Quick Summary
Quick Summary
- Notice periods under NES range from 1 week to 4 weeks, plus 1 extra week for employees 45+ with 2+ years service
- Written notice must clearly state the employee’s last day of employment; email is acceptable
- Redundancy pay (up to 16 weeks) is separate from notice and only applies to genuine redundancies
- Missing NES notice requirements triggers automatic unfair dismissal claims with $10k–$40k+ compensation
- Pay in lieu of notice (PILON) is optional unless the employee agrees or an award permits it
When you need to end an employee’s employment, you must follow the National Employment Standards (NES) notice requirements or face claims of wrongful dismissal and potentially significant payouts. The rules sound simple on the surface—weeks of notice based on how long someone’s worked—but enforcement is strict and timing mistakes are one of the most common triggers for Fair Work Commission complaints.
Here’s what every employer needs to know about notice periods, who gets what, how the age uplift works, and what happens if you get it wrong.
What Is Notice of Termination Under NES?
Getting notice periods right is core termination of employment compliance — see also our guide on employment records retention for how long you need to keep the paperwork.
The National Employment Standards require employers to provide written notice when terminating an employee’s employment, under the Fair Work Act 2009 (Cth).
NES Notice Period Minimums — The Legal Table
Length of employment determines notice period:
- 1 year or less: 1 week’s notice
- More than 1 year but not more than 3 years: 2 weeks’ notice
- More than 3 years but not more than 5 years: 3 weeks’ notice
- More than 5 years: 4 weeks’ notice
- Age 45+ AND employed 2+ years: 4 weeks + 1 additional week (5 weeks total minimum)
How to Give Notice Correctly
Written notice requirement: Notice must be in writing. Email is fine. Text message is not. You must clearly state:
- The employee’s last day of employment (be specific: “Your employment will end on Friday, 1 August 2026”)
- That it is notice of termination
- The reason (optional, but recommended for audit trail purposes)
The Age Uplift — The 45+ Rule
If an employee is aged 45 or over AND has completed at least 2 years of service, they are entitled to an additional 1 week of notice beyond the standard period.
Example: An employee is 46, employed since 2020 (6 years). Standard notice for 6+ years = 4 weeks. Age 45+ uplift = +1 week. Total = 5 weeks’ notice.
Important: This isn’t automatic in every award or contract. However, it’s an NES minimum, so it applies to all employees unless they’re specifically excluded (e.g., some non-national system employees). Confirm with Fair Work Ombudsman if unsure about your industry.
Employers often miss this uplift. Giving a 56-year-old employee with 3 years’ service only 3 weeks’ notice when they should get 4 weeks can trigger an unfair dismissal claim.
Key Takeaways
Key Takeaways for Employers
- ✓Calculate notice from the hire date to termination notice date using the standard NES table (1–5 weeks)
- ✓Always issue written notice by email or in person; verbal notice is not sufficient
- ✓Remember: Age 45+, 2+ years service = standard notice + 1 additional week
- ✓Redundancy pay and notice are separate—both apply if genuine redundancy occurs
- ✓PILON requires written employee agreement; if refused, you must follow the full notice period
- ✓Improper notice can trigger unfair dismissal claims costing $5k–$15k in legal fees plus compensation
Fair Work Centre
Need employment law advice specific to your situation?
Our employment lawyers advise employers only — no call centres, no generalists. Get straight answers from people who know the Fair Work Act inside out.
Redundancy Pay vs. Notice — The Key Difference
Employers frequently confuse notice with redundancy pay. They are separate obligations:
- Up to 16 weeks based on length of service (4 weeks per year for first 3 years, then 2 weeks per year thereafter, capped at 16 weeks)
- Separate from notice—you still must give notice
- Only payable for permanent employees; casuals get none unless their award requires it
- Payable in full by the employee’s last day or within a reasonable time after
What Happens If You Don’t Give Proper Notice?
Giving insufficient notice or no notice at all exposes you to:
- Unfair dismissal claim: If notice is less than the NES minimum, the dismissal is automatically unfair (unless there’s a valid reason for instant dismissal, e.g., serious misconduct). Fair Work Commission can order reinstatement or compensation up to 26 weeks’ pay.
- General protections claim: If the dismissal involves discrimination, adverse action, or other protected conduct, it’s a separate claim with different remedies.
- Damages: Beyond Fair Work remedies, you can face common law damages for breach of contract.
- Reputational damage: Employees talk. Firing someone without proper notice gets around. It affects recruitment and retention.
Pay in Lieu of Notice (PILON) — When It Works and When It Doesn’t
Pay in lieu of notice (PILON) means paying the employee out and ending employment immediately instead of having them work out their notice period.
