Notice Period in Australia (2026): Minimum Notice, the Over-45 Week, Payment in Lieu and Resigning

Every Australian employment relationship ends with a notice period of some kind, and getting it wrong is one of the most common reasons final pay disputes reach the Fair Work Ombudsman. This guide explains notice periods for 2026 from both sides: the minimum notice an employer must give under the National Employment Standards (NES), the extra week for older employees, how payment in lieu of notice works and why it's calculated differently from redundancy pay, who isn't entitled to notice, and how much notice an employee must give when resigning under an award or contract. Worked examples are in Australian dollars.

Quick answer

An employer must give written notice of termination of 1 to 4 weeks depending on continuous service — plus 1 week if the employee is over 45 with at least 2 years' service — or pay the notice out at the full rate. Employees' resignation notice comes from their award, agreement or contract; most awards use the same 1 to 4 week scale without the age loading. Casuals, fixed-term staff and those dismissed for serious misconduct get no NES notice.

• Notice starts the day after it's given and ends on the last day of employment

• Payment in lieu includes loadings, allowances, overtime and penalties

• Applies during probation too

• Most awards allow a deduction of up to one week's wages for short resignation notice

• Redundancy pay and unused annual leave are paid on top

Minimum notice an employer must give

Section 117 of the Fair Work Act says an employer must not terminate an employee's employment unless it has given written notice of the day of termination and either the notice period has run or the employer has paid in lieu. The minimum period depends on the employee's continuous service at the end of the day the notice is given.

Minimum notice under the NES (s 117)

Continuous service	Minimum notice	Over 45 with 2+ years' service
Not more than 1 year	1 week	1 week
More than 1 year, up to 3 years	2 weeks	3 weeks
More than 3 years, up to 5 years	3 weeks	4 weeks
More than 5 years	4 weeks	5 weeks

Not more than 1 year

Minimum notice

1 week

Over 45 with 2+ years' service

1 week

More than 1 year, up to 3 years

Minimum notice

2 weeks

Over 45 with 2+ years' service

3 weeks

More than 3 years, up to 5 years

Minimum notice

3 weeks

Over 45 with 2+ years' service

4 weeks

More than 5 years

Minimum notice

4 weeks

Over 45 with 2+ years' service

5 weeks

The over-45 extra week applies only if the employee is over 45 years old and has completed at least 2 years of continuous service when notice is given. A 46-year-old with 18 months' service gets 2 weeks, not 3.

An award, enterprise agreement or employment contract can require longer notice, and many senior employment contracts set one or three months. A contract can't provide less than the NES or the award. Where a contract gives more notice than the legal minimum, the contract term is enforceable in the courts as a contractual right, separate from the NES.

What counts as continuous service

Continuous service is the length of time the employee has been employed by the business. The Fair Work Ombudsman says it includes authorised unpaid leave such as unpaid parental leave, and doesn't include unauthorised absences. The FWO's own example is an employee with 5 years and 3 months' service, including 12 months of unpaid parental leave, who must be given 4 weeks' notice because the parental leave counts.

Section 117(4) excludes periods of casual employment. If someone worked as a casual for two years and then became permanent, only their permanent service counts for notice — a common trap after casual conversion. See our casual employees guide.

Giving notice: in writing, and how

The notice must be in writing and state the termination date, which can't be before the day the notice is given. The FWO says notice can be given by delivering it in person, leaving it at the employee's last known address, sending it by prepaid post to that address, or — if the employee agrees — sending it electronically. A text message or a verbal "you're finished" doesn't meet the NES unless it's backed by proper written notice.

The notice period starts the day after the employer tells the employee their employment is ending and ends on the last day of employment. If notice is handed over on a Tuesday, Wednesday is day one.

Notice applies during probation. The FWO is clear that ending employment in a probation period still requires notice or payment in lieu based on length of service — usually 1 week. A probation period mainly matters for unfair dismissal eligibility, not notice; see our unfair dismissal guide for small business.

Payment in lieu of notice

Instead of having the employee work the notice period, the employer can end the employment straight away and pay in lieu, or combine the two — for example, work one week and pay out the rest. The FWO's example is an employee on probation given one week's notice on a Tuesday, asked to work Wednesday to Friday, and paid out the remaining two days.

Section 117(2)(b) sets the amount: at least what the employee would have received at their full rate of pay for the hours they'd have worked until the end of the notice period. Full rate is broader than base rate. According to the FWO it includes:

• incentive-based payments and bonuses;
• loadings, such as casual or shift loadings;
• monetary allowances;
• overtime; and
• penalty rates and other separately identifiable amounts.

This is the opposite of redundancy pay, which is calculated at the base rate. Mixing the two up underpays notice and overpays redundancy.

Timing. The FWO says payment in lieu must be made before or on the day of termination. That's stricter than the rest of final pay, which most awards require within 7 days of the last day. When employment ends by payment in lieu, the employee stops accruing leave on that day.

