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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Callaghan Steel Forming
ABN 27 904 551 632 · 14 Foundry Road, Braeside VIC 3195
Notice of redundancy · private and confidentialPage 1 of 2
Notice of redundancy · private and confidentialPage 2 of 2

2 October 2026
Private and confidential, handed to you in person
Dragan Petrovic, Machine Operator
Braeside plant, afternoon shift

Your position is redundant, with your last day on 30 October 2026

Dear Dragan, after the consultation described below, Callaghan Steel Forming has decided to close the afternoon shift at the Braeside plant. Your position of Machine Operator is redundant and your employment ends on Friday 30 October 2026. This is about the shift, not about you or your work.

1
Why the position is redundant
Roll forming volume for the two largest customers fell 34 per cent over the year to August and the second press line is idle most of the afternoon. Eleven afternoon positions go, four of them machine operators, and nobody is engaged to do your job after 30 October.
2
The consultation that happened first
The consultation obligations in the enterprise agreement and the Fair Work Act 2009 were met before the decision. Written questions from the second meeting were answered on 30 September.
Date
What happened
14 September 2026
Afternoon shift staff told in writing of the review
24 September 2026
Second meeting, four day week and transfers discussed
2 October 2026
Decision made and given to each affected employee in person
3
Redeployment was looked at
Three day shift vacancies were offered to the group on 24 September and two were taken. You told us on 29 September that a 5 am start does not work with your carer arrangements, so no suitable vacancy remains in the business or a related entity.
4
Notice
Your continuous service from 6 June 2020 is six years and four months at your last day, so the National Employment Standards give four weeks notice. The notice period runs from 2 October to Friday 30 October 2026. You are not required to attend work during it and it is paid at your ordinary rate.
What you will be paid
Item
How it is worked out
Amount
Notice period, not worked
4 weeks at $1,425.00
$5,700.00
Redundancy pay
11 weeks at $1,425.00
$15,675.00
Accrued annual leave
74.5 hours at $37.50
$2,793.75
Total before tax
$24,168.75
5
How the redundancy pay was worked out
The National Employment Standards set 11 weeks of redundancy pay for at least six but less than seven years of service. A week is your ordinary rate of $37.50 over 38 hours, which is $1,425.00. It is paid on 6 November 2026, and four things are on offer to help you now:
Two paid days of leave before 30 October for interviews or appointments
Four sessions with a career transition adviser, booked and paid by us
A written statement of service, and a reference from your supervisor Ken Albury
Free and confidential counselling through the employee assistance line on 1300 552 004

Ask about anything here, including the figures, and bring a support person or your union representative to any meeting. Call me on 03 9587 2214. I am sorry to be writing this.
Yours sincerely,

Nadia Quartermaine, People and Safety Manager
Date
:

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

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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