# Notice of Termination and Redundancy Pay - NES Calculation

## Approach

This is a benchmarking hypothetical, not legal advice. I applied the two relevant National Employment Standards (NES) scales from the *Fair Work Act 2009* (Cth), reading the stated facts against each scale and accounting for the one age-based loading in the notice scale.

## Controlling law

- **Act:** *Fair Work Act 2009* (Cth)
- **Notice of termination:** s 117 (and the scale in s 117(3))
- **Redundancy pay:** s 119 (and the scale in s 119(2))

## Relevant facts

- National-system employee, full-time, **6 years** continuous service.
- Employer is **not** a small business employer (so redundancy pay under s 119 is engaged).
- Employee is **under 45** years of age.
- Position is **genuinely redundant**; the employer **pays out** the notice period instead of having the employee work it (payment in lieu under s 117(2)(b) - this changes how notice is given, not the length owed).

## (a) Minimum notice of termination - s 117

The s 117(3) scale is based on the employee's period of continuous service:

| Continuous service | Notice period |
|---|---|
| Not more than 1 year | 1 week |
| More than 1 year, not more than 3 years | 2 weeks |
| More than 3 years, not more than 5 years | 3 weeks |
| **More than 5 years** | **4 weeks** |

At 6 years of service, the base notice period is **4 weeks**.

The scale also adds **1 extra week** if the employee is **over 45 years old** and has at least 2 years of continuous service. Here the employee is **under 45**, so the additional week does **not** apply.

**Minimum notice owed: 4 weeks.**

Because the employer pays out the notice (payment in lieu, s 117(2)(b)), the employee must be paid at least the amount they would have received for working those 4 weeks. The required period is unchanged.

## (b) Redundancy pay - s 119

The s 119(2) scale is also based on the period of continuous service:

| Continuous service | Redundancy pay |
|---|---|
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| **At least 5 years but less than 6 years** | **10 weeks** |
| **At least 6 years but less than 7 years** | **11 weeks** |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks |

At **6 years** of continuous service, the employee falls in the "at least 6 years but less than 7 years" band, giving **11 weeks** of base-pay redundancy pay.

(Note the well-known step-down at 10+ years to 12 weeks; it is not relevant here, but is included for completeness of the scale.)

**Redundancy pay owed: 11 weeks of base pay.**

## Answer

- **(a) Minimum notice of termination: 4 weeks** (s 117, *Fair Work Act 2009* (Cth); under 45, so no additional week).
- **(b) Redundancy pay: 11 weeks of base pay** (s 119, *Fair Work Act 2009* (Cth); 6 years of continuous service).