Four Weeks' Notice: Employer & Employee Rights

“Four weeks’ notice” is one of those phrases that gets thrown around in workplaces all the time - sometimes correctly, sometimes not. As a small business owner, it’s worth getting clear on what four weeks’ notice actually means in Australia, when it applies, and what you should be doing in your business to manage resignations, terminations and handovers smoothly.

The tricky part is that notice rules aren’t a “one size fits all” answer. Notice can depend on things like:

how long the employee has worked for you
whether you’re ending employment (termination) or the employee is resigning
any applicable award or enterprise agreement
what the employment contract says (and whether it’s enforceable)
whether you’re paying out notice instead of having it worked

Below, we’ll walk you through how four weeks’ notice works under Australian employment law, what to check in your documents, and how to reduce risk when managing exits. This article provides general information only and doesn’t take into account your specific circumstances - it isn’t legal advice.

What Does “Four Weeks’ Notice” Mean In Practice?

In plain English, “four weeks’ notice” usually means one party must give the other party four weeks’ warning before the employment relationship ends.

In practice, that can mean:

Employee resignation: the employee gives you notice and continues working (and getting paid) for that notice period, then leaves.
Employer termination: you give notice, the employee works out the notice period (or you provide payment instead), then employment ends.
Payment in lieu: instead of having the employee work during that notice period, you pay them what they would have earned if they worked it (based on what the law, any award/enterprise agreement and the contract require).

Notice is different from redundancy pay, and it’s different from paying out accrued entitlements like annual leave. It’s its own legal requirement - and one that can create real risk if you get it wrong.

Is Four Weeks’ Notice Always Required?

No. Four weeks’ notice is common, but it’s not automatic in every situation.

For employers, the minimum notice of termination is often set by the Fair Work Act 2009 (Cth) (and an award/enterprise agreement may add additional requirements). For employees resigning, notice is often governed by the award/enterprise agreement and/or the employment contract.

When Are Employers Required To Give Four Weeks’ Notice?

For most small businesses, the first place to look for employer notice requirements is the National Employment Standards (NES) under the Fair Work Act. The NES sets minimum notice periods for termination (unless the employee is terminated for serious misconduct).

The minimum notice under the NES depends on the employee’s length of service:

1 year or less: 1 week notice
More than 1 year to 3 years: 2 weeks notice
More than 3 years to 5 years: 3 weeks notice
More than 5 years: 4 weeks notice

There’s also an additional requirement that can apply:

+ 1 extra week if the employee is over 45 and has completed at least 2 years of continuous service.

So, from an employer’s perspective, “four weeks’ notice” commonly comes up when an employee has worked for you for more than 5 years (or where additional notice is required under an award, enterprise agreement or contract).

Important: Awards And Enterprise Agreements Can Change The Picture

Even if the NES sets a minimum, an applicable modern award or enterprise agreement can contain specific rules about notice, including when it must be worked, rostering requirements, or what happens if someone doesn’t give proper notice.

If your workplace runs under an award (many small businesses do), you should check:

the notice of termination provisions
any requirements about how notice must be given (e.g. written notice)
any rules about withholding money if an employee fails to provide notice (this is not always permitted)

What If You Want The Employee To Leave Immediately?

You may be able to end employment sooner by providing payment in lieu of notice - meaning you pay the required notice instead of having the employee work it. This is common where:

there are safety or conduct concerns
you want to protect confidential information or client relationships
the role involves high levels of trust or sensitive access
keeping the employee at work during notice creates disruption

However, whether you can require an employee not to attend work for the remainder of the notice period (and how the payment must be calculated) will depend on the contract and any applicable industrial instrument. Getting this step wrong can create underpayment issues and other disputes, so it’s important to check the relevant documents before you act.

When Can An Employee Give Four Weeks’ Notice (And Are They Required To)?

Employees often believe they must give four weeks’ notice to resign, but legally it depends on what governs their employment.

When an employee resigns, the notice period may be set by:

their modern award
an enterprise agreement
their employment contract (as long as it doesn’t conflict with the relevant award/Act)
workplace policies (though policies generally shouldn’t replace contractual obligations unless incorporated properly)

As an employer, you’ll usually want the resignation notice to be clear and in writing. This keeps everyone aligned and reduces disputes about the last day of employment, final pay timing, and handover obligations.

