Two Weeks’ Notice Resignation in Australia: What Employers Should Know

When a team member hands in a “two weeks’ notice”, it can kick off a tight timeline for handover, rostering and payroll. As an employer in Australia, your legal obligations don’t come from a universal “two week rule” - they come from the employee’s contract, any applicable award or enterprise agreement, and the Fair Work Act.

In this guide, we’ll unpack what two weeks’ notice actually means in Australia, what to do when you receive a resignation, and how to manage risks in that final fortnight. We’ll also cover options like paying out notice, garden leave, and how leave and sick days interact with notice periods.

Handled well, a resignation with two weeks’ notice can be smooth, compliant and low-risk for your business.

What Does “Two Weeks’ Notice” Really Mean In Australia?

Two weeks’ notice is a common workplace convention, but it isn’t a one-size-fits-all legal requirement in Australia.

The required notice period usually comes from three places:

• The employee’s written contract (what you and the employee agreed to)
• Any applicable award or enterprise agreement (industry-specific minimums)
• The National Employment Standards (NES) as a safety net for minimum notice employers must give when dismissing employees - not the employee’s resignation notice, which is generally set by contract/award

Many contracts specify one, two or four weeks for resignations. Some awards also set minimum resignation notice (and may allow deductions from wages if the full notice isn’t worked, within strict limits). The upshot: “two weeks” is only correct if that’s what your agreement or award says.

If the employee is a casual, they usually don’t have to give notice unless an award or contract says so. For permanent employees, check the exact wording of the contract and the relevant industrial instrument before you act.

Do Employees Have To Give Two Weeks’ Notice?

Not automatically. Whether two weeks is required will depend on the contract and any applicable industrial instrument. If nothing is specified in a contract or award, employees can often resign without a set minimum, but reasonable notice may still be expected for senior roles.

It’s worth reviewing how resignation notice works more broadly so you can standardise your approach across your team. You can read more about resignation notice periods and the factors that may apply in different scenarios.

To avoid confusion, ensure every hire has a clear, up-to-date Employment Contract that sets out the resignation notice period, how it can be given (e.g. in writing), and what happens if notice isn’t worked in full.

How Should You Respond When Someone Resigns With Two Weeks’ Notice?

Even when the contract sets two weeks, there’s still work to do to make the final fortnight safe and productive for your business.

1) Acknowledge In Writing And Confirm The Details

• Confirm the resignation has been accepted, the last day of employment, and the length of notice being worked or paid out.
• Restate any expectations during the notice period (duties, confidentiality, return of property, non-solicitation and post-employment obligations).
• Ask for a written resignation if the notice was given verbally.

2) Check The Contract, Award Or Enterprise Agreement

• Confirm the required notice period for the role and whether any deductions are permitted if the employee doesn’t work the full notice.
• If you intend to change the notice (shorten, waive, or pay it out), verify your rights to do so under the contract and applicable industrial instrument.

3) Plan The Handover

• Identify critical tasks, deadlines and knowledge transfer items.
• Assign a handover owner and book time with colleagues, clients and suppliers as needed.
• Document status updates, passwords (through secure channels), file locations and process notes.

4) Manage Access, Confidentiality And Property

• Schedule progressive access changes (e.g. from admin to user-only) and set the final cut-off at the end of employment.
• Reinforce confidentiality obligations and restrict access to sensitive information to what is genuinely required for the handover.
• Track laptops, phones, cards and any other equipment for return.

5) Update Payroll And Entitlements

• Calculate final pay, including any unpaid wages, leave entitlements and agreed deductions that are legally permitted.
• Confirm treatment of annual leave requests during the notice period (see the leave section below).
• Book time with payroll early so nothing is missed in the final week.

6) Consider Role And Client Impacts

• Decide quickly whether client-facing duties should continue or shift to a colleague to protect relationships and continuity.
• Make a plan for recruitment or internal backfill and communicate the transition to your team.

7) Manage Performance Or Conduct Issues If They Arise

If performance drops during notice or new concerns surface, you still have your usual management options. That can include coaching, documented warnings or, where appropriate, a show cause letter and formal process. If allegations of serious misconduct arise, you may need to suspend the employee on pay while you investigate, consistent with your policies and any industrial instrument.

