One Week Notice: Employers’ And Employees’ Rights And Obligations In Australia

In a small business, staffing changes can hit hard and fast. One resignation can mean scrambling to cover shifts, reassigning clients, or delaying projects. On the other hand, you also need to manage exits fairly, lawfully, and in a way that protects your business from disputes.

A common question we hear is: can an employee (or employer) give one week notice in Australia and call it done?

The answer is: sometimes. But it depends on what the law says, what the employment contract says, and what industrial instrument applies (like a modern award or enterprise agreement). It also depends on whether we’re talking about an employee resigning, or an employer terminating employment.

Below, we’ll walk you through how one week notice works in Australia from a small business perspective, including the key legal rules, where businesses get caught out, and how to handle notice periods confidently.

What Does “One Week Notice” Mean In Practice?

In everyday terms, giving one week notice usually means one party tells the other that the employment relationship will end in 7 days.

But legally, “notice” isn’t just about the number of days. It’s about:

• When notice is required (not every scenario is the same)
• How much notice is required (which may be more than 1 week)
• Whether the notice must be worked (or paid out instead)
• Whether there are special rules in an award/enterprise agreement
• What happens if the employee stops attending before the notice ends

It’s also important to separate two concepts that are often mixed up:

• Employee resignation notice (how much notice the employee must give you)
• Employer termination notice (how much notice you must give the employee when ending employment)

These are related, but not identical. The Fair Work Act sets minimum standards for employer termination notice in many cases, while resignation notice is often driven by contract terms and any applicable award/enterprise agreement.

Is One Week Notice The Legal Minimum In Australia?

Not always. In Australia, the “minimum notice period” most business owners think of usually relates to termination by the employer (not resignation by the employee).

Under the National Employment Standards (NES) in the Fair Work Act, the minimum notice an employer must give when terminating a permanent employee generally ranges from 1 to 4 weeks (plus an extra week for some employees over 45 with at least 2 years of service).

So yes, one week notice can be the minimum in some circumstances, but it’s not a universal rule.

When One Week Notice May Apply

As a broad guide, one week is commonly the minimum employer notice where the employee has relatively short service (for example, up to one year of service). However, the correct notice period depends on the exact length of service and other factors.

Also, modern awards and enterprise agreements can impose different notice obligations (particularly around resignation notice and rostering). That’s why it’s critical to check the employee’s coverage before you assume one week is enough.

What About Casual Employees?

Casual employees are generally employed on the basis that there is no firm advance commitment to ongoing work. Because of that, notice requirements for casuals can be very different.

In many cases, casual employment can be ended with minimal notice (or no notice), but this is not something you should assume. Some modern awards set expectations around shift cancellation, rostering, and notice of changes. If your workplace needs a clear and compliant approach, a written Employment Contract and aligned policies can prevent a lot of confusion.

Employee Resignation: Can They Just Give One Week Notice?

From a small business point of view, resignations are often where “one week notice” becomes a practical issue. You might receive a short email saying the employee is leaving next Friday, and you’re left asking:

• Do they have to give more notice?
• Can we require them to work it?
• What if they leave immediately?

The key thing to understand is that employee resignation notice is usually determined by:

• the employment contract
• any applicable modern award or enterprise agreement
• workplace policies (to a lesser extent, and only if they’re consistent with the above)

Some instruments require more than one week notice, particularly for more senior roles or longer-serving employees. Some will permit one week, and others might set different periods again.

If Your Contract Is Silent On Resignation Notice

If the contract doesn’t clearly state how much notice the employee must give, it becomes harder to enforce a specific period.

That doesn’t necessarily mean the employee can always walk out immediately with no consequences, but it does mean your position is weaker if the issue escalates.

This is one reason it’s worth having well-drafted employment documentation from day one, rather than trying to rebuild expectations during an exit.

Can You Withhold Pay If They Don’t Give Enough Notice?

This is a common trap for small businesses.

In general, you can’t withhold wages simply because an employee didn’t give adequate notice, unless a lawful exception applies (for example, a deduction that is authorised by law, authorised under an applicable modern award or enterprise agreement, or otherwise permitted under the Fair Work Act and properly agreed to in writing).

If you’re unsure, it’s safer to get advice before making deductions. An incorrect deduction can quickly become an underpayment issue, and underpayment issues can escalate into formal complaints.

Employer Termination: When Is One Week Notice Enough?

When your business terminates employment (for performance, conduct, restructure, or other reasons), the notice rules are stricter. The law sets minimum standards, and modern awards or contracts can require more generous terms.

As an employer, you’ll typically need to consider:

• Minimum notice under the NES
• Any additional notice under an award/enterprise agreement
• What the employment contract says (provided it’s at least as good as the minimum legal standard)
• Whether the employee is covered by unfair dismissal protections (which affects the broader termination process)

One Week Notice Vs “Payment In Lieu Of Notice”

If you terminate someone and don’t want them to work out the notice period (or it’s not practical), you may be able to pay them instead. This is called payment in lieu of notice.

