Notice Requirements For Redundancy: Employer’s Guide

Working through a redundancy process is never easy. You’re balancing the needs of your business with the wellbeing of your team, while also making sure you meet strict legal requirements in Australia.

Getting the notice period right is a key step. If you misstep on notice, consultation or redundancy pay, you could face unfair dismissal claims, penalties, or damage to your brand.

In this guide, we’ll explain how redundancy notice works in Australia, how it interacts with redundancy pay, who is covered, and a practical process you can follow to stay compliant and respectful.

What Does “Notice For Redundancy” Mean?

Notice for redundancy is the formal amount of time between telling an employee that their position is being made redundant and their last day of employment.

It’s a legal requirement under the National Employment Standards (NES) in the Fair Work Act 2009. Your employees may also be covered by a modern award or enterprise agreement, and their employment contract might specify a longer notice period. If multiple instruments apply, the one that gives the employee the best outcome prevails.

Redundancy must be genuine to defend against unfair dismissal risk. Under section 389 of the Fair Work Act, a redundancy is genuine if:

• the employer no longer requires the person’s job to be performed by anyone due to changes in operational requirements
• the employer complied with any consultation obligations in a modern award or enterprise agreement; and
• it wasn’t reasonable to redeploy the employee within the employer’s business or an associated entity.

That means you should consider alternatives (like redeployment to a suitable vacancy) and properly consult before finalising any decision.

How Much Notice Do You Need To Give?

The minimum notice period set by the NES depends on the employee’s length of continuous service:

• Less than 1 year: 1 week
• 1 – 3 years: 2 weeks
• 3 – 5 years: 3 weeks
• 5+ years: 4 weeks

Employees aged 45 or over with at least 2 years of continuous service get an extra week of notice.

Many employers find it helpful to double-check they’re using the right figure with a quick reference such as a short guide on calculating notice periods. Remember, if the contract, award or agreement provides a longer notice period, you must honour that longer period.

Can You Pay Notice Instead Of Having It Worked?

Yes. You can make a payment in lieu of notice. This means you pay the employee what they would have earned during the notice period and their employment ends immediately. If you go down this path, make sure the termination letter clearly states the termination date and that notice has been paid in lieu.

Is There Anything Different In Victoria?

No. For employers in Victoria, the same national standards apply. There aren’t any extra state-specific notice rules for redundancies beyond the NES, though you still need to check any modern award or enterprise agreement that applies to your workplace.

Redundancy Pay vs Notice: What’s The Difference?

Notice and redundancy pay are separate entitlements.

• Notice of termination: Time (or pay in lieu) between the redundancy notification and the end of employment.
• Redundancy pay: A separate lump sum based on the employee’s years of continuous service (also set by the NES).

Providing notice (or paying in lieu) does not replace redundancy pay-both usually apply if an employee is entitled to redundancy pay.

If you’re working out what redundancy pay could look like in your situation, tools like a redundancy calculator or a step-by-step explainer on calculating redundancy pay can help you plan the numbers before you begin consultations.

Who Is (And Isn’t) Entitled To Redundancy Pay And Notice?

Most ongoing full-time and part-time employees are entitled to both minimum notice and redundancy pay under the NES, unless an exception applies. The main distinctions are below.

Notice Of Termination

Notice (or payment in lieu) under the NES generally applies to permanent employees. However, notice under the NES does not apply when a fixed-term contract simply ends on its stated end date, or for certain excluded categories under the Act.

Redundancy Pay

Redundancy pay under the NES is based on years of continuous service, but there are key exclusions. Redundancy pay is generally not payable to:

• employees of a small business employer (fewer than 15 employees)
• employees engaged for a specified period, specified task or a season (e.g. genuine fixed-term employment that ends at the stated end date)
• casual employees
• apprentices

For everyone else, redundancy pay is calculated on a sliding scale by years of service (as set by the NES). If a modern award, enterprise agreement or employment contract provides a more generous entitlement, you’ll need to provide the higher amount.

It’s also worth checking how leave interacts with termination. For instance, employers often ask how redundancy intersects with sick leave and other entitlements-this overview of redundancy and sick leave runs through common scenarios.

What Process Should Employers Follow?

