Redundancy, Dragan Petrovic, Callaghan Steel Forming
Redundancy letter template with the pay calculated line by line
A redundancy letter has to prove three things at once: that the job has gone, that the employee was consulted before the decision, and that the money is right. This one names the volume fall, dates the consultation, sets four weeks notice, and shows the $24,168.75 worked out line by line.
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Section by section
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- Letterhead and addressee
- Callaghan Steel Forming ledger letterhead with ABN, 2 October 2026.
- Subject
- Your position is redundant, last day 30 October 2026.
- 1. Why the position is redundant
- A 34 per cent volume fall, an idle press line, eleven positions going.
- 2. The consultation that happened first
- Obligations met under the enterprise agreement and the Fair Work Act.
- Consultation dates
- Three dates: the written notice, the second meeting, the decision.
- 3. Redeployment was looked at
- Three vacancies offered, two taken, and why the 5 am start did not work.
- 4. Notice
- Six years and four months of service, four weeks, paid without attendance.
- What you will be paid
- Notice, redundancy pay and leave, totalling $24,168.75 before tax.
- 5. How the redundancy pay was worked out
- Eleven weeks at $1,425.00, paid on 6 November 2026.
- What is on offer
- Interview leave, career transition sessions, a reference, a counselling line.
- Questions and signature block
- Questions with a support person, then the people manager's block.
How to adapt this document
For a redundancy where the employee works out the notice, change the notice clause to say so and move that line out of the termination payment table into the normal pay run. For a redundancy that follows a transfer of business, add a clause on whether service transfers to the new employer and how that affects redundancy pay, because it can remove the entitlement entirely. For a small business, state whether the redundancy pay obligation applies at all given the number of employees, and if it does not, say what is being paid instead rather than leaving the employee to discover the exemption second hand.
Which law the terms follow
The artifact follows Australian federal workplace law. The notice period and the eleven weeks of redundancy pay both come from the National Employment Standards in the Fair Work Act 2009, which the letter names along with the consultation obligation that awards and enterprise agreements carry. The letter also reflects the test for a genuine redundancy, which asks whether the employer still needs the job done by anyone, whether consultation obligations were met and whether redeployment was reasonable, and each of those is its own numbered clause. Accrued annual leave is paid on termination under the same standards.
What makes this document work
The redundancy is proved with a number and a count
Roll forming volume for the two largest customers fell 34 per cent over the year to August, the second press line is idle most of the afternoon, eleven afternoon positions go including four machine operators, and nobody is engaged to do the job after 30 October. That last clause is the test a tribunal applies.
Consultation is dated before the decision, not after it
Staff told in writing of the review on 14 September, a second meeting on 24 September where a four day week and transfers were discussed, written questions answered on 30 September, and the decision on 2 October. The sequence is the evidence that the outcome was not settled in advance.
Every figure in the total is shown with its formula
Four weeks notice at $1,425.00 is $5,700.00, eleven weeks redundancy pay is $15,675.00, 74.5 hours of accrued leave at $37.50 is $2,793.75, and the total before tax is $24,168.75. Clause 5 then explains where the eleven weeks and the $1,425.00 come from.
Questions people ask
How much redundancy pay is owed?
Under the National Employment Standards the amount is a number of weeks set by length of continuous service, and at six years or more but less than seven it is eleven weeks, which is what this letter pays. An award, enterprise agreement or contract can be more generous, and small business employers may be exempt.
How much notice has to be given?
The minimum under the National Employment Standards runs from one week to four by length of service, with an extra week for employees over 45 with at least two years service. This employee has six years and four months, so four weeks applies, and the letter runs that period from 2 October to 30 October.
Is the employer required to consult first?
Where an award or enterprise agreement applies, yes, and the obligation usually includes notifying affected employees, giving them information, and considering their ideas before the decision. Consulting after the decision is made is the most common failure, which is why the dates in this letter sit before 2 October.
What makes a redundancy genuine?
The employer no longer needs the job done by anyone, the consultation obligations were met, and redeployment within the business or a related entity was not reasonable. This letter addresses all three: nobody is engaged to do the job, the consultation is dated, and clause 3 records the three vacancies offered.
Is annual leave paid out on redundancy?
Yes. Accrued and untaken annual leave is paid on termination, and this letter shows 74.5 hours at $37.50. Other entitlements such as long service leave depend on service and the applicable law, so check them before the final pay is calculated rather than after.
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