How Resignation Notice Periods Work In Australia

Most employees in Australia need to give the notice period in their employment contract, modern award or enterprise agreement. There's no universal National Employment Standards minimum notice period for employees who resign, so the correct answer is usually the written term that applies to your role or your workplace.

For many permanent employees, that means one to four weeks. Senior roles can be longer, including three months, if the clause is properly drafted and reasonable for the position. Getting the notice period right helps your business plan handover, process final pay correctly and avoid an avoidable Fair Work dispute.

How Much Notice Do You Need To Give To Resign?

The starting point is simple: check the document that gives the employee the obligation to give notice. For most Australian workplaces, you'll usually be looking at one or more of these:

• Employment contract: Most contracts say how much notice an employee must give, such as one week during probation, four weeks after probation, or a longer period for senior staff.
• Modern award: Many award covered employees must give notice when resigning. The period is commonly linked to length of service.
• Enterprise agreement: If an enterprise agreement applies, it may set out resignation notice, final pay timing and handover rules.
• Workplace policy: A policy may explain the process for giving notice, but it usually shouldn't override the employee's contract, award or enterprise agreement.

You can reduce confusion by setting out clear resignation notice terms in the Employment Contract so expectations are aligned from day one.

If the contract is silent and no award or enterprise agreement applies, the law may imply a requirement to give reasonable notice. What is reasonable depends on the role, seniority, length of service, pay, how hard the role is to replace and what handover your business genuinely needs. This is where disputes often arise, so it's much safer to put a clear notice period in the contract.

How Many Weeks Notice Is Normal In Australia?

There's no single number that applies to everyone, but these are common patterns you might see in Australian workplaces:

• Casual employees: Usually no resignation notice, because casual work is generally accepted shift by shift. Check the applicable award, roster rules and any contract wording.
• Probationary employees: Often one week, if the contract says so.
• Permanent employees: Often two to four weeks, depending on the contract, award or enterprise agreement.
• Managers, specialists and senior employees: Often four weeks to three months, especially where the role involves clients, confidential information or leadership handover.
• Fixed term employees: The contract may run to a set end date and may only allow early resignation if there's an early termination clause or both sides agree.

The National Employment Standards set minimum notice periods when you terminate an employee's employment. They don't create a universal employee resignation notice period. That's why an employee's obligation can be different from the notice you would need to give them.

If you want a broader comparison with employer termination notice, this overview of resignation notice periods in Australia is a helpful starting point.

Is A Three Month Notice Period Enforceable In Australia?

A three month notice period can be enforceable in Australia, particularly for senior, executive, technical or client facing employees. The key questions are whether the employee agreed to it, whether the clause is clear, and whether the period is reasonable in the circumstances.

For example, a three month notice period may be easier to justify for a chief operating officer who manages major customer relationships and strategic information than for an entry level employee with limited handover obligations. The longer the notice period, the more important it's that your contract explains what you can do during notice, including whether the employee can be put on garden leave or paid in lieu.

A long notice period also needs to work practically. If an employee resigns to join a competitor, you may want the employee away from clients and systems while still employed and paid. Usually, you'll need a proper garden leave clause to direct the employee not to attend work or to perform reduced duties during notice. Without contractual authority, excluding an employee from work or changing their duties can create risk.

You should also check that any restraint, confidentiality and intellectual property clauses work with the notice period. A resignation should trigger a clean exit process for your business, not a scramble to locate missing obligations after the employee has already left.

When Does The Notice Period Start After Resignation?

A notice period usually starts when you receive the resignation, unless the contract, award or enterprise agreement says something different. In practice, the first day counted is often the day after notice is received, because the day notice is given isn't usually counted as a full notice day.

For example, if an employee gives four weeks' written notice by email on Monday 2 March and you receive it that day, the notice period would usually start on Tuesday 3 March. The final day would generally fall four weeks later, unless the contract calculates notice differently or you and the employee agree another date.

