Notice of termination and redundancy pay forms part of the National Employment Standards (NES). The NES apply to all employees covered by the national workplace relations system, regardless of any award, agreement, or contract.
The NES establish the minimum entitlement to a notice period, or payment in lieu of notice that an employer must give an employee to end their employment. This applies to all employees (other than casuals), not just those covered by the national workplace relations system.
The NES also outline the redundancy pay an employee may receive at the end of their employment. This entitlement only applies to employees covered by the national workplace relations system.
An employer must provide an employee with written notice of the day of termination when ending their employment. An employer may give notice to the employee by either:
- delivering it personally
- leaving it at the employee’s last known address
- sending it by pre-paid post to the employee’s last known address
An employee may also need to give their employee notice of termination if their award of agreement specifies it.
An employer must not terminate an employee unless they have either:
- given the minimum period of notice
- paid the employee’s full rate as if they had worked the minimum notice period
1. Minimum period of notice
Length of continuous service Minimum period of notice
Less than 1 year At least 1 week
More than 1 year but less than 3 years At least 2 weeks
More than 3 years but less than 5 years At least 3 weeks
More than 5 years At least 4 weeks
2. An employee’s full rate includes the following:Employees over 45 years old who have completed at least two years of service when they receive notice are given an additional week of notice.
- incentive-based payments and bonuses
- monetary allowances
- overtime or penalty rates
- any other separately identifiable amounts
If you have a query regarding termination obligations and require assistance, please contact one of our payroll experts on (02) 9223 9166 to discuss. Alternatively, you can submit an online enquiry form.