From a business perspective, payment in lieu can be useful when:

• you need to protect customer relationships or confidential information
• the workplace relationship has broken down
• you want a clean and immediate exit
• you’re concerned about productivity or safety during notice

However, it’s still important to calculate final entitlements correctly and ensure you’re complying with any award/contract requirements about how termination payments must be handled.

Immediate Termination (No Notice) And Serious Misconduct

Some employers assume that if someone has done the wrong thing, you can always terminate immediately without notice. In reality, summary dismissal (termination without notice) is generally reserved for serious misconduct, and you still need to follow a procedurally fair process.

In some situations, employers consider directing an employee not to attend work while allegations are assessed. However, “standing down” is only lawful in limited circumstances (for example, where it’s permitted under an applicable modern award or enterprise agreement, or in specific scenarios under the Fair Work Act). If you’re considering this, it’s worth getting advice first and understanding the legal risks around standing down an employee pending investigation.

How Notice Periods Interact With Rosters, Shifts, And Small Business Operations

In many small businesses, “notice” isn’t only about the final day of employment. It’s also about what happens during that last week: shifts, handovers, client communication, and access to business systems.

This is where it helps to distinguish between:

• Notice of termination (ending employment)
• Notice of shift changes (changing or cancelling shifts during employment)

Even if the employee has given one week notice of resignation, you still need to manage rostering lawfully during that period.

Changing Or Cancelling Shifts During The Notice Period

If you reduce shifts or cancel shifts after someone resigns (for example, because you don’t want them working), this can raise compliance risks depending on the employee’s status and their industrial coverage.

Modern awards can include rules about minimum notice for shift changes or cancellations, as well as minimum engagement periods. If you need guidance in this area, it’s worth reviewing your approach to shift change notice and, for casual workforces, how your shift cancellation policy aligns with your obligations.

Practical Steps During A One Week Notice Period

When you receive (or give) one week notice, you’ll usually want to run a tight process. For example:

• Confirm the resignation/termination in writing including the final day of employment.
• Plan a handover (customers, projects, passwords, internal processes).
• Decide whether the employee will work the notice or whether you will pay in lieu (if you’re the terminating party).
• Manage system access based on role and risk (especially for sales, finance, or admin roles).
• Prepare final pay including outstanding wages and accrued entitlements.

Handled well, a short notice period doesn’t need to become a messy dispute.

Common Risks For Employers When Relying On “One Week Notice”

Even though “one week” feels simple, there are a few common ways small businesses get caught out.

1. Assuming One Week Applies To Everyone

The correct notice period can vary based on service length, contracts, and industrial instruments. If you treat one week as a blanket rule, you risk underpaying notice (if you terminate) or mishandling the exit (if an employee resigns).

2. Confusing Resignation Notice With Termination Notice

Employees may be contractually required to give a certain amount of notice, but that doesn’t always mirror what you must give them as an employer.

It’s safest to treat these as two separate checks each time a resignation or termination occurs.

3. Underpaying Final Entitlements

Final pay can include ordinary wages, accrued annual leave, and potentially other entitlements depending on the circumstances.

Also, if you are paying in lieu of notice, you need to be clear about what is being paid out and why. If you’re preparing your processes, it can help to understand common issues around final pay so you don’t accidentally miss an entitlement.

4. Not Documenting The Exit Properly

A surprising number of disputes start because the business and the employee disagree about the final day of work, whether notice was given, or whether notice was waived.

Clear written communication (and keeping records) is one of the simplest ways to reduce risk.

5. Not Aligning Your Contracts With Your Actual Practices

If your employment contract says employees must give 4 weeks’ notice, but in practice you regularly accept one week with no discussion, it may become harder to enforce the longer period later (and it can create inconsistency issues across your team).

It’s worth ensuring your contract terms match how your business actually operates.

Key Takeaways

• One week notice is not a universal rule in Australia - the correct notice period depends on whether it’s a resignation or termination, plus the contract and any applicable award/enterprise agreement.
• For employer termination, minimum notice requirements often come from the National Employment Standards, and one week may only apply in limited situations.
• For employee resignation, the notice period is commonly set by the employment contract or industrial instrument, and one week may not always be enough.
• Even during a short notice period, you still need to manage shifts and rostering lawfully, especially if award rules apply.
• Payment in lieu of notice can be a practical option for employers, but it must be calculated and documented correctly.
• Having the right contracts and exit processes in place helps protect your business, reduce disputes, and make staffing changes smoother.

If you’d like help managing an employee resignation or termination (including whether one week notice is enough in your situation), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.