1 Month Notice Period: Australian Employer and Employee Rights

As a small business owner, it’s easy to focus on hiring, training and retaining great people - and only think about notice periods when someone resigns or you need to end an employment relationship.

But notice periods are one of those “quiet” employment law issues that can become expensive (and stressful) if they’re misunderstood. In practice, a 1 month notice period is a common benchmark in Australian workplaces, especially for permanent employees and more senior roles.

This guide breaks down what a one month notice period usually means, where it comes from, what your minimum legal obligations are, and how to handle tricky situations like paying out notice, taking leave during notice, or ending employment quickly.

What Does A 1 Month Notice Period Actually Mean?

A 1 month notice period generally means that once notice of termination is given (by the employer or the employee), employment continues for one month, and the employee remains entitled to be paid as usual during that time (unless the notice is lawfully paid out instead).

In most cases, a 1 month notice period is intended to:

• give you time to plan resourcing and recruit or reorganise work,
• give the employee time to transition, and
• reduce the risk of sudden disruption to the business.

That said, “one month” can mean different things depending on how it’s drafted and applied in your workplace. For example, your contract might specify:

• 4 weeks’ notice (a common equivalent to “one month” in practice),
• 1 calendar month (which can be 28–31 days depending on the month), or
• “one month from the date notice is given” (which can create uncertainty if you don’t clarify dates in writing).

If you want to avoid confusion, it’s best practice to confirm the last day of employment in writing when notice is given.

Is A 1 Month Notice Period The Same As 4 Weeks?

Often, people treat “one month” and “four weeks” as interchangeable. But legally and practically, they’re not always identical.

If your contract says “4 weeks’ notice”, that’s usually clearer because it is exactly 28 days. If it says “one month”, you may need to interpret it as a calendar month (which varies). Where the wording is unclear, disputes can happen - especially if there’s a disagreement about final pay.

As a business owner, clarity is your friend. A well-drafted Employment Contract can prevent these issues by spelling out how notice is calculated and what happens if notice is paid out.

Where Does The 1 Month Notice Period Come From?

A one month notice period can come from several sources, and it’s important to know which one applies in your situation (because you must meet the relevant minimums and any enforceable terms that apply to the role).

1. The Fair Work Act (NES Minimum Notice)

Most Australian employers (and employees) are covered by the National Employment Standards (NES) under the Fair Work Act 2009 (Cth). The NES sets the minimum notice period an employer must give when terminating a permanent employee (unless termination is for serious misconduct).

Minimum notice is based on the employee’s length of continuous service:

• Not more than 1 year: 1 week
• More than 1 year up to 3 years: 2 weeks
• More than 3 years up to 5 years: 3 weeks
• More than 5 years: 4 weeks

Employees aged 45+ with at least 2 years’ service generally get an additional 1 week of notice (so up to 5 weeks).

So, a one month notice period is commonly aligned with the NES maximum minimum of 4 weeks (for 5+ years’ service), but your contract, award or enterprise agreement might require more.

2. Modern Awards or Enterprise Agreements

If your employee is covered by a modern award or enterprise agreement, it may include notice terms (or rely on the NES). Awards can also include other rules that affect the end of employment, such as rostering, minimum engagement periods, and pay rates.

If you’re not confident which award applies (or whether an employee is award-covered), it’s worth getting advice early. Notice errors often show up at the exact moment you least want a compliance issue - during a termination or resignation.

3. The Employment Contract

Many small businesses set notice periods in the employment contract. A contract can require more than the NES minimum, but generally can’t provide less.

It’s also common for contracts to include additional operational options, such as:

• the ability to direct the employee not to attend work during notice (often called “garden leave”),
• the ability to pay out notice rather than have them work it, and
• requirements about handing over work, returning company property, and confidentiality obligations continuing after employment ends.

If your contract is silent, you still need to comply with the NES minimums (where applicable), and you may need to consider reasonable notice at common law for some senior roles.

How Much Notice Do You Need To Give (And Do Employees Need To Give You One Month)?

This is where small business owners often get caught out: employer notice obligations and employee resignation notice obligations are not always the same.

