top, such as paid job search days under the Clerks award.
Can I resign during my redundancy notice period?
Under the Clerks award, yes. You can end your employment during the minimum notice period and still receive the redundancy pay you would have got by staying, but you are not paid for the rest of the notice. The ATO still treats the end of your job as a dismissal. Other awards have their own clause.
Does redundancy pay include notice period?
No. Notice and redundancy pay are separate entitlements under sections 117 and 119 of the Fair Work Act, on separate scales and rates, and your final pay lists them separately. With 6 years' service, for example, you are owed 4 weeks of notice and 11 weeks of redundancy pay.
Do I have to work my redundancy notice period?
Not necessarily. Your employer can pay the notice out instead of having you work it, at your full rate of pay. If you want to finish early yourself, check your award: under the Clerks award you can leave during the minimum notice and keep your redundancy pay, though the unworked notice is not paid.
Is redundancy notice paid at my full rate or base rate?
A notice payout is at your full rate of pay, including bonuses, loadings, allowances, overtime and penalty rates. Redundancy pay is at your base rate for ordinary hours, so the two are usually worked out on different weekly figures.
Is super paid on redundancy notice?
Yes, if it is paid out. Pay in lieu of notice is qualifying earnings for all termination reasons, so 12% super guarantee applies, due in your fund within 7 business days after you are paid. Redundancy pay does not attract super guarantee.
How is pay in lieu of notice taxed on a redundancy?
On a genuine redundancy it can be counted with your redundancy pay against the tax-free limit, $13,598 plus $6,801 per completed year of service in 2026-27, because it would not be paid had you resigned. Otherwise it is an employment termination payment taxed against the ETP and whole-of-income caps.
Is redundancy notice different in NSW, Victoria or Queensland?
No. The notice scale comes from section 117 of the Fair Work Act, a federal law, so it is the same in every state for employees in the national workplace relations system.
Does a small business have to give redundancy notice?
Yes. The small business exemption applies to NES redundancy pay, which is not owed by an employer with fewer than 15 employees. Notice has no business size test, so a small business still owes the weeks in the notice table.
Is consultation part of my notice?
No. Consultation, where your award or agreement requires it, comes before the decision about your job. Your notice period only starts with written notice of your termination day, so time spent in consultation meetings does not reduce it.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.