When employment is to be terminated, written notice must be provided by either the employee or employer and a notice period is to be served. The notice period is dependent on the employee’s years of continuous service as below:

Period of Continuous Service Minimum Notice Period
1 year or less 1 week
More than 1 year – 3 years 2 weeks
More than 3 years – 5 years 3 weeks
More than 5 years 4 weeks

Note: Employees over 45 years of age who have completed at least 2 years of continuous service when they are dismissed by the employer are given an additional week of notice (does not apply to resignations).

If the notice of termination was made during their shift, then the notice period begins on the next day.

 Pay in lieu of notice

Should an employer choose not to have the employee serve their notice period, they have the option of paying the employee instead of giving notice. This is known as pay in lieu of notice, and is paid at the employee’s full pay rate as if they had worked the minimum notice period. The full pay rate includes:

  • Incentive-based payments and bonuses
  • Loadings
  • Monetary allowances
  • Overtime or penalty rates
  • Any other separately identifiable amounts

If an employee, who is at least 18 years of age, chooses not to serve their notice period, the employer has the right to deduct a maximum of one (1) weeks’ wages, from any outstanding wages owing to the employee in their final pay. However, this cannot be deducted from any accrued leave entitlement owing, such as unused annual leave.

Deductions cannot be taken from employees under 18 years of age, unless their parent or guardian has agreed in writing.