Redundancy Letter Template: How to Write One That’s Fair Work Compliant

A redundancy letter should clearly explain why the role is no longer required, what consultation has occurred, the employee’s final entitlements, and what happens next. For Australian employers, the letter is not a substitute for a genuine redundancy process: you must still comply with the Fair Work Act 2009, any applicable Modern Award or enterprise agreement, and the National Employment Standards (NES).

This guide shows employers how to prepare a redundancy letter template, when to issue it, what to include, and which mistakes can turn a genuine redundancy into an unfair dismissal risk. The practical sequence is: confirm the job is genuinely redundant, consult where required, consider redeployment, calculate notice and redundancy pay, then issue a precise written outcome.

What should a redundancy letter include?

A compliant redundancy letter should be specific enough that an employer can prove what decision was made and why. It should not simply say “your employment is terminated due to redundancy” without explaining the business change and the process followed.

• The business reason: describe the operational change, such as restructuring, closure, reduced work, or technology replacing a function.
• The affected position: identify the role and explain why the job itself is no longer required, rather than criticising the employee’s performance.
• Consultation details: record the dates of meetings, information provided, feedback received, and the employer’s response.
• Redeployment consideration: state whether suitable alternative work was considered and why it was or was not available.
• Termination details: give the termination date, notice arrangements, payment in lieu if applicable, and expected final pay date.
• Entitlements: outline accrued annual leave, long service leave where applicable, redundancy pay, and any award or agreement entitlements.
• Support and return of property: include contact details for questions and practical instructions about company property, systems, and records.

Use neutral language throughout. A redundancy letter is about the employer’s operational decision, not a finding that the employee did something wrong. Keep a signed copy with the consultation records and the calculations supporting the final payment.

When can an employer use a redundancy letter template?

Use a template as a controlled starting point after the employer has made a properly documented decision. It is suitable for a role that is no longer required because of a change in operational requirements, provided the process is genuine and the written outcome is tailored to the employee and workplace.

A template must be adapted if an award, enterprise agreement, employment contract, policy, or state long service leave law imposes additional requirements. Check the relevant Fair Work Ombudsman redundancy guidance and the applicable industrial instrument before issuing the letter.

Do not use a redundancy letter template to disguise a performance or conduct termination. If the role still exists and another person will perform substantially the same work, the employer should pause and obtain advice before describing the outcome as redundancy.

How to write a redundancy letter step by step

1. Explain the operational change

Open with a short factual explanation. For example: “Following a review of the business’s operating structure and reduced demand in the administration function, the company has decided that the administration coordinator position will no longer be required from 30 September 2026.” Avoid exaggerated claims or unnecessary detail about the employee.

2. Confirm consultation was completed

Summarise when consultation took place and what the employee was told. If the Modern Award or enterprise agreement requires consultation about major workplace change, follow that instrument precisely. The letter can refer to earlier meeting notes, but it should still state that the employee’s feedback was considered before the final decision.

3. Address redeployment

State whether suitable alternative positions were reviewed. A role is not automatically suitable because it is available; consider duties, location, pay, hours, qualifications, and the employee’s circumstances. If a genuine offer of acceptable alternative employment is made and refused, that may affect redundancy pay, so document the offer carefully.

4. Set out notice and the final day

State whether the employee will work through the notice period or receive payment in lieu. Notice depends on service and the NES, subject to any more generous contractual, award, or agreement entitlement. The final day should be an actual date, not “four weeks from today”.

5. Show the entitlement categories

Do not guess at amounts. Confirm the employee’s ordinary hours, continuous service, age, award coverage, leave balances, and whether an exemption applies. In general, redundancy pay under the NES is based on continuous service and ordinary weekly earnings, but small business employers and some other categories may be excluded. The letter should identify the calculation method and say when final pay will be processed.

Employers should also check whether an enterprise agreement, Modern Award, contract, or state law gives a different entitlement. The Fair Work Act 2009 text on legislation.gov.au is the appropriate authority for checking the statutory framework.

Redundancy letter wording: a practical structure

Common redundancy letter mistakes employers should avoid

Calling a performance issue redundancy. If the employee remains in the role or the work continues substantially unchanged, the document may be evidence that the stated reason was not genuine.

Skipping consultation. Consultation is not a box-ticking exercise. Give relevant information, allow a reasonable opportunity to respond, and genuinely consider alternatives before making the final decision.

Using the same letter for every employee. A template should improve consistency, not erase important facts. Tailor the role, dates, consultation history, redeployment analysis, and entitlements.

Promising an incorrect payment. Have payroll verify service, ordinary pay, leave balances, notice, and redundancy pay before the letter is signed. If an amount is provisional, say so and explain when it will be confirmed.

Overlooking dismissal risk. A genuine redundancy can still create risk if the process is discriminatory, retaliatory, inconsistent with an award, or used to avoid a workplace right. For context, the high income threshold from 1 July 2026 is $190,100 and the maximum unfair dismissal compensation is $95,050; those figures do not replace case-specific advice. Employers should review the decision against the unfair dismissal defence guidance for employers before issuing the outcome.

Employer checklist before issuing the letter

1. Document the business reason and evidence of the operational change.
2. Identify the applicable award, enterprise agreement, contract, and policies.
3. Complete required consultation and record the employee’s response.
4. Assess redeployment and document why alternatives are suitable or unavailable.
5. Check notice, redundancy pay, annual leave, and long service leave calculations.
6. Review the letter for factual accuracy, neutral language, and a clear final date.
7. Prepare the final pay process and retain all records securely.

For a structured starting point, employers can use termination letter templates and workplace documents, then have the final letter checked against the particular facts. The broader HR best practice guidance for employers can also help keep consultation and record keeping consistent.

Redundancy letter template FAQs

Does a redundancy letter make a redundancy genuine?

No. A letter records the outcome; it does not create a genuine redundancy. The employer must show that the job is no longer required because of operational changes and must comply with consultation and redeployment obligations.

How much notice must an employer give for redundancy?

The minimum notice generally depends on the employee’s continuous service under the NES, with possible additional notice based on age and any more generous award, agreement, or contract term. Confirm the exact entitlement before issuing the letter.

Does every employee receive redundancy pay?

No. Eligibility depends on factors including employer size, continuous service, award or agreement coverage, the reason for termination, and statutory exclusions. Small business employers may be exempt from NES redundancy pay, but other obligations can still apply.

Can an employer make someone redundant without consultation?

Not safely where a Modern Award or enterprise agreement requires consultation about major workplace change. Even where a specific consultation term does not apply, failing to consult can undermine the genuineness and procedural fairness of the decision.

Can a redundancy letter say the employee is being replaced?

That wording is risky. If substantially the same job continues, replacing the employee may suggest the role was not genuinely redundant. Explain the operational change accurately and obtain advice before proceeding.

What date should appear in a redundancy letter?

Include the date of the letter, the date the decision takes effect, the notice period or payment-in-lieu arrangement, and the final day of employment. Make sure those dates match payroll and the consultation record.

Can an employee challenge a redundancy?

Yes. An employee may challenge the decision through an unfair dismissal, general protections, discrimination, award, or contractual claim depending on the facts. The employer should retain the business case, consultation notes, redeployment assessment, calculations, and final letter.

How long should an employer keep redundancy records?

Keep the records for the period required by the Fair Work Act, applicable award or agreement, tax and payroll rules, and any limitation or dispute considerations. Store the complete decision trail securely and restrict access to people who need it.