Notice of Termination
The amount of notice required when an employee resigns or is terminated is based on the NES, applicable award/agreement, or the employment contract.
The NES and most modern awards provide the following minimum notice periods:
| Period of continuous service | Minimum notice period |
| 1 year or less | 1 week |
| More than 1-3 years | 2 weeks |
| More than 3-5 years | 3 weeks |
| More than 5 years | 4 weeks |
- An employee must receive an extra week of notice if they’re over 45 years old and have worked for the employer for at least 2 years.
- If an employee is award or agreement free, they are not required to provide notice under the NES however, their employment contract may provide a minimum notice period.
For more information: https://www.fairwork.gov.au/ending-employment/notice-and-final-pay
Redundancy Pay
Where an employee is made redundant, they are entitled to redundancy pay in accordance with the below amounts.
| Period of continuous service | Redundancy pay |
| At least 1 year but less than 2 years | 4 weeks |
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
| At least 6 years but less than 7 years | 11 weeks |
| At least 7 years but less than 8 years | 13 weeks |
| At least 8 years but less than 9 years | 14 weeks |
| At least 9 years but less than 10 years | 16 weeks |
| At least 10 years | 12 weeks |
Note, small business employers are excluded from paying redundancy. A small business is one that employs less than 15 employees, including regular and systematic casual employees and employees of associated entities.
Where an award has an industry-specific redundancy clause, this will apply instead of the NES entitlement.
Any outstanding entitlements also need to be paid out, including annual leave and long service leave that the employee hasn't taken.
Pay in Lieu of Notice
In some instances, employers can pay an employee their notice period in lieu of them working it. Where this is the case, the employer must pay out the notice. The amount paid to the employee must equal the full amount the employee would have been paid if they had worked until the end of the notice period. This includes:
- incentive-based payments and bonuses
- loadings
- monetary allowances
- overtime
- penalty rates
- any other separately identifiable amounts.
If the employer pays out the notice period, the employee's employment ends on the date that payment in lieu of notice is made. The employee doesn't stay employed during the notice period (or continue to accrue entitlements).
If the employer doesn't pay out any part of the notice period, the employee stays employed for the notice period.
Where the employee resigns, it's important that an employer has a clause permitting them to pay the notice period in lieu of notice as the employer will then be initiating the termination and bringing forward the termination date.
Instances where notice does not apply
Termination notice does not apply to some employees, including:
- casuals,
- fixed-term employees (at the end of the fixed-term period), and
- where an employee is dismissed for serious misconduct
Final Pay
Most awards require employers to pay employees their final payment within 7 days of the employment ending, including outstanding wages, accumulated annual leave (and leave loading where it had been paid during the employment), long service leave, pay in lieu of notice and redundancy pay.
For more information: https://www.fairwork.gov.au/ending-employment/redundancy