What are the redundancy pay entitlements under the NES?

The National Employment Standards (NES) provide a statutory entitlement to redundancy pay for most national system employees who have 12 months’ continuous employment, as set out in Pt 2-2, Div 11, Subdiv B of the Fair Work Act 2009 (Cth) (FW Act). Most businesses with fewer than 15 employees do not have to pay redundancy pay.

If a national system employee also has a right to redundancy pay under a contract of employment, award, agreement or other industrial instrument, or state legislation, these instruments remain applicable to the employee to the extent that they confer more generous redundancy terms than the minimum set down in the NES.

An employer may apply to the Fair Work Commission (FWC) to reduce the amount of NES redundancy pay owing to an employee if the employer offers other acceptable employment to the employee (irrespective of whether the employee accepts the alternative position) or the employer is not able to pay the amount of redundancy pay required by the NES. The FWC may determine that redundancy pay is reduced to nil.

See What are the redundancy pay entitlements under the NES?