Notice of termination is the period of notice required when ending employment, prescribed by the NES based on length of service.
Legislation: Fair Work Act 2009 s117 | Category: Termination
What is Notice of Termination?
Notice of termination is the period of notice that must be given by an employer when ending an employee’s employment (other than for serious misconduct). The National Employment Standards prescribe minimum notice periods based on length of service, with additional notice required for employees over 45 years of age with at least 2 years’ service.
The minimum notice periods are: 1 week for employees with less than 1 year of service, 2 weeks for 1-3 years, 3 weeks for 3-5 years, and 4 weeks for more than 5 years. An additional week applies for employees over 45 with at least 2 years’ service. Payment in lieu of notice is permitted.
Key Compliance Points for Employers
- Awards and contracts may require longer notice periods — the greater period applies
- Notice can be worked or paid in lieu (or a combination)
- No notice is required for casual employees or for termination due to serious misconduct
- During the notice period, employees remain entitled to their usual conditions
- Employees must also give notice when resigning (usually specified in awards or contracts)
Frequently Asked Questions
Can we pay out notice instead of working it?
Yes. You can pay the notice period in lieu and end employment immediately. The employee receives what they would have earned during the notice period.
Is notice required for probationary employees?
The NES minimums apply based on service length. Many awards specify shorter notice during probation (sometimes 1 day or 1 week).
What if an employee doesn’t work their notice?
You may be able to deduct unworked notice from final pay if your award or contract allows. Check the specific provisions.
