Notice periods, pay in lieu and your final pay in a redundancy
A redundancy is more than the redundancy payment — there is notice, possibly pay in lieu, and your accrued leave. Here is what makes up your final pay.
When a role is made redundant, the redundancy payment is only one part of what you receive. Your final pay also includes notice (or pay in place of it) and your accrued leave. Knowing the pieces helps you check you have been paid correctly.
Notice of termination
Under the National Employment Standards, your employer must give minimum notice based on your length of service: 1 week under a year, 2 weeks for 1–3 years, 3 weeks for 3–5 years, and 4 weeks beyond 5 years. If you are over 45 and have at least two years' service, you get an extra week.
Pay in lieu of notice
Instead of having you work the notice period, an employer can pay it out — "pay in lieu of notice." You receive the wages you would have earned across the notice period without working it.
Redundancy pay is separate
Redundancy pay is a separate entitlement from notice, on its own NES scale that runs from 4 weeks at one year up to 16 weeks at nine to ten years. You are entitled to both notice and redundancy pay — one does not replace the other.
Accrued leave
Your unused annual leave is paid out, and long service leave too if you have reached the qualifying period. These are added to your final pay.
Worked example
James, aged 40, is made redundant after 6 years. He is entitled to 4 weeks' notice (over 5 years, and under 45 so no extra week), 11 weeks' redundancy pay (the NES rate for 6 years), plus any unused annual leave — all in his final pay, on top of wages up to his last day.
Estimate your redundancy
Our calculator combines your NES redundancy pay, the tax-free treatment and your leave for 2026-27.
This is general information, not personal advice — check your award, agreement or contract, which may provide more. For the tax side, see how a redundancy payout is taxed.
Frequently asked questions
Do I get both notice and redundancy pay?
Yes. Under the NES they are separate entitlements. You receive notice (or pay in lieu) and, on top of that, redundancy pay based on your years of service.
What is pay in lieu of notice?
It is your employer paying out the notice period instead of having you work it — you get the wages for that period without working the days.
Is my unused annual leave paid out?
Yes. Accrued annual leave is paid in your final pay, and long service leave too if you have met the qualifying period. These are taxed under their own rules.
Does my award change these amounts?
It can. An award, enterprise agreement or contract can provide more than the NES minimum — the more generous entitlement applies. Check your own terms.