Fair Work Notice Periods for Employers in Australia

Managing “notice” the right way protects your business, reduces the risk of disputes, and helps you transition staff smoothly.

Whether you’re ending someone’s employment, restructuring, or dealing with a resignation, the Fair Work framework sets out minimum notice requirements you need to follow. Getting it wrong can be costly - but with a clear plan and the right documents, it’s straightforward.

In this guide, we’ll break down what notice means under Australian employment law, when it applies, how to calculate it, and how to handle common scenarios like paying in lieu, probation, redundancy and roster changes.

What Does “Notice” Mean Under Fair Work?

“Notice” is the advance warning that one party gives the other that employment is ending, or that a shift or roster is changing. In employment termination situations, notice is required under the National Employment Standards (NES) unless an exception applies (for example, serious misconduct).

In practice, you’ll encounter three main types of notice:

• Termination notice you give to an employee (e.g. due to performance, capacity, or redundancy).
• Resignation notice an employee gives you (often set by the contract or award).
• Notice for operational changes like roster changes or shift cancellations (usually award/enterprise agreement obligations).

The key is understanding which rules apply to your situation - and making sure your employment contracts and policies align with those rules.

When Do You Have To Give Notice Of Termination?

If you’re ending a permanent employee’s employment (full-time or part-time), the NES requires minimum notice based on the employee’s continuous service:

• 1 year or less of service - 1 week
• More than 1 year to 3 years - 2 weeks
• More than 3 years to 5 years - 3 weeks
• More than 5 years - 4 weeks

Employees aged 45+ with at least 2 years of continuous service get an extra week.

Modern awards or enterprise agreements can require more notice, so always check the instrument that covers the employee. Your contract can also provide for longer notice (but not less than the NES).

Casual employees are not entitled to notice of termination under the NES. However, award clauses about shift cancellation/roster changes may still require advance notice or minimum payments for casuals in certain contexts (more on that below).

Notice must be provided in writing and should clearly state the termination date. It’s best practice to include the reasons, especially where performance or conduct is involved, and to clarify what will happen during the notice period (e.g. duties, garden leave, company property, confidentiality and post-employment obligations).

If you’re unsure how to work out the minimum period for someone’s service, this overview of calculating employee notice periods is a helpful place to start.

Can You Pay In Lieu Of Notice?

Yes. Instead of having an employee work out their notice, you can make a payment in lieu equal to the wages they would have earned during the notice period. This is common when you need to move quickly, manage risk, or when keeping the employee at work during notice isn’t appropriate.

If you choose to pay in lieu, you should:

• Confirm the decision in the written termination notice.
• Calculate the correct amount (including ordinary time earnings and any contractual entitlements applicable to the notice period).
• Clarify return of property, confidentiality and post-employment restrictions.

There are specific rules about superannuation and tax in different scenarios, so it’s important to check your obligations. For a practical overview of this option and how to apply it correctly, see payment in lieu of notice.

In some cases, you might direct the employee not to attend work during notice (garden leave) but continue paying their regular wages until the notice period ends. If your contracts allow for garden leave, be clear about duties, access to systems, and any restraints.

How Much Notice Must Employees Give You?

Employees don’t get a notice period from you when they resign - they give notice to you. The required resignation notice typically comes from the employment contract or the applicable award or enterprise agreement.

It’s common for contracts to align resignation notice with the employer’s notice (e.g. 4 weeks either way). Awards often set minimum resignation notice periods, and some allow you to withhold part of the final pay if the employee gives less than the required notice (but only as permitted by the award or law).

Make sure your contract sets out resignation notice and explains what happens if less notice is given. For a broader explanation of managing employee resignations, read about resignation notice periods.

Managing Notice In Common Employer Scenarios

1) Redundancy And Notice

Redundancy still requires notice (or payment in lieu), separate from redundancy pay. The NES notice periods apply unless an award or agreement says otherwise. You must also follow consultation obligations in the applicable instrument before making positions redundant.

When calculating the final pay, separate the redundancy pay (if applicable) from notice and any accrued entitlements. If you’re planning a restructure, it’s wise to map out timelines and check your consultation obligations early.

2) Probation Periods

Probation clauses don’t remove the need for notice. If you terminate during probation, you still provide the contractual or NES minimum notice (whichever is greater). The unfair dismissal risk profile is different during the minimum employment period, but other claims can still arise, so follow a fair process and document your reasons. For more on this stage, see terminating employment during probation.

3) Serious Misconduct (No Notice)

If an employee commits serious misconduct (for example, theft, fraud, assault, or a serious safety breach), you can terminate without notice. However, a fair process is still critical - put the allegations to the employee, allow a response, and document your findings and decision.

Consider whether you should suspend or stand the employee down pending investigation. Your rights depend on the contract, policies, and the circumstances. As a starting point, review your options for standing down an employee pending investigation.

4) Sick Leave During Notice

Employees can access paid personal/carer’s leave during their notice period if they’re unfit for work. If they are on paid personal leave during notice, the notice period continues to run (it doesn’t “pause”), but you pay personal leave instead of ordinary hours for the days they’re unwell, subject to evidence requirements under the contract or award.

There are some nuances - for example, if someone is on workers compensation or if you’ve made a payment in lieu. This overview on sick leave during the notice period explains common employer obligations.

5) Annual Leave During Notice

Employees continue to accrue annual leave during a worked notice period. You generally shouldn’t require an employee to take annual leave to “cover” notice unless the contract and award allow it and it’s reasonable. If you pay in lieu of notice, that period isn’t worked - so check how your contract treats accrual and whether any annual leave is paid out on termination. For related considerations when finalising entitlements, see annual leave on resignation.