Super and tax. The ATO's list of ordinary time earnings, updated 30 April 2026, says payment in lieu of notice is ordinary time earnings for all termination reasons, so the super guarantee of 12% applies. That surprises many employers, because unused leave paid on termination isn't OTE. For tax, payment in lieu of notice is generally part of an employment termination payment; in a genuine redundancy it counts towards the tax-free amount. Our redundancy guide covers the 2026-27 limits.

Who doesn't get notice

Section 123 excludes several groups from the NES notice rules. The FWO lists employees who:

• are casual;
• are employed for a specified period, a specified task or a season — unless that arrangement was used to avoid the notice rules;
• are dismissed for serious misconduct;
• are on a training arrangement for a set period or limited to the training (apprentices aren't excluded); or
• are daily hire employees in building and construction or in the meat industry, or weekly hire meat industry employees whose termination depends on seasonal factors.

Serious misconduct means deliberate behaviour inconsistent with continuing the employment — theft, fraud, assault, sexual harassment, causing serious and imminent risk to health and safety, or refusing a lawful and reasonable instruction. The employer doesn't have to give notice, but must still pay wages owed, accrued annual leave and, in some states, long service leave. Summary dismissal is a high-risk decision; get the facts and give the employee a chance to respond.

Even casuals and fixed-term employees should receive written confirmation of their last day as good practice.

Working the notice period: leave, public holidays and job hunting

The employer decides whether the employee works the notice period, is paid in lieu, or a mix. During any notice that is worked, the normal rules apply:

• The employee can take annual leave if the employer agrees, but the employer can't force them to use annual leave as part of the notice period.
• The employee can take sick or carer's leave with notice and evidence if asked — it doesn't extend the notice period. See our sick leave guide.
• Public holidays inside the notice period count towards it and don't extend it.
• Many awards give a job search day. The General Retail Industry Award (clause 37.2) gives an employee who receives notice from the employer up to one day off without loss of pay to look for work; in a redundancy, it's up to one day for each week of minimum notice.

If an employee who's been dismissed wants to leave before the notice period ends, the employer can agree to shorten it. If they can't agree, the FWO says the employee can resign and give their own minimum notice.

When an employer ends employment

Step 1

Check exclusions (casual, fixed-term, serious misconduct)

Step 2

Work out continuous service and age

Step 3

Find the longest of NES, award, agreement or contract notice

Step 4

Give written notice

Step 5

Work it or pay in lieu

pay in lieu at full rate on or before the last day

Notice when an employee resigns

The NES doesn't require employees to give notice — section 118 leaves it to modern awards and enterprise agreements. Most awards set a resignation notice scale the same as the NES employer scale without the over-45 extra week. The General Retail Industry Award's clause 37.1 is typical: 1 week for up to 1 year's service, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5 years and 4 weeks for more than 5 years.

• Casual employees don't have to give notice, though it's good practice.
• Award and agreement-free employees must give whatever their contract requires. If the contract says nothing, they may need to give "reasonable" notice.
• An employer can't accept or reject a resignation. Once given, the employment ends on the last day of the notice period, unless the parties agree otherwise or the employer pays out the notice.

The FWO recommends resigning in writing with the intended last day, and offers a letter of resignation template.

Deductions for not giving enough notice

What if an employee walks out without working their notice? The employer can only withhold pay if the award or enterprise agreement allows it. According to the FWO, most awards let the employer deduct up to one week's wages from the employee's final pay if:

• the employee is 18 or older;
• they didn't give the notice required by the award; and
• the deduction isn't unreasonable in the circumstances.

The deduction can only come from wages owed under the award — not from annual leave, long service leave or over-award payments. Under the retail award, no deduction is allowed if the employer agreed to a shorter notice period. For award-free employees there's no deduction right under the NES; the employer's remedy for a breach of contract notice is a contract claim, which is rarely worth pursuing for small amounts.

Final pay after notice

Whichever side ends the employment, final pay must include wages for hours worked, all unused annual leave plus any leave loading that would have applied, payment in lieu of notice where it's used, redundancy pay if it applies, and long service leave owed under state law. Unused sick and carer's leave isn't paid out. Most awards require final pay within 7 days of the last day; where there's no award rule, the Fair Work Act's general pay frequency rules apply. A payslip must follow within one working day of payment — see our payslip requirements guide and annual leave guide.

Worked examples in A$

These examples use a full rate of pay of A$1,400.00 a week (base A$1,200.00 plus a regular A$200.00 a week in shift penalties).

1. Short service. Ella has 8 months' service and is 29. She's entitled to 1 week's notice. Her employer pays it out on her last day: A$1,400.00 at full rate, including the shift penalties she'd have earned. Super of 12% — A$168.00 — applies because payment in lieu is ordinary time earnings.

