Notice & Final Pay

How much notice is required?

Under the Fair Work Act, employers must give minimum written notice based on the employee's length of continuous service:

Employees over 45 who have completed at least 2 years of continuous service are entitled to one additional week on top of the above.

These are minimums. Your award, enterprise agreement, or contract of employment may require longer notice — always check your industrial instrument(s) first.

For employees covered by state industrial systems, notice entitlements are governed by the applicable state award or legislation, which may differ.

How notice must be given

An employer can give notice to an employee by:

• 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, ro
• Sending it electronically (email or text) if the employee agrees.

Employment cannot end on a date earlier than the day notice is given.

Can notice be paid out instead of worked?

Yes. An employer can let the employee work through their notice period, pay it out (payment in lieu of notice), or a combination of both. If paying out notice, the amount must equal what the employee would have earned had they worked the full notice period — including incentive payments, bonuses, loadings, allowances, overtime, and penalty rates.

When pay in lieu of notice is made, employment ends on the date of payment. The employee does not continue to accrue entitlements (such as annual leave) during a paid-out notice period.

What about employees who resign?

Employees resigning should check their award, enterprise agreement, or contract for any notice obligations. Sometime employers have terms or clauses to deduct amounts from final pay for notice not made.

Notice of resignation is often given verbally unless theres an agreement otherwise, written notice is preferable.

No notice for serious misconduct

If an employee is dismissed for serious misconduct, the employer is not required to give notice or pay in lieu.

However, all other outstanding entitlements must still be paid. Serious misconduct includes theft, fraud, assault, sexual harassment, serious safety risks, or refusing a lawful and reasonable instruction. The threshold is high — if you're unsure whether a dismissal qualifies, get experienced help.

What must be in final pay?

On termination, an employee is generally entitled to be paid:

• Outstanding wages for all time worked
• Accrued annual leave (including annual leave loading, if applicable) — this is always paid out on termination, regardless of the reason for ending employment
• Payment in lieu of notice, if applicable
• Redundancy pay, if applicable
• Long service leave — whether this is paid out, and how much, depends on your state or territory's long service leave legislation and the reason for termination

Importantly, accrued personal/sick leave is not paid out on termination under the national system or normally under any State system. This is a common misconception.

⏰ When must final pay be made?

Final pay must be made as soon as practicable after employment ends. Some awards and enterprise agreements specify that it must be paid on the last day of work — check your industrial instrument. It should never be later than the pay date for the pay period in which it occurs (i.e. you usualy next pay-date). 

Think something's been underpaid or miscalculated – or its taking too long?

Notice & Final Pay claims can sometimes include entitlements an employer overlooks. Getting help for a check is usually worthwile.

Are you already a subscriber?

Lodge a Member Support Form and our industrial team will assess whether unfair dismissal, general protections, or another pathway is right — and whether your claim falls under federal or state law.

→ Log in at member.redunion.com.au → find "Get Help?" → click "Member Support Form".

Not a member?

We can't assist with pre-existing issues, but if you'd like to understand your options going forward, you can try to book a 20-minute chat with our team. Please note this is a general overview of what might be available should you join — it is not industrial advice.

It's best to have your membership active in case a circumstance arises.

Ready to join?

To sign-up directly via the sign-up form: 

1. Visit the signup form relevant to your industry (Nursing / Midwifery | Allied Health | Education | Officer | Other | New Zealand);
2. Tick "Yes" when prompted about pre-existing issues;
3. Wait for the onboarding emails after that's received –>
4. You can fill in an Member Support Form (be sure to tick "Yes" to the pre-existing question – our teams expect honesty on forms).

Good to Know

Long service leave varies significantly by state Long service leave is governed entirely by state and territory legislation — there is no single national standard. How much you're entitled to, when you become eligible, and whether it's paid out on termination (and in what circumstances) all depend on where you work. Our industrial team can identify the rules for your jurisdiction.

Awards and agreements often give more The notice periods above are statutory minimums. Many awards and enterprise agreements provide longer notice periods, particularly for more senior employees or longer-serving staff. Your contract may also provide additional entitlements — always check your industrial instrument before assuming the minimum applies.

Probation periods Employees dismissed during a probation period are still entitled to notice based on their length of service. Probation does not eliminate the notice obligation (though its usually only around 1 week).

Needs updating?

Please let our team know if this article seems out of date — we're always looking to improve.