Notice period requirements
Notice periods provide time for transition—for employers to find replacements and for employees to seek new work. The National Employment Standards set minimums for employer-initiated terminations.
Employer notice (NES)
- Under 1 year: 1 week
- 1-3 years: 2 weeks
- 3-5 years: 3 weeks
- 5+ years: 4 weeks
Additional week
- Over 45 years old
- AND 2+ years service
- Add 1 week to above
- Maximum 5 weeks NES
Notice period sources
Notice requirements can come from multiple sources. The employee is entitled to whichever is most beneficial:
Where notice requirements come from
Payment in lieu of notice
Instead of requiring an employee to work their notice period, employers can provide payment in lieu of notice (PILON). This is common when:
- Immediate departure needed: Security concerns or sensitive situations
- Employee preference: Some prefer to leave immediately with payment
- Handover complete: Work has been transitioned to others
- Business restructure: Position no longer exists
Calculating payment in lieu
Payment in lieu must equal what the employee would have earned had they worked the notice period. This includes base pay plus any loadings, allowances, and overtime they would have received. Do not just pay base rate if the employee regularly worked overtime or received shift allowances.
Employee resignation notice
The NES does not require employees to give notice when resigning. However, most employment contracts and awards specify notice requirements for employee resignations:
Typical employee notice
- Usually same as employer notice
- Often 1-4 weeks depending on role
- Check contract and award
- Senior roles may have longer periods
If employee doesn't work notice
- Check award/contract provisions
- May deduct from final pay (if allowed)
- Cannot deduct below award minimum
- Seek advice before deducting
Common notice period mistakes
Using NES only
Not checking if the applicable award or contract specifies longer notice periods than the NES minimum.
Base rate PILON only
Paying only base rate for notice in lieu when the employee regularly received loadings, allowances, or overtime.
Forgetting the extra week
Not adding the additional week for employees over 45 with 2+ years continuous service.
Key takeaways
Notice periods allow for orderly transition when employment ends. The NES sets minimum employer notice based on service length, while employee notice typically comes from contracts or awards. Payment in lieu must cover full earnings, not just base rate.
Tracking service dates accurately is essential for correct notice calculations. RosterElf's employee management maintains service records to support compliant termination processes.
