2 Weeks’ Notice in Australia: What Employers Should Know

“Do I have to give two weeks’ notice?” is a question your staff may ask - and it’s one many employers also ask when setting their own processes.

In Australia, the law doesn’t impose a blanket “2 weeks’ notice” rule. Instead, notice periods come from the National Employment Standards (NES), awards or enterprise agreements, and the terms of your Employment Contract.

If you run a small business, it’s important to know what you can require, what you can’t, and how to manage resignations smoothly so you keep operations on track and stay compliant with Fair Work requirements.

Below, we walk through how notice periods actually work, whether an employee can quit without notice, what your options are (including payment in lieu and garden leave), and the documents and steps that make resignations simpler to manage.

Is “2 Weeks’ Notice” Required Under Australian Law?

No - Australian law does not impose a universal two-week rule for resignations. The length of notice depends on what applies to that employee in your workplace:

• National Employment Standards (NES) - set minimum notice you must give when you dismiss an employee (based on their length of service), but do not set a universal minimum for employee resignations.
• Award or Enterprise Agreement - many awards include provisions about employee resignation notice. Check the relevant instrument for your industry or classification.
• Employment Contract - you can set a reasonable notice period in the contract (for example, one or two weeks for junior roles, longer for senior roles). This must align with any applicable award or agreement and can’t undercut minimum standards.

If you’re unsure what actually applies, start with an overview of employment notice periods in Australia, then compare your staff member’s contract and any applicable award.

Can An Employee Quit Without Notice?

It depends on what their contract and award say. If an employee is required to give notice but resigns effective immediately, they’re usually in breach of contract unless you agree to waive the notice.

In practice, there are a few typical scenarios:

• You agree to waive all or part of the notice (for example, because there’s no handover needed). This is often the simplest option for low-risk roles.
• You require the employee to work the notice period, which is common when you need a proper handover.
• You accept the resignation immediately and consider payment in lieu of notice or lawful deductions if available under an award or contract and compliant with the Fair Work Act.

Before making deductions from wages (for example, to recoup unworked notice required by an award), ensure you’re compliant. Unlawful deductions risk penalties, so it’s worth reviewing your rights around withholding pay from employees carefully.

What Happens If Someone Resigns Without Giving The Required Notice?

If your Employment Contract or an award requires notice, and an employee quits early, consider the following steps.

1) Check the Contract and Award

Confirm the required notice period and whether there’s any clause about deductions for insufficient notice. Some awards permit limited deductions equal to the notice not given, but only from wages (not accrued entitlements such as annual leave on termination) and only if the award explicitly allows it.

2) Decide Whether To Waive Notice

In many small businesses, the operational reality matters most. If the role is easy to cover or a quick handover is possible, waiving some or all notice can reduce friction. Make the waiver clear in writing.

3) Consider Payment In Lieu

Where it makes sense to end the employment sooner, you can offer or accept payment in lieu of notice (or require it where lawful). This converts the remaining notice period into a payment, so you’re not carrying an employee who’s already moved on mentally or creating cultural risk.

4) Use Garden Leave Where Appropriate

For senior or sensitive roles (sales, strategy, client-facing), you may direct an employee to stay away from work during their notice period (on pay) to protect clients and confidential information. This is commonly called garden leave and should be supported by your contract terms. For a deeper dive into when and how it’s used, see garden leave in Australia.

5) Calculate Final Pay Correctly

Ensure you process termination entitlements accurately - outstanding wages, accrued annual leave and, where applicable, other entitlements. Getting final pay right reduces disputes and protects your reputation. If you need a quick checklist, our guide to calculating final pay for employees covers common pitfalls.

How Long Should You Set Notice Periods In Your Contracts?

There’s no single “right” number for every role. Aim for a period that’s reasonable considering:

• Seniority and responsibility - senior roles typically warrant longer notice for handover and transition.
• Market norms in your industry - staying in line with competitors helps recruitment and reduces friction at exit.
• Any applicable award or agreement - your contract should be consistent and not undercut minimum terms.

For many small teams, a simple, clear Employment Contract with a practical notice clause (and garden leave and payment in lieu options) gives you flexibility to manage most scenarios without conflict.

