When an employee leaves your employment, they may have to work a notice period or lose some of their final pay. It all depends on whether they are covered by an award, agreement or employment contract. You will need to know what terms apply.
Many awards say that if an employee gives 4 weeks’ notice but only works 2 weeks, for example, you are allowed to withhold 2 weeks’ pay from their final pay. Some agreements have similar provisions if the employee fails to work the required notice.
One exception to the rule is when notice is given because of redundancy. Many awards say your employee can leave at any time during notice of redundancy, without losing any pay.
When your employees are not covered by award or agreement, they have no legal obligation to work a period of notice. If they fail to work a period of notice, you cannot withhold their pay unless it is stated in their employment contract. As long as the contract has terms about notice, you may be able to enforce that notice or withhold pay from an employee who has not worked that notice. Or you could sue them for breach of contract.
Employsure will advise you how to legally approach notice not worked. For peace of mind, please call our 24 hour Advice Line now on 1300 651 415.