Beyond the numbers, process matters. A clear, fair and well-documented process reduces legal risk and helps your team feel respected throughout a difficult change.

1) Plan And Identify Genuine Operational Reasons

Document the operational changes and the roles impacted (not the individuals). Think through whether duties can be redistributed, or if redeployment to a suitable role is reasonable in the circumstances.

2) Check The Industrial Instrument

Confirm which modern award or enterprise agreement applies and review any consultation obligations, timelines and redundancy pay provisions. If you’re unsure about coverage, a short review of modern award compliance can help you identify your obligations before you begin.

3) Consult With Affected Employees

Most modern awards and agreements require you to consult with employees when you’re proposing major changes likely to have a significant effect (such as redundancies). This usually involves:

• giving employees information about the proposed changes and likely effects
• discussing ways to avoid or minimise impacts (including redeployment)
• genuinely considering feedback before final decisions are made

4) Confirm The Decision And Issue Written Notice

Once a final decision is made, give the employee written notice of termination. The letter should clearly set out:

• that the reason for termination is redundancy
• the date employment ends (or the date notice starts and ends)
• the notice period being provided, or that you’re making a payment in lieu of notice
• redundancy pay entitlements (if any)
• final payment items (wages, accrued annual leave, long service leave if applicable)
• practical next steps (e.g. return of property, IT access)

5) Support Through The Notice Period (Or Pay In Lieu)

If the employee will work through their notice, consider whether it’s appropriate to provide time for job interviews or outplacement support. If you’re paying in lieu, employment ends immediately and you’ll need to arrange a prompt, accurate final pay.

6) Make Final Payments On Time

On or before the final day (or as required by any applicable instrument), pay all outstanding entitlements: redundancy pay (if applicable), wages, accrued leave, and superannuation as required. If you’re paying notice in lieu, ensure the amount reflects what would have been earned during that period. Some employers also check their obligations around super on termination amounts and various allowances-if in doubt, get tailored advice from an employment lawyer.

7) Keep Clear Records

Maintain records of your consultation steps, decision-making, correspondence, and calculations. Solid documentation is your best protection if a dispute arises later.

Practical Tip: Align Your Documents

It’s wise to ensure your employment contracts and internal policies reflect current law and your intended redundancy process. Some businesses also use a consistent suite of termination templates to keep things clear and compliant across the board.

Common Questions

Can I give less notice than the minimum?
Not unless you pay the difference as payment in lieu. If a longer period is set by a contract, award or agreement, you must provide the longer period (or pay in lieu of that longer period).

Do small businesses have to pay redundancy?
If you have fewer than 15 employees, you’re usually exempt from paying redundancy pay under the NES. You still need to provide written notice (or payment in lieu) and pay other final entitlements.

Do casuals get redundancy pay?
No. Genuine casual employees are excluded from redundancy pay under the NES.

What about fixed-term employees?
If the fixed term simply ends on its stated end date, the NES provisions for notice and redundancy pay generally don’t apply. If you terminate a fixed-term early, different rules may apply-get advice before acting.

What if the role appears again shortly after redundancy?
Recreating or refilling the same role shortly after a redundancy can raise questions about whether the redundancy was genuine, increasing unfair dismissal risk.

What if I’m unsure about the correct notice or the right process?
This is a good time to seek tailored advice. Many employers also refresh their templates before a restructure to avoid inconsistencies-some use an employee termination documents suite to standardise letters and checklists.

Key Takeaways

• Notice for redundancy is a legal requirement under the NES and may be extended by awards, agreements or contracts.
• Minimum notice depends on service length; employees aged 45+ with 2+ years’ service get an extra week.
• Notice (time or payment in lieu) is separate from redundancy pay; most eligible employees receive both.
• Small business employers are usually exempt from redundancy pay but must still provide written notice and other final entitlements.
• A redundancy is genuine if the job is no longer required, you meet consultation obligations, and redeployment is not reasonable.
• Awards and enterprise agreements often add specific consultation steps-review coverage to ensure compliance before acting.
• Accurate letters, correct calculations, and clear records reduce legal risk and help your team through the change respectfully.

If you would like a consultation on your redundancy process or any other workplace legal issue, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.