Australian final pay involves several components, and two of them are calculated on different bases.
The two rates
- Redundancy pay: the base rate of pay for ordinary hours of work
- Payment in lieu of notice: the employee's full pay rate, as if they had worked the notice period
Confusing the two produces a wrong figure, usually in the employer's favour.
What should be included
- Wages to your last day
- Notice, or payment in lieu at the full rate
- Redundancy pay, on the NES scale or better
- Accrued annual leave
- Long service leave, where applicable under state law
Check the redundancy scale
4 weeks at 1 year, rising to 16 weeks at 9-10 years, then 12 weeks at 10 years and beyond.
If you are close to ten years, verify the count — the scale moves against you at that point, which is unusual and worth confirming.
Check whether an award applies
Modern awards, enterprise agreements and contracts frequently override NES minimums and may provide a more generous redundancy entitlement.
The NES scale is a floor, not the answer.
Check your eligibility
- At least 12 months of continuous service
- Employer with 15 or more employees
- Not a casual employee
Long service leave
A state-based entitlement, separate from the NES. It is one reason the redundancy scale drops at ten years.
The Fair Work Ombudsman investigates underpayments — 13 13 94. Underpayment even by a small margin can trigger an investigation, a claim, or both.
Separately, if the dismissal itself was wrong
That is an unfair dismissal application to the Fair Work Commission, within 21 days, on Form F2.
The two are different processes. Being paid correctly does not prevent an unfair dismissal claim if the redundancy was not genuine.
Do not leave empty-handed
Never walk out without payment in lieu of notice where notice was not worked.