It peaks at 16 weeks, then falls to 12 — and that is deliberate

Redundancy pay under section 119 of the Fair Work Act 2009 follows a statutory scale, and it contains a feature that surprises almost everyone.

The scale

It rises with length of service from 4 weeks at 1 year up to 16 weeks at 9 to 10 years.

Then it deliberately drops to 12 weeks at 10 years and beyond.

That drop is intentional

It is a genuine feature of the Act, not an error. The Fair Work Ombudsman confirms the reduction from 16 weeks to 12 weeks for employees with at least ten years of continuous service, consistent with the 2004 Redundancy Case decision of the Australian Industrial Relations Commission.

The reasoning relates to long service leave becoming available at that point.

So someone with nine years and eleven months can receive more redundancy pay than someone with ten years and one month.

Who qualifies

• At least 12 months of continuous service — nothing is payable under the NES below that
• The employer must have 15 or more employees at the relevant time

Casual employees are excluded from the NES redundancy entitlement, along with staff of a small business employer.

What it is calculated on

The employee's base rate of pay for ordinary hours of work.

When it applies

Only where employment ends for the reasons defined in s 119(1): the employer no longer requires the job to be done by anyone, other than through ordinary turnover.

Notice is separate

Redundancy pay and notice of termination are two separate National Employment Standards entitlements, calculated on different scales under different sections.

An employee made redundant is generally entitled to both, not one instead of the other.

It is a floor, not a ceiling

A modern award, enterprise agreement or employment contract can provide a more generous entitlement than the NES table.

Check whether one applies to you — these instruments frequently override NES minimums.

A worked example

An employee earning a base rate of $2,000 per week with 1 year and 8 months' service receives 4 weeks × $2,000 = $8,000 redundancy pay, plus applicable notice.