2. The over-45 week. Tom is 52 with 4 years' service. The NES gives 3 weeks plus 1 week for his age = 4 weeks. Paid in lieu, that's 4 × A$1,400.00 = A$5,600.00.

3. Age without service. Mei is 47 but joined 18 months ago. She gets 2 weeks — she hasn't completed 2 years, so no extra week.

4. Mixed work and pay in lieu. Ravi has 6 years' service and is 40, so he's entitled to 4 weeks. His employer has him work 1 week, then pays 3 weeks in lieu (A$4,200.00) on the day his employment ends.

5. Employee resigns without notice. Jess, 24, has 2 years' service under the retail award and must give 2 weeks' notice. She leaves after giving 2 days' notice. Her employer may deduct up to one week's wages (A$1,200.00 at her award wage) from wages owed under the award, if that's not unreasonable — but not from her unused annual leave payout.

Common notice period mistakes

• Paying notice at the base rate. Payment in lieu must be at the full rate, including penalties and allowances the employee would have earned.
• Forgetting the over-45 week — or giving it to someone without 2 years' service.
• Counting casual service. Casual periods don't count towards NES notice.
• Excluding unpaid parental leave from service. Authorised unpaid leave counts.
• Verbal dismissals. NES notice must be written and give the termination date.
• Deducting from leave for short resignation notice. Deductions can only come from award wages, up to one week, and only if the award allows.
• Skipping super on payment in lieu. The ATO treats it as ordinary time earnings.
• Paying notice late. Payment in lieu is due on or before the termination day.

Official links

• Dismissal and noticeFair Work Ombudsman — NES notice and payment in lieu
• ResignationFWO — employee notice and deductions
• Notice and Redundancy CalculatorFWO — notice under awards and the NES
• Final payFWO — what to include and when
• Fair Work Act 2009Sections 117, 118 and 123

What to do next

Before giving or accepting notice, check the employee's continuous service and age, then compare the NES, the award and the contract and use the longest notice that applies. If you pay in lieu, calculate it at the full rate, pay it on the last day and include super. If the termination is a redundancy, read our redundancy pay guide, and if you think a dismissal was unfair, remember an application must reach the Fair Work Commission within 21 days.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the minimum notice period in Australia?

Under section 117 of the Fair Work Act, an employer must give written notice of 1 week for up to 1 year's continuous service, 2 weeks for over 1 and up to 3 years, 3 weeks for over 3 and up to 5 years, and 4 weeks for more than 5 years. Employees over 45 with at least 2 years' service get 1 week extra. Awards, agreements and contracts can require more.

How much notice do I need to give when I resign?

The NES doesn't set resignation notice — it comes from your award, enterprise agreement or contract. Most awards use the same scale as the employer's notice (1 to 4 weeks by service) without the over-45 extra week. Casuals don't have to give notice. If you're award-free and your contract is silent, you may need to give reasonable notice.

Can my employer deduct pay if I don't give enough notice?

Only if your award or enterprise agreement allows it. Most awards let an employer deduct up to one week's wages from wages owed if an employee aged 18 or over doesn't give the required notice, as long as the deduction isn't unreasonable. It can't come from annual leave or other entitlements, and no deduction is allowed if the employer agreed to shorter notice.

What is payment in lieu of notice?

Instead of having you work your notice, an employer can end your employment immediately and pay you what you'd have earned during the notice period. Under the NES it must be at your full rate of pay, including loadings, allowances, overtime and penalty rates you'd have received, and paid on or before the termination day. The ATO treats it as ordinary time earnings, so super is payable.

Do you get notice during probation?

Yes. The Fair Work Ombudsman says employees are entitled to notice even if employment ends during a probation period. Someone with less than a year's service gets at least 1 week's notice or pay in lieu under the NES, unless they're casual, on a fixed-term contract or dismissed for serious misconduct. An award or contract may set a different probation notice, but not less than the NES.

Can my employer refuse my resignation?

No. The Fair Work Ombudsman says an employer can't accept or reject a resignation — once notice is given, the employment ends on the last day of the notice period. The employer can ask you to work the notice, agree with you to finish early, or end your employment and pay out the notice. Best practice is to acknowledge the resignation in writing.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 12 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Dismissal — notice of termination — Fair Work Ombudsman · accessed 12 October 2026
2. 2.Resignation — Fair Work Ombudsman · accessed 12 October 2026
3. 3.Who doesn't get notice — Fair Work Ombudsman · accessed 12 October 2026
4. 4.Final pay — Fair Work Ombudsman · accessed 12 October 2026
5. 5.Fair Work Act 2009 — sections 117, 118 and 123 (compilation C2026C00355 of 7 July 2026) — Federal Register of Legislation · accessed 12 October 2026
6. 6.General Retail Industry Award 2020 [MA000004] — Fair Work Ombudsman / Fair Work Commission · accessed 12 October 2026
7. 7.List of payments that are ordinary time earnings — Australian Taxation Office · accessed 12 October 2026