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Free tools › Redundancy pay by country

Redundancy pay: Australia vs Canada

Statutory redundancy pay in Australia and Canada, side by side, with the primary source for every figure.

How does redundancy pay compare between Australia and Canada?

Australia: 4 to 16 weeks' base pay by tenure after a year's service, but the scale drops to 12 weeks at 10+ years, and small businesses under 15 staff are exempt. Canada: Ontario severance pay is 1 week per year capped at 26 weeks, but only for employees with 5+ years at employers with a global payroll of C$2.5 million or more, and it stacks on top of termination notice. At five years' service that means 10 weeks in Australia and 5 weeks' wages, where the C$2.5M payroll test is met in Canada.

Australia vs Canada, side by side

AustraliaCanada
The rule4 to 16 weeks' base pay by tenure after a year's service, but the scale drops to 12 weeks at 10+ years, and small businesses under 15 staff are exempt.Ontario severance pay is 1 week per year capped at 26 weeks, but only for employees with 5+ years at employers with a global payroll of C$2.5 million or more, and it stacks on top of termination notice.
At 1 year4 weeksNil (severance needs 5+ years)
At 5 years10 weeks5 weeks' wages, where the C$2.5M payroll test is met
At 10 years12 weeks10 weeks' wages, where the C$2.5M payroll test is met
Key numbersRange: 4 to 16 weeks' base pay; At 10+ years: 12 weeks (the scale steps down); Qualifying service: 12 monthsOntario formula: 1 week per year (pro-rated), cap 26 weeks; Dual test: 5+ years' service AND C$2.5M+ global payroll; Stacking: Paid on top of termination notice or pay in lieu

Australia

NES redundancy pay starts at 4 weeks after one year and peaks at 16 weeks at 9 years, then steps down to 12 weeks at 10 or more, a quirk carried over from the 2004 Redundancy Case. It is paid at the base rate, on top of notice. Employers with fewer than 15 employees pay nothing under the NES, though some industry awards override that.

  • Range4 to 16 weeks' base pay
  • At 10+ years12 weeks (the scale steps down)
  • Qualifying service12 months
  • Small business exemptionFewer than 15 employees
Length of serviceEntitlement
1 to under 2 years4 weeks
2 to under 3 years6 weeks
3 to under 4 years7 weeks
4 to under 5 years8 weeks
5 to under 6 years10 weeks
6 to under 7 years11 weeks
7 to under 8 years13 weeks
8 to under 9 years14 weeks
9 to under 10 years16 weeks
10 years or more12 weeks
  • Frequently misquoted as '16 weeks at 10+ years'; the drop to 12 is real.
  • Building, coal and some other industry awards run their own schemes over the top.

Source: Fair Work Ombudsman (NES, Fair Work Act s.119). Checked July 2026.

Canada

Ontario runs two separate ESA entitlements that people constantly merge: termination pay (the notice entitlement above) and severance pay. Severance is one week's wages per year of service, pro-rated for part years and capped at 26 weeks, owed only where the employee has 5 or more years and the employer's global payroll reaches C$2.5 million. Both can be owed on the same dismissal. The federal version is far smaller: the greater of 2 days' wages per year or 5 days.

  • Ontario formula1 week per year (pro-rated), cap 26 weeks
  • Dual test5+ years' service AND C$2.5M+ global payroll
  • StackingPaid on top of termination notice or pay in lieu
  • FederalGreater of 2 days per year or 5 days' wages
Length of serviceEntitlement
Under 5 yearsNil
5 years or more (payroll test met)1 week per year + 1/12 per extra month, cap 26 weeks
  • The C$2.5M test is global payroll, not Ontario payroll, settled by Hawkes v. Max Aicher (2021).
  • Common-law reasonable notice can dwarf both ESA amounts; we state the statutory floor only.

Source: Ontario ESA guide (Global-payroll reading per 2021 caselaw). Checked July 2026.

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (Australia) and True cost of an employee (Canada). The complete six-market picture is on the Redundancy pay by country page.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
AustraliaFair Work OmbudsmanNES, Fair Work Act s.119Checked July 2026
CanadaOntario ESA guideGlobal-payroll reading per 2021 caselawChecked July 2026
Where Compono fits

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

What is the rule on redundancy pay in Australia?

4 to 16 weeks' base pay by tenure after a year's service, but the scale drops to 12 weeks at 10+ years, and small businesses under 15 staff are exempt. NES redundancy pay starts at 4 weeks after one year and peaks at 16 weeks at 9 years, then steps down to 12 weeks at 10 or more, a quirk carried over from the 2004 Redundancy Case.

What is the rule on redundancy pay in Canada?

Ontario severance pay is 1 week per year capped at 26 weeks, but only for employees with 5+ years at employers with a global payroll of C$2.5 million or more, and it stacks on top of termination notice. Ontario runs two separate ESA entitlements that people constantly merge: termination pay (the notice entitlement above) and severance pay.

Where can I check the source figures?

The sources section below links the Australia and Canada government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Fair Work Ombudsman, your provincial employment standards office or your own adviser. Last reviewed July 2026.