The minimum notice table
| Continuous service | Minimum notice | Over 45 with 2+ years |
|---|---|---|
| 1 year or less | 1 week | n/a |
| More than 1 up to 3 years | 2 weeks | 3 weeks (from 2 years) |
| More than 3 up to 5 years | 3 weeks | 4 weeks |
| More than 5 years | 4 weeks | 5 weeks |
These are minimums. An award, enterprise agreement or contract can provide more notice than the NES. Notice has to be given in writing, and the employer can let you work it, pay it out, or combine the two.
What pay in lieu of notice must include
If the notice is paid out, the payment must equal the full amount you would have been paid had you worked to the end of the notice period. That includes:
- Incentive-based payments and bonuses
- Loadings
- Monetary allowances
- Overtime
- Penalty rates
- Any other separately identifiable amounts
This is the opposite of redundancy pay, which is calculated on the base rate for ordinary hours and excludes incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates. The employer must pay it before or on the day of termination; that is an NES requirement, not a matter of award timing.
A worked example
A 52-year-old with 7 years' service, on $1,600 a week base plus about $200 a week in regular penalty rates, is dismissed (not for misconduct). Notice: 4 weeks for more than 5 years, plus the over-45 week = 5 weeks. Paid in lieu, that is 5 × $1,800 = $9,000, not $8,000 on base pay alone. Super guarantee of 12% applies on top: $1,080.
Who isn't entitled to notice
Under the NES, notice of termination doesn't apply to:
- Casual employees
- Employees engaged for a specific period, season or task
- Employees dismissed for serious misconduct
- Trainees on a set-period training arrangement (apprentices are not excluded)
- Daily hire employees in building and construction or the meat industry, and seasonal weekly hire in the meat industry
Leave during the notice period
- Leave keeps accruing for time worked during the notice period; it stops if the notice is paid out.
- An employer cannot force an employee to take leave as part of the notice period.
- Leave and public holidays during the notice period do not extend it.
When you resign
The NES table above is about notice an employer gives. When you resign, the notice you owe comes from your award, enterprise agreement or employment contract. Casual employees don't have to give notice.
If you leave without giving the award notice, most awards let the employer deduct up to 1 week's wages from your final pay, but only if you are 18 or over and the deduction isn't unreasonable. The employer can't take it out of your leave entitlements.
How pay in lieu of notice is taxed
On a genuine redundancy, the ATO treats pay in lieu of notice as part of the genuine redundancy payment, so it counts toward the tax-free limit. On other terminations, such as a dismissal that isn't a redundancy, it is an ordinary employment termination payment and is withheld at ETP rates. The final pay calculator applies the right treatment for your exit.
Frequently asked questions
Is pay in lieu of notice calculated on my base rate?
No. It must equal the full amount you would have been paid if you had worked the notice period, so it includes loadings, allowances, overtime, penalty rates and bonuses you would have earned. That is different from redundancy pay, which uses the base rate only.
Can my employer make me use annual leave for my notice period?
No. The Fair Work Ombudsman says an employer can't force an employee to take leave as part of the notice period. Leave and public holidays that fall during notice also don't extend it.
Do I keep accruing leave during my notice period?
Yes, for any time you work during the notice period. If the notice is paid out instead, accrual stops at the termination date.
Do I have to give notice when I resign?
The NES doesn't require it, but your award, enterprise agreement or contract usually does. Casuals don't have to give notice.
Is super paid on pay in lieu of notice?
Yes. Pay in lieu of notice is qualifying earnings for super guarantee purposes, for every kind of termination, so 12% super applies from 1 July 2026.
Related
- Final pay calculator — notice, leave and redundancy together
- How age changes a redundancy payout — the over-45 week in context
- Unused annual leave on termination
Sources
Figures on this page come from the following primary sources. The date is when we last checked the page against the source.
- Notice and ending employment (dismissal) (Fair Work Ombudsman), checked 24 September 2026.
- Who doesn't get notice (Fair Work Ombudsman), checked 24 September 2026.
- Resignation (Fair Work Ombudsman), checked 24 September 2026.
- Final pay (Fair Work Ombudsman), checked 24 September 2026.
- Redundancy pay and entitlements (Fair Work Ombudsman), checked 7 August 2026.
- What payments are qualifying earnings (ATO), checked 24 September 2026.
- Genuine redundancy payments (ATO), checked 10 August 2026.
- Schedule 11: tax table for employment termination payments (ATO), checked 7 August 2026.
Independent guide — not a government service, and not financial, legal or tax advice.