Weeks Notice: Understanding Notice Periods in Australia

“Weeks notice” comes up fast when someone resigns or when you need to end employment. As a small business, getting notice periods right helps you stay compliant, keep operations running smoothly, and avoid costly disputes.

In Australia, notice rules sit across employment contracts, awards or enterprise agreements, and the National Employment Standards (NES). The exact number of weeks’ notice can differ depending on the situation, which is why a clear, consistent approach is essential.

In this guide, we unpack what “weeks notice” really means from an employer’s perspective, how much notice employees should give, what you must give when you terminate, and the options you have (like payment in lieu and garden leave). We’ll also cover common pain points such as sick leave during notice and what to do if an employee refuses to work out their notice period.

By the end, you’ll have a simple framework you can use across your team, backed by the key legal settings that apply in Australia.

What Does “Weeks Notice” Mean Under Australian Law?

“Weeks notice” is the amount of time between when a party gives notice (to resign or to terminate) and the last day of employment. In practice, the applicable notice period can come from a few places:

• Your Employment Contract or letter of offer
• A modern award or enterprise agreement (if one applies)
• The National Employment Standards (NES), which set minimum termination notice you must give employees

As a rule of thumb, employees must receive at least the minimum termination notice under the NES when you end their employment (unless serious misconduct applies). Contracts and awards can provide more generous notice-but not less than the NES minimum.

On the flip side, the notice an employee must give you when they resign is generally set by the contract or award. There’s no default NES minimum for employees giving notice to employers; you’ll rely on your documentation and any applicable industrial instrument. If you don’t have a written clause, you may face uncertainty or disputes-so it’s best to set this out clearly upfront.

If you’re unsure what applies to a particular role, review the relevant award or agreement, and then your contract. If there’s any tension, the more generous arrangement usually prevails in favour of the employee on termination notice. You can also lean on a simple framework for calculating the minimum employer notice under the NES using a helpful notice period guide.

How Much Notice Should Your Employees Give When Resigning?

From an employer’s perspective, you want enough time to hand over work, secure a replacement, and protect customer relationships. The best way to achieve this is to set resignation notice in your Employment Contract and ensure it aligns with any applicable award.

Typical Contract Settings

• Entry-level and junior roles: 1-2 weeks
• Mid-level roles: 3-4 weeks
• Senior or specialist roles: 4-8 weeks (occasionally more for executives)

Industry awards may prescribe specific resignation notice for employees (sometimes matching your obligation to them, sometimes not). If an award applies, make sure your contract clause isn’t less generous than required by the award.

It also helps to remind managers to get resignations in writing and to confirm acceptance promptly. This locks in dates, reduces confusion, and gives both parties certainty. For a deeper dive into the rules around notice on resignation, you can refer to resignation notice periods in Australia.

If An Employee Offers Less Than Their Required Notice

Employees sometimes want to leave early for a new job or personal reasons. You can agree to a shorter notice period if it works for your business. If early departure will cause genuine disruption, you can hold employees to their contractual notice (subject to any award terms). Another tool is payment in lieu-see more on that below.

How Much Notice Must You Give When Terminating Employment?

When you terminate employment (not for serious misconduct), you must give at least the minimum notice under the NES, unless an award or contract sets a longer period. The NES sets minimum notice based on the employee’s continuous service:

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

Employees over 45 years of age with at least 2 years’ continuous service get an extra week under the NES.

Redundancy Situations

Redundancy is a specific reason for termination. If a genuine redundancy applies, you still provide the applicable notice (or payment in lieu), and you may also owe redundancy pay depending on the circumstances. Ensure you follow a fair process and consult as required by any award or agreement.

Probation And Fixed-Term Contracts

• Probation: Contracts often provide shorter notice (e.g. 1 week) during probation. Even so, you still need to comply with general employment laws.
• Fixed-term: If a fixed-term contract is expiring on its stated end date, generally no additional termination notice is required (unless your contract or an award says otherwise). If ending early, normal notice and contract terms apply.

When in doubt, check your contract and any award, then confirm NES minimums. Having consistent contract wording across your team makes this much easier.

Can You Use Payment In Lieu, Garden Leave, Or Reduce Duties?

Yes-these tools help you manage risk, maintain goodwill, and protect your business interests during the notice period.

Payment In Lieu Of Notice

Instead of having an employee work out their weeks’ notice, you can pay their ordinary pay for the notice period and end employment immediately. This is called Payment in Lieu of Notice.

Payment in lieu is useful when you want to minimise disruption, protect confidential information, or avoid access to systems. Keep in mind how this interacts with superannuation obligations-our guide to payment in lieu and superannuation outlines key considerations for employers.

Garden Leave

Garden leave is when the employee stays employed during notice but does not perform work (or performs limited duties). They remain on payroll, stay bound by confidentiality and restraint clauses, and must be available if you reasonably require assistance.

Garden leave can be a powerful way to remove access to sensitive information while maintaining control over the transition. It should be supported by clear contract wording. Explore how Garden Leave works in practice for Australian employers.

Reducing Duties Or Changing Access

Even if the employee works out their notice, it’s common to scale back responsibilities, remove system access they no longer need, and reassign clients. Keep any changes reasonable and consistent with your contract and policies.