Can You Require Four Weeks’ Notice In Your Employment Contract?

Often, yes - many businesses include a four-week notice period as standard for resignations (particularly for more senior roles).

But you should be careful: a contract clause that seems straightforward can become problematic if it conflicts with an award, is applied inconsistently, or tries to do something the law doesn’t allow (for example, automatically deducting wages if notice isn’t provided).

This is one reason it’s so important to use a properly drafted Employment Contract that matches your actual business operations and the employee’s classification.

What If The Employee Doesn’t Work Their Notice?

This is where small businesses often get caught in a practical and legal tangle.

If an employee resigns and then stops turning up, you may be tempted to withhold their final pay as a consequence. But wage deductions are heavily regulated in Australia, and in many cases you can’t simply deduct money because someone didn’t provide notice.

Before taking action, you should check:

what the contract says (if anything) about notice and deductions
what the award or enterprise agreement says
whether any deduction would comply with the Fair Work Act requirements
whether the employee is still owed statutory entitlements (like accrued annual leave)

If you’re unsure, it’s worth getting advice first - disputes about final pay and deductions can escalate quickly.

How Do You Calculate Four Weeks’ Notice (And When Does It Start)?

Even if you’ve confirmed that four weeks’ notice applies, the next question is often: how do you calculate it?

In many workplaces, the notice period is based on the employee’s ordinary hours and ordinary pay, and it begins when notice is given (not when you “accept” it). However, some awards and contracts can set specific rules.

Does Notice Run In Calendar Weeks Or Working Weeks?

Notice is typically expressed in weeks (e.g. “4 weeks”), which usually means a period of time that includes weekends and public holidays. But the employee’s entitlement during notice is usually tied to what they would normally earn for their ordinary rostered hours.

For example, if a full-time employee gives four weeks’ notice on a Wednesday, their four-week period generally ends on the Tuesday four weeks later (unless a contract/award specifies otherwise).

Can An Employee Take Leave During Their Notice Period?

Sometimes, yes - but it depends on the type of leave, whether it’s approved, and what’s in the award/contract.

Annual leave: generally requires employer approval. You can refuse if the refusal is reasonable (and you should document your reasoning).
Personal/carer’s leave: can be taken if the employee is unfit for work or needs to care for an immediate family/household member, provided they meet notice/evidence requirements.

If you’re managing annual leave close to an employee’s exit date, it’s also worth understanding your obligations around annual leave on resignation, including how it affects final pay.

What If The Employee Is Off Sick During The Notice Period?

This can happen, and it doesn’t automatically extend the notice period unless a contract or industrial instrument says it does. However, it can affect handover and operational planning, so it’s worth thinking ahead about coverage and documentation requirements.

For evidence, you may be able to request a medical certificate or another form of acceptable evidence. If you’re trying to set consistent expectations, it helps to understand sick days without a certificate and how evidence rules operate under the Fair Work framework and any applicable award.

Managing The Risks: Termination, Payment In Lieu, And Final Pay

Notice periods are rarely just “administrative”. In reality, they affect:

the risk of underpayment claims
disputes about whether the exit was handled lawfully and fairly
handover and business continuity
client relationships and confidential information

Here are the key legal and practical points to keep in mind when four weeks’ notice is on the table.

Termination During Probation (Is Four Weeks Still Required?)

Probation doesn’t automatically remove notice obligations. Many employees are still entitled to notice under the NES, and contracts often set out probation-specific notice requirements (sometimes a shorter notice period).

The bigger issue is usually process: even during probation, you should ensure your decision-making is consistent and well-documented. If you regularly terminate during probation, it’s worth reviewing your approach and understanding termination of employment during probation to avoid avoidable disputes.

When Can You Terminate Without Notice?

Employers can terminate without notice in cases of serious misconduct (often called summary dismissal). But this is a high-stakes decision.

Before deciding to terminate without notice, ask:

Do you have evidence of serious misconduct (not just poor performance)?
Have you investigated properly?
Have you given the employee an opportunity to respond?
Is there an award, policy or contract process you need to follow?