6) Employee Refuses To Work Out Notice

If an employee resigns and refuses to work the required notice, look at your contract and the applicable award. You might be able to deduct a limited amount from final pay if allowed by the award or contract (and compliant with the Fair Work Act). Clear, reasonable contract clauses help here. For practical steps, see this guide to an employee not working the notice period.

7) Ending Quickly For Business Reasons

Sometimes you need to move fast. If you want to end employment sooner than the required notice, payment in lieu is usually the cleanest option. Always confirm the termination date in writing, process the final pay correctly, revoke system access promptly, and collect company assets.

Notice For Rosters And Shift Changes

Notice isn’t just about termination. Modern awards and enterprise agreements often set minimum notice for roster changes and for cancelling shifts - especially important if you engage casual staff.

Common obligations include:

• Minimum notice to change a rostered shift (e.g. a certain number of days’ notice unless by mutual agreement).
• Minimum engagement periods (e.g. a casual must be paid a minimum number of hours if a shift is cut short).
• Compensation or penalty rates if shifts are changed or cancelled at short notice.

Your obligations vary by award. Make sure managers know the rules that apply to your team and follow a consistent internal process for changes. For a general employer overview, start with the minimum notice for shift changes and how to set a compliant shift cancellation policy.

How To Set Your Business Up For Notice Compliance

Notice compliance is much easier when your contracts and policies are clear, consistent, and matched with the relevant awards or enterprise agreements. Here’s a practical framework to follow.

Step 1: Lock In The Right Employment Contracts

Use well-drafted contracts for each employment type (full-time, part-time, casual). The contract should set:

• Notice periods for termination and resignation (consistent with NES, awards and agreements).
• Payment in lieu and garden leave clauses.
• Set-off and deductions clauses where permitted by law and awards.
• Discipline, suspension/stand down, confidentiality and post-employment restraints.

If you’re refreshing your templates or hiring new staff, make sure each Employment Contract reflects award coverage and your operational needs.

Step 2: Align Policies And Rostering Practices

Train your managers on notice obligations under the applicable award and your internal workflows for roster changes. A clear policy helps you apply rules consistently and reduce last-minute changes.

Where possible, give more notice than the minimum to maintain goodwill with staff and avoid penalty or minimum engagement traps under the award.

Step 3: Build A Fair, Documented Process

Decisions around termination or major roster changes should be documented and fair. Keep records of correspondence, evidence relied on, and the notice provided. If you’re investigating conduct or performance, follow a process that allows the employee to respond and confirm outcomes in writing.

This isn’t just about disputes - it also ensures payroll and final entitlements are calculated correctly and on time.

Step 4: Prepare For Exceptions

Have a checklist for situations that change the usual approach to notice:

• Serious misconduct (no notice, but fair process still applies).
• Probation (notice still required; risk profile differs for claims).
• Redundancy (notice + any applicable redundancy pay + consultation duties).
• Long-term illness or capacity issues (consider performance management, reasonable adjustments and, if necessary, lawful termination for capacity - seek advice before acting).

If you suspect an issue will be contested, it’s a good idea to get tailored advice early so you can manage risk and communicate clearly.

Key Legal Documents To Support Notice Compliance

The right documents make “notice” simple to manage day to day. At a minimum, consider:

• Employment Contract: Sets the notice periods, payment in lieu, garden leave and how resignation notice works for your business. Use role-specific versions (full-time/part-time and casual) so entitlements are clear from day one.
• Workplace Policies/Staff Handbook: Explains your performance and conduct process, rostering rules, leave requests and evidence requirements, and how changes will be communicated.
• Performance Management Templates: Letter templates for warnings, performance plans and meeting invites help standardise fair process and timelines.
• Termination Letters: Written records of termination, including the notice provided or payment in lieu, return of property, confidentiality, and post-employment obligations.
• Rostering And Shift Cancellation Policy: Makes award obligations easy for managers to follow and documents how you handle last-minute changes.

If your workforce is covered by multiple awards, ensure each template and policy is adapted for the specific obligations that apply.

Practical Tips To Avoid Notice Disputes

• Confirm coverage: Identify the award or enterprise agreement for each role when you hire. Keep a note in the personnel file.
• Use consistent templates: Don’t rely on old or mixed contracts. Update templates and keep versions under control.
• Get dates right: When ending employment, clearly state the termination date, notice start date, and the final working day.
• Explain pay elements: In final pay letters, separate ordinary wages, payment in lieu, annual leave, redundancy pay and any agreed deductions (where lawful).
• Communicate manager obligations: Short-notice roster changes can trigger penalties. Train managers on minimum engagement and notice rules.
• Document conversations: Follow up verbal discussions with an email or letter to avoid misunderstandings.
• Act early on issues: If a situation might escalate, address it promptly. You can still handle matters respectfully and lawfully even when timeframes are tight.

Key Takeaways

• Notice under Fair Work covers terminations, resignations and roster changes, with minimum periods set by the NES and awards.
• When you terminate, provide written notice or make a compliant payment in lieu; confirm dates, pay elements and post-employment obligations in writing.
• Employees give resignation notice under the contract or award - set clear terms and processes so managers know what to expect.
• Common exceptions like serious misconduct, probation, or redundancy change how notice is applied, but fair process and documentation still matter.
• Rostering and shift changes often have separate notice and minimum engagement rules under awards, especially for casuals.
• Clear Employment Contracts, practical policies and trained managers are the easiest way to stay compliant and avoid disputes.

If you’d like a consultation on managing notice under Fair Work for your team, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.