Managing The Resignation Process Day-To-Day

Resignations can be disruptive, but a clear process helps you keep momentum and morale.

Confirm The Resignation In Writing

Ask for written notice with the last day clearly stated. A quick acknowledgement from you (also in writing) avoids confusion and timestamps the start of the notice period.

Plan The Handover

• Map key projects, deadlines and handover owners.
• Secure access to systems and client files, and rotate credentials where needed.
• Decide whether the employee will work out the notice, go on garden leave, or provide a partial handover with shortened notice.

Handle Leave During Notice

Employees may request annual leave or sick leave during their notice period. Your approach should reflect the contract, workplace policy and any applicable award. Our guide on employee leave during the notice period outlines what you can approve or decline and how to handle evidence requirements.

Probation And Shortened Notice

Many small businesses set shorter notice during probation. This is generally acceptable if it’s in the contract and consistent with any applicable award. If performance issues drive the exit, ensure your probation and termination processes are compliant - see our guidance on terminating employment during probation.

Keep Communication Positive

Staff watch how you handle exits. Clear, respectful communication reduces risk and supports your employer brand - valuable when you’re hiring in a tight market.

Common Employer Questions About 2 Weeks’ Notice

Do Employees Need To Give Exactly Two Weeks?

Only if the award or contract says so. If it’s silent, there’s no default “two-week” rule for resignations under the NES. Many employers choose one or two weeks for junior roles and longer periods for senior roles.

Can We Insist On Longer Notice For Senior Roles?

Yes, you can include longer notice in the Employment Contract (for example, four to six weeks), provided it’s reasonable and consistent with any applicable award. Dual provisions (e.g., different notice for employer and employee) can be acceptable but should be drafted carefully.

What If An Employee Refuses To Work Their Notice?

Consider waiving it, using payment in lieu (or seeking it where lawful), or garden leave. If an award expressly allows deductions for insufficient notice, follow those rules precisely. When in doubt, review options around payment in lieu of notice and deductions to avoid risk.

Can We Put Someone On Garden Leave?

Often yes, if your contract allows it and you’re keeping them on pay. Garden leave keeps departing staff away from sensitive information and clients while preserving your operational stability. Learn more in our dedicated guidance on garden leave.

What Should We Tell Staff About Resignation Notice?

Make it easy: ensure the notice clause in your Employment Contract is clear, and keep an internal checklist for managers. For general context, your team can read our plain-English explainer on resignation notice periods in Australia.

How To Set Your Business Up For Smooth, Compliant Resignations

A few proactive steps make resignations far less stressful and reduce legal risk.

1) Use Clear, Consistent Contracts

Ensure every staff member has a current Employment Contract that sets the notice period, supports garden leave and payment in lieu, and aligns with any applicable award.

2) Document Your Process

Have a basic exit checklist for managers: how to confirm the last day, whether the notice is worked or waived, handover tasks, system access changes, and final pay timing. If you don’t have documents ready, our Employee Termination Documents Suite can help you standardise the essentials.

3) Calculate Final Pay Accurately

Keep a repeatable process for final pay - you’ll save time, avoid disputes and keep your reputation strong. Refer to the practical steps in calculating final pay.

4) Decide When To Use Payment In Lieu

Payment in lieu can be a useful tool when you want a clean break. It’s important to understand how to calculate it and when it’s appropriate - our compliance-focused guide to payment in lieu of notice covers the details.

5) Train Managers To Spot Risks Early

Make sure managers know how to escalate when a resignation intersects with issues like misconduct or confidential information. In more complex cases, you may need related tools like show cause letters (for performance or conduct concerns) - separate from resignation, but useful if the situation changes.

Key Takeaways

• There’s no universal “two-week” rule - resignation notice comes from the contract and any applicable award or agreement.
• If someone quits without the required notice, your options include waiving notice, using garden leave, or applying payment in lieu (and only making deductions where clearly allowed).
• Get the basics right: a clear Employment Contract, practical processes for handover and final pay, and manager training.
• Use tools like garden leave to protect clients and confidential information during notice periods for sensitive roles.
• Avoid compliance pitfalls by understanding notice period rules for employers and processing final pay correctly, every time.

If you’d like a consultation on setting notice periods and resignation processes for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.