Redundancy Calculator Example
Example document for Redundancy Calculator. Use this as a reference when creating your own.
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Document: Redundancy Calculator
Example Document
Last updated 7/30/2026
Redundancy Calculator Example
Business Details Business Name: Apex Plumbing Services Pty Ltd ABN: 12 345 678 901 Date of Calculation: 25/10/2023
Employee Details Employee Name: John Smith Job Title: Qualified Plumber Date of Commencement: 15/11/2018 Date of Termination: 25/10/2023 Award: [Plumbing and Building Services Award]
Step 1: Check Small Business Exemption Total number of employees: 12 Is the business a Small Business? YES Note: We must check the Award. The Award does not override the small business exemption for redundancy pay, but requires consultation.
Step 2: Calculate Continuous Service Years of continuous service: 4 years (Rounded down to nearest full year for NES calculation)
Step 3: Determine Base Rate of Pay Ordinary Weekly Hours: 38 Hourly Rate: $40.00 Weekly Base Pay: $1520.00 Includes tool allowance but excludes overtime.
Step 4: Calculate NES Redundancy Pay Small business exemption applies. NES Redundancy Pay: $0.00 Note: If this were not a small business, entitlement would be 8 weeks x $1520 = $12,160.
Step 5: Payment in Lieu of Notice Years of Service: 4 Required Notice Period: 3 weeks Employee working notice period? NO Payment in Lieu of Notice: 3 weeks x $1520.00 = $4,560.00
Step 6: Leave Payouts Accrued Annual Leave: 20 hours x $40.00 = $800.00 Annual Leave Loading: 17.5% of $800.00 = $140.00 Accrued Long Service Leave: Not eligible (Less than 7 years)
Step 7: Other Entitlements Outstanding Wages: 2 days x 8 hours x $40.00 = $640.00
Step 8: Total Payable
- NES Redundancy Pay: $0.00
- Payment in Lieu of Notice: $4,560.00
- Annual Leave & Loading: $940.00
- Long Service Leave: $0.00
- Other Payments: $640.00
GROSS TOTAL PAYABLE: $6,140.00
Notes
This example highlights the Small Business Exemption. Despite having 4 years of service, John receives $0 redundancy pay because the business has fewer than 15 employees. The employer must still pay notice ($4560) and accrued leave ($940). The employer has also paid out 2 days of outstanding wages. Total cost is $6140.
About this Example
Part of the Redundancy Calculator document collection
Document Type
Redundancy Calculator
A tool to calculate the correct redundancy pay entitlements for employees under the National Employment Standards and relevant awards.