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Redundancy Calculator Example

Example document for Redundancy Calculator. Use this as a reference when creating your own.

Professional Review Required

This document involves significant legal, financial, or compliance considerations. You must have a qualified professional review and approve this document before use. Do not rely on this template as legal advice.

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

  1. NES Redundancy Pay: $0.00
  2. Payment in Lieu of Notice: $4,560.00
  3. Annual Leave & Loading: $940.00
  4. Long Service Leave: $0.00
  5. 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.

Complexity

moderate

Risk Level

high