To avoid confusion, the resignation should state the proposed last day. You should then confirm the final day in writing, especially if the employee has miscalculated the period, your business is agreeing to an earlier finish, or the employee will take annual leave during notice.

Notice should be clear and unconditional. A message saying, "I am thinking about leaving" isn't usually a resignation. A message saying, "I resign from my employment and my last day will be Friday 27 March" is much clearer. If a resignation is given in the heat of the moment, you should be careful before immediately treating it as final, particularly if there are signs of distress, illness or misunderstanding.

How To Give Notice Properly

There's no special legal form for a resignation, but it should be written, dated and sent to the right person. Usually this is the employee's manager or HR. If the contract says notice must be sent to a particular address or inbox, follow that process.

A short, professional resignation email or letter is usually enough. It shouldn't include unnecessary detail about the employee's next job, workplace complaints or personal reasons unless there's a strategic reason to include them.

A simple resignation letter outline can follow this structure:

1. Date And Addressee: Address the letter to the manager, HR contact or person named in the contract.
2. Clear Resignation Statement: State that the employee resigns from their position.
3. Notice Period And Last Day: Identify the notice period being given and the proposed final working day.
4. Handover Offer: Offer to assist with handover, current projects and return of company property.
5. Final Pay Request: Ask the employer to confirm final pay, accrued annual leave and any other entitlements.
6. Signature Or Name: Sign the letter or include the employee's full name in the email.

You should tailor resignation and exit wording where there are senior duties, restraints, disputes, equity arrangements, confidential information issues or an agreed early release.

An employee can ask to leave earlier than the required notice period. You can agree, refuse, or agree on conditions. For example, you might approve annual leave for part of the notice period, place the employee on garden leave, or agree to a payment in lieu of notice if the contract allows. Whatever is agreed should be confirmed in writing.

What Happens During The Notice Period?

During the notice period, the employee remains employed. Their usual duties, pay and workplace obligations continue unless you and the employee agree otherwise or the contract gives your business another option.

Most employees work through their notice. You can set handover priorities, require reasonable cooperation, manage access to systems and plan return of property. You must continue paying wages and providing a safe workplace until employment ends.

Annual leave can be taken during notice if you approve it or if the applicable award, enterprise agreement or contract requires approval in the circumstances. You don't have to approve every annual leave request during notice, but you should act reasonably and consistently with your workplace policy. If annual leave isn't taken, accrued but unused annual leave must be paid out in final pay. You can cross check your obligations using this guide to annual leave on resignation.

If an employee is genuinely unwell during notice, they can take paid personal or carer's leave if they have leave available and meet the evidence requirements. You can ask for evidence where the Fair Work Act, award, agreement or workplace policy allows. For practical guidance, this resource on sick leave during an employee's notice period covers the basics.

Some contracts allow you to end active work immediately and pay out the rest of the notice period. This is often called payment in lieu. It generally requires clear contractual authority or a mutual written agreement. Super treatment should be checked carefully. Super is generally payable on ordinary wages and, in many cases, payment in lieu of notice that represents ordinary hours. Lump sum payouts of unused annual leave or unused long service leave on termination are generally not ordinary time earnings for superannuation guarantee purposes. You can confirm the correct approach using a guide to payment in lieu and superannuation or by seeking payroll advice.

What Happens If You Do Not Give Two Weeks Notice?

If an employee doesn't give the required notice, the outcome depends on what the contract, award or enterprise agreement says. There's no automatic Australian rule that every employee must give two weeks notice. Two weeks only matters if that's the required period for the employee's role.

If the employee is award covered, some modern awards allow you to deduct up to one week's wages from wages due to an employee who is over 18 and fails to give the required notice. This isn't a general right to withhold all final pay, and it doesn't usually allow deductions from accrued annual leave or other statutory entitlements. The award must expressly allow it, and the deduction must comply with the Fair Work Act.

Outside an award or enterprise agreement, you generally can't deduct money from wages unless the deduction is authorised by law, permitted by an industrial instrument, or authorised in writing by the employee and principally for the employee's benefit. A contract clause by itself may not be enough for every deduction, particularly if the deduction isn't for the employee's benefit.