- The employee agrees to PILON, you can end their employment immediately and pay them for the notice period in one lump sum
- An award or enterprise agreement permits PILON, you can enforce it (but confirm the exact wording)
- There’s a risk to the business (e.g., a departing senior person with access to customer data), PILON is often the safer route
Casual Employees & Fixed-Term Contractors
Casual employees: The NES notice rules apply. A casual with 6 months’ service getting terminated must receive 1 week’s notice. However:
- Casuals don’t get redundancy pay (unless their award requires it)
- Notice is often shorter given typically shorter service
- The age uplift (45+, 2 years) applies if they meet the criteria
Common Mistakes That Cost Employers Money
- Not counting service correctly: count from hire date to termination date — all service counts, including probation and part-time.
- Giving verbal notice only: always written and documented — a manager saying “you’re out” in a meeting isn’t sufficient.
- Forgetting the 45+ uplift: missed on roughly 40% of terminations involving older workers.
- Confusing notice with redundancy pay: you give notice AND pay redundancy if it’s a genuine redundancy.
- Offering PILON without agreement: if the employee rejects it, you must still follow the notice period.
- Fair Work Act s.385(2): notice can be reduced by agreement, but never below the NES minimum, unless serious misconduct triggers instant dismissal.
- Putting the wrong last day in writing: if you write “ends 25 July” but mean 24 July, the employee is entitled to 25 July.
Frequently Asked Questions
Under the National Employment Standards, an employee with more than 1 year but not more than 3 years of service must receive 2 weeks’ notice of termination. If that employee is 45 or older and has completed at least 2 years of service, they receive an additional 1 week, making the total 3 weeks. The notice period runs from the date the written notice is received by the employee.
No notice is required if the employee agrees to pay in lieu of notice (PILON) in writing. However, PILON is voluntary—if the employee doesn’t accept, you must give the full notice period and they keep working (or you can place them on paid leave). Many awards and enterprise agreements allow PILON under specific conditions, but NES does not mandate it. Always get written consent before ending employment early via PILON.
Notice is the advance warning period the employee receives before their employment ends (1–5 weeks depending on service). Redundancy pay is a lump sum payment for genuine redundancy only, based on length of service (up to 16 weeks). Both are separate NES entitlements. If you make a genuine redundancy, you must give both the notice period AND pay the redundancy entitlement.
Yes. A casual employee is still an employee under the Fair Work Act and must receive notice of termination based on their length of service, using the same NES minimums as permanent employees. However, casual employees do not receive redundancy pay unless their modern award requires it. Always check your industry award to confirm.
Service is continuous from the employee’s start date to the date notice is issued, including all periods of employment. Unpaid leave generally does not break continuity of service, but extended periods (e.g., more than a few months) may. The safest approach is to count calendar time from hire date to termination notice date and seek confirmation from the Fair Work Ombudsman if there are gaps or absences over a year.
Notice of termination must be in writing under NES. Email is acceptable. Verbal notice is not sufficient and can lead to disputes and unfair dismissal claims. Always follow up any verbal conversation with a formal written notice clearly stating the last day of employment. Keep a copy for your records.
If you terminate an employee without meeting the NES notice requirements, the dismissal is automatically unfair (unless there’s a valid reason for summary dismissal, such as serious misconduct). The employee can lodge an unfair dismissal claim with the Fair Work Commission. Remedies include reinstatement or compensation of up to 26 weeks’ ordinary wages, plus legal costs.
Under NES, an employee aged 45 or older who has completed at least 2 years of service is entitled to an additional 1 week of notice beyond the standard notice period. This is a minimum entitlement that applies across the national workplace relations system. However, some state-based or award-specific rules may apply differently—confirm with the Fair Work Ombudsman if unsure about your industry or state.
Yes. During the notice period, the employee is still employed and must be paid their ordinary wages for their ordinary hours of work, unless they’re on approved leave (e.g., annual leave). Alternatively, you can place them on paid leave during their notice period (often called ‘garden leave’) if your contract or award permits. They must be paid either way.
Once you’ve issued notice, the employee cannot simply leave early without permission. They must work out the notice period you’ve specified (or until their stated last day). However, if they breach their contract by leaving early, you can pursue damages (though rarely worthwhile). If you want them to leave immediately, negotiate pay in lieu of notice and get written agreement.
Join Fair Work Centre
Protect your business with the right HR support.
Join hundreds of Australian employers who rely on Fair Work Centre for employment law advice, HR documents, and Fair Work Commission representation.
Related Guides for Employers
