NES – amount of redundancy pay

The NES scale of redundancy payments is as follows:
 

Length of service Amount of redundancy pay
Less than one year’s continuous service Nil
At least 1 year but less than 2 years continuous service 4 weeks pay
At least 2 years but less than 3 years continuous service 6 weeks pay
At least 3 years but less than 4 years continuous service 7 weeks pay
At least 4 years but less than 5 years continuous service 8 weeks pay
At least 5 years but less than 6 years continuous service 10 weeks pay
At least 6 years but less than 7 years continuous service 11 weeks pay
At least 7 years but less than 8 years continuous service 13 weeks pay
At least 8 years but less than 9 years continuous service 14 weeks pay
At least 9 years but less than 10 years continuous service 16 weeks pay
At least 10 years continuous service 12 weeks pay*
* The reason the amount of redundancy pay entitlement is reduced after 10 years continuous service is that the government assumes that the employee is also entitled to long service leave pay at this point.
 

The Fair Work Commission can reduce the amount of redundancy pay (which may be nil) where the employer obtains other acceptable employment for the employee, or if the employer cannot pay the amount which is legally payable. The employer must apply to the FWC for this reduction.
 
Legal advice should be sought in the event of a redundancy.