Notice Period in Australia 2026: NES, Redundancy & Rules

The minimum notice period in Australia ranges from 1 to 5 weeks, based on the employee’s length of continuous service and age. These are the statutory minimums set by the National Employment Standards (NES) under the Fair Work Act 2009. Employees aged 45 or over with at least 2 years of continuous service are entitled to an additional week of notice on top of the standard tenure-based scale.

The NES notice framework applies to all non-casual employees covered by the national workplace relations system. Modern awards, enterprise agreements, and individual employment contracts may provide longer notice periods than the NES minimums but cannot reduce them. For international employers hiring in Australia through an Employer of Record (EOR), correctly calculating notice is one of the more common compliance pitfalls, particularly for redundancy terminations where notice pay and redundancy pay both apply on top of each other.

This 2026 guide covers Australia’s notice period rules in full: the NES tenure scale, the over-45 additional week, payment in lieu, when notice does not apply, how notice interacts with redundancy pay and unfair dismissal claims, and what international employers using an EOR in Australia need to budget for termination costs.

Under section 117 of the Fair Work Act 2009, the minimum notice period an employer must give when terminating a permanent employee is determined by the employee’s period of continuous service:

The over-45 rule is a critical detail that many international employers miss. An employee aged 45 or older who has worked for the employer for at least 2 years of continuous service is entitled to one additional week of notice on top of the tenure-based scale. This means the maximum statutory notice period under the NES is 5 weeks (4 weeks for more than 5 years of service, plus 1 week for being 45+ with 2+ years of service).

Casual employees are not entitled to notice under section 117 of the Fair Work Act. However, if a casual employee is covered by a modern award or enterprise agreement that specifies notice requirements for casual shift cancellations or roster changes, those obligations may still apply. The NES also specifies that notice can be given either by delivering written notice personally to the employee or by leaving it at their known residential address.

Employers in Australia can choose to end employment immediately and pay salary in lieu of notice, rather than requiring the employee to work through the notice period. This is a common approach, particularly when the employer wants to avoid workplace disruption, protect client relationships, or reduce data security risks during the transition.

How payment in lieu works in Australia:

• Employer terminates effective immediately and pays the equivalent of the required notice period as a lump sum
• Payment is calculated on the employee’s ordinary time earnings, which include base salary plus any regular bonuses or allowances
• Payment must cover the full NES minimum notice plus any additional notice required by the award, enterprise agreement, or contract
• Annual leave does not accrue during a paid-in-lieu notice period (unlike a worked notice period where leave continues to accrue)
• Unused annual leave and long service leave must still be paid out as part of final pay

A common alternative is the combined approach: the employee works part of the notice period and the remainder is paid in lieu. This is legally permitted as long as the total (worked days + paid-in-lieu days) equals or exceeds the minimum notice obligation.

Public holidays and notice: Public holidays that fall during the notice period do not extend the notice period. If an employee on 2 weeks’ notice has a public holiday fall within that window, the end date of notice remains unchanged.

Several situations allow an Australian employer to terminate without providing notice under the NES. These are clearly defined in section 123 of the Fair Work Act, and employers must ensure any “no notice” termination genuinely falls within one of these categories. Misclassifying a termination as “serious misconduct” without supporting evidence is one of the most common triggers for successful unfair dismissal claims.

Serious misconduct is defined in regulation 1.07 of the Fair Work Regulations 2009 and includes wilful or deliberate behaviour inconsistent with the continuation of employment, causing serious and imminent risk to health, safety, or business reputation, theft, fraud, assault, being intoxicated at work, or refusing to carry out lawful and reasonable instructions.

Even in serious misconduct cases, employers must still pay all accrued entitlements including unused annual leave, long service leave, and any other amounts owing. Employers cannot withhold accrued entitlements as “punishment” for misconduct, regardless of the circumstances.

When terminating an employee for redundancy (the position is no longer required), the employer must pay both notice AND redundancy pay. These are separate entitlements under the NES and stack on top of each other. This is where many international employers underestimate the total cost of termination in Australia.

The maximum redundancy pay under the NES is 16 weeks (for 9-10 years of service). Employees with 10+ years receive only 12 weeks, reflecting the availability of long service leave for long-tenure workers.

Small business exemption: Employers with fewer than 15 employees at the time of termination are exempt from NES redundancy pay obligations. This applies to small businesses and any associated entities counted together. Notice obligations still apply regardless of employer size.

