Redundancy Letter (Australia)
Fair Work Act 2009 (Cth) ss 119–123, s 389
[Employer Name]
[Employer Address]
Date: [Letter Date]
PRIVATE AND CONFIDENTIAL
To: [Employee Name]
Job Title: [Employee Job Title]
Commencement Date: [Employee Start Date]
Re: Notice of Genuine Redundancy
Dear [Employee Name],
We write to confirm the outcome of the redundancy consultation process regarding the proposed redundancy of your role of [Employee Job Title] at [Employer Name]. We regret to inform you that your position has been genuinely made redundant and that your employment with [Employer Name] will therefore come to an end.
This letter constitutes your formal notice of redundancy, issued pursuant to your entitlements under the Fair Work Act 2009 (Cth), including ss 117, 119–123, and s 389.
1. REASON FOR REDUNDANCY
[Redundancy Reason]
This redundancy constitutes a genuine redundancy within the meaning of s 389 of the Fair Work Act 2009 (Cth), as the position is no longer required to be performed by anyone because of changes in the operational requirements of the employer's enterprise.
2. CONSULTATION PROCESS
Individual consultation commenced on [Consultation Start Date]. The following consultation was carried out with you in accordance with any applicable Modern Award or enterprise agreement obligations and the procedural fairness requirements of the Fair Work Act 2009 (Cth):
[Consultation Summary]
3. SELECTION FOR REDUNDANCY
[Selection Description]
4. NOTICE PERIOD AND LAST DAY OF EMPLOYMENT
Your notice period is [Notice Period] in accordance with the Fair Work Act 2009 (Cth) s 117. Your last day of employment with [Employer Name] will be [Last Day Of Employment].
During your notice period, you will be [Notice Arrangement]. Your salary and any applicable contractual benefits will continue in the usual manner until your last day of employment.
5. REDUNDANCY PAY ENTITLEMENT
You have [Years Of Service] of continuous service with [Employer Name], having commenced employment on [Employee Start Date]. Based on this period of service, you are entitled to statutory redundancy pay under the Fair Work Act 2009 (Cth) ss 119–123.
Your statutory redundancy pay is: [Redundancy Pay Amount].
Genuine redundancy payments may be wholly or partially tax-free under the Income Tax Assessment Act 1997 (Cth) s 83-170, subject to applicable limits based on your years of service. You should seek independent tax advice from a registered tax agent or the Australian Taxation Office regarding the tax treatment of your redundancy payment.
6. ACCRUED ENTITLEMENTS AND FINAL PAY
Accrued but unused annual leave: [Annual Leave Entitlement].
Other entitlements and arrangements: [Other Entitlements].
Your final payslip will set out a full breakdown of all amounts payable to you, including wages to the termination date, accrued annual leave, redundancy pay, and payment in lieu of notice (if applicable). Superannuation contributions at the current Superannuation Guarantee rate under the Superannuation Guarantee (Administration) Act 1992 (Cth) will be made on all ordinary time earnings in your final pay period.
7. POST-EMPLOYMENT OBLIGATIONS
Your post-employment obligations under your contract of employment, including any confidentiality provisions and restraint of trade clauses, remain in full force and effect following the termination of your employment to the extent they are enforceable under Australian law. You are required to return all company property on or before your last day of employment.
8. YOUR LEGAL RIGHTS
A genuine redundancy under s 389 of the Fair Work Act 2009 (Cth) is not an unfair dismissal. However, if you believe this redundancy does not satisfy the requirements of s 389 or if you believe it involves adverse action in breach of the general protections provisions (Part 3-1 of the Fair Work Act 2009 (Cth)), you may have the right to make a claim to the Fair Work Commission within 21 days of the dismissal taking effect. You are encouraged to seek independent legal advice from a solicitor or contact the Fair Work Commission on 1300 799 675.
9. FURTHER SUPPORT
We recognise that this is a difficult time and we are committed to supporting you wherever possible. If you have any questions about this letter, your entitlements, or the redundancy process, please do not hesitate to contact [Signatory Name].
We thank you sincerely for your contribution to [Employer Name] over your [Years Of Service] of service and wish you every success in the future.