If you’re still investigating or need time to manage risk, you may consider standing the employee down in limited circumstances. That’s a complex area, so you should tread carefully and document your steps.

Payment In Lieu Of Notice: What Should Be Included?

If you end employment immediately and pay out notice, you should ensure the payment is calculated correctly and in line with the NES, any applicable award/enterprise agreement, and the contract. Common issues include:

not paying what the employee would have earned during ordinary hours
missing payments that should be included under the applicable instrument (for example, some allowances or loadings, depending on how they apply)
incorrectly handling superannuation obligations (which can depend on the nature of the payment and the employee’s circumstances)
forgetting other termination entitlements that are separate to notice (like annual leave payout)

Final pay problems are one of the fastest ways an otherwise clean exit turns into a dispute. Having clear termination processes and properly drafted employment documents can make a big difference.

Don’t Forget Confidentiality, Client Relationships And Business Property

For many small businesses, the biggest risk during a notice period isn’t payroll - it’s information and relationships.

During and after notice, consider:

collecting company property (keys, devices, uniforms)
confirming return of documents and access credentials
reminding the employee of confidentiality obligations
making sure any restraint clauses (if applicable) are properly drafted and reasonable

This should ideally be covered in the contract and reinforced in your offboarding checklist.

How To Set Clear Notice Expectations In Your Small Business

If four weeks’ notice keeps coming up in your workplace (or you’re dealing with inconsistent resignations and exits), it’s usually a sign your documents or processes need tightening.

The goal isn’t to make employment relationships rigid - it’s to create clarity, so that when someone leaves, your business can keep running without unnecessary stress.

1. Use The Right Employment Contract (For The Role And Award)

A strong employment contract helps you set expectations on:

notice requirements (for resignation and termination)
payment in lieu of notice
duties during notice (handover, confidentiality)
return of company property
post-employment obligations (where appropriate and enforceable)

If you have a mix of full-time, part-time and casual staff, you’ll usually need more than one template - for example, a dedicated Casual Employment Contract for casual employees, rather than trying to force casual terms into a permanent contract structure.

2. Check Your Award Coverage (And Keep It Accessible)

Even well-run small businesses can get caught out by award rules - particularly where:

roles evolve over time and classification changes
staff work across duties that fall under different classifications
you promote someone but don’t update their employment terms

Keeping a simple internal checklist of award coverage and key clauses (including termination notice) can save hours of stress later.

3. Build A Simple Offboarding Process

When someone resigns or you decide to terminate, a consistent process helps you stay compliant and reduces the risk of “he said/she said” disputes.

Your offboarding process might include:

written confirmation of the resignation/termination and final date
handover plan and documentation expectations
property return checklist
final pay calculations and approvals
removal of system access on the final day
exit interview (optional, but often helpful)

If you’re frequently changing rosters during notice (for example, to manage coverage), make sure any changes comply with applicable notice requirements under awards and workplace arrangements.

4. Keep Communication Clear And Calm

Notice periods can become emotional. A calm, documented approach is your best friend.

Where possible:

confirm key details in writing
avoid making promises you can’t keep (e.g. agreeing to unusual leave arrangements without checking)
treat similar situations consistently to reduce disputes about unfairness

Clarity doesn’t just protect you legally - it also protects your team culture.

Key Takeaways

Four weeks’ notice is common in Australia, but whether it applies depends on the NES, any applicable award or enterprise agreement, and the employment contract.
Employers are generally required to give four weeks’ notice when an employee has more than 5 years of service (with an extra week potentially required for eligible employees over 45 with at least 2 years’ service).
Employees resigning may or may not be required to give four weeks’ notice - it depends on their award/enterprise agreement and contract terms.
If you want an employee to leave immediately, payment in lieu of notice can be an option, but it needs to be calculated correctly and handled carefully.
Notice period disputes often come down to documentation, final pay calculations, and whether your contracts and processes match the way your business actually operates.
Clear employment contracts and a consistent offboarding process are the simplest ways to reduce risk and keep operations stable when staff leave.

If you’d like help setting notice periods correctly, updating your contracts, or managing a termination, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Four Weeks’ Notice: Employer and Employee Rights in Australia