Redundancy letter template

Draft a redundancy letter that explains the business change, records consultation and redeployment, and sets out notice and redundancy pay worked out from the employee’s service.

Figures checked 5 November 2026. Free to use, no sign-in.

Letter

Service, notice and pay

Casual periods do not count for notice or redundancy pay.

Count employees of associated entities and regular casuals, at the time notice is given.

Notice
$

Ordinary hours only: no overtime, penalties, loadings or allowances.

weeks

If more than the NES.

Reasons and process

Redundancy notice

NES notice
Enter start date
Redundancy pay
Enter dates
Estimated amount
—

Check before you use it

  • A redundancy must be about the job, not the person: the job is no longer needed by anyone because of a change in how the business operates (s 119, s 389). If you plan to fill the role again, it is not a redundancy.
  • Follow the consultation clause in the award or enterprise agreement that applies before you decide. Most require you to tell employees about the change, discuss its effects and consider their views. Skipping it can make the redundancy non-genuine.
  • Consider redeployment to any suitable role across the business and related entities, and record what you looked at.
  • NES notice: enter the start date. NES redundancy pay: enter the start date and last day. Enter the start date and the last day of employment to work out NES redundancy pay. Pay the higher amount if your award, agreement or contract gives more. Some awards have their own industry redundancy schemes.
  • Redundancy pay uses the base rate for ordinary hours: no overtime, penalty rates, loadings or allowances. Notice paid in lieu uses the full rate of pay.
  • The small business exemption depends on head count at the time of notice (fewer than 15 employees, counting associated entities and regular casuals). Check it on that date.

[Employer name]

[Date of letter]

Private and confidential [Employee name] [Position]

Dear [Employee first name],

Notice of redundancy

We are writing to confirm that your position of [Position] is redundant. [Employer name] no longer requires this job to be done by anyone, because of the following changes to the business:

  • [Describe the operational change, e.g. the restructure, closure, new system or reduced work, and why the role is no longer needed]

We consulted with you about this change: [dates of consultation meetings and what was discussed, including any proposals you put forward]. We considered what you told us before making this decision.

We also looked at whether you could be redeployed to another role within [Employer name] or a related entity. [Describe the roles considered and why redeployment is not reasonable, or set out any role offered].

Notice

You are being given [number of weeks] notice. Your last day of employment will be [last day of employment].

Redundancy pay

You will receive redundancy pay of [number of weeks] at your base rate of pay for your ordinary hours.

Final pay

Your final pay will also include wages owing up to your last day and any annual leave you have not taken, including leave loading if it would have been paid when you took leave. [Add long service leave and any other amounts owing.] You will receive a payslip and, if you ask, an employment separation certificate.

Support

[If your award or agreement gives time off during notice to look for other work, describe it here.] We can provide a written statement confirming your role and dates of employment.

We recognise this is difficult news. If you have questions, please contact [contact name and phone or email].

Yours sincerely,

[Your name]

[Your position]

[Employer name]

Highlighted text in [brackets] still needs your input. General information, not legal advice. Amounts are estimates before tax.

How this works

Notice comes from the Fair Work Act s 117(3), counted to the end of the day the letter is given. Redundancy pay comes from s 119(2), counted to the last day of employment, with the s 121 exclusions for service under 12 months and small business employers.

  • Enter a weekly base rate to see the amount before tax. Base rate means ordinary hours only.
  • If your award, agreement or contract gives more, enter its number of weeks and the letter uses the higher figure.
  • The checklist covers consultation, redeployment and the Services Australia notice for 15 or more redundancies.

Use this after consultation, not instead of it. Nothing you type leaves your browser.

Legal basis

Checked against these sources on 5 November 2026. Spotted a figure that looks wrong? Tell us.

Questions

How much redundancy pay is owed?

Under the National Employment Standards: 4 weeks for 1 to under 2 years of service, 6 weeks for 2 years, 7 for 3, 8 for 4, 10 for 5, 11 for 6, 13 for 7, 14 for 8, 16 for 9 to under 10 years, and 12 weeks for 10 years or more. It is paid at the base rate for ordinary hours. An award, agreement or contract can provide more.

Do small businesses have to pay redundancy pay?

Not under the NES. Employers with fewer than 15 employees, counting associated entities and regular casuals, are exempt at the time notice is given, unless an award, agreement or contract requires it. There is an exception when a business is wound up after shedding staff in the months before insolvency.

What makes a redundancy genuine?

The job is no longer required to be done by anyone because of changes in the operational requirements of the business, and you complied with any consultation obligation in the award or enterprise agreement. It is not genuine if redeployment within the business or an associated entity would have been reasonable.

Can I reduce redundancy pay if I find the employee another job?

You can apply to the Fair Work Commission to reduce it, possibly to nil, if you obtain other acceptable employment for the employee or cannot afford to pay. You cannot reduce it yourself.

Is there anything extra when 15 or more people are affected?

Yes. You must give written notice to Services Australia before any dismissal takes effect, and notify and consult any union that represents affected employees.

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Questions the calculator can’t answer?

Workfloor answers pay, award, leave and termination questions for your team, with the Fair Work Act section or award clause behind each answer.

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