You were made redundant, the payout landed, and the number doesn’t match what you expected. Maybe you were paid for fewer years of service than you actually worked. Maybe the rate used was your base wage and not your full wage. Maybe accrued leave was missed. Redundancy pay miscalculations are common and almost always recoverable because the entitlement comes from the National Employment Standards, which are not negotiable.
The legal context — NES redundancy scale
Section 119 of the Fair Work Act 2009 sets the minimum NES redundancy pay scale: 4 weeks for 1–2 years of service, rising to 16 weeks for 9–10 years (the scale plateaus at 12 weeks for 10+ years in the standard NES table — check the current scale at the time of your termination). Redundancy pay is calculated on the employee’s “base rate of pay for ordinary hours” (section 119(2)). On top of redundancy, you are entitled to all accrued annual leave (section 90), notice period or pay in lieu (section 117), and any award or contractual redundancy entitlement that exceeds the NES. Small-business employers (under 15 employees) are exempt from the NES redundancy scale, but most awards still impose redundancy obligations on them.
Common employer defences and why they fail
- “You don’t get the contractual top-up because you were a poor performer.” Performance is not relevant to a genuine redundancy. If the role is gone, the entitlement is owed.
- “It wasn’t really a redundancy.” The Fair Work Act looks at the substance: was the role no longer required because of operational changes? If so, redundancy applies regardless of label.
- “Cash flow is tight.” Not a defence. The Fair Entitlements Guarantee (FEG) scheme exists precisely so that insolvency does not deprive employees of redundancy.
- “We offered you another role.” Only acceptance of a genuinely suitable alternative role removes the redundancy entitlement, and the employer must apply to the FWC for relief.
The Letter of Demand approach
The Letter of Demand sets out years of service, the correct NES redundancy weeks, the base rate, the calculation, the additional entitlements (notice, accrued leave, contractual top-up), and the shortfall, with a 14-day deadline. It cites sections 117, 119, and 90 of the Fair Work Act and your modern award.
What Claim Done delivers (flat $79)
Answer the wizard about your service dates, your weekly base pay, your award, the redundancy paid, and what you believe you’re owed. Claim Done generates a Letter of Demand with the calculation and citations, as a PDF.
What to expect — and the Fair Work escalation
The numbers in a redundancy demand are mechanical, which is why most settle quickly. If yours doesn’t, the Fair Work Ombudsman handles the underpayment angle and the Federal Circuit and Family Court small-claims division hears the recovery claim. If your employer has become insolvent, the Fair Entitlements Guarantee scheme administered by the federal Department of Employment and Workplace Relations is the right path — your Letter of Demand becomes part of the documentary support for the FEG claim.