Employers frequently mistakenly believe that notice requirements are limited to periods specified in section 117 of the Fair Work Act 2009 (Cth), applicable Awards, or enterprise agreements. However, contractual obligations and any modifications to employment agreements must also be considered.
Written Contracts with Clear Notice Clauses
When an employment contract explicitly states a notice period, employers should:
- Verify whether the contract terms have changed since execution, as modifications may alter notice obligations
- Compare the contractual period against Fair Work Act minimums, Awards, and industrial agreements – whichever period is longest applies
Absence of Written Contracts or Notice Specifications
Courts typically imply a “reasonable notice period” into contracts lacking explicit notice terms. In the case Ostle v Wilson Mining Pty Ltd, a terminated employee received entitlement to six months’ notice – a financial burden potentially threatening small and medium-sized business viability.
Recommended Actions
Prevention is preferable to costly disputes. Organisations should:
- Establish clear, written employment agreements specifying mutual notice obligations for all staff members
- Update contracts as employees progress to senior positions rather than relying on initial agreements
- Seek professional advice before terminating employment to identify potential financial and legal risks
For assistance understanding termination notice obligations, contact Morgan Couzens Legal at (03) 5722 4681.
The information provided in this article is produced for guidance purposes only and is not legal advice. The information contained in this article is based on the current state of the law at the time of writing. The law may have changed since this article was written.
Morgan Couzens Legal does not accept liability for any loss or damage arising from reliance on the content of this or any article produced by Morgan Couzens Legal. Liability is limited by a scheme approved under Professional Standards Legislation.
Legal advice should be sought for your individual circumstances. For advice tailored to your individual circumstances, please contact us by telephone on (03) 5722 4681.