The following information is only relevant to employers and employees in the national fair work system and is intended as a guide only.
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Ending Employment
Employment can end for many reasons. An employee may resign, or they could be dismissed by their employer. In either case, it is important to follow the rules about ending employment, notice and final pay. There are also different rights and obligations when a job is made redundant. See the Fair Work Ombudsman for an overview on ending employment:
Resignation:
When an employee resigns, they may have to give notice to their employer. An employee’s award, or employment contract may set out how much notice (if any) they need to give when they resign. See the following link for further information:
https://www.fairwork.gov.au/ending-employment/notice-and-final-pay/resignation-and-notice
Dismissal:
When an employer dismisses an employee, they must give them notice. If an employee is covered by an award, the award sets out the minimum notice period. See the following link for further information:
https://www.fairwork.gov.au/ending-employment/notice-and-final-pay/dismissal-and-notice
Notice and Final Pay
If the employer pays out the notice period, the employee’s employment ends on the date that payment in lieu of notice is made. The amount paid to an employee must equal the full amount the employee would have been paid if they had worked until the end of the notice period. This includes incentive-based payments and bonuses, loadings, monetary allowances, overtime, penalty rates and any other separately identifiable amounts. See the following link for further information:
https://www.fairwork.gov.au/ending-employment/notice-and-final-pay