Who must pay redundancy under NES (s 119 FW Act)?
The applicability test for Pay redundancy under NES (s 119 FW Act) (FWO), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Some businesses
Applies when the business has 15+ employees. Where the business has employees 6 19, check whether you have 15 or more employees (FW Act s 121 small business exemption).
What the obligation is
Redundancy pay scale 0-16 weeks based on continuous service (small business exempt).
NES s 119 sets minimum redundancy pay scale (0 weeks <1yr service through to 16 weeks at 10+ years). Small business employers (<15 employees) exempt. Award + agreement provisions may be more generous.
The applicability test
Applies when the business has 15+ employees. Where the business has employees 6 19, check whether you have 15 or more employees (FW Act s 121 small business exemption).
How the regulator frames it: National-system employers (excl. small business for NES) + per award.
What triggers it: Genuine redundancy termination.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (35 of 35: depends on size or structure).
The answer is the same in every industry: depends on size or structure. Industry does not change who must comply.
Business structure and size
Structure does not change the answer across all industries: for every structure the answer is "depends on size or structure".
| Size band | Answer across all industries, any structure |
|---|---|
| No employees (turnover $100K–$1M) | No |
| 1–5 employees (turnover $100K–$1M) | No |
| 6–19 employees (turnover $1M–$3M) | Only if a further fact applies |
| 20–99 employees (turnover $3M–$10M) | Yes |
| 100–499 employees (turnover $10M–$100M) | Yes |
| 500+ employees (turnover $100M–$1B) | Yes |
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 20–99 employees, turnover $3M–$10M: applies. 20+ employees — not a small business employer (Fair Work Act s 23)
- Pty Ltd company in real estate agents with 1–5 employees, turnover $100K–$1M: does not apply. Requires 15+ employees.
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you have 15 or more employees (FW Act s 121 small business exemption)
- Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires 15+ employees.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has employees 6 19. It then applies only if you have 15 or more employees (FW Act s 121 small business exemption). That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- At termination payment.
- Frequency
- When a triggering event occurs
- Evidence to keep
- Service records; redundancy calculation; pay record.
- Status
- Current
- Priority
- High
Penalty for not complying
Maximum penalty: Civil penalties for underpayment; underpayment recovery.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
What usually applies alongside it
Across the 1,890 business profiles Rules Mate evaluates, these obligations apply to most of the businesses this one applies to, and are far more common among them than among businesses generally:
- Report ransomware and cyber extortion payments within 72 hours: applies to 100% of the same businesses (2.0× the overall rate)
- Pay ACT payroll tax when threshold met: applies to 67% of the same businesses (2.0× the overall rate)
- Pay NSW payroll tax when threshold met: applies to 67% of the same businesses (2.0× the overall rate)
- Pay Northern Territory payroll tax when threshold met: applies to 67% of the same businesses (2.0× the overall rate)
- Pay Queensland payroll tax when threshold met: applies to 67% of the same businesses (2.0× the overall rate)
- Pay South Australian payroll tax when threshold met: applies to 67% of the same businesses (2.0× the overall rate)
Where it sits in the corpus
Rules Mate tracks 19 published obligations tagged "workplace", 5 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 13 of those apply outright. This obligation is rated high priority, and is triggered by events.
Regulator, legislation and tools
Regulated by Fair Work Ombudsman.
FWO: Enforces compliance with the Fair Work Act, awards, and agreements. Investigates underpayments, brings civil penalty proceedings, and publishes compliance notices.
FW Act: Federal workplace relations Act.
Free tools that help with this obligation:
Questions
- Who must pay redundancy under NES (s 119 FW Act)?
- Applies when the business has 15+ employees. Where the business has employees 6 19, check whether you have 15 or more employees (FW Act s 121 small business exemption).
- Do sole traders need to pay redundancy under NES (s 119 FW Act)?
- Depends on size or structure. Across every industry and every size band, the engine's answer for a sole trader is: depends on size or structure.
- Do businesses with 1–5 employees need to pay redundancy under NES (s 119 FW Act)?
- No (1–5 employees, turnover $100K–$1M).
- When is "Pay redundancy under NES (s 119 FW Act)" due?
- At termination payment.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.