Yours sincerely,
[Signatory Name]
[Signatory Title]
On behalf of [Employer Name]
EMPLOYEE ACKNOWLEDGEMENT
I, [Employee Name], acknowledge that I have received and read this Notice of Genuine Redundancy and understand its contents, including my redundancy pay entitlements and any right of appeal.
Signing this letter does not constitute agreement with the redundancy decision or a waiver of any of my legal rights.
Employee Signature: ____________________________
Date: ____________________________
Employer (Signatory)
________________
Signature
Date: ________________
Employee (Acknowledgement)
________________
Signature
Date: ________________
What Is a Redundancy Letter (Australia)?
A Redundancy Letter in Australia documents the ending of an employee's role, the reason, and the notice and entitlements owed, following the process required by the Fair Work Act 2009 (Cth). A Redundancy Letter is a formal written document issued by an employer to notify an employee that their position has been genuinely made redundant and that their employment will end as a result. In Australia, redundancy is governed primarily by the **Fair Work Act 2009 (Cth)**, which defines genuine redundancy, sets minimum redundancy pay entitlements, and establishes procedural requirements. ### Genuine Redundancy Under s 389 The Fair Work Act 2009 (Cth) defines a **genuine redundancy** in s 389. A redundancy is genuine if three conditions are satisfied: 1. **The job is no longer required** — The employee's position is no longer required to be performed by anyone because of changes in the operational requirements of the employer's enterprise 2. **Consultation obligations met** — The employer has complied with any obligation in an applicable Modern Award or enterprise agreement to consult about the redundancy 3. **Redeployment not reasonable** — It would not have been reasonable in all the circumstances for the employee to be redeployed within the employer's enterprise or an associated entity If all three conditions are met, the redundancy is excluded from the unfair dismissal provisions. ### Redundancy Pay Entitlements Under ss 119-123 of the Fair Work Act 2009 (Cth), employees with at least one year of continuous service are entitled to **statutory redundancy pay** based on their years of service: - 1 to less than 2 years: **4 weeks** - 2 to less than 3 years: **6 weeks** - 3 to less than 4 years: **7 weeks** - 4 to less than 5 years: **8 weeks** - 5 to less than 6 years: **10 weeks** - 6 to less than 7 years: **11 weeks** - 7 to less than 8 years: **13 weeks** - 8 to less than 9 years: **14 weeks** - 9 to less than 10 years: **16 weeks** - 10 or more years: **12 weeks** **Small business employers** (fewer than 15 employees) are exempt from redundancy pay under s 121. ### Notice of Termination In addition to redundancy pay, the employer must provide the minimum notice of termination under s 117 of the Fair Work Act 2009 (Cth), or payment in lieu of notice. ### Tax Treatment Genuine redundancy payments receive favourable tax treatment under the **Income Tax Assessment Act 1997 (Cth) s 83-170**. A tax-free component is calculated as a base amount plus an amount for each complete year of service (indexed annually by the ATO). ### General Protections Even where a redundancy is genuine, the employer must not select an employee for redundancy for a **prohibited reason** under Part 3-1 of the Fair Work Act 2009 (Cth), such as union membership, exercising a workplace right, or a protected attribute under anti-discrimination legislation.
When Do You Need a Redundancy Letter (Australia)?
## When Do You Need a Redundancy Letter in Australia?
A Redundancy Letter is required whenever an Australian employer is eliminating a position due to genuine operational changes. It is distinct from a Termination Letter (used for dismissals for cause) and should be used specifically in redundancy situations.
### Common Operational Changes Leading to Redundancy
- **Business restructuring** — Reorganisation of departments, divisions, or reporting lines that eliminates specific positions
- **Technology and automation** — Introduction of new technology, software, or machinery that replaces functions previously performed by employees
- **Economic downturn** — Reduced revenue, loss of contracts, or declining demand requiring workforce reduction
- **Business closure** — Complete or partial closure of the employer's business or a specific location
- **Outsourcing** — Decision to outsource functions previously performed in-house to external providers
- **Mergers and acquisitions** — Corporate transactions that result in duplicate roles or restructured operations
### Consultation Requirements
Before issuing a Redundancy Letter, the employer must comply with any consultation obligations in the applicable Modern Award or enterprise agreement. Most Modern Awards require the employer to:
- **Notify** affected employees and their representatives of the proposed change
- **Provide information** about the nature of the change and expected effects on employees
- **Consult genuinely** — give employees a genuine opportunity to provide input and consider alternatives
- **Consider employee suggestions** in good faith
Under s 389(1)(b), failure to comply with consultation obligations may mean the redundancy is **not genuine**, exposing the employer to unfair dismissal liability.
