Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
Common Notice Period Traps For Small Businesses (And How To Avoid Them)
- 1) Assuming The Contract Is The Only Rule
- 2) Not Having The Right Termination Process (Especially During Probation)
- 3) Confusing “Notice” With “Final Pay”
- 4) Letting Annual Leave And Notice Period Rules Overlap Without Clarity
- 5) Not Setting Clear “Notice” Expectations For Part-Time And Casual Arrangements
- Key Takeaways
If you employ staff, few topics cause more day-to-day confusion (and avoidable disputes) than working out the right minimum notice period.
You might be asking:
- How much notice does an employee have to give when resigning?
- How much notice do you have to give when terminating employment?
- Does the minimum notice period change for part-time or casual staff?
- What happens if you want to pay out notice instead?
- Is redundancy different to termination when it comes to notice?
The tricky part is that “notice periods Australia” isn’t just one simple rule. In Australia, notice can come from multiple places at once (the Fair Work Act, an award, an enterprise agreement, and/or the contract), and the answer can change depending on how long the employee has been employed and their age.
Below, we’ll break down what Australian businesses need to know about the minimum notice period, with practical examples and a simple framework you can use each time someone resigns, you terminate employment, or you make a role redundant.
What Is The Minimum Notice Period In Australia?
The minimum notice period is the minimum amount of time that must be given to end employment (or, in some cases, the minimum payment that must be made if notice isn’t worked).
In practice, a “notice period in Australia” can come from:
- The National Employment Standards (NES) in the Fair Work Act 2009 (Cth) (these set minimum termination notice requirements for most employees).
- A modern award that applies to the employee (often sets resignation notice requirements, and sometimes adds extra rules).
- An enterprise agreement (if one covers your workplace).
- The employment contract (which can set a longer notice period, but generally can’t undercut minimum entitlements).
So when you’re trying to work out the required notice period, it’s less about finding a single “standard notice period” and more about checking which instrument applies and which rule is most relevant.
A Quick Note On “Minimum” vs “Contractual” Notice
It’s common for an Employment Contract to include a notice clause that is longer than the NES (for example, 4 weeks’ notice for a new team member, even if the NES would only require 1 week in some cases).
That’s usually allowed, and it can be helpful for business continuity. But if you include a notice clause, you should make sure it’s drafted properly (including how notice is given, whether you can direct the employee not to attend work, and whether you can pay in lieu).
Minimum Notice Period For Termination: What Employers Must Give
If you’re ending employment (for reasons other than certain types of serious misconduct), the NES sets minimum termination notice requirements based on the employee’s length of service.
Under the NES, the minimum period of notice is generally:
- 1 week if the employee has been employed for 1 year or less
- 2 weeks if employed for more than 1 year and up to 3 years
- 3 weeks if employed for more than 3 years and up to 5 years
- 4 weeks if employed for more than 5 years
There is also an extra week if the employee is:
- over 45 years old, and
- has completed at least 2 years of continuous service with you.
This is why the answer to “how much notice does an employer have to give” often depends on a quick fact-check of the employee’s start date and age.
Can You Pay The Notice Instead Of Having It Worked?
Yes, many businesses choose to pay out notice rather than have it worked (for example, where there are client relationships, confidential information, or workplace tension).
This is commonly called payment in lieu of notice. If you do this, you need to be confident you’re calculating it correctly and that it aligns with the contract/award rules.
It’s also worth documenting your approach clearly in your employment contracts and HR process. This can reduce disputes about what the employee “should have” been paid.
If you’re considering paying notice out, payment in lieu of notice should be handled carefully (particularly where commissions, allowances, penalties, or loadings are in play).
What About Summary Dismissal (No Notice)?
There are limited circumstances where an employer may dismiss an employee without notice (often referred to as summary dismissal). Typically, this is where there is serious misconduct.
Even then, the process matters. If you get the process wrong, a “no notice” termination can quickly become an unfair dismissal claim or a general protections dispute.
As a practical step, if you’re considering summary dismissal, it’s usually worth getting advice early-before you communicate the decision and before you finalise the separation letter.
Notice Periods For Resignations: What Employees Must Give (And What You Can Enforce)
One of the most common questions we hear from small business owners is: how many weeks notice to resign Australia requires.
Unlike termination notice (which is clearly covered under the NES), resignation notice often depends on:
- the employee’s award or enterprise agreement (many awards include resignation notice rules), and/or
- the employee’s employment contract (which may set a “standard notice period” for resignations).
In other words, the work notice period for resignations is often contractual and/or award-based.
Can An Employee Resign Without Giving Notice?
Sometimes an employee gives less notice than required, or stops attending work entirely.
What you can do next depends on the legal instrument that applies and the circumstances. For example:
- You may be able to treat the employment as ended from the last day worked.
- In limited situations, a deduction from wages may be possible if it is permitted under the Fair Work Act (for example, the deduction is principally for the employee’s benefit and is authorised in writing). Because the rules are strict, deductions should be approached cautiously.
- You may have contractual options if there’s a clear notice clause and you can show loss, but enforcement is not always straightforward (and may not be commercially worthwhile).
The safest approach is to make sure you have a clear notice clause and an exit process, and then deal with any short-notice resignation in a calm, documented way.
If you need a deeper refresher on common resignation timeframes and what drives them, resignation notice periods is a useful starting point.