Notice When You Terminate Employment

If you terminate a permanent employee, you must comply with:

• the NES minimum notice (unless serious misconduct applies), and
• any applicable notice requirement in the employment contract, award or enterprise agreement (to the extent it’s enforceable and doesn’t undercut the NES).

So, if your employee’s contract says a 1 month notice period, and that is more than the NES minimum they would otherwise receive, you will generally be expected to follow the contract (unless there’s a lawful reason not to, and you’ve structured the contract properly).

Notice When An Employee Resigns

When an employee resigns, the required notice period is often:

• set by their award or enterprise agreement, or
• set in their employment contract (which is very common for professional roles).

Some workplaces assume “the NES applies to resignation too”. The NES minimum notice requirements are an employer obligation, but resignation notice can be governed differently. Practically, most businesses still use similar notice timeframes both ways, but you should check what actually applies.

If you have a resignation scenario and you’re unsure what notice is required, having a clear termination and resignation process (supported by well-drafted contracts and policies) makes it much easier to manage.

What About 1 Weeks Notice Or Shorter Notice Periods?

You’ll sometimes see “1 weeks notice” (or 1 week notice) in casual arrangements or for employees with short service. Short notice can be lawful - but only if it meets the relevant minimums and the contract/award allows it.

For many small businesses, the bigger risk is not that notice is too short on paper, but that notice is applied inconsistently in practice. Consistency is critical to reducing disputes and avoiding claims.

Can You Pay Out A 1 Month Notice Period Instead Of Having The Employee Work It?

Yes, in many cases you can pay out notice rather than having the employee work through the notice period. This is commonly called payment in lieu of notice.

From a business perspective, paying out a 1 month notice period can be helpful when:

• there is a risk of disruption, underperformance or conflict during the notice period,
• the role involves sensitive information, clients or systems access,
• you need to restructure quickly, or
• you want a clean and immediate separation.

However, you should make sure:

• you have a clear legal basis to do this - for example, the contract or an applicable award/enterprise agreement allows it, or the employee agrees (and the NES minimums are still met), and
• you calculate the payout correctly (including what counts as “ordinary pay”).

It’s also worth noting that payment in lieu of notice can have flow-on issues (for example, how final pay is calculated and what happens to accruals). If you regularly use pay in lieu, it’s smart to build it into your contracts and termination documents properly from day one.

For a deeper breakdown of how this works, payment in lieu of notice is a useful concept to understand before you actually need to rely on it.

Can You Require The Employee To Take Annual Leave During A 1 Month Notice Period?

Sometimes. Whether you can direct an employee to take annual leave during notice depends on factors like:

• the relevant award or enterprise agreement,
• your workplace policies, and
• whether the direction is reasonable in the circumstances.

Even if you can’t direct annual leave, an employee might request leave during the notice period. You should still handle that request carefully and consistently.

Also keep in mind your obligations around paying out leave entitlements when employment ends. If you want a practical refresher, annual leave on resignation is a common final pay issue for small businesses.

What If The Employee Takes Sick Leave During Their Notice Period?

This is another common pain point. Employees can still access personal/carer’s leave during the notice period if they are entitled and have a legitimate reason, supported by evidence if requested.

If you’re concerned about the timing or legitimacy of sick leave during notice, you’ll want to manage it carefully (and avoid assumptions). It can be helpful to understand your options and what’s considered reasonable evidence in these scenarios, including around sick leave during employee notice period.

Common Mistakes Small Businesses Make With A One Month Notice Period

Notice periods feel straightforward until they aren’t. Here are some of the most common issues we see for small businesses trying to manage a one month notice period in a practical way.

1. Not Checking The Award/Contract Before Confirming A Termination Date

If you tell an employee “your last day is next Friday” and later realise their contract requires a 1 month notice period, you may have already created an underpayment risk (or a dispute you didn’t need).

Before you confirm anything, check:

• the employment contract notice clause,
• the applicable award/enterprise agreement, and
• the NES minimum notice (as a baseline).

