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Free tools › Redundancy pay by country

Redundancy pay: Australia vs New Zealand

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

How does redundancy pay compare between Australia and New Zealand?

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. New Zealand: None by statute. Redundancy compensation exists only if the employment agreement provides it.

Australia vs New Zealand, side by side

AustraliaNew Zealand
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.None by statute. Redundancy compensation exists only if the employment agreement provides it.
At 1 year4 weeksNo statutory scale
At 5 years10 weeksNo statutory scale
At 10 years12 weeksNo statutory scale
Key numbersRange: 4 to 16 weeks' base pay; At 10+ years: 12 weeks (the scale steps down); Qualifying service: 12 monthsStatutory redundancy pay: None; What is required: Genuine reason, consultation, notice per the agreement

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.

New Zealand

New Zealand mandates process, not payment: a genuine business reason, good-faith consultation, redeployment considered, and contractual notice. If the agreement has no redundancy clause, no compensation is owed. A flawed process can still ground an unjustified dismissal claim even though no redundancy payment applies.

  • Statutory redundancy payNone
  • What is requiredGenuine reason, consultation, notice per the agreement
  • Final pay must still include unused annual holidays and other accrued entitlements.

Source: Employment New Zealand (Employment Relations Act 2000). 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 (New Zealand). 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
New ZealandEmployment New ZealandEmployment Relations Act 2000Checked 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 New Zealand?

None by statute. Redundancy compensation exists only if the employment agreement provides it. New Zealand mandates process, not payment: a genuine business reason, good-faith consultation, redeployment considered, and contractual notice.

Where can I check the source figures?

The sources section below links the Australia and New Zealand 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, Employment New Zealand or your own adviser. Last reviewed July 2026.