How to Quit Your Job in Australia — Notice, Final Pay & What You're Owed [2026]
Quitting your job? Learn your notice requirements, final pay entitlements, annual leave payout, long service leave, super, and everything you need to know about resigning in Australia.
Notice requirements when you resign — contract, award, and NES
When you resign from your job, you are generally required to give your employer a minimum notice period. The amount of notice depends on what your employment contract, enterprise agreement, or applicable modern award specifies. Most modern awards require employees to give the same notice period that the employer would need to give them under the NES: 1 week for up to 1 year of service, 2 weeks for 1-3 years, 3 weeks for 3-5 years, and 4 weeks for 5+ years. However, your employment contract may specify a different notice period — and if it specifies a longer period than the award, the contractual notice period generally applies. Check your contract first. If your contract or award does not specify a notice period, the common law implies a reasonable notice period, which courts assess based on factors including the seniority of the role, the length of service, industry norms, and how difficult it will be for the employer to replace you. If you do not give the required notice, your employer may be entitled to deduct up to one week's pay from your final pay — but only if there is a specific term in your award or agreement authorising this deduction. The employer cannot withhold more than one week's pay, and they cannot withhold wages already earned.
How to resign — notice letter essentials and tips
A resignation should be clear, professional, and in writing. At minimum, your resignation notice should state your intention to resign, your last working day (calculated from your notice period), and the date of the letter. You do not need to provide a reason for your resignation. Keep the letter brief and professional — even if you are leaving because of problems at work, the resignation letter is not the place to air grievances. A simple template: 'Dear [Manager's name], I am writing to formally advise that I am resigning from my position as [Job Title] at [Company]. My last working day will be [date], which provides [X weeks] notice as required under my [contract/award]. I would be happy to assist with the transition and handover during my notice period. Thank you for the opportunity to work at [Company]. Regards, [Your name].' Send the letter by email to your direct manager and to HR, keeping a copy for your records. Consider the timing of your resignation — if you resign after a leave period has been approved, you retain that leave. If you are waiting for a bonus, check whether the bonus terms require you to be employed on the payment date. If you have an annual leave balance, consider whether it is better to take leave during your notice period or be paid out.
Annual leave payout — what you are owed when you resign
When you resign, your employer must pay out all accrued but untaken annual leave in your final pay. This is a non-negotiable entitlement under the National Employment Standards — it applies regardless of why you are leaving, how much notice you gave, or what your employer's policy says. The payment is calculated at your current base rate of pay (not including penalties or loadings, unless your award specifies otherwise). Some awards and enterprise agreements also require payment of annual leave loading (typically 17.5%) on the leave payout. Check your specific award — for example, the Clerks-Private Sector Award requires leave loading on annual leave paid out on termination. The tax treatment of annual leave paid out on resignation is at your marginal tax rate — there is no concessional tax treatment (unlike redundancy). If you have accrued annual leave that you want to use during your notice period, you can request this from your employer, but the employer can refuse if it is not operationally convenient. Any leave taken during your notice period counts towards your notice. Pro-rata annual leave — if you have worked a partial year, you are entitled to the pro-rata accrual. Full-time employees accrue 4 weeks (152 hours for a 38-hour week) per year, which equates to approximately 2.923 hours per week or 0.0769 hours per ordinary hour worked.
Long service leave — do you qualify?
Long service leave entitlements vary by state and territory. In most jurisdictions, you are entitled to long service leave after a qualifying period of continuous service with the same employer. The standard qualifying period is 10 years for the full entitlement (typically 8.667 weeks or 2 months). However, most states allow pro-rata payment on resignation after a shorter period, typically 5-7 years. In New South Wales, you qualify for pro-rata LSL on resignation after 5 years if you are 55 or older, or after 7 years in other circumstances. In Victoria, pro-rata entitlement applies after 7 years. In Queensland, pro-rata applies after 7 years for resignation (or 5 years if dismissed). In South Australia, pro-rata applies after 7 years. In Western Australia, pro-rata applies after 7 years. These rules are complex and the entitlement amounts vary by state. Check your specific state's long service leave legislation or contact the relevant state industrial authority. Long service leave paid out on resignation is generally taxed at your marginal rate, though the tax treatment can be more complex if the leave accrued over different financial years or spans a period before and after 16 August 1978. Use our Long Service Leave Calculator to check your eligibility and calculate your entitlement.
