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 fails to give the required notice when resigning, the SCHADS Award allows employers to **withhold monies from their final pay**. The amount withheld cannot exceed the amount the employee would have been paid for the notice period (minus any annual leave entitlements owed to them).
This is a permissive provision, not a mandatory one — an employer is not required to deduct, and many waive it for amicable departures. Where a deduction is made it must be calculated against the notice the employee owed, not punitive.
This is a permissive provision, not a mandatory one — an employer is not required to deduct, and many waive it for amicable departures. Where a deduction is made it must be calculated against the notice the employee owed, not punitive.
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.
Fair Work can audit records going back 7 years under the Fair Work Act, and employers are legally required to keep time-and-wages records for this period. Penalties under the Fair Work Act can reach $93,900 per contravention for a company and $18,780 per contravention for an individual; serious contravention penalties are ten times higher. 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.
Fair Work can audit records going back 7 years under the Fair Work Act, and employers are legally required to keep time-and-wages records for this period. Penalties under the Fair Work Act can reach $93,900 per contravention for a company and $18,780 per contravention for an individual; serious contravention penalties are ten times higher. 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 — the SCHADS Award allows it, capped at the amount you would have been paid for the notice period (minus annual leave owed). It is permissive, not mandatory, and any deduction must reconcile to the notice you actually owed.
- 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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