Termination & Notice Periods: SCHADS Award
When employment ends, both employers and employees must adhere to specific notice periods set by the National Employment Standards (NES) under the Fair Work Act and reflected in the SCHADS Award. Termination is also one of the most scrutinised areas in a Fair Work audit — the burden of proof on payment of accrued entitlements and correct notice lies squarely on the employer.
Quick Facts
- Not more than 1 year
- 1 week notice
- 1 to 3 years
- 2 weeks notice
- 3 to 5 years
- 3 weeks notice
- More than 5 years
- 4 weeks notice
- Over 45 + 2yrs service
- +1 additional week
- Casuals
- No statutory notice period
Tools & Resources
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Notice Period Table (NES + SCHADS)
The notice an employer must give a permanent (full-time or part-time) employee on termination is set by the National Employment Standards:
**Not more than 1 year of service:** 1 week
**1 to 3 years:** 2 weeks
**3 to 5 years:** 3 weeks
**More than 5 years:** 4 weeks
These periods apply regardless of award stream — SACS, SIL, home care or aged care all share the NES minimum.
**Not more than 1 year of service:** 1 week
**1 to 3 years:** 2 weeks
**3 to 5 years:** 3 weeks
**More than 5 years:** 4 weeks
These periods apply regardless of award stream — SACS, SIL, home care or aged care all share the NES minimum.
Notice Period for Employees over 45
If an employee is **over 45 years old** at the time of termination AND has completed at least **2 years of continuous service**, they are entitled to an **additional 1 week of notice** from the employer on top of the base period above.
So a 47-year-old worker with 4 years of service is entitled to 3 weeks (the 3–5 year tier) + 1 week (the over-45 loading) = **4 weeks** of notice. The +1 week only applies to employer-initiated termination, not to resignation.
So a 47-year-old worker with 4 years of service is entitled to 3 weeks (the 3–5 year tier) + 1 week (the over-45 loading) = **4 weeks** of notice. The +1 week only applies to employer-initiated termination, not to resignation.
Withholding Pay on Resignation
If an employee aged 18 or over fails to give the required notice when resigning, clause 11.1(d) of the SCHADS Award allows employers to **withhold monies from their final pay** — but the deduction is capped at **no more than one week's wages**, regardless of how many weeks' notice the employee owed.
This is a permissive provision, not a mandatory one — an employer is not required to deduct, and many waive it for amicable departures. No deduction can be made if the employer agreed to a shorter notice period (cl.11.1(e)), and any deduction must not be unreasonable in the circumstances (cl.11.1(f)).
This is a permissive provision, not a mandatory one — an employer is not required to deduct, and many waive it for amicable departures. No deduction can be made if the employer agreed to a shorter notice period (cl.11.1(e)), and any deduction must not be unreasonable in the circumstances (cl.11.1(f)).
Notice in Lieu and Payment
An employer can pay out the notice period instead of having the employee work it. Payment in lieu must equal what the employee would have earned over the notice period at the rate they would have been paid — including any guaranteed shift premiums or rostered overtime they would have worked.
For employees nearing a service anniversary, timing matters: terminating one day before a 1-year, 3-year or 5-year anniversary moves the employee into a higher notice tier. Fair Work and the courts treat manoeuvres designed purely to avoid a higher notice tier as a serious matter.
For employees nearing a service anniversary, timing matters: terminating one day before a 1-year, 3-year or 5-year anniversary moves the employee into a higher notice tier. Fair Work and the courts treat manoeuvres designed purely to avoid a higher notice tier as a serious matter.
Casual Termination
Casual employees do not have a statutory notice period under the NES or the SCHADS Award and can end employment — or have employment ended — immediately, although a courtesy notice is standard practice. Casual conversion rights under the Fair Work Act may apply where a casual has been engaged on a regular and systematic basis; those rights are separate from termination notice.
Record-keeping and audit exposure
Termination is one of the highest-evidence areas of a Fair Work audit. Inspectors request records of: the notice given, the dates of continuous service used to calculate the tier, payment of accrued annual leave on termination, any payment in lieu, and any deductions made for shortfall in employee notice.
Employers are legally required to keep time-and-wages records for 7 years, and underpayments can generally be recovered for up to 6 years. Fair Work Act penalties are set in Commonwealth penalty units (currently $330 each, from 7 November 2024): standard maximums reach $99,000 per contravention for a company and $19,800 for an individual; for serious contraventions the company maximum is far higher — up to $4,950,000 (raised fivefold under the 2024 Closing Loopholes reforms), with individuals up to $198,000, or for wage underpayments a court can instead order up to three times the underpayment. Termination errors that turn into back-pay claims often discover other compliance gaps — incorrect classification, missed allowances, untriggered overtime — which is why a tidy termination process matters beyond the single final pay run.
Employers are legally required to keep time-and-wages records for 7 years, and underpayments can generally be recovered for up to 6 years. Fair Work Act penalties are set in Commonwealth penalty units (currently $330 each, from 7 November 2024): standard maximums reach $99,000 per contravention for a company and $19,800 for an individual; for serious contraventions the company maximum is far higher — up to $4,950,000 (raised fivefold under the 2024 Closing Loopholes reforms), with individuals up to $198,000, or for wage underpayments a court can instead order up to three times the underpayment. Termination errors that turn into back-pay claims often discover other compliance gaps — incorrect classification, missed allowances, untriggered overtime — which is why a tidy termination process matters beyond the single final pay run.
Common Questions
Frequently Asked Questions
- Can notice be paid out in lieu?
- Yes. An employer can choose to pay out the notice period instead of having the employee work it. Payment in lieu must equal what the employee would have earned over the notice period, including any rostered shift premiums or overtime they would have worked.
- What is the notice period for casuals?
- Casual employees do not have a required notice period under the NES or SCHADS Award and can end employment — or have it ended — immediately. Casual conversion rights are a separate question.
- How much notice does a 50-year-old with 6 years of service get?
- 5 weeks: 4 weeks for the over-5-years tier plus 1 additional week for being over 45 with at least 2 years of continuous service.
- Can the employer deduct unpaid notice from my final pay if I quit without notice?
- Yes — clause 11.1(d) allows it, but the deduction is capped at **no more than one week's wages**, no matter how much notice you owed (and only if you are 18 or over). It is permissive, not mandatory, no deduction applies if a shorter notice period was agreed, and any deduction must not be unreasonable.
- How far back can Fair Work audit my termination records?
- Under the Fair Work Act, employers must keep time and wages records for 7 years, and Fair Work can audit the full record-keeping period.
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