If an employee leaves without working notice, you may still need to pay wages earned to the final day, accrued annual leave and any other payable entitlements. If you're considering deductions, proceed carefully. A quick read on withholding pay and practical options when an employee doesn't work their notice can help you stay compliant.

From a practical perspective, an agreed early finish is often cleaner than a fight about an unworked notice period. If your business can manage the handover quickly, confirming an earlier end date in writing may save time, payroll uncertainty and relationship damage.

Final Pay And A Worked Example

Final pay should include everything owed up to the employee's final day, plus any entitlements that must be paid out on termination. Timing may be set by the applicable award, enterprise agreement, contract or your workplace policy. If no specific timing applies, final pay should be processed promptly after employment ends.

Final pay commonly includes:

• Wages To The Final Day: Ordinary wages, overtime, allowances and penalties that are still payable.
• Payment In Lieu Of Notice: If you lawfully pay out all or part of the notice period instead of requiring work.
• Accrued Annual Leave: Unused annual leave must be paid out. Leave loading may also be payable if required by an award, enterprise agreement or contract.
• Long Service Leave: State and territory rules apply. In NSW, pro rata long service leave may be payable after 5 years in limited circumstances, including some resignations where the statutory conditions are met. Because long service leave is state and territory based, you should confirm the applicable legislation or get advice before finalising pay.
• Bonuses And Commissions: These depend on the contract, incentive plan and whether the employee must be employed or not serving notice on the payment date.
• Superannuation: Super generally applies to ordinary time earnings, including ordinary wages during notice and, in many cases, payment in lieu of notice that represents ordinary hours. It may not apply to every termination component, so you should check payroll treatment when calculating final pay.

Here is a practical example. Mia is a full time marketing coordinator in New South Wales. Her contract requires four weeks notice. She earns $1,500 per week before tax and resigns on Monday 2 March. Her employer receives the email that day and confirms her final day as Monday 30 March.

Mia works two weeks of the notice period. Her employer then agrees in writing that she can finish active work early and will be paid in lieu for the remaining two weeks because the contract allows it. At the final day, Mia has 6 days of accrued annual leave. She has 4 years of service, so she doesn't qualify for pro rata long service leave in NSW.

Her final pay will generally include two weeks of wages for work performed, two weeks of payment in lieu of notice, and 6 days of accrued annual leave. If her award or contract provides annual leave loading on payout, that should be added. Payroll should separately check tax withholding and whether super applies to each component.

A simple employer checklist for resignation notice is:

1. Confirm The Resignation In Writing: Record the date received, notice period and final day.
2. Check The Contract And Industrial Instrument: Confirm notice, leave, deduction and final pay rules.
3. Decide Work, Leave, Garden Leave Or Payment In Lieu: Make sure the contract allows the option you choose.
4. Plan Handover And Access: Capture projects, passwords, client updates, devices and confidential information.
5. Calculate Final Pay: Include wages, annual leave, any long service leave, incentives and correct super treatment.
6. Close Off Post Employment Obligations: Remind the employee about confidentiality, restraints and return of property.

Key Takeaways

• Employee resignation notice periods in Australia usually come from the employment contract, modern award or enterprise agreement, not a universal NES rule.
• One to four weeks is common for many permanent employees, while senior roles may have longer periods such as three months if the clause is clear and reasonable.
• Notice usually starts when you receive the resignation, with the first full notice day commonly counted from the next day unless the contract says otherwise.
• During notice, employment continues. The employee may work, take approved leave, be placed on garden leave if allowed, or receive payment in lieu of notice if the contract or agreement permits it.
• Deductions for not working notice are limited. Some awards allow up to one week's wages to be deducted in specific circumstances, but you shouldn't withhold final pay broadly.
• Final pay should cover wages to the final day, accrued annual leave, any payable long service leave, and the correct treatment of bonuses, commissions, tax and super.

If you'd like help with employment contracts, resignation notice clauses, final pay obligations or managing an employee exit, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.