### Mass Redundancy Notification
Where an employer proposes to dismiss **15 or more employees** for reasons of an economic, technological, structural, or similar nature within a 28-day period, the employer must notify the Department of Employment and the relevant union under **s 530 of the Fair Work Act 2009 (Cth)**.
### Redeployment Assessment
Before finalising a redundancy, the employer must genuinely consider whether **redeployment** within the employer's enterprise or an associated entity is reasonably possible under s 389(2). The assessment should consider available vacancies, the employee's skills and qualifications, and the reasonableness of requiring the employee to relocate or retrain.
### Selection Criteria
Where multiple employees could potentially be made redundant, the selection criteria must be **objective and non-discriminatory**. Common criteria include length of service, skills and qualifications, performance records, and disciplinary history. Selection must not be based on protected attributes under anti-discrimination legislation.
### When a Redundancy Letter Is Not Appropriate
A Redundancy Letter should **not** be used where:
- The position is being filled by someone else (this is not a genuine redundancy)
- The termination is actually for performance or conduct reasons (use a Termination Letter instead)
- The employee is being constructively dismissed under the guise of redundancy
What to Include in Your Redundancy Letter (Australia)
## Key Elements of an Australian Redundancy Letter
A compliant Redundancy Letter must address all statutory requirements and provide the employee with clear, thorough information about their redundancy and entitlements.
### 1. Employer and Employee Identification
- Full legal name of the employer, entity type, and ABN
- Employee's full name, position title, department, and commencement date
- State or territory of employment
### 2. Reason for Redundancy
- A clear, genuine, and specific business reason that satisfies **s 389(1)(a)** of the Fair Work Act 2009 (Cth)
- Description of the operational changes (restructure, technology change, economic factors, closure)
- Explanation of why the employee's specific position is no longer required
### 3. Consultation Summary
- Dates of consultation meetings held with the employee
- Information provided to the employee during consultation
- The employee's opportunity to suggest alternatives to redundancy
- Compliance with consultation obligations under the applicable Modern Award or enterprise agreement
### 4. Redeployment Assessment
- Confirmation that the employer has genuinely considered redeployment options under **s 389(2)**
- Details of any alternative positions considered and reasons they were not suitable
- If redeployment was offered and declined, documentation of the offer and response
### 5. Selection Criteria (Where Applicable)
- If multiple employees were at risk, a description of the selection pool
- The objective, non-discriminatory criteria used for selection
- How the criteria were applied to determine which positions were eliminated
### 6. Notice Period
- The applicable notice period under **s 117** of the Fair Work Act 2009 (Cth)
- The last day of employment
- Whether the employee is required to work during notice or will receive payment in lieu
### 7. Redundancy Pay
- The statutory redundancy pay entitlement calculated under **ss 119-123** based on years of continuous service
- The calculation methodology
- Any **enhanced redundancy payment** above the statutory minimum
### 8. Final Pay Entitlements
- Wages to the termination date
- **Accrued but unused annual leave** — must be paid out on termination as a National Employment Standard
- Payment in lieu of notice (if applicable)
- **Long service leave** — as provided by applicable state or territory legislation
- **Superannuation** contributions at 11.5% on ordinary time earnings under the Superannuation Guarantee (Administration) Act 1992 (Cth)
### 9. Tax Information
- Reference to the favourable tax treatment under **s 83-170** of the Income Tax Assessment Act 1997 (Cth)
- Recommendation that the employee seek advice from a registered tax agent or the ATO
### 10. Return of Property and Continuing Obligations
- List of company property to be returned (laptop, phone, access cards, documents)
- Deadline for return of property
- Reminder that confidentiality and post-employment obligations continue
### 11. Support and Information
- Information about outplacement support or career transition services (if offered)
- Employee Assistance Program (EAP) details if available
- Contact details for the Fair Work Ombudsman and Fair Work Commission
- The employee's right to seek independent legal advice
Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. The forms-legal.com Redundancy Letter (Australia) template covers the mandatory elements under Fair Work Act 2009 (Cth).
