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MSP Redundancy, Bench & PIP Payout Calculator (Fair Work)

MSP Redundancy, Bench & PIP Payout Calculator

If you work at an Australian Managed Service Provider (MSP) or Global Systems Integrator like Capgemini, DXC Technology, Datacom, or Wipro, being placed on the bench or facing a sudden Performance Improvement Plan (PIP) is frequently a corporate precursor to an involuntary exit.

Before you attend any HR meeting or consider a verbal suggestion to "resign with a clean reference", you must know your exact financial and legal rights under the Fair Work Act 2009 National Employment Standards (NES).

Use this calculator to determine your statutory redundancy severance, notice pay, and accrued leave entitlementsβ€”and see exactly how many thousands of dollars you forfeit if you let an MSP pressure you into resigning.


βš–οΈ Calculate Your Fair Work Redundancy & Exit Entitlements

Based on the National Employment Standards (NES s 119 & s 117 Fair Work Act 2009) and Australian Modern Awards.

Pre-fills automatically from profile pages
Capgemini AU average: $113,561/yr
Count continuity of service from Empired, RXP, etc.
Fair Work s 117(3)(b) notice bonus rule
Uses greater of contract vs NES statutory notice
Annual leave + pro-rata Long Service Leave

The Fair Work Redundancy Scale (s 119 Fair Work Act 2009)

Under Australian employment law, genuine redundancy pay is a mandatory National Employment Standard (NES). It cannot be contracted out of, reduced by company policy, or eliminated by placing an employee on a subjective Performance Improvement Plan.

Period of Continuous Service Statutory Redundancy Pay
At least 1 year but less than 2 years 4 weeks base pay
At least 2 years but less than 3 years 6 weeks base pay
At least 3 years but less than 4 years 7 weeks base pay
At least 4 years but less than 5 years 8 weeks base pay
At least 5 years but less than 6 years 10 weeks base pay
At least 6 years but less than 7 years 11 weeks base pay
At least 7 years but less than 8 years 13 weeks base pay
At least 8 years but less than 9 years 14 weeks base pay
At least 9 years but less than 10 years 16 weeks base pay
10 years or more 12 weeks base pay*

*Note: Under section 119(2) of the Act, statutory severance adjusts from 16 weeks to 12 weeks at 10 years because employees typically unlock statutory Long Service Leave (approximately 8.67 weeks of full pay).

Transfer of Business: Acquired Boutiques Count

If you joined Capgemini or another systems integrator through an acquisition (such as Empired, RXP Services, Acclimation, or The Works), your prior service carries over under Part 2-8 of the Fair Work Act 2009.

Unless the acquiring firm formally notified you in writing prior to employment commencement that your prior service would not be recognised for redundancy purposes (which requires specific statutory preconditions), your continuous service date dates back to your original start date at the acquired boutique.


4 Rules When Facing a Bench Exit or PIP

  1. Never Resign in the Room: Managers frequently offer an informal agreement: "Resign now and we'll pay two weeks notice and give a positive reference." Australian corporate references are almost universally restricted to dates of service and job title anyway. Resigning forfeits 100% of your statutory redundancy payout.
  2. Document Everything in Writing: After any unrecorded phone or Teams conversation where redundancy or performance is discussed, immediately send a written confirmation email using the template generated above.
  3. Assert the Professional Employees Award: Many IT engineers, developers, and architects earning above the High Income Threshold remain covered by the Professional Employees Award 2020, preserving access to unfair dismissal protections.
  4. Mind the 21-Day Deadline: If you are dismissed or forced to resign through an untenable PIP, you have strictly 21 calendar days from the date your dismissal takes effect to lodge an application with the Fair Work Commission.

πŸ› οΈ Free Tools & Intelligence for Australian IT

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Editorial note: This article separates sourced facts, submitted experiences, and analysis. Check the linked sources, and contact the editorial desk if you find an error or need a correction.

Frequently Asked Questions

How is statutory redundancy pay calculated under the Australian Fair Work Act?
Under section 119 of the Fair Work Act 2009 (National Employment Standards), genuine redundancy pay scales from 4 weeks' base pay (for 1 to 2 years of continuous service) up to 16 weeks' base pay (for 9 to 10 years of service), plus your statutory or contractual notice period and accrued leave.
Does my tenure at an acquired MSP (like Empired or RXP) count toward Capgemini redundancy pay?
Yes. Under transfer-of-business rules in the Fair Work Act 2009, when a systems integrator acquires your employer and transfers your employment without a break in service, your prior years of continuous service normally carry over for NES redundancy, notice, and Long Service Leave calculations.
How much money do I lose if I resign during a bench PIP?
If you resign voluntarily when pressured on the bench or during a PIP, you forfeit 100% of your statutory NES redundancy payout (4 to 16 weeks of pay) and any employer-paid notice in lieu, as well as the tax-free concession on genuine redundancy payments.
Why does NES redundancy pay drop from 16 weeks to 12 weeks at 10 years of service?
Under section 119(2) of the Fair Work Act 2009, the statutory redundancy table adjusts from 16 weeks (at 9–10 years) to 12 weeks (at 10+ years) because employees reaching 10 years of service typically unlock state or territory Long Service Leave entitlements (around 8.67 weeks of paid leave).
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