Redundancy Letter

What is a redundancy letter?

A redundancy letter, also known as a letter of termination by redundancy, is a formal written notice provided to an employee when their position is no longer required and the employment ends. This document allows for effectively communicating the employer’s decision about the termination of the employment contract. A solid sample of redundancy letter template sets out reasons for the redundancy, the compensation package, the notice period and last working day and other important information.

The redundancy process in Australia is carefully regulated by the Fair Work Act, the National Employment Standards, awards agreements, and state employment laws.

A solid redundancy letter template Australia is suitable for the redundancy of employees in case of:

• business restructuring or organisational changes;
• replacement of human force by AI or other technologies;
• financial difficulties which lead to an inability to pay salaries; or
• business closure or shutdown of specific operations.

What to include in a redundancy letter template?

While Australian employment laws specify a range of legal requirements covering the content of the redundancy letter template, the exact format remains undefined. This means that in addition to the list of mandatory elements, employers are free to include any additional provisions they consider appropriate.

Below we summarise all important elements a solid letter of redundancy template must cover.

General Guidelines

Sending a letter of redundancy is only one step in the overall redundancy process. There are a number of mandatory steps employers should follow before sending this redundancy letter template. Depending on local awards and the National Employment Standards, these steps include:

• consultations with employees about potential reorganisation and changes to production, organisation or technology;
• exploration of other options instead of redundancy, for example, transferring employees to part-time or casual basis;
• notification of the Services Australia, the government agency dealing with social protection of job seekers, families with kids, etc.

Once all the important prerequisites are made, the letter of redundancy could be sent.

Redundancy Details

This is the most important part of every redundancy letter template Australia. Clear and carefully planned explanations ensure the employee fully understands the reasons for the redundancy and its implications. The employer must include the following information:

• Reason for Redundancy. In this part of the letter, avoid including general and vague phrases. Explain how current employees’ job duties are being replaced or reorganised.
• Notice Period. Local awards and industry agreements provide the minimum notice period an employer must follow when informing about the redundancy. A good example of a redundancy letter template shall not be issued earlier than the required notice period. It is also possible that the National Employment Standards could establish a notice period longer compared to the one provided in awards agreements. In this case, employers are encouraged to apply the notice period which is longer. The exact duration of the notice period depends on the employee’s age and the length of service.
• Redundancy Pay. Certain employees are entitled to a one-off monetary compensation due to redundancy, known as redundancy pay. The exact amount of such a pay is determined in awards and industry agreements.
• Last Working Day. This is the last date on employment.
• Additional Entitlements. If during the period of employment the employee has accumulated any additional entitlements, like paid annual or sick leave or superannuation, all those sums shall be repaid before the last working day.

Sign and Send

Once a sample redundancy letter is ready, it should be sent to the employee. Simply sending the document is not enough—the employer must ensure the employee acknowledges receipt by signing the letter.

Why use a customisable redundancy letter template?

When it comes to making employees redundant, all employers want to ensure that the termination process is handled correctly. That’s why using a fully customisable redundancy letter template Australia from FasterDraft allows you to:

• to create a document fully compliant with the Fair Work Act and National Employment Standards;
• to get a document created by legal professionals, and never by AI;
• to get a template tailored to your needs and circumstances;
• to download the document in PDF and Word formats;
• to change the downloaded document at any time.

How to customise your redundancy letter template with FasterDraft?

Create a fully customisable and compliant letter template with Australian employment laws, follow the easy steps below.

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a letter’s format – redundancy letter template Australia Word or PDF.
4. Make a payment.
5. E-sign online.

Instant download is available after the purchase.