Notice Period Entitlements in Australia: What Your Employer Must Pay

What Is a Notice Period?

A notice period is the minimum amount of time an employer must give an employee before terminating their employment — or the minimum time an employee must give before resigning. Under the Fair Work Act 2009, the minimum notice period is a protected entitlement under the National Employment Standards (NES), and it cannot be contracted away.

Use our Notice Period Calculator to find out exactly how much notice you or your employer is required to give based on your years of service and whether you're over 45.

Minimum Notice Periods Under the NES

The Fair Work Act sets the following minimum notice periods based on continuous service:

There is an additional entitlement for employees aged 45 or over who have completed at least 2 years of continuous service: an extra 1 week of notice on top of the above.

What About Employees Who Resign?

The NES only sets minimum notice for employer-initiated terminations. When an employee resigns, the minimum notice they must provide is governed by their employment contract or applicable modern award. Awards typically require 1 week's notice for most roles, though some require more for senior positions.

If an employee provides less notice than required by their contract, the employer may be entitled to withhold pay in lieu of the shortfall — though this is subject to the terms of the contract and the award.

Payment in Lieu of Notice

An employer can choose to pay the employee out instead of requiring them to work the notice period. This is called payment in lieu of notice (PILON). The payment must be at least equal to the full base pay the employee would have received if they had worked the notice period — including any allowances that form part of ordinary time earnings, but excluding bonuses, overtime, and non-cash benefits unless they would regularly have applied.

This is a common outcome in redundancy situations, where continued employment through the notice period may be awkward or impractical. Check our Redundancy Pay Calculator to see how notice pay stacks up against your total redundancy entitlement.

Summary Dismissal vs Termination with Notice

An employer can dismiss an employee without notice for serious misconduct — such as theft, assault, serious safety breaches, or fraud. This is called summary dismissal. It must be genuinely serious misconduct; using it as a pretext for what is really a performance termination can expose the employer to an unfair dismissal claim.

For all other terminations, notice must be provided or paid out. If an employer simply walks an employee out the door without either giving notice or paying in lieu, they are in breach of the NES.

Does Your Award or Agreement Override the NES?

Modern awards and enterprise agreements can provide better notice entitlements than the NES — longer periods, additional pay, or more generous PILON provisions. They cannot provide less. The NES is always the baseline. If you're unsure whether a modern award applies to your role, the Hourly Rate Calculator can help you understand your base rate, which is relevant to any payment in lieu calculation.

What If Your Employer Doesn't Pay?

If your employer terminates you without providing the required notice or payment in lieu, they owe you the money. You can:

1. Raise it with HR or payroll directly
2. Lodge a complaint with the Fair Work Ombudsman (1300 724 690)
3. Apply to the Federal Circuit and Family Court if the amount is significant

The Fair Work Ombudsman can investigate and recover unpaid entitlements without you needing to hire a lawyer. Keeping organised records of your employment start date, payslips, and any termination letter is critical — a good document folder organiser from Amazon AU makes it easy to keep employment paperwork in order from day one.

Can You Negotiate a Longer Notice Period?

Yes. Employment contracts can set notice periods longer than the NES minimums, and many do — especially for senior or specialist roles. A longer notice period provides more financial security for the employee and more transition time for the employer. Just remember that a contract cannot set a notice period lower than the NES minimum.