Can You Shorten, Waive Or Pay Out The Notice?

Often, yes - but it depends on the contract or award and what you and the employee agree. You have a few common options.

Payment In Lieu Of Notice

Instead of having the employee work the two weeks, you can usually pay out some or all of the notice period (known as “in lieu” of notice). This can be useful when there’s not much productive work left, there are risks to systems or clients, or you both prefer a clean break. If you choose this path, make sure the contract allows it and process the payment correctly. For the employer-side rules and compliance tips, see payment in lieu of notice.

Employee Not Working The Full Notice

If an employee wants to leave earlier than two weeks, check your rights under the contract or award. You might agree to waive part of the notice, or (if permitted) deduct an amount from final pay equal to the shortfall. Any deduction must be clearly allowed and compliant. Practical issues also matter - for example, whether the handover can be completed responsibly. For options and risks, this guide to an employee not working their notice period is a helpful reference.

Garden Leave

Another option is garden leave. The employee remains employed and paid during the notice period but stays away from work (or performs limited duties). This can protect confidential information and client relationships, and reduce disruption. Whether you can direct garden leave depends on your contract and the role. Learn more about garden leave and when it’s appropriate.

Mutual Agreements

In many cases, a practical solution is a written agreement to shorten or vary the notice period, setting out the last day, final pay arrangements and any specific conditions (like returning property before a certain date). Keep it in writing to avoid disputes.

Leave, Sick Days And Public Holidays During Notice

Leave questions are common when someone resigns with two weeks’ notice. Here’s how the main entitlements generally interact with a notice period.

Annual Leave

Employees continue to accrue annual leave up to their final day. They can request annual leave during the notice period, and you can approve or decline based on reasonable business grounds. If leave is approved, it typically counts as leave (not as “worked notice”), unless your contract or award says otherwise. Any unused annual leave is usually paid out at the end of employment.

For practical scenarios and employer obligations, see this guide on employee leave during a notice period.

Sick Leave / Personal Leave

If an employee is genuinely unwell, they can access their accrued paid personal/carer’s leave during notice (with evidence as required by your policies, contract or award). Personal leave doesn’t usually extend the notice period unless the contract or instrument specifies it, but it does change what hours are “worked” versus paid leave. Policies about evidence and communication still apply.

For the rules around medical evidence and pay, this employer-focused resource on sick leave during a notice period may help.

Time Off In Lieu (TOIL) And RDOs

If your business uses time off in lieu or rostered days off, apply the same rules you use during normal employment. Make sure any TOIL bank is correctly recorded and processed. Clarify whether TOIL can be taken during notice or paid out, in line with your agreements and policies.

Public Holidays

If a public holiday falls within the two weeks, permanent employees are generally entitled to be paid for that day if it would have been a normal working day. It doesn’t usually extend the length of the notice period, it just changes that day’s classification for payroll.

Can You Force Leave During Notice?

Compelling annual leave during notice is only lawful in certain situations (for example, a shutdown under a relevant award or agreement). Otherwise, stick to normal leave-request processes and business-need considerations. Always check your industrial instrument first.

Key Takeaways

• “Two weeks’ notice” isn’t a universal law in Australia - the correct period comes from the employee’s contract and any applicable award or enterprise agreement.
• When a resignation lands, acknowledge it in writing, confirm dates, and check the contract and instrument before making decisions about handover, access and payroll.
• You can often vary the notice with options like payment in lieu, an agreed earlier finish, or garden leave - just ensure your contract allows it and document the arrangement.
• Annual leave, sick leave and public holidays still operate during notice, but they don’t usually extend the length of notice unless your contract or award says otherwise; manage requests fairly and keep clear records.
• If an employee won’t work out their notice, your options are set by the contract and award - start with this guide to an employee not working their notice period before making deductions or changes.
• The best way to avoid confusion is to ensure every role has a clear Employment Contract that sets the resignation notice period, and to train managers on your standard process.
• Policies and processes matter in the last fortnight: reinforce confidentiality, plan a robust handover, manage access carefully, and handle any performance or conduct issues using a defensible process (including a show cause letter where appropriate).

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