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Free tools › Redundancy pay by country

Redundancy pay: Australia vs United Kingdom

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

How does redundancy pay compare between Australia and UK?

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. United Kingdom: 0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530. At five years' service that means 10 weeks in Australia and 5 weeks' pay (aged 22-40 throughout, capped at £751/week) in the UK.

Australia vs United Kingdom, side by side

AustraliaUnited Kingdom
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.0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530.
At 1 year4 weeksNil (under the 2-year qualifying line)
At 5 years10 weeks5 weeks' pay (aged 22-40 throughout, capped at £751/week)
At 10 years12 weeks10 weeks' pay (aged 22-40 throughout, capped at £751/week)
Key numbersRange: 4 to 16 weeks' base pay; At 10+ years: 12 weeks (the scale steps down); Qualifying service: 12 monthsFormula: 0.5 / 1 / 1.5 weeks per year by age band; Weekly pay cap: £751 (2026-27); Maximum: £22,530

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.

United Kingdom

Statutory redundancy pay uses three age bands: half a week per year under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 plus. Service counts up to 20 years, weekly pay is capped at £751 for 2026-27, and the ceiling works out at £22,530. Two years' service is the qualifying line, unchanged by the Employment Rights Act 2025.

  • Formula0.5 / 1 / 1.5 weeks per year by age band
  • Weekly pay cap£751 (2026-27)
  • Maximum£22,530
  • Qualifying service2 years
Length of serviceEntitlement
Years worked under age 220.5 week's pay per year
Years worked aged 22 to 401 week's pay per year
Years worked aged 41 plus1.5 weeks' pay per year
  • ERA 2025 doubled the collective-consultation protective award to 180 days' pay, so process failures now cost far more than the redundancy pay itself.
  • Redundancy pay is tax-free up to £30,000.

Source: GOV.UK (Caps from 6 Apr 2026). 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 (UK). 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
United KingdomGOV.UKCaps from 6 Apr 2026Checked 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 the UK?

0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530. Statutory redundancy pay uses three age bands: half a week per year under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 plus.

Where can I check the source figures?

The sources section below links the Australia and the UK 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, GOV.UK or your own adviser. Last reviewed July 2026.