A notice period is the length of time an employee or employer must give advance warning before ending an employment relationship. 

In Australia, minimum notice periods are set by the National Employment Standards (NES) under the Fair Work Act 2009, varying from one to five weeks depending on the employee’s length of continuous service and age. Longer notice periods may be specified in employment contracts, awards, or enterprise agreements.

Definition and purpose

A notice period is the time between notification of termination of employment and the final day of work. It serves several purposes:

• Allows employers time to find a replacement
• Gives employees time to search for new employment
• Facilitates knowledge transfer and handover processes
• Provides both parties with a transition period to adjust

Legal framework

National Employment Standards (NES)

The NES establishes the minimum notice periods that employers must provide when terminating an employee’s employment:

Employee’s period of continuous service	Minimum notice period
Less than 1 year	1 week
1 to 3 years	2 weeks
3 to 5 years	3 weeks
More than 5 years	4 weeks

An additional week of notice is required if the employee is over 45 years old and has completed at least 2 years of continuous service.

Employee notice requirements

Employees are typically required to provide notice as specified in their:

• Employment contract
• Applicable modern award
• Enterprise agreement

If not specified elsewhere, employees are generally expected to provide the same notice periods as employers under the NES, though the age-related additional week does not apply.

Variations in notice periods

Contractual notice periods

Employment contracts may specify longer notice periods than the NES minimums, particularly for senior or specialised roles. Common contractual notice periods include:

• 1 month for mid-level positions
• 3 months for senior management
• 6 months or more for executive positions

Industry and role-specific considerations

Some industries and roles may have different standard practices:

• Professional services often have longer notice periods
• Seasonal work may have shorter or predetermined end dates
• Highly specialised roles may require extended handover periods

Payment in lieu of notice

Employers may choose to make a payment in lieu of notice, which allows the employment to end immediately. This payment must equal the full amount the employee would have received had they worked through the notice period, including:

• Base pay rate for ordinary hours
• Loadings, allowances, and penalty rates
• Overtime (if regular and predictable)
• Shift differentials

Notice not required

Serious misconduct

Employers are not required to provide notice or payment in lieu of notice when terminating an employee for serious misconduct, which includes:

• Wilful or deliberate behaviour inconsistent with employment continuation
• Conduct causing serious and imminent risk to health, safety, or reputation
• Theft, fraud, assault, or intoxication at work
• Refusal to carry out lawful and reasonable instructions

Casual employees

Casual employees are generally not entitled to notice periods unless specified in their employment contracts.

Fixed-term or specific task contracts

Employees on fixed-term contracts or contracts for specific tasks generally do not require notice at the end of the contract or completion of the task, unless specified in the contract.

Managing the notice period

Working during notice

Employees are typically expected to work during their notice period unless:

• The employer directs them to leave earlier with payment in lieu
• The employee requests to leave earlier and the employer agrees
• The employment contract permits “garden leave”

Garden leave

“Garden leave” refers to when an employee remains employed during the notice period but is not required to attend the workplace or perform duties. During garden leave:

• The employee continues to receive full pay and benefits
• The employee remains bound by employment obligations
• The employer can restrict the employee’s access to clients, information, and systems

Handover obligations

During the notice period, employees are typically expected to:

• Complete outstanding work where possible
• Document processes and procedures
• Train colleagues or successors
• Return company property

Notice period and leave

Annual leave during notice periods

Employees cannot typically take annual leave during a notice period unless the employer agrees. Previously approved leave may be honoured at the employer’s discretion.

Personal/carer’s leave

Employees remain entitled to take personal/carer’s leave during the notice period if they or a family member becomes ill or injured, supported by evidence if required.

Redundancy and notice

When a position becomes redundant:

• The minimum notice period still applies
• Redundancy pay is additional to notice or payment in lieu
• Consultation obligations may extend the process timeline

Probationary periods

During probationary periods:

• Different (usually shorter) notice periods may apply
• These cannot be less than the NES minimums
• The shorter notice period must be agreed upon in writing

Tax implications

Payment in lieu of notice is taxed as ordinary income, not as a termination payment, and:

• Is subject to PAYG withholding tax
• Is considered ordinary time earnings for superannuation purposes
• Does not qualify for any tax-free threshold applicable to genuine redundancy payments

Disputes and enforcement

If an employer fails to provide proper notice or payment in lieu:

• Employees can file a complaint with the Fair Work Ombudsman
• Claims can be made to the Fair Work Commission
• Court proceedings may be initiated for breaches of the Fair Work Act