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author = {{Forms Legal}},
title = {Redundancy Letter (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/employment/termination/redundancy-letter-australia}},
note = {Free legal document template. Based on Fair Work Act 2009 (Cth)}
}Also available for these jurisdictions:
Frequently Asked Questions
Redundancy pay under the Fair Work Act 2009 (Cth) ss 119–123 is calculated based on the employee's period of continuous service with the employer. The entitlement is: 1 year to less than 2 years = 4 weeks; 2 years to less than 3 years = 6 weeks; 3 years to less than 4 years = 7 weeks; 4 years to less than 5 years = 8 weeks; 5 years to less than 6 years = 10 weeks; 6 years to less than 7 years = 11 weeks; 7 years to less than 8 years = 13 weeks; 8 years to less than 9 years = 14 weeks; 9 years to less than 10 years = 16 weeks; and 10 or more years = 12 weeks. 'Weeks' means weeks of ordinary time pay, not total remuneration. Small business employers (with fewer than 15 employees at the time of dismissal) are exempt from redundancy pay under s 121. Employees with less than 12 months of continuous service are also not entitled to redundancy pay.
Under the Fair Work Act 2009 (Cth), a genuine redundancy (as defined in s 389) is specifically excluded from the unfair dismissal provisions. This means that if a redundancy satisfies all three elements of s 389 — the position is no longer required due to operational changes, consultation obligations have been met, and redeployment was not reasonably possible — the employee cannot make a successful unfair dismissal claim. However, a redundancy that does not satisfy s 389 (for example, because the position is filled again shortly after, or because the employer failed to consult or consider redeployment) may be treated as an unfair dismissal. General protections claims under Part 3-1 of the Fair Work Act 2009 (Cth) can still apply to genuine redundancies if the employer's decision involved adverse action for a prohibited reason (such as union membership or a workplace right).
In most cases, yes. Most Modern Awards and enterprise agreements contain consultation obligations requiring employers to notify and consult employees (and their representatives) when major workplace changes — including redundancies — are proposed. Under the Fair Work Act 2009 (Cth) s 389(1)(b), a redundancy is only genuine if the employer has complied with these consultation obligations. Additionally, where 15 or more employees are to be dismissed for reasons of an economic, technological, structural, or similar nature within a 28-day period, the employer must notify the Department of Employment, Skills, Small and Family Business and the relevant union under s 530 of the Fair Work Act 2009 (Cth). Failure to consult may mean the redundancy is not genuine, exposing the employer to unfair dismissal liability.
Genuine redundancy payments receive partial tax exemption under the Income Tax Assessment Act 1997 (Cth) s 83-170. A tax-free amount is calculated as a base amount plus an amount for each complete year of service (the exact figures are indexed annually by the ATO). Amounts within the tax-free limit are not subject to income tax. Amounts above the tax-free limit that fall below the Employees Termination Payment (ETP) cap are taxed at a concessional rate. Amounts above the ETP cap are taxed at the employee's marginal rate. Employees should seek advice from a registered tax agent or the Australian Taxation Office regarding the specific tax treatment of their redundancy payment, as the rules are complex. Under Australia law, Fair Work Act 2009 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
In limited circumstances, yes. The Fair Work Act 2009 (Cth) s 120 allows the Fair Work Commission to reduce the amount of redundancy pay payable if the employer obtains other acceptable employment for the employee or cannot afford to pay the full amount. An employer who finds equivalent alternative employment for the employee may apply to the Commission for a reduction in the redundancy pay entitlement. This provision does not apply where the employee unreasonably refuses a reasonable redeployment offer. Small business employers (fewer than 15 employees) are also exempt from redundancy pay obligations under s 121. Under Australia law, Fair Work Act 2009 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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