Managing Leave, Sick Days And Refusals During The Notice Period

Notice periods are rarely linear. You might face sick days, annual leave requests, or an employee who simply refuses to attend work. Here’s how to approach the most common scenarios.

Annual Leave During Notice

Employees can request annual leave during notice. You can approve or decline based on business needs and your policies. If you require an employee to take annual leave (for example, during a shutdown), ensure your approach is consistent with the applicable award or agreement.

If employment ends with annual leave still owing, you pay it out according to law and the contract. For clarity on final entitlements tied to holiday balances, see employer obligations around annual leave on resignation.

Sick Leave During Notice

Personal/carer’s leave may be taken during notice if the employee is genuinely unwell and provides evidence per your policy or the relevant award. Managing this process fairly helps you stay compliant while preventing abuse.

If you’re dealing with persistent absences, documentation and consistent policy application are key. Our guide on sick leave during the notice period covers common employer questions.

Refusing To Work Out The Notice Period

If an employee resigns and refuses to work their required notice, you generally don’t have to pay them for the days they don’t work. Some awards may permit you to deduct pay in limited ways if an employee fails to give the required notice-always check the wording carefully.

If employment is ending at your initiative and the employee refuses to attend or perform reasonable duties, a firm but fair approach-written directions, record-keeping, and a reminder of contractual obligations-helps protect your position. If the situation escalates, you may consider payment in lieu to end the employment cleanly.

For edge cases and practical steps, refer to this employer-focused guide on an employee not working the notice period.

Can You Enforce Restraints During Or After Notice?

Restraint and non-solicitation clauses can restrict certain competitive activities during and after employment. Enforceability depends on reasonableness (scope, duration, and geography). Ensure your restraints are tailored to the role, and consider garden leave to bolster protection during notice.

Practical Steps: Setting Up Clear Notice Rules In Your Business

Getting “weeks notice” right starts before anyone resigns or you need to terminate. These steps will set your business up for smooth, compliant transitions.

1) Put Clear Notice Clauses In Your Contracts

Ensure every role has a written notice clause for both sides, aligned with any applicable award. Senior roles often have longer notice given the handover complexity. If you need to update your template, consider a bespoke Employment Contract that reflects your business model, award coverage, and risk profile.

2) Align With Awards And The NES

Map each role to any applicable award or agreement and cross-check notice terms. On termination, confirm the NES minimums are met or exceeded. If you’re ever unsure, step through an internal checklist and document the basis for your decision.

3) Decide When You’ll Use Garden Leave Or Payment In Lieu

Document when you’ll consider garden leave (e.g. client-facing roles, access to sensitive IP) and when you’ll choose payment in lieu (e.g. to end access quickly). Having a consistent approach prevents ad hoc decisions and perceived unfairness.

4) Tighten Access And Handover Protocols

For roles with system or client access, prepare a standard offboarding plan for the notice period. Think password changes, device returns, CRM updates, and client communication. Strong processes reduce operational risk and protect IP.

5) Make Leave And Evidence Expectations Clear

Set out how leave requests will be handled during notice and what evidence is required for personal/carer’s leave. This avoids last-minute confusion and aligns expectations. You can embed these rules in your policies and contracts to support consistent decisions.

6) Train Managers To Act Promptly And Document

When notice is given, managers should acknowledge it in writing, confirm last days, decide on garden leave or payment in lieu, and kick off the handover plan. Accurate records protect your business if a dispute arises later.

7) Build A Playbook For Special Cases

Some scenarios need extra care-senior executive exits, alleged misconduct during notice, or medical incapacity. For performance or conduct matters, you may use tools such as show cause letters, and-depending on risk-stand-down or suspension pending investigation. If you anticipate frequent terminations, consider pairing your contracts with practical guidance materials so managers know the steps.

8) Keep An Eye On Related Entitlements

Don’t forget final pay timing, payout of accrued annual leave, and treatment of other entitlements. If you use payment in lieu or garden leave, be clear about what is included and when it’s paid. If you need a refresher on the calculation side of notice, this employer guide to notice periods is a helpful checkpoint.

9) Use Plain, Consistent Language

Keep your contract clauses short and precise: how much notice each side must give; whether you can direct garden leave; whether you can make payment in lieu; and how leave works during notice. Clear wording reduces arguments and protects your brand reputation-especially when farewelling long-term team members.

10) Review And Refresh Annually

Employment law and awards evolve. A quick yearly review of your templates and offboarding process is time well spent. If you’re introducing new roles or changing your structure, update the relevant contract and policy settings.

Key Takeaways

• “Weeks notice” comes from contracts, awards or agreements, and the NES; make sure your approach aligns with all three.
• Set clear resignation notice in your contracts so you have certainty when employees give notice to leave work.
• When you terminate, confirm the NES minimums and any award or contract requirements, then choose worked notice, garden leave, or Payment in Lieu of Notice based on risk.
• Plan for real-world issues-annual leave, sick days, and refusals to work-and use documentation and consistent policies to manage them. For edge cases, see employee not working notice period and sick leave during notice.
• Protect the business during transitions with garden leave, reduced access, and a structured handover plan tailored to each role.
• Strong foundations-an up-to-date Employment Contract, clear policies, and a consistent process-make notice periods smoother and reduce legal risk.

If you’d like a consultation on setting up notice period clauses, garden leave, or payment in lieu for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.