Final pay timing and what must be included
When you resign, your employer must pay your final pay within 7 days of your last day of work, or on the next regular pay day — whichever is sooner. Some awards and agreements specify different timeframes. Your final pay must include: wages for all hours worked up to and including your last day, accrued annual leave (including leave loading if applicable under your award), long service leave (if eligible), any outstanding allowances, penalty rates, or overtime, and any other amounts owing under your contract or award. Your employer cannot withhold your final pay because you did not complete your notice period (except for the limited one-week deduction permitted by some awards), because you have not returned company property (they must pursue this separately), or because they claim you owe them money (they must pursue this through proper channels). If your final pay is not received within the required timeframe, contact your employer in writing and, if unresolved, lodge a complaint with the Fair Work Ombudsman. Use our Final Pay Calculator to estimate your total final payment. Superannuation on your final pay is due by the normal quarterly due date — the employer does not have to pay it immediately upon termination.
Superannuation, gardening leave, and non-compete clauses
Several other issues commonly arise when resigning. Superannuation: your employer must pay super on all ordinary time earnings up to and including your last day, including your notice period (whether worked or paid in lieu). This is due by the quarterly deadline, not immediately. Check that the final super contribution appears in your super fund after the quarter ends. Gardening leave: some employers will ask you to serve your notice period at home rather than in the workplace. During gardening leave, you are still employed, still being paid, and still accruing leave. You must remain available to work if called upon. Gardening leave is increasingly common for employees with access to sensitive information or client relationships. Non-compete and restraint of trade clauses: if your contract contains a non-compete clause, review it carefully. In Australia, restraint clauses are only enforceable if they are reasonable in scope (geographic area), duration, and the activities they restrict. Many restraint clauses are unenforceable because they are too broad. If you are considering joining a competitor, get legal advice about the enforceability of your restraint before making commitments. Post-employment confidentiality obligations continue to apply even after you leave — do not take client lists, trade secrets, or proprietary information with you.
Practical checklist before your last day
Use this checklist to ensure a smooth departure. Before you resign: check your notice period requirement, calculate your accrued annual leave and long service leave, review any bonus or incentive terms that may be affected by your resignation date, check if you have salary sacrifice arrangements that need to be unwound, and ensure your super fund details are correct. During your notice period: complete an effective handover of your responsibilities, update process documentation, inform key contacts and clients as appropriate (check with your manager first), return any company property (laptop, phone, access cards, keys), and save personal files from your work devices. Financial matters to arrange: set up a forwarding email or contact method for your final payslip and payment summary, ensure your employer has your current bank details for final pay, check your super fund balance after the final quarterly contribution is due, update your tax file declaration if starting a new job immediately, and consider whether to use annual leave during notice or have it paid out. After your last day: verify your final pay is correct using our Final Pay Calculator, check that your super contribution arrives by the quarterly due date, keep your final payslip and payment summary for tax purposes, and update your records with any portable long service leave scheme if applicable.
Try these free tools
Official resources
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
Related articles
Being made redundant? Calculate your exact payout in 10 seconds — 4 to 16 weeks' pay based on years of service. See the NES redundancy pay table + small business rules.
Notice Period Australia: How Much Notice Must You Give? (2026 Table)Notice periods range from 1 to 5 weeks depending on your length of service. Free calculator — enter your details, get your answer instantly. Includes pay in lieu rules.
Unfair Dismissal in Australia: How to Know If You Have a CaseWas your dismissal unfair? Learn the eligibility rules, 21-day deadline, high income threshold ($175,000), remedies, and how to apply to the Fair Work Commission.