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.
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.
Who handles this if you hire through Teamed?
Notice periods, redundancy calculations and unfair dismissal exposure all sit with Teamed as the legal employer in Australia. We apply the current thresholds and NES tables to every termination, so a stale figure never ends up in a payout or a dispute.
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) |
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.
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.
