Notice, redundancy and unfair dismissal in 2026
From 1 July 2026 the unfair dismissal high income threshold is $190,100 and the compensation cap is $95,050. Statutory notice runs from 1 to 4 weeks by service length, plus an extra week for older, longer-serving employees, and redundancy pay scales from 4 weeks up to a peak of 16 weeks.
Dismissal cases are moving online
What happened
The Fair Work Commission is the body that hears unfair dismissal claims. On 29 September 2026 it said these cases will soon be run in its online portal, called MyFWC. It expects this to start from the middle of October 2026.
What it means for you
If a worker makes a claim against you, you will see the case and send your papers in the portal. All new dismissal cases will be run this way. The rules and pay limits have not changed.
Dates to know
- Mid-October 2026The Commission expects the new portal to start.
Source: Fair Work Commission. We check this page every week. Last checked .
Three figures reset every 1 July, and the current, FY2026-27 numbers apply from that date. The unfair dismissal high income threshold, which caps who can bring an unfair dismissal claim where no award or agreement applies, is $190,100 for dismissals on or after 1 July 2026. The unfair dismissal compensation cap, half that threshold or 26 weeks' pay if lower, is $95,050. Minimum statutory notice under the National Employment Standards runs from 1 week (up to 1 year's service) to 4 weeks (over 5 years' service), with an extra week added for employees over 45 who have completed at least 2 years' continuous service. Statutory redundancy pay scales from 4 weeks at 1 to 2 years' service up to a peak of 16 weeks at 9 to 10 years, then steps down to 12 weeks at 10 or more years, reflecting that long service leave typically applies from that point. Casual employees, staff with under 12 months' service, and employees of a small business employer (fewer than 15 employees) are excluded from statutory redundancy pay.
What is the unfair dismissal high income threshold now?
$190,100 for dismissals on or after 1 July 2026, up from $183,100 the year before. Above this figure, an employee not covered by an award or enterprise agreement generally cannot bring an unfair dismissal claim.
How much notice is an employee entitled to?
1 week for up to 1 year's service, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5 years, and 4 weeks for over 5 years, under the National Employment Standards. Add an extra week if the employee is over 45 with at least 2 years' continuous service.
How is redundancy pay calculated?
It scales with service: 4 weeks at 1 to 2 years, rising through the NES table to a peak of 16 weeks at 9 to 10 years, then 12 weeks at 10 or more years. Casuals, employees under 12 months' service, and staff of a small business employer (fewer than 15 employees) are not entitled to it.
What changed in how unfair dismissal claims are run?
From 7 July 2026 the Fair Work Commission can deal with a general protections dismissal or unlawful termination dispute without first deciding whether the person was dismissed, can decide unfair dismissal, unfair deactivation and unfair termination matters on the papers where appropriate and with the parties' consent, and can dismiss unfair deactivation or unfair termination applications that are frivolous, vexatious or have no reasonable prospects of success. The changes generally apply only to applications made on or after 7 July 2026. The thresholds and National Employment Standards entitlements themselves are unchanged.
Ending employment in Australia with Teamed
- Notice from current NES tables
- Redundancy pay by service length
- Unfair dismissal thresholds checked
Key figures
| Detail | Value |
|---|---|
| High income threshold, FY2026-27 | $190,100 per year for dismissals occurring on or after 1 July 2026 (up from $183,100 in FY2025-26). Indexed annually on 1 July under s333 of the Fair Work Act 2009; caps eligibility for unfair dismissal where no award or enterprise agreement covers the employee. (source) |
| Unfair dismissal compensation cap, FY2026-27 | $95,050 for dismissals on or after 1 July 2026 (up from $91,550), being half of the $190,100 high income threshold. The Fair Work Commission awards whichever is lower of this cap or 26 weeks pay. (source) |
| Notice: service of 1 year or less | 1 week (Fair Work Act 2009 s117(3)) (source) |
| Notice: more than 1 year, not more than 3 years | 2 weeks (Fair Work Act 2009 s117(3)) (source) |
| Notice: more than 3 years, not more than 5 years | 3 weeks (Fair Work Act 2009 s117(3)) (source) |
| Notice: more than 5 years | 4 weeks (Fair Work Act 2009 s117(3)) (source) |
| Notice: extra week for older, longer-serving employees | Add 1 week to the above if the employee is over 45 years old and has completed at least 2 years of continuous service with the employer at the end of the day notice is given (s117(3)(b)). Casual service does not count toward the qualifying period. (source) |
| Redundancy pay: at least 1, less than 2 years | 4 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 2, less than 3 years | 6 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 3, less than 4 years | 7 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 4, less than 5 years | 8 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 5, less than 6 years | 10 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 6, less than 7 years | 11 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 7, less than 8 years | 13 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 8, less than 9 years | 14 weeks (Fair Work Act 2009 s119(2)) (source) |
| Redundancy pay: at least 9, less than 10 years | 16 weeks (Fair Work Act 2009 s119(2)), the highest tier in the table (source) |
| Redundancy pay: at least 10 years | 12 weeks (Fair Work Act 2009 s119(2)). This is the final tier; the amount is deliberately lower than the 9-10 year tier because long service leave entitlements typically apply from 10 years onward. (source) |
| Who is excluded from statutory redundancy pay | Casual employees, employees with less than 12 months continuous service, and employees of a small business employer (fewer than 15 employees) are excluded from the NES redundancy pay entitlement (s121, s123), as are employees on a specified task/season contract, apprentices, and those dismissed for serious misconduct. (source) |
| Fair Work Commission process changes, from 7 July 2026 | The Workplace Relations Legislation Amendment (Building Cooperative Workplaces No. 1) Act 2026 took effect on 7 July 2026. The Commission can now deal with general protections dismissal and unlawful termination disputes without first deciding whether the applicant was dismissed; decide unfair dismissal, unfair deactivation and unfair termination matters on the papers where appropriate and with the parties' consent; and dismiss unfair deactivation or unfair termination applications that are frivolous, vexatious or have no reasonable prospects of success, and bar a further application without permission. The changes generally apply only to applications made on or after 7 July 2026. (source) |
Frequently asked questions
Do these figures change every year?
Yes. The high income threshold and compensation cap are indexed annually on 1 July. Notice periods and redundancy pay scales are fixed by the National Employment Standards and do not change annually, though the small business exemption thresholds are set by statute.
Are casual employees entitled to redundancy pay?
No. Casual employees are excluded from the National Employment Standards redundancy pay entitlement, along with staff of a small business employer and those with under 12 months' service.
What is the compensation cap for unfair dismissal?
$95,050 for dismissals on or after 1 July 2026, or 26 weeks' pay if that is lower, whichever the Fair Work Commission finds applies.
Did the unfair dismissal rules change in July 2026?
The figures changed on 1 July 2026, and the process changed on 7 July 2026. The Fair Work Commission can now decide some dismissal matters on the papers where the parties consent, and dismiss applications that have no reasonable prospects of success.
The Closing Loopholes reforms are Australia's biggest overhaul of the Fair Work Act in years. When Teamed is your legal employer, we track every change and update your contracts, policies and payroll as the law lands, so you never have to read a statute to stay compliant.