Total redundancy termination cost example (5 years of service, employee aged 40, weekly earnings AUD 2,000):

• Notice: 3 weeks × AUD 2,000 = AUD 6,000
• Redundancy pay: 10 weeks × AUD 2,000 = AUD 20,000
• Accrued annual leave (typical 3 weeks at termination): AUD 6,000
• Total: AUD 32,000 before tax

For the 2025-26 financial year, genuine redundancy payments are tax-free up to AUD 13,100 base plus AUD 6,552 per completed year of continuous service. Amounts above this are taxed as an Employment Termination Payment (ETP) at concessional rates.

Australia’s unfair dismissal regime is one of the most accessible in the developed world. Employees have just 21 days from the date of dismissal to lodge a claim with the Fair Work Commission. Unlike some countries where notice disputes are purely contractual, insufficient notice can trigger a broader unfair dismissal finding with significant compensation exposure.

An employee earning above the high income threshold is generally excluded from unfair dismissal protection, unless they are covered by a modern award or enterprise agreement. For example, a senior software engineer earning AUD 200,000 who is not under an award or enterprise agreement cannot bring an unfair dismissal claim.

The Fair Work Commission assesses dismissals against three tests from section 387 of the Fair Work Act: whether there was a valid reason related to capacity or conduct, whether the employee was notified of that reason, and whether the employee had an opportunity to respond. Procedural fairness is weighted heavily. Even if the underlying reason is valid, a procedurally flawed dismissal can be found unfair.

If the Commission finds the dismissal was unfair, the typical remedy is compensation (reinstatement is rare in practice). Compensation is capped at the lesser of 26 weeks’ remuneration or half the high income threshold. For 2025-26, this cap is AUD 91,550.

A common question from international employers is whether Australia’s notice framework is stricter or more lenient than their home country. Here’s how Australia compares to other major English-speaking hiring markets:

Compared to the United States, where most employment is at-will and terminations can happen without notice, Australia is significantly more regulated. However, Australia’s 5-week maximum statutory notice is lower than the UK (12 weeks) or Ireland (8 weeks). Where Australia is notably expensive is in the redundancy pay stacking: the combination of notice plus redundancy pay plus leave payout can easily reach 20+ weeks of salary for a long-tenure employee.

For companies comparing Asia-Pacific hiring destinations through an Employer of Record in Australia, the total termination cost is typically higher than New Zealand, the Philippines, or Singapore, but lower than Japan or South Korea, where termination is legally very difficult to execute.

Always calculate NES notice correctly before termination

Start with the NES minimum based on continuous service, add the over-45 extra week if applicable, then check whether the modern award, enterprise agreement, or individual contract specifies a longer period. The longest of these three applies. Getting this calculation wrong triggers unfair dismissal exposure.

Budget for notice PLUS redundancy pay in reduction scenarios

These are separate entitlements that stack. A 5-year employee redundancy costs approximately 3 weeks’ notice + 10 weeks’ redundancy pay + accrued leave = roughly 13-16 weeks total compensation. Factor this into all workforce reduction business cases.

Confirm your EOR or provider is applying the correct scale

The NES notice and redundancy scales are straightforward on paper but easy to miscalculate in practice, especially when combined with the over-45 rule. For ANZ-specific EOR providers, see our reviews of Employment Hero and APEO/NZPEO, both of which handle Australian payroll and terminations natively.

Document performance issues thoroughly if terminating for capacity or conduct

Australian courts expect a documented process: written warnings, performance improvement plans, witness statements, opportunity to respond. Without this paper trail, any non-redundancy termination carries high unfair dismissal risk. The 21-day claim window moves fast; your documentation must be complete before the termination letter is delivered.

Never attempt summary dismissal for borderline misconduct

If the evidence for serious misconduct is anything less than airtight, provide proper notice or pay in lieu and settle the matter quickly. The cost of a few weeks’ notice is trivial compared to a potential AUD 91,550 unfair dismissal compensation order plus legal fees.

Check the high income threshold for senior hires

For 2025-26, employees earning above AUD 183,100 who are not covered by an award or enterprise agreement are generally excluded from unfair dismissal protection. This is a meaningful shield for senior role terminations, but it does not affect NES notice or redundancy obligations.