Skip to the main content.
Talk to an expert
Talk to an expert
Featured Offer
Ambitious 50 →
6 months of Hire and Engage free for businesses under 50 people.

Hey Compono!

A coach that actually gets you.

Get 10 minutes free, then $15 a month. Cancel anytime.

Get Started ≫
Free tools › Redundancy pay by country

Redundancy pay: Australia vs United States

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

How does redundancy pay compare between Australia and US?

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 States: None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.

Australia vs United States, side by side

AustraliaUnited States
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. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.
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 monthsFederal statutory severance: None; WARN liability for missed notice: Up to 60 days' back pay and benefits

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 States

The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms. Severance in the US comes from employment agreements, severance plans (enforceable under ERISA once promised) or collective agreements. WARN's teeth are back pay for missing notice, up to 60 days, not a severance formula.

  • Federal statutory severanceNone
  • WARN liability for missed noticeUp to 60 days' back pay and benefits
  • 'Two weeks per year of service' is common US practice, but it is policy, not law.
  • New Jersey's mini-WARN is the notable state exception, mandating severance for large layoffs.

Source: US Department of Labor (FLSA position, current). 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 (US). 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 StatesUS Department of LaborFLSA position, currentChecked 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 US?

None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment. The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms.

Where can I check the source figures?

The sources section below links the Australia and the US 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, the US Department of Labor or your own adviser. Last reviewed July 2026.