What is Redundancy pay?
Payroll & people. A plain-English definition for Australian business owners.
Redundancy pay is the NES-mandated payment to an employee whose position is genuinely redundant, calculated based on continuous service.
The scale ranges from 4 weeks' pay (1-2 years' service) up to 16 weeks' pay (9+ years). Some Awards and agreements provide additional redundancy entitlements. Genuine redundancy attracts concessional tax treatment under specific ATO rules.
In a connected back office this sits with the People hub, where Valont runs award compliance, hr & ir advisory and employer advice line for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.