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Notice Period Australia: How Much Notice Do You Have to Give?

|7 min read

Understand notice periods in Australia. NES minimum notice ranges from 1 to 5 weeks based on service and age. Learn about employer and employee obligations.

Minimum notice periods under the NES

The National Employment Standards set minimum notice periods that an employer must give when terminating an employee. These are based on the employee's continuous service: less than 1 year of service = 1 week's notice, 1 to 3 years = 2 weeks, 3 to 5 years = 3 weeks, and 5 or more years = 4 weeks. Employees aged 45 years or over who have at least 2 years of continuous service are entitled to an additional week of notice on top of the standard minimum. This means a 46-year-old with 6 years of service gets 5 weeks' notice (4 weeks plus the over-45 additional week). These are minimum entitlements — your Modern Award, enterprise agreement, or employment contract may require a longer notice period.

Notice from employer vs notice from employee

The NES minimum notice periods apply to employers terminating an employee's employment. When it comes to employees resigning, the NES does not set a statutory minimum — the notice you must give is determined by your Modern Award, enterprise agreement, or employment contract. Most awards require the same notice periods as the NES scale (minus the over-45 extra week), but some are shorter. For example, many awards require employees to give only 1 week's notice regardless of service length. If your award is silent on resignation notice, a reasonable notice period applies, which is typically considered to be the same as what the employer would need to give you. Always check your specific award or contract.

Payment in lieu of notice

An employer can choose to pay out the notice period instead of having the employee work it. This is called payment in lieu of notice (PILON). The employee receives their ordinary pay for the notice period but does not have to attend work. The payment must be at least the amount the employee would have earned during the notice period, calculated at the employee's base rate of pay for their ordinary hours. Importantly, payment in lieu terminates the employment immediately on the date of the payment — the employee does not continue to accrue leave or super during the notice period. If you are offered PILON, your termination date is the date you stop working, not the end of the notice period.

Garden leave

Garden leave is different from payment in lieu of notice. Under a garden leave arrangement, the employee remains employed during the notice period but is directed not to attend the workplace. Because the employee is still technically employed, they continue to accrue leave entitlements and super contributions, and remain bound by their employment obligations (such as confidentiality). Garden leave must be provided for in the employment contract, award, or enterprise agreement — an employer cannot unilaterally place someone on garden leave without a contractual basis. Garden leave is commonly used for senior employees or those with access to sensitive business information, and the employee receives their full pay and entitlements throughout the period.

Award and contract differences

While the NES sets the floor, your actual notice requirements may differ based on your Modern Award, enterprise agreement, or individual employment contract. Awards often mirror the NES for employer-given notice but may set different (often shorter) employee resignation notice requirements. Enterprise agreements can set notice periods that are more generous than the NES but cannot be less favourable overall. Employment contracts — particularly for senior or executive roles — frequently specify longer notice periods than the NES (such as 3 or 6 months), which apply to both the employer and employee. Where there is a conflict, the most beneficial entitlement to the employee applies. You should always read your specific contract and check your award.

What happens if you do not give proper notice?

If an employee resigns without giving the required notice under their award or contract, the employer may be entitled to deduct up to one week's wages from the employee's final pay — but only if this deduction is authorised by the relevant Modern Award and is reasonable. In practice, most employers do not pursue this. However, failing to work your notice period can damage professional relationships and references. For employers, if they terminate an employee without providing the required notice (and do not make a payment in lieu), they are in breach of the NES. The employee could recover the unpaid notice entitlement through the Fair Work Ombudsman or the courts. The employee could also include it in an unfair dismissal claim if applicable.

Exceptions to notice requirements

Not all employees are entitled to notice of termination. The NES notice period requirements do not apply to: casual employees, employees on a fixed-term contract (when the contract expires naturally), employees terminated for serious misconduct (such as theft, fraud, assault, or serious safety breaches), daily hire employees, and employees engaged for a specific task or season. For serious misconduct, the employer can terminate immediately without notice, but the employee is still entitled to their accrued entitlements such as annual leave and long service leave. An employee dismissed for serious misconduct may still be able to apply for unfair dismissal if they believe the conduct did not warrant summary dismissal.

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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.