Do Notice Periods Differ For Full-Time And Part-Time Employees?
Many employers assume there is a different full time employee notice period compared to part-time, but in many cases the notice calculation is driven by length of service, not hours.
That said, the notice period for part time employees may differ depending on the award or contract. It’s also common for confusion to arise around what the employee is paid during notice (because a part-time employee may have set days/hours).
As a practical tip: always confirm whether the employee is full-time or permanent part-time, what their ordinary hours are, and whether an award applies. That’s how you avoid a dispute over what the notice payment should look like.
How Does The Minimum Notice Period Work For Redundancy?
Redundancy can feel like a category of its own (and in many ways it is), but notice is still a key part of the process.
When an employee is made redundant, you generally need to think about:
- notice of termination (or payment in lieu), and
- redundancy pay (unless an exception applies), and
- consultation obligations (often found in awards/enterprise agreements).
So if you’re asking “what is the legal notice period Australia requires for redundancy?”, it’s often the same minimum notice framework as termination-plus redundancy pay and consultation requirements.
Do You Need To Give Notice As Well As Redundancy Pay?
In most cases, yes. Notice and redundancy pay are different entitlements that can both apply.
Notice is about giving time (or pay) to transition out of employment. Redundancy pay is compensation for the job being made redundant (subject to eligibility and exemptions).
If you’re trying to estimate costs quickly before starting a redundancy process, a redundancy calculator can help you get a rough sense of what may be payable (though you should still confirm the applicable rules for your specific situation).
Small Business Redundancy: Are There Different Rules?
There are some important differences for small business employers (which can affect redundancy pay obligations). However, notice requirements may still apply.
This is a good example of why “minimum notice period” questions should rarely be answered with a single sentence. The right answer depends on the type of exit (termination vs redundancy), the business size, the employee’s length of service, and any award/agreement coverage.
Common Notice Period Traps For Small Businesses (And How To Avoid Them)
Notice issues often don’t come from bad intentions. They usually happen because the business is moving fast and nobody is 100% sure which rule applies.
Here are some of the most common traps we see in practice.
1) Assuming The Contract Is The Only Rule
Your contract matters, but you also need to consider the NES and any applicable award or enterprise agreement.
If your contract sets a shorter notice period than the minimum required, that clause may not be enforceable to the extent of inconsistency. On the other hand, a well-drafted contract can extend notice and clearly explain how notice works operationally.
2) Not Having The Right Termination Process (Especially During Probation)
Probation can be misunderstood. Even if an employee is on probation, you may still need to comply with contractual notice, award terms, and good process.
Also, probation is not a blanket exemption from workplace law risk (for example, general protections claims can arise very early).
If you’re managing an exit early in employment, termination during probation is a topic worth getting right from the start.
3) Confusing “Notice” With “Final Pay”
Notice is one component. When employment ends, you also need to calculate the employee’s final entitlements properly, which may include:
- ordinary wages up to the last day worked
- any notice payment (if notice isn’t worked, or if you’re paying out the remainder)
- annual leave (and possibly leave loading, depending on the instrument)
- other contractual entitlements (like commissions, bonuses, allowances), depending on the terms
Having a consistent checklist is a great way to reduce mistakes. Many businesses also document how they calculate and communicate final pay.
For practical guidance on what to include, calculating final pay is a useful reference point.
4) Letting Annual Leave And Notice Period Rules Overlap Without Clarity
It’s common for an employee to resign and ask to take annual leave during the notice period, or for an employer to propose annual leave to “use up” the notice period.
Whether that can happen (and how it should be handled) depends on the facts and the applicable instrument. If you do agree to leave being taken in the notice period, make sure it’s clearly documented so both sides understand the final day of employment and what is being paid out.
Also, don’t forget annual leave payout obligations on exit. annual leave on resignation can be particularly relevant if you have employees with large leave balances.
5) Not Setting Clear “Notice” Expectations For Part-Time And Casual Arrangements
The term “part-time notice period Australia” is often searched because many businesses have mixed workforces (some full-time, some permanent part-time, some casual).
Permanent part-time employees usually have ongoing employment and will often have notice obligations (through their award/contract, and termination notice through the NES).
Casual employees are different. Casuals are generally not entitled to minimum notice of termination under the NES (unless their employment is effectively permanent, or their award/contract provides otherwise). However, some awards, enterprise agreements and contracts can still include notice-related rules for casuals.
The key is consistency: make sure your documentation reflects the true working relationship, and that your contracts clearly cover how the relationship can end.
Key Takeaways
- The minimum notice period in Australia depends on what’s driving the end of employment (resignation, termination, or redundancy) and what legal instrument applies (NES, award, enterprise agreement, and/or contract).
- For termination, the NES sets minimum notice based on length of service, with an extra week in certain cases for employees over 45 with at least 2 years’ service.
- For resignations, the notice period is commonly set by an award and/or the employment contract, so it’s important to check both before responding to a resignation.
- Redundancy typically involves notice (or payment in lieu) plus redundancy pay and consultation obligations, so budgeting for redundancy should include all components.
- Many notice period disputes can be avoided with clear contracts, a consistent exit process, and careful final pay calculations.
This article is general information only and is not legal advice. If you’d like help reviewing your notice clauses, termination process, or redundancy steps, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.








