Employees must be given proper notice before they are dismissed (except in cases of serious misconduct or where payment in lieu of notice is given to the employee).
The period of notice depends on how long an employee has been employed.
The Industrial Relations Act 1999 (PDF, 1.9MB) specifies the following minimum notice periods to be given by an employer to an employee. If an employee is covered by an award or agreement that provides for notice period less than that contained in the Act, then the notice period prescribed by the Act must be given if that employee is dismissed.
| Period of continuous service | Notice Period |
| 1 year or less | 1 week |
| More than 1 year but not more than 3 | 2 weeks |
| More than 3 years but not more than 5 | 3 weeks |
| More than 5 years | 4 weeks |
If an employee is over 45 and has at least two years continuous service with the employer, the minimum notice period is increased by one week.
Instead of having an employee work the notice period, the employer can choose to pay wages in lieu of notice. To do this the employer must pay the employee the amount of wages they could have expected to earn had they continued to work during the notice period.
The Act contains specific provisions relating to apprentices and trainees. The employment of an apprentice or trainee may be terminated during the probationary period by the employer giving the apprentice or trainee one week's notice.
Under the Industrial Relations Act 1999 (PDF, 1.9MB) some employees are not entitled to the notice provisions of the Act. These are:
Even though employers of these employees are excluded from the requirements to give notice of dismissal under the Act, their award or agreement may specify that notice must be given to them. In such cases employers must comply with the provisions of the relevant award or agreement.
Yes. If an employee engages in misconduct serious enough that it is unreasonable for the employer to continue the employment, the employee may be dismissed instantly. The Act defines misconduct as including theft, assault and fraud.
Each instance of alleged misconduct should be investigated and considered on its own merits to determine whether instant dismissal is warranted.
View our Other Reasons for Dismissal resource page for further information on misconduct.
When a business changes hands (e.g. is sold) and the new employer continues to employ the existing employee, the service with the previous employer is transferred to the new employer.
If such a 'transferred' employee is later dismissed the, new employer is required to give notice for the total period of service that the employee had with both old and new employers.
However, if the previous employer gave notice or payment in lieu at the time of the transfer, only service with the new employer is taken into account in calculating a later period of notice.
The Act sets down minimum periods of notice for dismissal. The amount of notice an employee must give when resigning from employment is governed by their award or agreement and may differ from the notice of dismissal periods in the Act (e.g. the amount of notice in an award or agreement may be a set period of two days or one week which does not increase because of the length of service).
For those employees not covered by any award or agreement the amount of notice for resignation should be a period agreed with their employer.
The Act provides that any Award or Agreement (Federal or State) made after 1 September 2005 requires that an employee must give to an employer 1 week's notice to terminate their employment, unless the Award or Agreement provides otherwise.
The Act contains specific provisions relating to apprentices and trainees. The employment of an apprentice or trainee may be terminated during the probationary period by the apprentice or trainee giving the employer one week's notice.
Employees should understand their rights and responsibilities, as set out in the legislation and in any awards or agreements that apply to them.
It is also important to establish an understanding with the employer about acceptable work standards. It is important that both parties abide by these agreed standards.
Employees should ensure they understand:
An employer and employee may agree to either end the employment contract without the employee working the required notice period or agree to a shorter period of notice. Instead of having an employee work the notice period, the employer can choose to pay wages in lieu of notice. To do this the employer must pay the employee the amount of wages the employee could have expected to earn had they continued to work during the notice period.
Example 1
If an employee resigns and fails to give the required notice, or a shorter period of notice has been agreed between the employer and the employee, the employer has the right to withhold monies due to the employee equal to the ordinary time rate for the period of notice. (i.e. If the employee was required to give 1 weeks notice and only gave 2 days notice, then the employer can withhold the equivalent of three ordinary days pay).
Entitlements such as long service leave and annual leave due are payable on termination. Where an employee resigns without giving the required notice, employers are also given the right in the Act to make deductions, as authorised by the relevant industrial instrument, from any wages owing to the employee.
Example 2
If an employer dismisses an employee who is, over 45 years of age, has more than 5 years continuous service and the dismissal was not due to serious misconduct or other grounds constituting instant dismissal, the employer is required to pay the employee 5 weeks pay (i.e. 4 weeks notice + 1 week for being over 45 years with more than 2 years continuous service).
Notice is not extended because a public holiday occurs during the period of notice. A public holiday is treated as an ordinary day when calculating the period of notice.
An employer cannot instruct an employee to take annual leave during a notice of termination period. Annual leave cannot be counted as or form part of notice. Notice can be given by the employer whilst the employee is on annual leave, however the notice will not commence until the employee returns to work after taking the annual leave.
In a situation where notice has been given and this notice extends into an annual leave period the notice will cease while the employee is on annual leave and recommence when the annual leave concludes.
Alternatively an employee is entitled to give notice whilst on annual leave provided that an industrial instrument has no provision in relation to notice forming part of the annual leave. If the required notice is in excess of the period of annual leave, the employee may lose part payment in lieu of the appropriate notice not being given or the employee may return to work for the balance of the notice to which the employer is entitled.
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Dismissal from employment: