Redundancy Pay in WA: How It Works
A redundancy payment WA workers receive is money your employer owes when your job is no longer needed and you did not do anything wrong. Most WA private-sector employees are covered by the National Employment Standards, which set redundancy pay by years of service for employers with 15 or more employees.
Your award, enterprise agreement or contract may add to this, and some WA employers sit in the state system, so check which one covers you.
How redundancy payment WA works
A redundancy happens when the employer no longer needs the job done by anyone, usually because of restructuring, lower demand or new technology. The steps below show how it runs in practice.
- The employer decides the role is no longer required and consults you, as the award or agreement requires, before the decision is final.
- You receive notice of termination or pay in lieu of notice, based on your years of service and age.
- You receive redundancy pay in weeks of ordinary pay, based on your years of continuous service, if the employer has 15 or more employees.
- You are paid unused annual leave, and long service leave where it applies under the law that covers you.
- The employer pays the money with your final pay, issues a payslip within 1 working day of payday, and keeps records for 7 years.
Examples of redundancy payment WA
These examples show when a role is genuinely redundant and when it is not. A redundancy needs the job itself to disappear, not just the person.
- A construction company finishes a project and closes the site office, so the site administrator role is no longer needed and the employer must pay out entitlements.
- A warehouse installs automated sorting and cuts three picker roles, which makes those roles redundant if no suitable alternative job is offered.
- A cleaning contractor loses a contract and the crew on that site has no other work, so redundancy pay applies if the employer has 15 or more employees.
- An office merges two payroll teams into one and no longer needs the second payroll role, which makes that position redundant.
- A business replaces a worker with a new hire doing the same job. This is not a genuine redundancy, so you can seek advice about unfair dismissal.
Redundancy pay rules and key numbers
The table shows the NES scale for employers with 15 or more employees. Small business employers with fewer than 15 employees do not pay NES redundancy pay.
| Completed service | Redundancy pay (weeks of pay) | Note |
|---|---|---|
| Less than 1 year | None under the NES | Notice and leave still apply |
| 1 to 2 years | 4 weeks | Employer with 15 or more employees |
| 2 to 3 years | 6 weeks | Employer with 15 or more employees |
| 3 to 4 years | 7 weeks | Employer with 15 or more employees |
| 4 to 5 years | 8 weeks | Employer with 15 or more employees |
| 5 to 6 years | 10 weeks | Employer with 15 or more employees |
| 6 to 7 years | 11 weeks | Employer with 15 or more employees |
| 7 to 8 years | 13 weeks | Employer with 15 or more employees |
| 8 to 9 years | 14 weeks | Employer with 15 or more employees |
| 9 to 10 years | 16 weeks | Employer with 15 or more employees |
| 10 years or more | 12 weeks | Employer with 15 or more employees |
| Tax-free part, 2026-27 | $13,598 plus $6,801 for each completed year of service | Genuine redundancy payment only; ATO rules apply |
Related redundancy terms
- Severance pay: a payment on leaving that may include redundancy pay, but can also come from a contract or agreement.
- Notice period: the time your employer must give you before termination, or pay in lieu of that notice.
- Unfair dismissal: a claim to the Fair Work Commission that a dismissal was harsh, unjust or unreasonable, lodged within 21 days.
- Retrenchment: another word for ending a job because the employer no longer needs the role.
Redundancy payment WA FAQ
Do I get a redundancy payment in WA if I work for a small business?
No, the NES does not require redundancy pay from a small business with fewer than 15 employees. Your award, agreement or contract may still provide it. You are still owed notice, unused annual leave and any other entitlements, so check your payslips and contract.
How much redundancy pay will I get in WA?
It depends on your completed years of service, from 4 weeks at 1 to 2 years up to the longest amounts after 9 to 10 years. Use your ordinary weekly pay as the base. The Fair Work Ombudsman has a free redundancy calculator and a helpline on 13 13 94.
Is a redundancy payment taxed?
Part of a genuine redundancy payment is tax-free. For 2026-27 that part is $13,598 plus $6,801 for each completed year of service. Anything above that is taxed, and unused leave is taxed separately, so ask the ATO or a registered tax adviser about your situation.
Next steps
This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation. To estimate what you are owed, use our redundancy calculator.
If you have lost a role and want new work, visit our recruitment page to register with us.