2. Mixing Up “Notice Given” And “Last Day Worked”

The notice period is usually about the period of employment continuing, not simply the last day the employee physically attends the workplace.

For example, if you pay in lieu of a 1 month notice period and finish employment immediately, the employee’s last day worked might be today, but their pay will reflect the notice they would have worked. If you use garden leave, the employment continues until the notice expires even if the employee isn’t attending work.

3. Getting Final Pay Wrong (Especially When Paying In Lieu)

Final pay can include multiple components, such as:

• ordinary wages up to the termination date,
• payment in lieu of notice (if applicable),
• unused annual leave payout,
• long service leave (where applicable),
• commission/bonus entitlements (depending on the contract), and
• any deductions that are lawful and authorised.

This is also where businesses can accidentally withhold amounts without a proper basis. If you’re ever considering deductions (for example, unreturned equipment), make sure you understand the rules around withholding pay.

4. Not Having A Clear Offboarding Process

A smooth offboarding reduces legal risk and protects your business relationships.

Even where the notice period is one month, you’ll usually want to plan for:

• a written resignation acknowledgment or termination letter confirming the final date,
• a handover plan and documentation of key tasks,
• return of company property and access credentials,
• client communication (where appropriate), and
• reminders about confidentiality and post-employment obligations.

Strong documents and clear processes are especially important if you’re managing a sensitive role, a client-facing employee, or someone with access to valuable business information.

How To Set Up Notice Periods Properly In Your Employment Contracts (So They Actually Work)

If you want to avoid disputes, the best time to deal with notice issues is before you ever need to rely on them.

From a small business perspective, the goal is to make your notice clause:

• compliant (it must not undercut the NES or award minimums),
• clear (so both parties understand what “one month” means), and
• practical (so it supports real-world business needs like paying out notice or directing garden leave).

Key Clauses To Consider Alongside A 1 Month Notice Period

If your contracts use a 1 month notice period, consider whether the contract also needs to address:

• Payment in lieu of notice: whether you can end employment immediately and pay the notice amount instead.
• Garden leave: whether you can direct the employee not to attend work during the notice period (while still paying them).
• Confidentiality and IP: ensuring your confidential information and intellectual property are protected during and after employment.
• Resignation process: how notice must be given (e.g. in writing), and who it must be given to.
• Return of property: keys, devices, stock, vehicles, and account access.

Well-drafted contracts don’t just help when there’s conflict. They also reduce day-to-day friction because everyone understands the rules upfront.

If you’re scaling your team or formalising your HR practices, it’s often worth reviewing your existing Employment Contract templates to make sure your notice clauses match your operational reality.

Do You Need A Different Notice Period For Senior Employees?

Sometimes, yes. A one month notice period is common for many roles, but senior staff may negotiate longer notice (for example, 6–12 weeks or more), especially where:

• the role is difficult to replace,
• the employee has deep client relationships, or
• there is a significant handover requirement.

Just keep in mind that longer notice periods can cut both ways. They can protect your business continuity, but they can also increase cost if you need to end the relationship and pay out notice.

The right answer often depends on your business size, the nature of the role, and how you manage risk (including whether your employment documents and policies are set up properly).

Key Takeaways

• A 1 month notice period usually means employment continues for one month after notice is given, with the employee paid as normal (unless notice is paid out).
• Notice obligations can come from the NES (Fair Work Act minimum notice), a modern award or enterprise agreement, and your employment contract - and you need to comply with the NES minimums and any applicable enforceable terms.
• A “one month notice period” is not always identical to “4 weeks”, so it’s best practice to confirm the final date in writing and draft notice clauses clearly.
• You may be able to use payment in lieu of notice or garden leave, but you should ensure you have a clear legal basis and that final pay is calculated correctly.
• Common notice period mistakes include confirming dates too early, mixing up last day worked vs termination date, miscalculating final pay, and not having a consistent offboarding process.
• Clear employment contracts and policies are one of the simplest ways to reduce disputes and protect your business when resignations or terminations happen.

Disclaimer: This article is general information only and doesn’t constitute legal advice. If you’d like advice for your specific situation, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.